TESTING THE IMPACT OF THE DETERMINANTS OF CAPITAL STRUCTURE FOR ROMANIAN-LISTED FIRMS

This paper investigates the determinants of capital structure of Romanian listed-firms using a panel data model. The average debt ratio of Romanian firms is below the figure in most developed and developing countries due to the influence of macroeconomics factors (i.e., economic growth, inflation rate, interest rate) on capital structure. The financing behaviour of Romanian listed-companies follows the "new Pecking order theory", which states that firms use as financing sources first retained earnings, then equity, and finally debt.