IS CAPITAL STRUCTURE IMPORTANT FOR THE VALUE OF AGRO-FOOD CORPORATIONS IN SERBIA?
DOI:
https://doi.org/10.5937/ekoPolj2202425JKeywords:
capital structure, corporation value, investment project profitability, the agro-food sector, developing economyAbstract
The research aims to consider the nature of the influence of capital structure on the value of the corporations from the agro-food sector in Serbia. A panel regression analysis was used to test the hypotheses. The research covered the period from 2011 to 2018, and the sample consisted of 14 agro-food corporations whose shares are on the regulated market of the Belgrade Stock Exchange. The obtained results indicate that the capital structure has a statistically significant impact on the value of agro-food corporations and that the profitability of investment projects determines the nature of that impact. Consequently, the financial managers of agro-food corporations must consider the decision on the choice of capital structure as one of the key issues in the process of generating and increasing the corporation value.
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