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Determinants of the liability maturity of Polish companies

100%

Mielcarz P., Osiichuk D.

Nauki o Finansach

2016

issue 4(29)

49-63

Using the firm-level panel data for Polish companies, we analyze the determinants of liability maturity with particular attention paid to the factors of financing constraints and information asymmetry. Consistent with prior research, we find that asset tangibility, liquidity, leverage and profitability significantly influence liability maturity choices. Additionally, we evidence that financing constraints may alter the impact of these factors. Companies identified as being financially constrained appear to have lower maturity of liabilities. Firms quoted on the main market of the Warsaw Stock Exchange are shown to hold a higher proportion of long-term liabilities compared to those quoted on New Connect, a stock exchange dedicated to young small cap companies. We also find that constrained status may determine firm’s financing decisions under crisis settings. Our empirical results show that companies experiencing financing constraints are likely to reduce liability maturity during a crisis, while their unconstrained counterparts may recur to additional long-term external financing in order to accommodate the repercussions of a trough. These findings contribute to the discussion of the financing constraints theory and shed light on some of the firms’ tactical financing decisions in an emerging economy

Financing Constraints and Firm Growth in Emerging Europe

88%

Leitner S. M.

South East European Journal of Economics and Business

2016

vol. 11

issue 1

18-40

The paper aims to shed light on the effects of different types of financing constraints on firm sales and employment growth in Emerging Europe before and after the onset of the financial crisis. It analyzes the group of emerging NMS-10 economies (plus Turkey) and the group of economically and financially lagging Western Balkan countries. The paper demonstrates that financing constraints significantly obstruct firm growth, particularly in the Western Balkan countries, which calls for policy intervention to ensure swifter job-rich growth and catching-up with the rest of Europe. It also emphasizes that particular firm characteristics are essential for growth in Emerging Europe and demonstrates that exporting only and innovating are recipes for faster firm growth, while importing only and a high foreign ownership share seriously retard firm growth. Finally, it stresses the importance of the particular institutional environment for firms to thrive.

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1 Nauki o Finansach

1 South East European Journal of Economics and Business

1 Leitner S. M.

1 Mielcarz P.

1 Osiichuk D.

2 2016

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Determinants of the liability maturity of Polish companies

Financing Constraints and Firm Growth in Emerging Europe