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

Öz

Anahtar Kelimeler

• 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

Kaynakça

1. Acaravcı, S. K. (2015). The determinants of capital structure: Evidence from the Turkish manufacturing sector. International Journal of Economics and Financial Issues, 5(1), 158-171.
2. Acaravcı, S. & Doğukanlı, H. (2004). Türkiye’de sermaye yapısını etkileyen faktörlerin imalat sanayinde sınanması. İktisat İşletme ve Finans, 19(225), 43-57.
3. Adaoğlu, C. (2000). Stability in the dividend policy of the Istanbul Stock Exchange (ISE) corporations: Evidence from an emerging market. Emerging Markets Review, 1, 252-270.
4. Aivazian, V., Booth, L., & Cleary, S. (2003). Do emerging market firms follow different dividend policies from US firms? Journal of Financial Research, 26(3), 371-387.
5. Akerlof, G. A. (1970). The market for” lemons”: Quality uncertainty and the market mechanism. Quarterly Journal of Economics, 84(3), 488-500.
6. Alves, P., & Francisco, P. (2015). The impact of institutional environment on the capital structure of firms during recent financial crises. The Quarterly Review of Economics and Finance, 57, 129-146.
7. Amin, A. S., Dutta, S., Saadi, S., & Vora, P. P. (2015). Institutional shareholding and information content of dividend surprises: Re-examining the dynamics in dividend-reappearance era. Journal of Corporate Finance, 31, 152-170.
8. Antweiler, W., & Frank, M. Z. (2006). Do US stock markets typically overreact to corporate news stories. Available at SSRN, No: 878091.

9. Arnold, L. G., Reeder, J., & Trepl, S. (2014). Single name credit risk, portfolio risk and credit rationing. Economica, 81(322), 311-328.
10. Ata, H. A., & Ag, Y. (2010). Firma karakteristiğinin sermaye yapısı üzerindeki etkisinin analizi. İstanbul Üniversitesi İktisat Fakültesi Ekonometri ve İstatistik Dergisi, 11, 45-60.
11. Aydoğan, K., & Muradoğlu, G. (1998). Do markets learn from experience? Price reaction to stock dividends in the Turkish market. Applied Financial Economics, 8(1), 41-49.
12. Aygören, H., Çakır, H. M., & Uyar, U. (2013). Ekonomik krizlerin İMKB’de temettü politikaları üzerine etkisi. NWSA: Social Sciences, 8(1), 1-15.
13. Baker, H. K., Powell, G. E., & Veit, E. T. (2003). Why companies use open-market repurchases A managerial perspective. Quarterly Review of Economics and Finance, 43(3), 483-504.
14. Baltagi, B. (2008). Econometric analysis of panel data. 4th Edition, USA: John Wiley & Sons.
15. Batchelor, R., & Orakçıoğlu, I. (2003). Event-related GARCH: The impact of stock dividends in Turkey. Applied Financial Economics, 13(4), 295-307.
16. Bebczuk, R. N. (2003). Asymmetric information in financial markets: Introduction and applications. Cambridge: Cambridge University Press.
17. Berger, A. N. (2006). Pecking order theoryential competitive effects of Basel II on banks in SME credit markets in the United States. Journal of Financial Services Research, 29(1), 5-36.
18. Bhattacharya, S. (1979). An exploration of nondissipative dividend-signaling structures. Journal of Financial and Quantitative Analysis, 14(4), 667-668.
19. Booth, L., Aivazian, V., Demirgüç-Kunt, A. & Maksimovic, V. (2001). Capital structures in developing countries. Journal of Finance, 56(1), 87–130.
20. Bozkurt, I. (2014). Dengeleme Teorisi’nin geçerliliğinin panel veri analizi ile test edilmesi: BİST’de ampirik bir uygulama. Yönetim ve Ekonomi, 21(2), 163-178.
21. Bradley, M., Jarrell, G. A., & Han Kim, E. (1984). On the existence of an optimal capital structure: Theory and evidence. Journal of Finance, 39(3), 857–878.
22. Brau, J. C., & Carpenter, J. T. (2012). Small-Firm uniqueness and signaling theory. Journal of Business Economics and Finance, 1(1), 50-63.
23. Brealey, R. A., Myers, S. C., & Allen, F. (2014). Principles of corporate finance. 11th Edition, Berkshire: McGraw-Hill Education.
24. Brennan, M., & Kraus, A. (1987). Efficient financing under asymmetric information. Journal of Finance, 42(5), 1225-1243.
25. Can, E. (2015). KOBİ’lerin finansman desteği açısından kredi ve sermaye piyasalarının bütünleşmesi ve KOBİ menkul kıymetleştirme uygulaması. Türkiye Bankalar Birliği, Bankacılar Dergisi, 26(92), 25-52.
26. D’Amato, A. (2019). Capital structure, debt maturity, and financial crisis: Empirical evidence from SMEs. Small Business Economics, 1-23.
27. Degryse, H., De Goeij, P., & Kappert, P. (2012). The impact of firm and industry characteristics on small firms’ capital structure. Small Business Economics, 38(4), 431-447.
28. Demirgüç-Kunt, A., Peria, M. S. M., & Tressel, T. (2020). The global financial crisis and the capital structure of firms: Was the impact more severe among SMEs and non-listed firms?. Journal of Corporate Finance, 60, 101514.
29. Demirhan, D. (2009). Sermaye yapısını etkileyen firmaya özgü faktörlerin analizi: İMKB hizmet firmaları üzerine bir uygulama. Ege Academic Review, 9(2), 677–697.
30. Durukan, B. (1997). Hisse senetleri İMKB’de işlem gören firmaların sermaye yapısı üzerinde bir araştırma. İMKB Dergisi, 1(3), 75-91.
31. Eckbo, B. E. (1986). Valuation effects of corporate debt offerings. Journal of Financial Economics, 15(1), 119-151.
32. Erdoğan, M. (2008). Bankacılık sektöründe asimetrik bilgi: Sorunlar ve çözüm önerileri. Dumlupınar Üniversitesi Sosyal Bilimler Dergisi, 20, 1-20.
33. 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.
34. Faulkender, M., Flannery, M. J., Hankins, K. W., & Smith, J. M. (2012). Cash flows and leverage adjustments. Journal of Financial Economics, 103(3), 632-646.
35. Fischer, E. O., Heinkel, R., & Zechner, J. (1989). Dynamic capital structure choice: Theory and tests. Journal of Finance, 44(1), 19-40.
36. Flannery, M. J., & Rangan, K. P. (2006). Partial adjustment toward target capital structures. Journal of Financial Economics, 79(3), 469-506.
37. Frank, M. Z., & Goyal, V. K. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67(2), 217-248.
38. Frank, M. Z., & Goyal, V. K. (2008). Tradeoff and pecking order theories of debt. In: B. E. Eckbo (eds.), Handbook of corporate finance: Empirical corporate finance (pp. 135-202). Amsterdam: NorthHolland.
39. Ghosh, C., Nag, R., & Sirmans, C. (1999). An Analysis of seasoned equity offerings by equity REITs. Journal of Real Estate Finance and Economics, 13(3), 175-192.
40. Gonzalez, V. M., & Gonzalez, F. (2012). Firm size and capital structure: Evidence using dynamic panel data. Applied Economics, 44(36), 4745-4754.
41. Gonzalez, V. M. (2015). The financial crisis and corporate debt maturity: The role of banking structure. Journal of Corporate Finance, 35, 310-328.
42. Graham, J. R. (2000). How big are the tax benefits of debt?. Journal of Finance, 55(5), 1901-1941. 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.
43. Güloğlu, B., & Bekçioğlu, S. (2001). İMKB’deki gelişmelerin şirketlerin sermaye yapısına etkileri: İmalat sanayinde faaliyet gösteren firmalar üzerine bir uygulama. ODTÜ Uluslararası İktisat Kongresi.
44. Gülşen, A. Z., & Ülkütaş, O. (2012). Sermaye yapısının belirlenmesinde finansman hiyerarşisi teorisi ve ödünleşme teorisi: İMKB sanayi endeksinde yer alan firmalar üzerine bir uygulama. Uluslararası Yönetim İktisat ve İşletme Dergisi, 8(15), 49-59.
45. Günalp, B., Kadıoğlu, E., & Kılıç, S. (2010). Nakit temettü bilgisinin hisse senedi getirisi üzerinde önemli bir etkisinin olup olmadığının İMKB’de test edilmesi. HÜ İktisadi ve İdari Bilimler Fakültesi Dergisi, 28(2), 47-69.
46. Hovakimian, A., Opler, T., & Titman, S. (2001). The debt-equity choice. Journal of Financial and Quantitative Analysis, 36(01), 1-24.
47. Huang, G., & Song, F. (2006). The determinants of capital structure: Evidence from China. China Economic Review, 17(1), 14-36.
48. Jain, B. A., & Kini, O. (1994). The post-issue operating performance of IPO firms. Journal of Finance, 49(5), 1699-1726.
49. Jegadeesh, N., & Titman, S. (1993). Returns to buying winners and selling losers: Implications for stock market efficiency. Journal of Finance, 48(1), 65-91.
50. Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs, and ownership structure. Journal of Financial Economics, 3(4), 305-360.
51. Jermias, J., & Yigit, F. (2019). Factors affecting leverage during a financial crisis: Evidence from Turkey. Borsa Istanbul Review, 19(2), 171-185.
52. Karadeniz, E. (2008). Türk konaklama işletmelerinde sermaye yapısını etkileyen faktörlerin analizi (Yayımlanmamış Doktora Tezi). Çukurova Üniversitesi, Sosyal Bilimler Enstitüsü.
53. Karmokolias, Y., Miller, R. R., Shah, S., & Mundial, B. (1995). Dividend policy and behavior in emerging markets: To pay or not to pay. Washington DC: World Bank.
54. Kayhan, A., & Titman, S. (2007). Firms’ histories and their capital structures. Journal of Financial Economics, 83(1), 1-32.
55. Köksal, B., & Orman, C. (2015). Determinants of capital structure: Evidence from a major developing economy. Small Business Economics, 44(2), 255-282.
56. KOSGEB (2012). Enhancing the competitiveness of SMEs in Turkey: Country report. Kraus, A., & Litzenberger, R. H. (1973). A state-preference model of optimal financial leverage. Journal of Finance, 28(4), 911-922.
57. Kula, V. (2000). Küçük ve orta ölçekli imalat işletmelerinin sermaye yapısını etkileyen faktörler ve Afyon’daki işletmeler üzerine bir araştırma (Yayımlanmamış Doktora Tezi). Afyon Kocatepe Üniversitesi.
58. Leary, M.T., & Roberts, M. R. (2005). Do firms rebalance their capital structures?. Journal of Finance, 60(6), 2575-2619.
59. Leland, H. E., & Pyle, D. H. (1977). Informational asymmetries, financial structure, and financial intermediation. Journal of Finance, 32(2), 371-387.
60. Lemmon, M. L., Roberts, M. R., & Zender, J. F. (2008). Back to the beginning: Persistence and the cross section of corporate capital structure. Journal of Finance, 63(4), 1575-1608.
61. Lemmon, M. L., & Zender, J. F. (2010). Debt capacity and tests of capital structure theories. Journal of Financial and Quantitative Analysis, 45(5), 1161-1187.
62. López-Gracia, J., & Sogorb-Mira, F. (2008). Testing trade-off and pecking order theories financing SMEs. Small Business Economics, 31(2), 117-136.
63. Loughran, T., & Ritter, J. R. (1997). The operating performance of firms conducting seasoned equity offerings. Journal of Finance, 52, 1823-1850.
64. Masulis, R. W. (1980). The effects of capital structure change on security prices: A study of exchange offers. Journal of Financial Economics, 8(2), 139-178.
65. Michaelas, N., Chittenden, F., & Poutziouris, P. (1999). Financial policy and capital structure choice in UK SMEs: Empirical evidence from company panel data. Small Business Economics, 12(2), 113-130.
66. Mimouni, K., Temimi, A., Goaied, M., & Zeitun, R. (2019). The impact of liquidity on debt maturity after a financial crisis: Evidence from the Gulf Cooperation Council region. Emerging Markets Finance and Trade, 55(1), 181-200.
67. Mishkin, F. S. (2007). The economics of money, banking, and financial markets. New Jersey: Pearson Education.
68. Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporate finance, and the theory of investment. American Economic Review, 48(4), 261-97.
69. Miller, M. H., & Modigliani, F. (1961). Dividend policy, growth, and the valuation of shares. The Journal of Business, 34(4), 411-433.
70. Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: A correction. American Economic Review, 53(3), 433-443.
71. Morellec, E. (2004). Can managerial discretion explain observed leverage ratios?. Review of Financial Studies, 17(1), 257-294.
72. Muslumov, A., & Aras, G. (2004). Kredi piyasalarında asimetrik bilgi ve bankacılık sistemi üzerindeki etkileri. İktisat, İsletme ve Finans Dergisi, 222, 55-65.
73. Myers, S. C. (1984). The capital structure puzzle. Journal of Finance, 39(3), 574-592.
74. Myers, S. C., & Majluf, N. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221.
75. Myers, S. C. (2001). Capital structure. Journal of Economic Perspectives, 15(2), 81-102.
76. Nissim, D., & Ziv, A. (2001). Dividend changes and future profitability. Journal of Finance, 56(6), 2111- 2133.
77. OECD (2005). OECD SME and entrepreneurship outlook: 2005. Paris: OECD Publishing.
78. OECD (2006). Financing SMEs and entrepreneurs. Paris: OECD Publishing.
79. Okuyan, H.A., & Taşçı, H.M. (2010). Sermaye yapısının belirleyicileri: Türkiye’deki en büyük 1000 sanayi işletmesinde bir uygulama. BDDK Bankacılık ve Finansal Piyasalar Dergisi, 4(l), 105- 120.
80. Orman, C., & Köksal, B. (2017). Debt maturity across firm types: Evidence from a major developing economy. Emerging Markets Review, 30, 169-199.
81. 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.
82. Ross, S. A. (1977). The determination of financial structure: The incentive-signaling approach. The Bell Journal of Economics, 8(1), 23-40.
83. Sarıoğlu, S. E., Kurun, E., & Güzeldere, H. (2013). Sermaye yapısının belirleyicileri: İMKB’de işlem gören çimento, otomotiv ve bilişim sektörlerinin sermaye yapısı analizi. Ege Akademik Bakış, 13(4), 481-496.
84. Seker, S. D., & Jenkins, S. P. (2015). Poverty trends in Turkey. The Journal of Economic Inequality, 13(3), 401-424.
85. Shah, K. (1994). The nature of information conveyed by pure capital structure changes. Journal of Financial Economics, 36(1), 89-126.
86. Shyam-Sunder, L., & Myers S.C. (1999). Testing static tradeoff against pecking order models of capital structure. Journal of Financial Economics, 51(2), 219-44.
87. Spence, M. (1973). Job market signaling. The Quarterly Journal of Economics, 87(3), 355-374.
88. Spence, M. (2002). Signaling in retrospect and the informational structure of markets. American Economic Review, 92, 434-459.
89. Stiglitz, J. E., & Weiss, A. (1981). Credit rationing in markets with imperfect information. American Economic Review, 71(3), 393-410.
90. Strebulaev, I. A. (2007). Do tests of capital structure theory mean what they say. Journal of Finance, 62(4), 1747-1787.
91. Strebulaev, I. A., & Yang, B. (2013). The mystery of zero-leverage firms. Journal of Financial Economics, 109(1), 1-23.
92. Titman, S., & Wessels, R. (1988). The determinants of capital structure choice. Journal of Finance, 43(1), 1-19.
93. Tserlukevich, Y. (2008). Can real options explain financing behavior. Journal of Financial Economics, 89(2), 232-252.
94. Uyar, A., & Güzelyurt, M. K. (2015). Impact of firm characteristics on capital structure choice of Turkish SMEs. Managerial Finance, 41(3), 286-300.
95. Walker, G., & Weber, D. (1984). A transaction cost approach to make-or-buy decisions. Administrative Science Quarterly, 29(3), 373-391.
96. World Bank. (2011). Turkey: Improving conditions for SME growth, finance and innovation, private and financial sector report. Washington DC: World Bank.
97. Yıldız, B., Gökbulut, R. İ., & Korkmaz, T. (2014). Firmalarda temettü politikalarini etkileyen unsurlar: BİST sanayi işletmeleri üzerine bir panel veri uygulamasi. AİBÜ-İİBF Ekonomik ve Sosyal Araştırmalar Dergisi, 10(1), 185-206.
98. Yıldız, M. E., Yalama, A., & Sevil, G. (2009). Sermaye yapısı teorilerinin geçerliliğinin test edilmesi: Panel veri analizi kullanılarak İMKB-imalat sektörü üzerinde ampirik bir uygulama. Iktisat Isletme ve Finans, 24(278), 25-45.
99. Yıldız, Y. (2018). Adjustment to target capital structure and global financial crisis: Evidence from Turkey. Business and Economics Research Journal, 9(3), 543-557.
100. Zeitun, R., Temimi, A., & Mimouni, K. (2017). Do financial crises alter the dynamics of corporate capital structure? Evidence from GCC countries. The Quarterly Review of Economics and Finance, 63, 21-33.
101. Zhou, P., & Ruland, W. (2006). Dividend payout and future earnings growth. Financial Analysts Journal, 62(3), 58-69.