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Are Corporate Financing Policies Different in Old and New EU Member States?

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Contemporary Trends and Challenges in Finance

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Abstract

The research aim is to verify whether and how corporate capital structure and its determinants vary between the old and new EU member states. The empirical research based on the BACH-ESD database provided by the European Commission covers private firms from 12 countries in the period 2000–2017. Apart from considering the length of EU membership, a number of firm-specific determinants and industry features are captured in order to identify the main differences in corporate financing patterns. The methods employed include analysis of variance as well as panel data modelling performed on the two subgroups of countries. Findings reveal that although corporate financing patterns differ significantly across the compared groups, with companies in old member countries more heavily dependent on debt, the determinants of corporate financing choices are less varied and provide more support for the pecking order theory. The results also indicate that the relevant importance of the country, industry, and firm size effects depends on the length of EU membership.

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Author information

Authors and Affiliations

  1. University of Gdańsk, Gdańsk, Poland

    Julia Koralun-Bereźnicka

Authors
  1. Julia Koralun-Bereźnicka
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Correspondence to Julia Koralun-Bereźnicka .

Editor information

Editors and Affiliations

  1. Department of Financial Investments and Risk Management, Wroclaw University of Economics and Business, Wrocław, Poland

    Krzysztof Jajuga

  2. Faculty of Management and Economics, Technische Universität Dresden, Dresden, Sachsen, Germany

    Hermann Locarek-Junge

  3. Department of Economics and Finance, John F. Welch College of Business, Sacred Heart University, Fairfield, CT, USA

    Lucjan T. Orlowski

  4. Department of Economics and Finance, Tallinn University of Technology, Tallinn, Estonia

    Karsten Staehr

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Koralun-Bereźnicka, J. (2020). Are Corporate Financing Policies Different in Old and New EU Member States?. In: Jajuga, K., Locarek-Junge, H., Orlowski, L., Staehr, K. (eds) Contemporary Trends and Challenges in Finance. Springer Proceedings in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-43078-8_10

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