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

Halit Gonenc*

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

17 Citations (Scopus)

Abstract

This article 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 struc ture could influence the relationship between debt ratios and firms' charac teristics. Using regression analysis, I find that characteristics of firms along with equity ownership by managers, financial institutions, the government, and stock market activities determine the capital structure choice of Turkish firms in a way similar to other developed and developing countries. There is one exception, growth opportunities. Both total debt and long-term debt ratio increase with growth opportunities of firms.

Original languageEnglish
Pages (from-to)57-82
Number of pages26
JournalJournal of Emerging Market Finance
Volume2
Issue number1
DOIs
Publication statusPublished - Jan-2003
Externally publishedYes

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