CAPITAL STRUCTURE OF CROATIAN FOOD COMPANIES

Capital structure represents a combination of debt and equity used by companies for financing their activities. The ratio between the two depends on a decision made by company management i.e. company business strategy. The objective of any management is to achieve a loan and own capital ratio which maximizes company value. The Croatian food industry is the key sector of the Croatian processing industry accounting for about 20 percent of all workers employed by the exportoriented food industry. This paper focuses on analyzing capital structure in said companies on a sample consisting of 29 companies.