Firm characteristics and debt structure in Slovak agricultural enterprises: implications for financial policy and rural development

Purpose This paper investigates the indebtedness of agricultural enterprises in Slovakia, focusing on how firm-specific characteristics affect debt structure and financing capacity. The study aims to inform financial institutions and policymakers in emerging economies. Design/methodology/approach Financial data from the ORBIS database for 698 firms under NACE A were analyzed. Non-parametric methods were applied due to sample heterogeneity. The Kruskal–Wallis test identified differences in debt indicators, followed by a Dunn post hoc test with Bonferroni correction. Findings Indebtedness varies significantly by firm size, legal form, and age. Six debt indicators differ across small and medium-sized enterprises, legal form distinguishes debt capacity among partnerships and private limited from public limited companies, while firm age influences most debt ratios, though differences between newly established and mature firms are smaller. Research limitations/implications The study is limited to Slovak agricultural enterprises, and thus results may not generalize to other sectors or countries. Future research could examine cross-country comparisons or longitudinal patterns. Originality/value This study provides one of the first empirical analyses of agricultural indebtedness in Slovakia, highlighting the interaction between firm characteristics and debt allocation. It offers actionable insights for practitioners and policymakers in emerging economies.