Research Article
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Year 2011, Volume: 1 Issue: 1, 1 - 11, 01.03.2011

Erdinc Karadeniz , Serkan Yılmaz Kandır , Omer Iskenderoglu Yıldırım Beyazit Onal

Abstract

References

  • Akhtar, S., Oliver, B. (2005), The Determinants Of Capital Structure For Japanese Multinational And Domestic Corporations. Available at http://ecocomm.anu.edu.au/research /papers/pdf/0601.pdf (accessed 20 December 2008).
  • Andrew, P., Schmidgall, R. (1993), Financial Management for the Hospitality Industry. AH&MA: Washington DC.
  • Ang, J.S, Fatemi, A., Rad, T.A. (1997), Capital Structure and Dividend Policies Of Indonesian Firms. Pacific-Basin Finance Journal, 5(1), 87-103.
  • Bancel, F., Mittoo, V.U. (2004), The Determinants Of Capital Structure Choice: A Survey Of European Firms. Financial Management (2000), 33(4), 103-132.
  • Beattie, V., Goosacre, A., Thomson, S.J. (2006), Corporate Financing Decisions: UK Survey Evidence. Journal of Business Finance & Accounting, 33(9&10), 1402-1434.
  • Bhaduri, S.N. (2002), Determinants of Corporate Borrowing: Some Evidence From The Indian Corporate Structure. Journal of Economics and Finance, 26(2), 200-216.
  • Brierly, P., Bunn, P. (2005), The Determination Of UK Corporate Capital Gearing. Bank of England Quarterly Bulletin, 45(3), 356-366.
  • Brounen, D., Jong, A., Koedijk, K. (2005), Capital Structure Policies In Europe: Survey Evidence, Journal of Banking & Finance, 30(5), 1409-1442.
  • Chen, Y., Hammes, K. (1997), Capital Structure, Theories and Empirical Results-A Panel Data Analysis. SRRN Working Paper. Available at http://papers.ssrn.com/sol3/papers.cfm? abstract_id=535782 (accessed 19 June 2008).
  • Churchill, G.A. (1991), Marketing Research Foundations. Dryenden Press: Orlando.
  • Colombo, E. (2001), Determinants of Corporate Capital Structure: Evidence from Hungarian Firms. Applied Economics, 33(1), 1689-1701.
  • Dalbor, M., Upneja, A. (2002), Factors Affecting the Long-Term Debt Decision of Restaurant Firms. Journal of Hospitality & Tourism Research, 26(4), 422-432.
  • Daskalakis, N., Psillaki, M., (2008), Do Country Or Firm Factors Explain Capital Structure? Evidence from SMES in France and Greece. Applied Financial Economics, 18(2), 87-97.
  • Deesomsak, R., Paudyal, K., Pescetto, G. (2004), The Determinants Of Capital Structure: Evidence From The Asia Pacific Region. Journal of Multinational Financial Management, 14(4-5), 387– 405.
  • Elgonemy. A.R. (2002), Debt-Financing Alternatives: Refinancing and Restructuring In the Lodging Industry. Cornell Hotel and Restaurant Administration Quarterly, 43(3), 7-21.
  • Fama, E., French, R.K. (2002), Testing Trade Off And Pecking Order Predictions About Dividents And Debt. The Review of Financial Studies, 15(1),1-33.
  • Fattouh, B., Scaramozzino, P., Haris, L. (2003), Capital Structure In South Korea: A Quantile Regression Approach. CEIS Tor Tergata Research Paper Series Working Paper, No. 40. Available at http://ssrn.com/abstract=474941 (accessed 12 December 2008).
  • Feikadis, A., Rovolis, A. (2007), Capital Structure Choice in European Union: Evidence from the Construction Industry. Applied Financial Economics, 17(12), 989-1002.
  • Frank, M.Z, Goyal, V.K. (2003), Testing the Pecking Order Theory of Capital Structure. Journal of Financial Economics, 67(2), 217-248.
  • Frielinghaus, A., Mostert, B., Firer, C. (2005), Capital Structure and the Firm’s Life Stage. South Africa Journal of Business Management, 36(4), 9-18.
  • Gaud, P., Jani, E., Hoesli, M., Bender, A. (2005), The Capital Structure Of Swiss Companies: An Empirical Analysis Using Dynamic Panel Data. European Financial Management, 11(1), 51- 69.
  • Graham, J.R., Harvey, C.R. (2001), The Theory And Practice Of Corporate Finance: Evidence From The Field. Journal of Financial Economics, 60(2), 187-243.
  • Grundströmer, E., Gustafsson, J. (2007), The Incentives Behind Capital Structure Decision –A Survey Of The Swedish Market. Master Thesis. Lund University The Department of Business Administration School Of Economics and Management: Sweden.
  • Heyman, D., Deloof, M., Ooghe, H. (2008), The Financial Structure Of Private Held Belgian Firms. Small Business Economics, 30(3), 301-313.
  • Hol, S., Wijst, N. (2006), The Financing Structure Of Non-Listed Firms. Discussion papers No. 468 Statistics Norway, Research Department. Available at http://www.ssb.no/ publikasjoner/DP/pdf/dp468.pdf (accessed 5 June 2008).
  • Huang, S., Song, F. (2006), The Determinants Of Capital Structure: Evidence From China. China Economic Review, 17(1), 14-36.
  • Jaggi, B., Gul, F.A. (1999), An Analysis Of Joint Effects Of Investment Opportunity Set, Free Cash Flows And Size On Corporate Debt Policy. Review of Quantitative Finance and Accounting, 12(4), 371-381.
  • Jensen, M.C., Meckling, H.W. (1976), Theory Of The Firm: Managerial Behavior, Agency Costs And Ownership Structure. Journal of Financial Management, 3(4), 305-360.
  • Karadeniz, E., Kandır, S.Y., Balcılar, M., Onal, Y.B. (2009), Determinants Of Capital Structure: Evidence From Turkish Lodging Companies. International Journal of Contemporary Hospitality Management, 21(5), 594-609.
  • Kwansa, F., Cho, M.H. (1995), Bankruptcy Cost and Capital Structure: The Significance Of Indirect Cost. International Journal of Hospitality Management, 14(3/4), 339-350.
  • Mira, F., Gracia, J. (2003), Pecking Order Versus Trade-Off: An Empirical Approach To The Small And Medium Enterprise Capital Structure. Available at www.ivie.es/downloads/ docs/03/wpec-09.pdf (accessed 5 June 2008).
  • Modigliani, F., Miller, M.H. (1958), The Cost Of Capital, Corporation Finance And The Theory Of Investment. The American Economic Review, 48(3), 261-297.
  • Modigliani, F., Miller, M.H. (1963), Corporate Income Taxes and The Cost Of Capital: A Correction. The American Economic Review, 53(3), 433-443.
  • Myers, S.C. (1977), Determinants of Corporate Borrowing. Journal of Financial Economics, 5(2), 147-175.
  • Myers, S.C., Majluf, N.S. (1984), Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have. Journal of Financial Economics, 13(2), 187-221.
  • Nuri, J., Archer, S. (2001), Target Adjustment Model Against Pecking Order Model Of Capital Structure. Paper presented at European Financial Management Association Annual Meeting, Lugano, Switzerland. Available at: http://www2.dse.unibo.it/bontempi/ didattica/tesi/tommasoP/finance-PO&TO-Nuri Archer.doc (accessed 08 July 2008).
  • Özer, B., Yamak, S. (2000), Self – Sustaining Pattern Of Finance In Small Business: Evidence From Turkey. International Journal of Hospitality Management, 19, 261-273.
  • Petersen, M.A., Rajan, R.G. (1994), The Benefits Of Lending Relationships: Evidence From Small Business Data. Journal of Finance, 49(1), 3-37.
  • Phillips, P., Sipahioğlu, M. (2004), Performance Implications Of Capital Structure: Evidence From Quoted UK Organizations With Hotel Interests. The Service Industries Journal, 24(5): 31-51.
  • Qian, Y., Tian, Y., Wirjanto, T.S. (2007), An Empirical Investigation Into The Capital-Structure Determinants Of Publicly Listed Chinese Companies: A Static Analysis. Available at http://apps.business.ualberta.ca/ytian/Research/Capital%20structure%20paper.pdf (accessed 05 June 2008).
  • Rajan, R., Zingales, L. (1995), What Do Know About Capital Structure? Some Evidence From International Data. The Journal of Finance, 50(5):1421-1460.
  • Sayılgan, G., Karabacak, H., Küçükkocaoğlu, G. (2006), The Firm-Specific Determinants Of Corporate Capital Structure: Evidence From Turkish Panel Data. Available at http://www.baskent.edu.tr/~gurayk/kisiselcapstrpaper.pdf (accessed 12 September 2008).
  • Tang, C.H., Jang, S.S. (2007), Revisit to The Determinants Of Capital Structure: A Comparison Between Lodging Firms And Software Firms. International Journal of Hospitality Management, 26(1), 175-187.
  • Tortop, M. (2007), Çokuluslu Isletmelerde Sermaye Yapısı Ve İMKB’de Bir Uygulama. Master Thesis. Gazi Üniversitesi Sosyal Bilimler Enstitüsü, Ankara.
  • Upneja, A., Dalbor, M. (1999), An Examination Of Leasing Policy, Tax Rates And Financial Stability In The Restaurant Industry. Journal of Hospitality & Tourism Research, 23(1), 85-99.
  • Upneja, A., Dalbor, M. (2001), The Choice Of Long-Term Debt In The US. Lodging Industry. Available at http://hotel.unlv.edu/research/htl/pdf/articles/longTermDebt.pdf (accessed 12 July 2008).
  • Voulgaris, F., Asteriou, D., Agiomirgianakis, G. (2004), Size And Determinants Of Capital Structure In The Greek Manufacturing Sector. International Review of Applied Economics, 18(2): 247– 262.
  • Wiwattanakantang, Y. (1999), An Empirical Study on the Determinants of The Capital Structure of Thai Firms. Pacific-Basin Finance Journal, 7(3-4), 371-403.
  • Yılmaz, F. (2003), Türkiye’de Küçük ve Orta Boy Isletmeler. Available at http://www.isbank.com.tr/dosya/ekon-tr_kobiler2004.pdf (accessed 13 May 2008).
  • Zou, H., Xiao, Z.J. (2006), The Financing Behaviour of Listed Chinese Firms. The British Accounting Review, 38(3), 239-258.

Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies

Year 2011, Volume: 1 Issue: 1, 1 - 11, 01.03.2011

Erdinc Karadeniz , Serkan Yılmaz Kandır , Omer Iskenderoglu Yıldırım Beyazit Onal

Abstract

Aim of this study is to investigate the role of firm size on capital structure decisions of
Turkish lodging companies. In this context, a survey questionnaire is developed and sent to unquoted
Turkish lodging companies. 163 lodging companies answered the survey and they are classified
according to their sizes. Empirical findings reveal that firm size is a significant factor for capital
structure decisions of Turkish lodging companies. Firm size seems to affect lodging companies in
using incentives, issuing common stock, using personal debt and determining target debt ratio. Most of
the empirical findings seem to support pecking order theory.

Keywords

Firm Size Capital Structure Pecking Order Theory Trade-off Theory Lodging Companies

References

  • Akhtar, S., Oliver, B. (2005), The Determinants Of Capital Structure For Japanese Multinational And Domestic Corporations. Available at http://ecocomm.anu.edu.au/research /papers/pdf/0601.pdf (accessed 20 December 2008).
  • Andrew, P., Schmidgall, R. (1993), Financial Management for the Hospitality Industry. AH&MA: Washington DC.
  • Ang, J.S, Fatemi, A., Rad, T.A. (1997), Capital Structure and Dividend Policies Of Indonesian Firms. Pacific-Basin Finance Journal, 5(1), 87-103.
  • Bancel, F., Mittoo, V.U. (2004), The Determinants Of Capital Structure Choice: A Survey Of European Firms. Financial Management (2000), 33(4), 103-132.
  • Beattie, V., Goosacre, A., Thomson, S.J. (2006), Corporate Financing Decisions: UK Survey Evidence. Journal of Business Finance & Accounting, 33(9&10), 1402-1434.
  • Bhaduri, S.N. (2002), Determinants of Corporate Borrowing: Some Evidence From The Indian Corporate Structure. Journal of Economics and Finance, 26(2), 200-216.
  • Brierly, P., Bunn, P. (2005), The Determination Of UK Corporate Capital Gearing. Bank of England Quarterly Bulletin, 45(3), 356-366.
  • Brounen, D., Jong, A., Koedijk, K. (2005), Capital Structure Policies In Europe: Survey Evidence, Journal of Banking & Finance, 30(5), 1409-1442.
  • Chen, Y., Hammes, K. (1997), Capital Structure, Theories and Empirical Results-A Panel Data Analysis. SRRN Working Paper. Available at http://papers.ssrn.com/sol3/papers.cfm? abstract_id=535782 (accessed 19 June 2008).
  • Churchill, G.A. (1991), Marketing Research Foundations. Dryenden Press: Orlando.
  • Colombo, E. (2001), Determinants of Corporate Capital Structure: Evidence from Hungarian Firms. Applied Economics, 33(1), 1689-1701.
  • Dalbor, M., Upneja, A. (2002), Factors Affecting the Long-Term Debt Decision of Restaurant Firms. Journal of Hospitality & Tourism Research, 26(4), 422-432.
  • Daskalakis, N., Psillaki, M., (2008), Do Country Or Firm Factors Explain Capital Structure? Evidence from SMES in France and Greece. Applied Financial Economics, 18(2), 87-97.
  • Deesomsak, R., Paudyal, K., Pescetto, G. (2004), The Determinants Of Capital Structure: Evidence From The Asia Pacific Region. Journal of Multinational Financial Management, 14(4-5), 387– 405.
  • Elgonemy. A.R. (2002), Debt-Financing Alternatives: Refinancing and Restructuring In the Lodging Industry. Cornell Hotel and Restaurant Administration Quarterly, 43(3), 7-21.
  • Fama, E., French, R.K. (2002), Testing Trade Off And Pecking Order Predictions About Dividents And Debt. The Review of Financial Studies, 15(1),1-33.
  • Fattouh, B., Scaramozzino, P., Haris, L. (2003), Capital Structure In South Korea: A Quantile Regression Approach. CEIS Tor Tergata Research Paper Series Working Paper, No. 40. Available at http://ssrn.com/abstract=474941 (accessed 12 December 2008).
  • Feikadis, A., Rovolis, A. (2007), Capital Structure Choice in European Union: Evidence from the Construction Industry. Applied Financial Economics, 17(12), 989-1002.
  • Frank, M.Z, Goyal, V.K. (2003), Testing the Pecking Order Theory of Capital Structure. Journal of Financial Economics, 67(2), 217-248.
  • Frielinghaus, A., Mostert, B., Firer, C. (2005), Capital Structure and the Firm’s Life Stage. South Africa Journal of Business Management, 36(4), 9-18.
  • Gaud, P., Jani, E., Hoesli, M., Bender, A. (2005), The Capital Structure Of Swiss Companies: An Empirical Analysis Using Dynamic Panel Data. European Financial Management, 11(1), 51- 69.
  • Graham, J.R., Harvey, C.R. (2001), The Theory And Practice Of Corporate Finance: Evidence From The Field. Journal of Financial Economics, 60(2), 187-243.
  • Grundströmer, E., Gustafsson, J. (2007), The Incentives Behind Capital Structure Decision –A Survey Of The Swedish Market. Master Thesis. Lund University The Department of Business Administration School Of Economics and Management: Sweden.
  • Heyman, D., Deloof, M., Ooghe, H. (2008), The Financial Structure Of Private Held Belgian Firms. Small Business Economics, 30(3), 301-313.
  • Hol, S., Wijst, N. (2006), The Financing Structure Of Non-Listed Firms. Discussion papers No. 468 Statistics Norway, Research Department. Available at http://www.ssb.no/ publikasjoner/DP/pdf/dp468.pdf (accessed 5 June 2008).
  • Huang, S., Song, F. (2006), The Determinants Of Capital Structure: Evidence From China. China Economic Review, 17(1), 14-36.
  • Jaggi, B., Gul, F.A. (1999), An Analysis Of Joint Effects Of Investment Opportunity Set, Free Cash Flows And Size On Corporate Debt Policy. Review of Quantitative Finance and Accounting, 12(4), 371-381.
  • Jensen, M.C., Meckling, H.W. (1976), Theory Of The Firm: Managerial Behavior, Agency Costs And Ownership Structure. Journal of Financial Management, 3(4), 305-360.
  • Karadeniz, E., Kandır, S.Y., Balcılar, M., Onal, Y.B. (2009), Determinants Of Capital Structure: Evidence From Turkish Lodging Companies. International Journal of Contemporary Hospitality Management, 21(5), 594-609.
  • Kwansa, F., Cho, M.H. (1995), Bankruptcy Cost and Capital Structure: The Significance Of Indirect Cost. International Journal of Hospitality Management, 14(3/4), 339-350.
  • Mira, F., Gracia, J. (2003), Pecking Order Versus Trade-Off: An Empirical Approach To The Small And Medium Enterprise Capital Structure. Available at www.ivie.es/downloads/ docs/03/wpec-09.pdf (accessed 5 June 2008).
  • Modigliani, F., Miller, M.H. (1958), The Cost Of Capital, Corporation Finance And The Theory Of Investment. The American Economic Review, 48(3), 261-297.
  • Modigliani, F., Miller, M.H. (1963), Corporate Income Taxes and The Cost Of Capital: A Correction. The American Economic Review, 53(3), 433-443.
  • Myers, S.C. (1977), Determinants of Corporate Borrowing. Journal of Financial Economics, 5(2), 147-175.
  • Myers, S.C., Majluf, N.S. (1984), Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have. Journal of Financial Economics, 13(2), 187-221.
  • Nuri, J., Archer, S. (2001), Target Adjustment Model Against Pecking Order Model Of Capital Structure. Paper presented at European Financial Management Association Annual Meeting, Lugano, Switzerland. Available at: http://www2.dse.unibo.it/bontempi/ didattica/tesi/tommasoP/finance-PO&TO-Nuri Archer.doc (accessed 08 July 2008).
  • Özer, B., Yamak, S. (2000), Self – Sustaining Pattern Of Finance In Small Business: Evidence From Turkey. International Journal of Hospitality Management, 19, 261-273.
  • Petersen, M.A., Rajan, R.G. (1994), The Benefits Of Lending Relationships: Evidence From Small Business Data. Journal of Finance, 49(1), 3-37.
  • Phillips, P., Sipahioğlu, M. (2004), Performance Implications Of Capital Structure: Evidence From Quoted UK Organizations With Hotel Interests. The Service Industries Journal, 24(5): 31-51.
  • Qian, Y., Tian, Y., Wirjanto, T.S. (2007), An Empirical Investigation Into The Capital-Structure Determinants Of Publicly Listed Chinese Companies: A Static Analysis. Available at http://apps.business.ualberta.ca/ytian/Research/Capital%20structure%20paper.pdf (accessed 05 June 2008).
  • Rajan, R., Zingales, L. (1995), What Do Know About Capital Structure? Some Evidence From International Data. The Journal of Finance, 50(5):1421-1460.
  • Sayılgan, G., Karabacak, H., Küçükkocaoğlu, G. (2006), The Firm-Specific Determinants Of Corporate Capital Structure: Evidence From Turkish Panel Data. Available at http://www.baskent.edu.tr/~gurayk/kisiselcapstrpaper.pdf (accessed 12 September 2008).
  • Tang, C.H., Jang, S.S. (2007), Revisit to The Determinants Of Capital Structure: A Comparison Between Lodging Firms And Software Firms. International Journal of Hospitality Management, 26(1), 175-187.
  • Tortop, M. (2007), Çokuluslu Isletmelerde Sermaye Yapısı Ve İMKB’de Bir Uygulama. Master Thesis. Gazi Üniversitesi Sosyal Bilimler Enstitüsü, Ankara.
  • Upneja, A., Dalbor, M. (1999), An Examination Of Leasing Policy, Tax Rates And Financial Stability In The Restaurant Industry. Journal of Hospitality & Tourism Research, 23(1), 85-99.
  • Upneja, A., Dalbor, M. (2001), The Choice Of Long-Term Debt In The US. Lodging Industry. Available at http://hotel.unlv.edu/research/htl/pdf/articles/longTermDebt.pdf (accessed 12 July 2008).
  • Voulgaris, F., Asteriou, D., Agiomirgianakis, G. (2004), Size And Determinants Of Capital Structure In The Greek Manufacturing Sector. International Review of Applied Economics, 18(2): 247– 262.
  • Wiwattanakantang, Y. (1999), An Empirical Study on the Determinants of The Capital Structure of Thai Firms. Pacific-Basin Finance Journal, 7(3-4), 371-403.
  • Yılmaz, F. (2003), Türkiye’de Küçük ve Orta Boy Isletmeler. Available at http://www.isbank.com.tr/dosya/ekon-tr_kobiler2004.pdf (accessed 13 May 2008).
  • Zou, H., Xiao, Z.J. (2006), The Financing Behaviour of Listed Chinese Firms. The British Accounting Review, 38(3), 239-258.
There are 50 citations in total.

Details

Primary Language English
Subjects Economics
Other ID JA85EY27VJ
Journal Section Research Article
Authors

Erdinc Karadeniz

Serkan Yılmaz Kandır

Omer Iskenderoglu This is me

Yıldırım Beyazit Onal This is me

Publication Date March 1, 2011
Published in Issue Year 2011 Volume: 1 Issue: 1

Cite

APA Karadeniz, E., Kandır, S. Y., Iskenderoglu, O., Onal, Y. B. (2011). Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies. International Journal of Economics and Financial Issues, 1(1), 1-11.
AMA Karadeniz E, Kandır SY, Iskenderoglu O, Onal YB. Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies. IJEFI. March 2011;1(1):1-11.
Chicago Karadeniz, Erdinc, Serkan Yılmaz Kandır, Omer Iskenderoglu, and Yıldırım Beyazit Onal. “Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies”. International Journal of Economics and Financial Issues 1, no. 1 (March 2011): 1-11.
EndNote Karadeniz E, Kandır SY, Iskenderoglu O, Onal YB (March 1, 2011) Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies. International Journal of Economics and Financial Issues 1 1 1–11.
IEEE E. Karadeniz, S. Y. Kandır, O. Iskenderoglu, and Y. B. Onal, “Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies”, IJEFI, vol. 1, no. 1, pp. 1–11, 2011.
ISNAD Karadeniz, Erdinc et al. “Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies”. International Journal of Economics and Financial Issues 1/1 (March 2011), 1-11.
JAMA Karadeniz E, Kandır SY, Iskenderoglu O, Onal YB. Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies. IJEFI. 2011;1:1–11.
MLA Karadeniz, Erdinc et al. “Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies”. International Journal of Economics and Financial Issues, vol. 1, no. 1, 2011, pp. 1-11.
Vancouver Karadeniz E, Kandır SY, Iskenderoglu O, Onal YB. Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies. IJEFI. 2011;1(1):1-11.