The Capital Structure Determinants (Case of furniture production enterprises in Albania)

Albana Gjoni (Karameta), Florinda Zherri & Flutura Kalemi
Determining capital structure for business is very important for achieving success, especially when talking for the small and medium enterprises (SME). This paper aims to study capital structure determination for furniture production enterprises in Albania. The purpose of this paper is to investigate how the theory proposed determinants such enterprise size, enterprise profitability and enterprise asset structure affect on the capital structure dependent variables, that are short-term debt and long term debt. With the unique set of data gathered from 150 furniture enterprises over the selected period, precisely year 2016 and year 2017, the statistic panel data regression has been used to analyze the empirical data. The wood processing and furniture production is an important sector in Albania, which has been transformed and developed in the past few years. Since there is a lack of other studies on this particular area, associated with informality, this study aims to use the secondary data in order to conductan empirical study on determinants of capital structure of Albanian small and medium furniture enterprises.