The Determinants of Capital Structure: Evidence from Albanian Unlisted Firms

Corporate structure is an important research area in corporate finance and it remains the core of literature studies for academicians. However studies had been focused on firms in developed countries and not much attention is payed on how firms in developing and emerging markets decide on their capital structure strategy. Therefore this study attempts to fill the gap by analyzing the capital structure of unlisted firms in Albania. This study examines the influence of the firm?s specific determinants: return on asset; return on quity; tangibility; liquidity; firm size; business risk; financial flexibility; non-debt tax shields and the macroeconomic factors: GDP growth rate; inflation rate; prime lending rate on capital structure of the firm.