TY  - JOUR
T1  - Factors Driving Capital Structure of Italian SME’s
AU - Sensini, Luca 
JO  - International Business Management
VL  - 14
IS  - 7
SP  - 217
EP  - 225
PY  - 2020
DA  - 2001/08/19
SN  - 1993-5250
DO  - ibm.2020.217.225
UR  - https://makhillpublications.co/view-article.php?doi=ibm.2020.217.225
KW  - financial decisions
KW  -size
KW  -profitability
KW  -Capital structure
KW  -debt
KW  -Italian SMEs
AB  - The purpose of this paper is to study the
influence of various corporate characteristics on the
capital structure of Italian Small and Medium-sized
Enterprises (SMEs). Based on the literature review about
the capital structure decisions, this study investigated the
relationships between the main determinants: size,
profitability, asset structure, growth, earnings volatility
and age. Panel regressions with fixed-effects are used to
estimate the influence of SME firm determinants on three
capital structure measures, total, long-term and short-term
debt. The global sample is made up of 854 SMEs and
covers the period between 2010 and 2015. Overall, the
results suggest that most of the variables used are reliable
in explaining Italian SME capital structure decisions. In
addition, results suggest that the trade-off and pecking
order theories can be used jointly in explaining the capital
structure of Italian SMEs. However, results highlight that
financing decisions are closer to the predictions of
pecking order theory.
ER  -