Capital Structure Decisions Under Micro Institutional Settings: The Case of Turkey

30 Pages Posted: 12 Jun 2003

See all articles by Halit Gonenc

Halit Gonenc

University of Groningen - Faculty of Economics and Business

Abstract

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

Suggested Citation

Gonenc, Halit, Capital Structure Decisions Under Micro Institutional Settings: The Case of Turkey. EFMA 2003 Helsinki Meetings. Available at SSRN: https://ssrn.com/abstract=299489 or http://dx.doi.org/10.2139/ssrn.299489

Halit Gonenc (Contact Author)

University of Groningen - Faculty of Economics and Business ( email )

P.O. Box 100
Groningen, 9700 AV
Netherlands
+31 0 50 363 4237 (Phone)
+31 0 50 363 3850 (Fax)

Register to save articles to
your library

Register

Paper statistics

Downloads
589
rank
43,847
Abstract Views
2,486
PlumX Metrics