DETERMINANTS OF CAPITAL STRUCTURE: EMPIRICAL EVIDENCE FROM SLOVAKIA

The study analyses determinants of capital structure and capital structure theories - pecking order theory and trade-off theory. The main objective is to investigate which determinants influence capital structure and subsequently which model describes financing decisions in Slovak Republic better. The authors used panel data of 1,100 non-financial companies from Slovakia in the period of 6 years from 2002 to 2007. Results prove the trade-off theory to be more exact in Slovak conditions.