Empirical Verification of Depreciation Tax Shield Theory in Conditions of Polish Economy in Transformation

System transformation of economy is a specific period consisting of two phases: recession, which may be called transformational recession, and post-recessional growth. During the period of system transformations economy has a production potential formed for decades in economy different from the economy dominated by market rules and behaviour of entities. That potential is a heritage whose adaptation to new economic conditions determines the length of time and the course of the transformation process. Both general factors characteristic for capitalist countries and distinct factors specifying post-socialistic countries become unique in specific historical and national conditions. Mixture of general, specific and unique factors influence the Polish way to capitalism and its effect, i.e. its final form. The aim of this study has been to verify empirically one of the most important theories of business finances which has already been verified in conditions of capitalistic economy. As a result of that verification unique factors characterizing Polish economy in transformation will be determined. That aim, based on an analysis of relationship between depreciation of fixed assets of Polish enterprises and the level of fixed-capital investments, is the evidence that the theoretical model of DeAngelo and Modigliani cannot be disregarded.