What drives the capital structure? The case of non-life insurance companies in Serbia
| Autor: | Božović Miloš, Koprivica Marija |
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| Jazyk: | English<br />Serbian |
| Rok vydání: | 2021 |
| Předmět: | |
| Zdroj: | Industrija, Vol 49, Iss 1, Pp 25-41 (2021) |
| Druh dokumentu: | article |
| ISSN: | 0350-0373 2334-8526 |
| DOI: | 10.5937/industrija49-30369 |
| Popis: | This paper studies the factors behind the capital structure of insurance companies. We used financial reports of non-life and composite insurance companies in Serbia between 2006 and 2019. In particular, we apply a panel-data approach to examine the relationship between leverage, defined as the ratio of technical reserves to capital and various firm-level characteristics. The coefficients estimated using the individual fixed-effects model indicate a significant and negative influence of profitability, growth and liquidity measures on leverage and a significant and positive influence of company size. The results indicate that the tradeoff theory and the pecking order theory are relevant in explaining the non-life insurer capital structure in Serbia. |
| Databáze: | Directory of Open Access Journals |
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