THE EFFECT OF INDUSTRY AND FIRM'S OWNERSHIP ON CAPITAL STRUCTURE OF FIRMS IN BOSNIA AND HERZEGOVINA
This paper examines the effect of industry and firm ownership on capital structure of firms in Bosnia and Herzegovina. Since most of the studies for developed and other transition economies explore the effect of different determinants on capital structure through firms’ leverage, that approach was used in this study too. Data on firms listed in two stock exchanges were obtained for the period of 2011-2015. Effects of industry and ownership on firm’s leverage were tested through the use of ANOVA and t-test. The results indicate differences in significance of industry and firm’s ownership for the firms listed in Sarajevo and Banja Luka Stock Exchange. For firms listed in BLSE industry effects have proven to be statistically significant where manufacturing firms have higher leverage while firms in water supply, electricity, gas supply industry have lower leverage. The results also show that privately owned firms will have higher leverage compared to state owned firms.