Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms

Aslı Yıkılmaz

doi:10.26466/opusjsr.1184140

EN

Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms

Abstract

In this study, the capital structure adjustment speed of 19 food sector firms in the Borsa Istanbul (BIST) 100 index has been estimated between 2010 and 2021. The effect of ownership identity on the capital structure adjustment speed has been investigated within the scope of family and non-family firms. The seven firms have been classified as non-family firms (NFF) and twelve as family firms (FF). The capital structure adjustment speed for family and non-family firms has been composed of the classical dynamic partial adjustment model. The Generalized Moments Method (GMM) model has been used as the econometric model in estimating the models. The results obtained from the study revealed that there is no significant difference between the debt ratios of family companies and non-family firms. The adjustment speed of family firms has been determined as 68%, and the adjustment speed of non-family firms has been approximately 56%. The capital structure adjustment speed of family firms is higher than non-family firms. The results show that family firms are less exposed to financial constraints than other firms increasing their borrowing capability, thus enabling them to reach the target debt level faster. The findings suggest that ownership structure plays a vital role in capital adjustment behavior.

Keywords

Capital Structure , Capital Structure Adjustment Speed , Family Firms

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Details

Primary Language

English

Subjects

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Journal Section

Research Article

Authors

Aslı Yıkılmaz ^*
Türkiye

Publication Date

January 31, 2023

Submission Date

October 6, 2022

Acceptance Date

January 27, 2023

Published in Issue

Year 2023 Volume: 20 Number: 51

DOI

https://doi.org/10.26466/opusjsr.1184140

IZ

https://izlik.org/JA68TG59AM

APA

Yıkılmaz, A. (2023). Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms. OPUS Journal of Society Research, 20(51), 67-75. https://doi.org/10.26466/opusjsr.1184140

Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms

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Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms

Abstract

Keywords

References

Details

Primary Language

Subjects

Journal Section

Authors

Publication Date

Submission Date

Acceptance Date

Published in Issue

DOI

IZ

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