Evidence for financial hierarchy theory in capital structure decisions: Data from BIST companies

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dc.contributor.authorAcar, Elif
dc.contributor.authorVural, Gamze
dc.contributor.authorÇetenak, Emin Hüseyin
dc.date.accessioned2024-11-07T10:39:52Z
dc.date.available2024-11-07T10:39:52Z
dc.date.issued2020
dc.departmentNiğde Ömer Halisdemir Üniversitesi
dc.description.abstractThe aim of this study is to test and expound the firm-level factors that determine financial leverage via testing a panel data of non-financial companies listed in the BIST throughout 1994-2015. We aim to build on our previous study of the same data set (Vural & Acar, 2018), which tested the basic model of Financial Hierarchy theory via a simple regression analysis of financial leverage on financial deficit and yielded positive results at 1% significance level. In this study, using reliably significant factors of leverage, we further analyze the effects of firm characteristics on changes in leverage by using the system version of the Generalized Method of Moments (System GMM). Operational profitability and firm size are found to negatively affect debt levels, while market-to-book value ratio has a positive effect, as predicted by the Financial Hierarchy theory. The median industrial leverage ratio has a positive coefficient, more in line with Trade-off theory's predictions. © 2020 Bogazici Universitesi. All rights reserved.
dc.identifier.doi10.21773/BOUN.34.1.2
dc.identifier.endpage43
dc.identifier.issn1300-9583
dc.identifier.issue1
dc.identifier.scopus2-s2.0-85095885108
dc.identifier.scopusqualityQ4
dc.identifier.startpage24
dc.identifier.urihttps://doi.org/10.21773/BOUN.34.1.2
dc.identifier.urihttps://hdl.handle.net/11480/11250
dc.identifier.volume34
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherBogazici Universitesi
dc.relation.ispartofBogazici Journal
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/openAccess
dc.snmzKA_20241106
dc.subjectCapital Structure
dc.subjectFinancial Hierarchy
dc.subjectGMM
dc.subjectTrade-off
dc.titleEvidence for financial hierarchy theory in capital structure decisions: Data from BIST companies
dc.title.alternativeSermaye yapisi kararlarinda finansman hiyerarsisi teorisinin belirleyiciligi: BIST firmalari örnegi
dc.typeArticle

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