DETERMINATION OF THE FIRM OPTIMAL CAPITAL STRUCTURE: AN EMPIRICAL STUDY ON THE BORSA İSTANBUL 100 (BIST 100) NON-FINANCIAL COMPANIES
Journal Title: ULUSLARARASI AFRO-AVRASYA ARAŞTIRMALARI DERGİSİ - Year 2017, Vol 2, Issue 4
Abstract
The studies that have the subject of optimal capital structure are being more and more studied in the field of finance. In this research, the capital structure dynamics of 40 non-financial firms, which were traded in Borsa İstanbul (BIST) 100 index between 2012 and 2016, have been investigated by using panel data analysis. In this context, we tried to determine from what factors the optimal capital structures of these 40 firms have been effected by using the financial data of these firms. For this reason, we selected one dependent and five independent variables. As dependent variable, we selected the leverage ratio and as independent variables we selected growth ratio, return on equity (ROE), ratio of tangible assets, liquidity ratio and the firm size. The results of our study indicate that more profitable firms use less debt and therefore, there is a negative relationship between ROE and the leverage ratio. Additionally, we determined that there is a positive correlation between growth ratio, the ratio of tangible assets, the liquidity ratio, the firm size and the leverage ratio.
Authors and Affiliations
Alev Dilek Aydın
Keywords
Related Articles
- EP ID EP257669
- DOI -
- Views 154
- Downloads 0
THE SUSTAINABILITY OF BUSINESS (LIFE SPAN) BUSINESS NEEDS HIERARCHY AND ORGANIZATIONAL MIVISION COULD BE THE SOLUTION?
The effect of globalization and intense competition business in the world, both in the country and the lifespan is reduced. The conceptual analysis of this situation is needed when the life expectancy of the business est...
THE IMPACT OF RECYCLED PAPER PULP USAGE AS A CREATIVE MATERIAL IN THE VISUAL ARTS EDUCATION IN DEVELOPING AN AWARENESS AND HABIT FOR PAPER RECYCLING AMONG THE STUDENTS
The main purpose of this research is to determine the impact of the usage of recycled paper pulp as a creative material among the 6th grade students, in order to develop a consciousness and its impacts on their recyc...
TÜRKİYE’DEKİ SURİYELİ GÖÇMENLERİN SİYASİ VE HUKUKİ DURUMU
Suriye’de Arap Baharı’nın etkisiyle başlayan olaylar iç savaşa dönüşmüştür. Bu iç savaştan kaçan ve can güvenliğini sağlamak isteyenler başta komşu ülkeler olmak üzere dünyanın pek çok ülkesine sığınmışlardır. Suriyelile...
LAMENTS IN TURKISH AND KYRGYZ LITERATURE
Every nation that lives on the earth has its own culture. The cultures of the nations develop in various ways during the historical period in which the nation lived and are exposed to changes during its development. Trad...
INTERTEXTUAL POTENTIALITY IN ABAY KUNANBAY'S POETRY
In Kazakhstan region, there are many poets and writers whose works continue to influence until our present day. But none of these great poets and writers were as influential as Abay Kunanbay in Kazakh literature. Abay Ku...