The Determinants of Capital Structure for the Manufacturing Industry Firms Listed in Borsa Istanbul
Posted: 8 Jun 2019
Date Written: 2015
This paper investigates the factors that determine the capital structure of the manufacturing industry firms that are listed in BİST between the period 2009 and 2013. We use the data for 188 firms that are included in sub sectors of manufacuring industry. These sectors are food-beverage-tobacco, textile-wearing apparel-leather, paper and paper products-printing-publishing, chemicals-petroleum rubber-plastic products, non-metalic mineral products, basic metal industries, fabricated metal products-machinery-equipment, wood products including furniture. We use the ratio of total debt to total liabilities as a proxy for capital structure. We also use random effect panel regression to run our analyses. Our findings indicate consistent results with pecking order theory.
Keywords: Capital Structure, Pecking Order Theory, Static Trade-off Theory, Panel Data Analysis
JEL Classification: G30, G32
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