The impact of the recent financial crisis on the capital structure choices of the Romanian listed firms
The impact of the recent financial crisis on the capital structure choices of the Romanian listed firms

Summary/Abstract: This paper investigates the impact of the recent financial crisis on the capital structure choices of a sample of 69 Romanian firms listed on the Bucharest Stock Exchange during the period 2004-2011. Firms financing choices are characterized, in general, by an adjustment process to target capital structure. Therefore, in this study we used a dynamic panel data model which was estimated with Arrelano & Bond’s (1991) difference Generalized Method of Moments (GMM) estimator. The results indicated that the recent financial crisis produced an increase of debt in Romanian firms’ capital structure. In addition, the results showed that the capital structure of the Romanian listed firms was influenced by the profitability and market-to-book ratio.

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