The Firm Specific Capital Structure Determinants of Turkish Firms Listed in Istanbul Stock Exchange: A Structural Equation Approach

Year 2019, October 2019 Special Issue, 530 - 559, 30.10.2019

Ali Sait Albayrak

https://doi.org/10.21733/ibad.609959

Abstract

Borsa İstanbul’da Kayıtlı Türk Firmaların Firmaya Özgü Sermaye Yapısı Belirleyicileri: Bir Yapısal Eşitlik Modellemesi Yaklaşımı

Abstract

This study tests the explanatory power of
the most important capital structure theories. The study extends empirical
studies in three ways. First, it tests a much broader set of theories, many of
which have not previously been evaluated empirically. Second, since the capital
structure theories have different empirical implications in respect to
different types of debt structures, this study analyzes measures of short-term,
long-term and short-term with long-term debt structure rather than an aggregate
measure of total debt structure. The empirical results show that liquidity,
asset structure, size, profitability, growth and volatility are the
statistically significant factors and tax level, non-debt tax shield are the
insignificant factors in all models. Firm size and growth are positive;
volatility and profitability are the factors that are effective in the negative
direction in all models. However, liquidity and asset structure were found to
affect short-term debt structure negatively, and long-term debt structure
positively.

Keywords

: Capital Structure, Trade-off Theory, Pecking Order Theory, Structural Equation Modeling

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