Title: Financing and capital structure of Hungarian companies

Authors: Marta Szoradi-Szabo

Addresses: Department of Finance and Accounting, Budapest University of Technology and Economics, Hungary

Abstract: The objective of this paper is to investigate the main tendencies and factors affecting financing companies and the capital structure of Hungarian companies. We found that bank credit is the most important amongst external financing funds of Hungarian companies. The bank intermediary system has a more concentrated role in the operation of companies. General experience is that banks are ready to finance the short-term credits of companies continuously, but long-term capital investment and a company|s borrowing for investment meet with difficulties.

Keywords: capital structure; debt tax shield; ownership structure; financing; Hungary; emerging economies; bank credit; short-term credit; long-term capital investment.

DOI: 10.1504/IJEPEE.2009.030579

International Journal of Economic Policy in Emerging Economies, 2009 Vol.2 No.3, pp.302 - 317

Published online: 24 Dec 2009 *

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