Industry and size effect in profitability-capital structure relation: empirical evidence from Poland

Julia Koralun-Bereźnicka , Dorota Ciołek


This study aims at verifying the significance and the direction of the way profitability affects capital structure of private firms in Poland. We explore the relationship in two cross-sections: across industries and across size groups of firms. The main issue addressed in this study is whether the way profitability impacts financial leverage is industry- and (or) size dependent. In order to answer this question, we estimate panel data models with interactions between variables for selected profitability measures. The study contributes to the existing literature mainly by exploring the indirect effect of industry and firm size as factors responsible for the variability of the relation between profitability and corporate capital structure. Findings provide evidence that the profitability-leverage relationship is affected both by the firm size and its industrial classification, with the stronger impact of the latter.
Author Julia Koralun-Bereźnicka (FM / DCF)
Julia Koralun-Bereźnicka,,
- Department of Corporate Finance
, Dorota Ciołek (FM / DE)
Dorota Ciołek,,
- Department of Econometrics
Journal seriesRomanian Journal of Economic Forecasting, ISSN 1582-6163, (A 15 pkt)
Issue year2018
Publication size in sheets0.7
Keywords in Englishfinancial leverage, profitability, firm size, industry factor, panel data
ASJC Classification2000 General Economics, Econometrics and Finance
Languageen angielski
LicenseJournal (articles only); published final; Other open licence; with publication
Score (nominal)15
Score sourcejournalList
ScoreMinisterial score = 15.0, 28-01-2020, ArticleFromJournal
Publication indicators WoS Citations = 0; Scopus SNIP (Source Normalised Impact per Paper): 2018 = 0.541; WoS Impact Factor: 2017 = 0.263 (2) - 2017=0.263 (5)
Citation count*2 (2020-03-13)
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* presented citation count is obtained through Internet information analysis and it is close to the number calculated by the Publish or Perish system.
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