Determinants of corporate capital structure: evidence from Hungarian firms

This paper investigates the capital structure of Hungarian firms using a cross-section and a panel data approach. The data set is composed of balance sheet data and information on market structure for 1100 firms from 1992 to 1996. Evidence is found of imperfections that constrain firms in the achievement of their optimal capital structure, but also some positive indications: there are no distortions typical of the planned system and no signs of the presence of soft budget constraints.