Economic Themes (2025) 63 (3) 5, 329-352
Veljko Dmitrović, Bojana Novićević Čečević, Miroslav Čavlin
Abstract: The primary objective of this research is to examine whether the structure and growth of assets can influence capital structure of companies, with the aim of improving business performance. To achieve this goal, a multiple linear regression model was developed after testing all the necessary conditions for its application. The research sample included 88 companies ranked among the most successful by revenue in the Republic of Serbia for the year 2023. Secondary data were collected from financial statements over a five-year period (2019–2023). The dependent variable is the capital structure, defined as the ratio of Total Liabilities to Total Equity. The independent variables are: asset structure (measured as the ratio of Fxed Assets to Total Asssets), asset growth (percentage increase compared to the previous year), and firm size (natural logarithm of total assets). The results of the conducted analysis showed that all independent variables have a statistically significant impact on the capital structure of companies in the Republic of Serbia, with the effect of asset growth being positive, while the impact of the other two variables used in the study is negative.
Keywords: capital structure; asset structure; asset growth; firm size
ENHANCING FIRM PERFORMANCE THROUGH ALIGNING ASSETS WITH CAPITAL STRUCTURE: EVIDENCE FROM SERBIA
Veljko Dmitrović, Bojana Novićević Čečević, Miroslav Čavlin
Abstract: The primary objective of this research is to examine whether the structure and growth of assets can influence capital structure of companies, with the aim of improving business performance. To achieve this goal, a multiple linear regression model was developed after testing all the necessary conditions for its application. The research sample included 88 companies ranked among the most successful by revenue in the Republic of Serbia for the year 2023. Secondary data were collected from financial statements over a five-year period (2019–2023). The dependent variable is the capital structure, defined as the ratio of Total Liabilities to Total Equity. The independent variables are: asset structure (measured as the ratio of Fxed Assets to Total Asssets), asset growth (percentage increase compared to the previous year), and firm size (natural logarithm of total assets). The results of the conducted analysis showed that all independent variables have a statistically significant impact on the capital structure of companies in the Republic of Serbia, with the effect of asset growth being positive, while the impact of the other two variables used in the study is negative.
Keywords: capital structure; asset structure; asset growth; firm size
