Capital Structure Decisions Under Micro Institutional Settings: The Case of Turkey
30 Pages Posted: 12 Jun 2003
This paper examines the impact of profitability, asset tangibility, size, and growth opportunities on capital structure decisions of Turkish Industrial firms. I aim to show that corporate governance and equity ownership structure could influence the relationship between debt ratios and firm's characteristics. Using regression analysis, I find that characteristics of firms along with equity ownership by managers, financial institutions, government, and stock market activities determine the capital structure choice of Turkish firms with the similar way as in developed and developing countries. There is one exception, growth opportunities. Both total debt and long-term debt ratio increase with growth opportunities of firms.
Keywords: Capital structure, Equity ownership, Corporate governance
JEL Classification: G32, G34
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