A STUDY ON THE CAPITAL STRUCTURE OF THE TURKISH REAL SECTOR FIRMS


Arslan O.

ISTANBUL UNIVERSITY JOURNAL OF FACULTY OF POLITICAL SCIENCES-SIYASAL BILGILER FAKULTESI DERGISI, ss.102-117, 2005 (ESCI İndekslerine Giren Dergi) identifier

  • Cilt numarası: Konu: 33
  • Basım Tarihi: 2005
  • Dergi Adı: ISTANBUL UNIVERSITY JOURNAL OF FACULTY OF POLITICAL SCIENCES-SIYASAL BILGILER FAKULTESI DERGISI
  • Sayfa Sayıları: ss.102-117

Özet

This paper analyses the capital structure of Turkish real sector firms listed on the Istanbul Stock Exchange (ISE) and stresses on their financial decision making process. The results are obtained from the answers given to the questionnaire by financial executives of the firms. The current capital structure of the firms and their association with the growth opportunities are cross-examined by referring to data from ISE database. The results suggest that the firms avoid using long term debt and they prefer shorter maturity for corporate debt. An expected negative relationship between debt usage and growth opportunities is not found for the firms. Most of the firms confirm that, they set a target capital structure for future and they follow it systematically when they finance investments. Furthermore, majority of firms in the sample emphasize that they plan to increase the portion of long term debt in their target capital structure and this is validated after controlling the financial tables of the firms for the next year.