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THE DETERMINANTS OF CAPITAL STRUCTURE: EVIDENCE FROM THE SLOVAK REPUBLIC
Abstract
The paper investigates internal and external determinants of business entities' capital structure in the Slovak Republic. We have focused not only on an influence of usually examined internal factors but also on very important external factors such as Gross Domestic Product, unemployment, inflation, interest rates and tax rate. The main source of panel data utilized in the paper is a national database of Slovak business entities, statistics of the Statistical Office of the Slovak Republic and Eurostat. The research is carried out by employing the linear regression model as the basic tool for econometrics. The result of the paper is a quantification of the determinants influence on capital structure.
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