SavedAdd your journal

Journals / Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi / 2016 / Cilt: 38 - Sayı: 1

CAPITAL STRUCTURE AND FIRM PERFORMANCE: AN APPLICATION ON MANUFACTURING INDUSTRY

Emin Avcı
Pages
15–30
Publication Date
2016-06-01
DOI
—
🏛️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)

Return on equity and return on assets are used as measures of firm performance; and short-term debt to total assets, long-term debt to total assets and debt to equity is used as explanatory variables; the total assets are control variables.The findings of the study presented that for both short-term debt and long-term debt have a negative and statistically significant effect on both return

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Capital structure and its possible effects on the firms’ financial and real decisions have been one of the most debated concepts in finance literature.
📊
Key Findings & Data:This paper investigates the relation between firms’ financial and real decisions, in terms of capital structure and firm performance.
💡
Conclusion & Impact:Return on equity and return on assets are used as measures of firm performance; and short-term debt to total assets, long-term debt to total assets and debt to equity is used as explanatory variables; the total assets are control variables.The findings of the study presented that for both short-term debt and long-term debt have a negative and statistically significant effect on both return
🔬Design:Research Article
📍Scope:2003- 2015 Verileri
⚙️Variables:Sermaye yapısı · Firma performansı · Öz kaynak karlılığı

Abstract

Capital structure and its possible effects on the firms’ financial and real decisions have been one of the most debated concepts in finance literature. This paper investigates the relation between firms’ financial and real decisions, in terms of capital structure and firm performance. Such possible relation is analyzed for the manufacturing firms, which are traded in Borsa Istanbul during the period of 2003- 2015. Return on equity and return on assets are used as measures of firm performance; and short-term debt to total assets, long-term debt to total assets and debt to equity is used as explanatory variables; the total assets are control variables.The findings of the study presented that for both short-term debt and long-term debt have a negative and statistically significant effect on both return

Özet

Capital structure and its possible effects on the firms’ financial and real decisions have been one of the most debated concepts in finance literature. This paper investigates the relation between firms’ financial and real decisions, in terms of capital structure and firm performance. Such possible relation is analyzed for the manufacturing firms, which are traded in Borsa Istanbul during the period of 2003- 2015. Return on equity and return on assets are used as measures of firm performance; and short-term debt to total assets, long-term debt to total assets and debt to equity is used as explanatory variables; the total assets are control variables.The findings of the study presented that for both short-term debt and long-term debt have a negative and statistically significant effect on both return

🔖

Cite This Article

Avcı, E. (2016). CAPITAL STRUCTURE AND FIRM PERFORMANCE: AN APPLICATION ON MANUFACTURING INDUSTRY. Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi, Cilt: 38 - Sayı: 1, 15–30. https://ajindex.com/articles/6423

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (13)

  1. ALBAYRAK, A.S. and Akbulut, R., “Karlılığı etkileyen faktörler: İMKB sanayi ve hizmet sektörlerinde işlem gören işletmeler üzerine bir inceleme”, ZKÜ Sosyal Bilimler Dergisi, 4(7), 2008, pp. 55-83.
  2. ASGHARIAN, H., “Are highly leveraged firms more sensitive to an economic downturn?”, The European Journal of Finance, 9(3), 2003, pp. 219-241.
  3. AYRIÇAY, Y. and Türk, V. E., “Finansal oranlar ve firma değeri ilişkisi: BİST’de bir uygulama”, Muhasebe ve Finansman Dergisi, Ekim 2014, pp. 53-70.
  4. BERENS, J.L. and Cuny, C.J., “The capital structure puzzle revisited”, The Review of Financial Studies, 8(4), 1995, pp. 1185-1208.
  5. BERGER, A.N. and Patti, B., “Capital structure and firm performance: A new approach to testing agency theory and an application to the banking industry”, Journal of Banking & Finance, 30, 2006, pp. 1065–1102.
  6. BRADLEY, M., Jarrel, G.A. and Kim, E. H., “On the existence of an optimal capital structure: theory and evidence”, The Journal of Finance, 39(3), 1984, pp. 857. BİRGİLİ, E. and Düzer, M., “Finansal analizde kullanılan oranlar ve firma değeri ilişkisi: İMKB’de bir uygulama”, Muhasebe ve Finansman Dergisi, 46, 2010, pp. 74-83.
  7. BOOTH, L., Aivazian, V., Demirguc-Kunt, A. and Maksimovic, V., “Capital structures in developing countries”, The Journal of Finance, 56(1), 2001, pp. 87-130.
  8. BÜYÜKŞALVARCI, A., “Finansal oranlar ile hisse senedi getirileri arasındaki ilişkinin analizi: İMKB imalat sektörü üzerine bir araştırma”, Muhasebe ve Finansman Dergisi, 48, 2010, pp. 130-141.
  9. CHADHA, S. and Sharma, A.K., “Capital structure and firm performance: Empirical evidence from India”, The Journal of Business Perspective, 19(4), 2015, pp. 295–302.
  10. ÇATAL, M. F., “Küresel finansal krizin BİST’de işlem gören otomotiv sektörünün sermaye yapısı üzerindeki etkileri”, Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 28(2), 2014, pp. 179-197.
  11. DAWAR, V., “Agency theory, capital structure and firm performance: Some Indian evidence”, Managerial Finance, 40(12), 2014, pp. 1190 – 1206. DURUKAN, M.B., “Hisse senetleri İMKB’de İşlem gören firmaların sermaye yapısı”, İMKB Dergisi, 1(3), 1997, pp. 75-87.
  12. EBAID, I. E., “The impact of capital-structure choice on firm performance: empirical evidence from Egypt”, The Journal of Risk Finance, 10(5), 2009, pp. 477 – 487. FAMA, E. F. and French, K. R., “Testing trade-off and pecking order predictions about dividends and debt”, The Review of Financial Studies, 15(1), 2002, pp. 1–33.
  13. FRANK, M. Z. and Goyal, V.K., “Testing the