In this paper, we explore two of the most relevant theories that explain financial policy in small and medium enterprises (SMEs): pecking order theory and trade-off theory. The theoretical section provides an overview of contemporary theories of capital structure. According to the pecking order...

New information technologies, development of international economic cooperation and market interconnection call for the need of multinational, globally applicable and acknowledged accounting standards which will enable to describe the processes taking place on the companies´ level, within the...