Journals / Journal of Business Economics and Finance / 2018 / Volume: 7 Issue: 4

DOES SENTIMENT AFFECT CAPITAL STRUCTURE DECISIONS?

Pages
—
Publication Date
2018-12-30
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

This study contributes to the existing literature by including sentiment as a determinant of capital structure in the analysis as well as differentiating between investor and managerial sentiment.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Purpose- This study aims to investigate whether investor and managerial sentiment have an effect on capital structure decisions of manufacturing firms listed on Borsa Istanbul between 2010 and 2017.
📊
Key Findings & Data:Purpose- This study aims to investigate whether investor and managerial sentiment have an effect on capital structure decisions of manufacturing firms listed on Borsa Istanbul between 2010 and 2017.
💡
Conclusion & Impact:This study contributes to the existing literature by including sentiment as a determinant of capital structure in the analysis as well as differentiating between investor and managerial sentiment.
🔬Design:Research Article
📍Scope:2010 Verileri
⚙️Variables:Capital structure · investor sentiment · managerial sentiment

Abstract

Purpose- This study aims to investigate whether investor and managerial sentiment have an effect on capital structure decisions of manufacturing firms listed on Borsa Istanbul between 2010 and 2017. This study contributes to the existing literature by including sentiment as a determinant of capital structure in the analysis as well as differentiating between investor and managerial sentiment.

🔖

Cite This Article

Cagli, E. C., Korkmaz, E., Durukan, M. B. (2018). DOES SENTIMENT AFFECT CAPITAL STRUCTURE DECISIONS?. Journal of Business Economics and Finance, Volume: 7 Issue: 4. https://doi.org/10.17261/Pressacademia.2018.994

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (28)

  1. Alti, A. (2006). How persistent is the impact of market timing on capital structure?. The Journal of Finance, 61(4), 1681-1710. DOI: 10.1111/j.1540-6261.2006.00886.x
  2. Baker, M., Wurgler, J. (2002). Market Timing and Capital Structure. The Journal of Finance, 57(1), 1-32. DOI: 10.1111/1540-6261.00414
  3. Baker, M., Wurgler, J. (2006). Investor sentiment and the cross‐section of stock returns. The journal of Finance, 61(4), 1645-1680. DOI: 10.1111/j.1540-6261.2006.00885.x
  4. Bayless, M., Chaplinsky, S. (1996). Is there a window of opportunity for seasoned equity issuance?. The Journal of Finance, 51(1), 253-278. DOI: 10.1111/j.1540-6261.1996.tb05209.x
  5. Bilgehan, T. (2014). Psychological biases and the capital structure decisions: a literature review. Theoretical and Applied Economics, 12(601), 123-142.
  6. Breusch, T., Pagan, A. (1980). The lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239-253. DOI: 10.2307/2297111
  7. Central Bank of the Republic of Turkey. Retrieved 2018, June 11 from https://evds2.tcmb.gov.tr/index.php?/evds/serieMarket
  8. De Jong, A., Kabir, R., Nguyen, T. T. (2008). Capital structure around the world: The roles of firm-and country-specific determinants. Journal of Banking & Finance, 32(9), 1954-1969. DOI: 10.1016/j.jbankfin.2007.12.034
  9. Fama, E. F., French, K. R. (2005). Financing decisions: who issues stock?. Journal of financial economics, 76(3), 549-582. DOI: 10.1016/j.jfineco.2004.10.003
  10. Harris, M., Raviv, A. (1991). The theory of capital structure. the Journal of Finance, 46(1), 297-355. DOI: 10.2307/2328697
  11. Hausman, J. (1978). Specification tests in econometrics. Econometrica, 46(6), 1251-1271. doi:10.2307/1913827 DOI: 10.2307/1913827
  12. Hovakimian, A. (2004). The role of target leverage in security issues and repurchases. The Journal of Business, 77(4), 1041-1072. DOI: 10.1086/422442
  13. Jensen, M. C. (1986). Agency costs of free-cash-flow, corporate finance, and takeovers. American Economic Review 76, 323-329. DOI: 10.2139/ssrn.99580
  14. Kayhan, A., Titman, S. (2007). Firms’ histories and their capital structures. Journal of financial Economics, 83(1), 1-32. DOI: 10.1016/j.jfineco.2005.10.007
  15. Kumar, S., Colombage, S., Rao, P. (2017). Research on capital structure determinants: a review and future directions. International Journal of Managerial Finance, 13(2), 106-132. DOI: 10.1108/IJMF-09-2014-0135
  16. Loughran, T., Ritter, J. R. (1995). The new issues puzzle. The Journal of finance, 50(1), 23-51.
  17. Miller, M. H. (1977). Debt and taxes. The Journal of Finance, 32(2), 261-275. DOI: 10.1111/j.1540-6261.1977.tb03267.x
  18. Modigliani, F., Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261-297.
  19. Modigliani, F., Miller, M. H. (1963). Income taxes and the cost of capital: a correction. The American Economic Review, 53(3), 433-443.
  20. Myers, S. C. (1977). Determinants of corporate borrowing. Journal of financial economics, 5(2), 147-175. DOI: 10.1016/0304-405X(77)90015-0
  21. Myers, S. C. (1984). Capital structure puzzle. The Journal of Finance, 39(3), 575-592. DOI: 10.1111/j.1745-6622.1993.tb00369.x Myers, S. C. (2003). Financing of corporations. In Handbook of the Economics of Finance (Vol. 1, pp. 215-253). Elsevier. DOI: 10.1016/S1574-0102(03)01008-2
  22. Myers, S. C., Majluf, N. S. (1984). Corporate financing and investment decisions when firms have information that investors do not have. Journal of Financial Economics, 13(2), 187-221. DOI: 10.1016/0304-405X(84)90023-0
  23. Oliver, B. R. (2005). The impact of management confidence on capital structure. DOI: 10.2139/ssrn.791924
  24. Oliver, B. R., Mefteh, S. (2010). Capital structure choice: the influence of sentiment in France. International Journal of Behavioural Accounting and Finance, 1(4), 294-311. DOI: 10.1504/IJBAF.2010.032844
  25. Ritter, J. R. (1991). The long‐run performance of initial public offerings. The journal of finance, 46(1), 3-27. DOI: 10.1111/j.1540-6261.1991.tb03743.x Shefrin, H. (2008). A behavioral approach to asset pricing. Elsevier.
  26. Statman, M., Fisher, K. L., Anginer, D. (2008). Affect in a behavioral asset-pricing model. Financial Analysts Journal, 20-29. DOI: 10.2139/ssrn.1094070
  27. Turkish Statistical Institute. Retrieved 2018, June 11 from http://www.turkstat.gov.tr/UstMenu.do?metod=temelist
  28. Titman, S., Wessels, R. (1988). The determinants of capital structure choice. The Journal of finance, 43(1), 1-19. DOI: 10.1111/j.1540-6261.1988.tb02585.x