Factors Affecting the Financial Leverage of Service Firms in Turkey: An Empirical Investigation

Öz

This research investigates the factors affecting the financial leverage of 52 service firms listed on Istanbul Stock Exchange during the period from 2008 to 2017. Using Ordinary Least Squares (OLS) regressions, our results indicated that, as assumed by the pecking order model, leverage increases with investment opportunities and decreases with profitability, liquidity and tangibility. Furthermore, we find that larger firms tend to have high leverage. However, contradicting the trade-off model, non-debt tax shields are positively and significantly related to leverage. 

Anahtar Kelimeler

• Leverage,Trade-Off Model,Pecking Order Model,Service Firms,Istanbul Stock Exchange.

Türkiye’de Hizmet Firmalarının Finansal Kaldıracını Etkileyen Faktörler Üzerine Ampirik Bir Araştırma

Öz

Bu çalışma 2008-2017 yılları arasında Borsa İstanbul’da (BİST) hisse senetleri işlem gören 52 hizmet firmanın finansal kaldıracını etkileyen faktörleri incelemektedir. En küçük kareler yönetimini (OLS) kullanarak çalışmanın sonuçları, finansal hiyerarşi modelinde varsayıldığı gibi, kaldıracın büyüme fırsatları ile arttığını ve karlılık, likidite ve maddi duran varlıklar ile azaldığını göstermiştir. Ayrıca, büyük firmaların yüksek kaldıraca sahip olduğu ortaya çıkmıştır. Bununla birlikte, dengeleme modelinin tersine, kaldıraç ile borç dışı vergi kalkanı arasındaki ilişki pozitif ve anlamlı olduğu tespit edilmiştir.

Anahtar Kelimeler

• Kaldıraç,Dengeleme Modeli,Finansal Hiyerarşi Modeli,Hizmet Firmaları,Borsa İstanbul (BİST)

Kaynakça

1. ARSOV, S., and NAUMOSKI, A. (2016). Determinants of capital structure: An empirical study of companies from selected post-transition economies. Zb. Rad. Ekon. Fak. Rij, 34(1), 119-146.
2. BAKER, M. and WURGLER, J. (2002). Market Timing and Capital Structure. Journal of Finance 57, 1-32.
3. BAUER, P. (2004). Determinants of Capital Structure Empirical Evidence from the Czech Republic. Czech Journal of Economics and Finance 54, 2-21.
4. BOOTH, L., AIVAZIAN, V., DEMIRGUC-KUNT, A., & MAKSIMOVIC, V. (2001). Capital structures in developing countries. The Journal of Finance, 56(1), 87-130.
5. BRADLEY, M., JARREL, G. A., & KIM, E. H. (1984). On the Existence of an Optimal Capital Structure: Theory and Evidence. Journal of Finance, 39(3), 857-878.
6. BURUCU, H., & ÖNDEŞ, T. (2016). Türk İmalat Sanayi Firmalarının Sermaye Yapısını Etkileyen Faktörlerin Analizi. Çankırı Karatekin Üniversitesi, İktisadi ve İdari Bilimler Fakültesi Dergisi, 6(1), 201-225.
7. CERQUEIRA, A., and PEREIRA, C. (2015). Accounting accruals and Information Asymmetry in Europe, Prague Economic Papers, 24(6), 638-661.
8. CEVHEROGLU-ACAR, M. G. (2018). Determinants of Capital Structure: Empirical Evidence from Turkey. Journal of Management and Sustainability, 8(1), 31-45.

9. CHEN, H., & HAMMES, K. (1997). Capital Structure, Theories and empirical results - a panel data analysis. Paper presented at Conference on Financial Regulation, Groningen, Netherlands.
10. CORTEZ, M. A., and SUSANTO, S. (2012). Journal of International Business Research, 11(3), 121-134.
11. DEANGELO, H. and MASULIS, R. (1980). Optimal Capital Structure under Corporate and Personal Taxation. Journal of Financial Economics 8, 3-29.
12. DOUKAS, J. A., and PANTZALIS, C. (2003). Geographic Diversification and Agency Costs of Debt of Multinational Firms. Journal of Corporate Finance, 9(1), 59-92.
13. EROL, A. F., AYTEKIN, S., & ABDIOĞLU, N. (2016). İşletmelerin Sermaye Yapılarının Belirlenmesinde Finansal Hiyerarşi Teorisinin Kullanımı ve BIST’te Bir Uygulama. KSÜ Sosyal Bilimler Dergisi, 13(1), 113-128.
14. FAMA, E. F., & FRENCH, K. R. (2002). Testing Trade-Off and Pecking Order Predictions about Dividends and Debt. Review of Financial Studies, 15(1), 1-33.
15. FRANK, M. Z., & GOYAL, V. K. (2009). Capital Structure Decisions: Which Factors Are Reliably Important?. Financial Management, 38(1), 1-37.
16. GAUD, P., JANI, E., HOESLI, M., & BENDER, A. (2003). The Capital Structure of Swiss Companies: An Empirical Analysis Using Dynamic Panel Data. The International Center for Financial Asset Management and Engineering (FAME), Research Paper 68, 1-28.
17. GAY, G. D., and NAM, J. (1998). The Underinvestment Problem and Corporate Derivatives Use. Financial Management, 27(4), 53 – 69.
18. GETZMANN, A., LANG, S., and SPREMANN, K. (2014). Target Capital Structure and Adjustment Speed in Asia. Asia-Pacific Journal of Financial Studies 43, 1–30.
19. GOH, C. F., TAI, W. Y., RASLI, A., TAN, O. K., & ZAKUAN, N. (2018). The Determinants of Capital Structure: Evidence from Malaysian Companies. International Journal of Supply Chain Management, 7(3), 225-230.
20. GRAHAM, J. R. (2000). How Big Are the Tax Benefits of Debt?. The Journal of Finance, 55(5), 1901-1941.
21. GÜLŞEN, A. Z., & ÜLKÜTAŞ, Ö. (2012). Sermaye Yapısının Belirlenmesinde Finansman Hiyerarşi Teorisi ve Ödünleşme Teorisi: İMKB Sanayi Endeksinde Yer Alan Firmalar Üzerinde Bir Uygulama. ZKÜ Sosyal Bilimler Dergisi, 8(15), 49-59.
22. GÜNER, A (2016). The Determinants of Capital Structure Decisions: New Evidence from Turkish Companies. Procedia Economics and Finance 38, 84 – 89.
23. HARRIS, M. and RAVIV, A. (1991). The Theory of Capital Structure. Journal of Finance 46, 297-356.
24. ILYUKHIN, E. V. (2017). The Determinants of Capital Structure: Evidence of Russia. Journal of Corporate Finance Research, 14(4).
25. JENSEN, M. C. (1986). Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers. American Economic Review, 76(2), 323-329.
26. JENSEN, M. C. and MECKLING, W. H. (1976). Theory of the Firm: Managerial Behavior, Agency Costs and Ownership Structure. Journal of Financial Economics, 3(4): 305-360.
27. KARADENIZ, E., KANDIR, S. Y., BALCILAR, M., & ONAL, Y. B. (2009). Determinants of Capital Structure: Evidence from Turkish Lodging Companies. International Journal of Contemporary Hospitality Management, 21(5), 594-609.
28. KHÉMIRI, W., & NOUBBIGH, H. (2018). Determinants of capital structure: Evidence from sub-Saharan African firms. The Quarterly Review of Economics and Finance 70, 150-159.
29. KIRACI, K., & AYDIN, N. (2018). Determinants of Capital Structure: Empirical Evidence from Traditional Airlines. International Journal of Economic and Administrative Studies 21, 173-186.
30. LIANG, J., LI, L. F., and SONG, H. (2014). An explanation of capital structure of China’s listed property firms. Property Management, 32(1), 4-15.
31. M’NG, J. C. P., RAHMAN, M., & SANNACY, S. (2017). The determinants of capital structure: Evidence from public listed companies in Malaysia, Singapore and Thailand. Cogent Economics & Finance 5, 1-34.
32. MYERS, S.C. (1977). Determinants of Corporate Borrowing. Journal of Financial Economics 5, 147-175.
33. MYERS, S.C. (1984). The Capital Structure Puzzle. Journal of Finance, 39(3), 575-592.
34. MYERS, S.C., and MAJLUF, N. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics 13, 187–221.
35. OZKAN, A., and OZKAN, N. (2004). Corporate cash holdings: An empirical investigation of UK companies. Journal of Banking and Finance 28, 2103-2134.
36. ÖZTEKIN, Ö. (2015). Capital Structure Decisions around the World: Which Factors Are Reliably Important?. Journal of Financial and Quantitative Analysis, 50(3), 301–323.
37. RAJAN, R.G., & ZINGALES, L. (1995). What Do We Know About Capital Structure? Some Evidence from International Data. Journal of Finance, 50(5), 1421-1460.
38. TITMAN, S., & WESSELS, R. (1988). The Determinants of Capital Structure Choice. Journal of Finance, 43(1), 1-19.
39. VIJAYAKUMARAN, S., & VIJAYAKUMARAN, R. (2018). The Determinants of Capital Structure Decisions: Evidence from Chinese Listed Companies. Asian Journal of Finance & Accounting, 10(2), 63-81.