CONVERGENCE OF NON-FINANCIAL COMPANIES’ CAPITAL STRUCTURE IN CENTRAL AND EASTERN EUROPE

• Authors: Krištofík Peter , Šlampiaková Lea , Fendeková Jana
• Languages of publication: EN

Abstracts

EN

This paper explores the convergence of financial systems in selected CEE countries, by examining the typical capital structure, and its convergence, of their non-financial companies. It examines the sigma convergence of ratios of the most important financial liabilities to total financial liabilities. It focusses on those liabilities that constitute a significant part of total liabilities. These are equity and investment fund shares, bank loans, debt securities and trade credit. Using the Eurostat database, there is strong evidence for sigma convergence of equity and bank loans. This confirms the banking sector’s key role in continental Europe. In contrast, debt securities and trade credit show only moderate convergence. The 2008 crisis led to increased variance for debt securities and trade credit.

Keywords

EN

SIGMA CONVERGENCE; CAPITAL STRUCTURE; EQUITY; BANK LOANS; TRADE CREDIT; DEBT SECURITIES; CEE; EUROPE

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2021
• Volume: 69
• Issue: 3
• Pages: 237 – 256

Contributors

author

Krištofík Peter

• Matej Bel University in Banská Bystrica, Faculty of Economics, Tajovského 10, 975 90 Banská Bystrica, Slovak Republic

author

Šlampiaková Lea

author

Fendeková Jana

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2021.03.02