OPTIMIZING CAPITAL STRUCTURE OF UZBEK JOINT-STOCK GRAIN COMPANIES – A PRAIS-WINSTEN PANEL REGRESSION ANALYSIS
Abstract
Uzbekistan’s grain industry, a cornerstone of the national economy, is undergoing significant transformation as the government shifts from a state-controlled system to a market-oriented model. This liberalization—marked by the elimination of wheat production quotas and fixed prices—places greater emphasis on financial autonomy and decision-making among joint-stock agribusiness firms. In this evolving environment, capital structure decisions have become crucial due to the sector’s inherent exposure to risks such as climate variability, market price fluctuations, and policy reforms. These uncertainties heighten the importance of finding an optimal balance between debt and equity to ensure both financial resilience and sustainable growth. This study investigates the capital structures of joint-stock grain companies in Uzbekistan, analyzing the impact of key financial and economic variables on leverage. Using panel data and employing the Prais–Winsten regression technique to account for serial correlation, we provide empirical insights into the determinants of capital structure in a transitioning market economy. The findings aim to support stakeholders in making informed financing decisions that align with profitability objectives and national food security priorities.
References
Asiedu, M. (2021). Firm Capital Structure and Financial Sector Performance in Nigeria. Economics, 10(4), 112–124sciencepublishinggroup.com.
Barusei, E., & Miroga, J. (2025). Capital structure and financial performance of agricultural firms listed at the Nairobi Securities Exchange. Strategic Journal of Business & Change Management, 12(2), 1085–1096strategicjournals.com.
Grujić, M., Vojinović, Ž., Đuričić, Z., & Šuput, S. (2024). Determinants of Capital Structure in the Agricultural Sector: Empirical Evidence from Listed Companies. Ekonomika Poljoprivrede (Economics of Agriculture), 71(1), 31–44researchgate.net.
Khamraev, A. (2023). Exploring the determinants of optimal capital structure for manufacturing firms in Uzbekistan: an econometric analysis. Conference on Social-Economic Development of Regions: International Experiences, Problems and Solutions (Tashkent)researchgate.net.
Siregar, R. Y. D., Anggraeni, L., & Pranowo, K. (2019). Impact of capital structure and firm financial performance on firm value: Evidence of agribusiness firms in Indonesia Stock Exchange. Russian Journal of Agricultural and Socio-Economic Sciences (RJOAS), 85(1), 445–452researchgate.netresearchgate.net.
Vo, X. V. (2017). Determinants of capital structure in emerging markets: Evidence from Vietnam. Research in International Business and Finance, 40, 105–113ideas.repec.org.
