Abstract:

In the present study, we analyzed the effect of company-specific and country-specific factors on the capital structure of Portuguese and Spanish companies using the dynamic estimators as a methodology, analyzing a sample of 67 listed Spanish and 35 non-financial listed companies. Portuguese non-financial listed companies for the analysis period 2008 to 2016. The results indicate that the determinants of financing decisions of Spanish and Portuguese companies are based on transaction costs, although to a greater extent for Portuguese companies, agency costs and problems associated with asymmetric information. In addition, the financing decisions of Spanish companies are also influenced by market conditions and stock market development.