DETERMINANTS OF CAPITAL STRUCTURE IN THE AGRICULTURAL SECTOR: EMPIRICAL EVIDENCE FROM LISTED COMPANIES

Miloš Grujić; Željko  Vojinović; Zoran  Đuričić; Srđan  Šuput

doi:10.59267/ekoPolj240131G

Authors

Miloš Grujić Independent University of Banja Luka, Bosnia and Herzegovina https://orcid.org/0000-0001-5566-5921
Željko Vojinović University of Novi Sad, Faculty of Economics Subotica, Serbia https://orcid.org/0000-0002-2685-5504
Zoran Đuričić Independent University of Banja Luka, Bosnia and Herzegovina https://orcid.org/0009-0008-2257-9355
Srđan Šuput Independent University of Banja Luka, Bosnia and Herzegovina https://orcid.org/0009-0002-7848-5338

DOI:

https://doi.org/10.59267/ekoPolj240131G

Keywords:

optimal capital structure, debt, company size, profitability

Abstract

This study investigated the capital structure of 18 publicly traded agricultural companies over a 10-year period (2012-2022), specifically focusing on short-term debt to total liabilities (SHTDTL). Employing a dataset of 121 observations, the strategic financing decisions of these firms in the Republic of Srpska’s stock market were analyzed. The study examines the impact of various factors, including total debt to total equity (TDTC), tangible assets (TOA), company size (CS), current assets ratio (CR), current assets to total assets (CAA), return on equity (ROE), and return on assets (ROA), on capital structure choices. Results reveal that TOA, CAA, and ROE significantly positively influence the short-term debt ratio, while CS and ROA have a significant negative impact. This research sheds light on the financial decision-making of agricultural enterprises, offering insights that can inform their financing strategies and improve financial performance.

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