THE GLOBAL FINANCIAL CRISIS AND CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs: A REVIEW

Year 2020, Volume: 16 Issue: 3, 513 - 535, 13.10.2020

Hasan Tekin Ali Yavuz Polat

https://doi.org/10.17130/ijmeb.798509

Cited By: 4

Abstract

Keywords

Capital Structure, Turkish SMEs

THE GLOBAL FINANCIAL CRISIS AND CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs: A REVIEW

Abstract

Due to the arising uncertainties with the global financial crisis, capital structure decisions became
crucial for Turkish firms, especially small and medium-sized (SMEs) firms. Since SMEs face higher
information asymmetry, transaction costs and risk, they face more difficulties in accessing finance during
the financial market turmoil. In this review, we comparatively analyze findings from capital structure
decisions for Turkish firms. As might be anticipated, we expect that SMEs should take more precautionary
steps under the severe crisis conditions compared to listed firms in Borsa Istanbul.

Keywords

Capital Structure, Turkish SMEs, the Global Financial Crisis, Information Asymmetry, Risk, Transaction Costs

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