An investigation about the relationship between firm value and capital structure with mathematical models

Firm value is an important measure which directs investment process for investors in stock market and financing process for firm owners and financial institutions. Therefore, firm value is the field on which most researchers study. Firm value was associated with capital structure of the firm in this study. Capital structure components were handled as factors determining firm value and models were composed accordingly. In this study the data covering 2004-2008 which includes the firms that operate on textile industry on Turkey IMKB industrial index was used. The data was gathered from the official web site of IMKB. The method of ANFIS which is frequently used on uncertainty situations and prediction and Artificial Neural Networks were used. With these models, predicting firms? values one year before now were intended. As a result of the models in the analyses which are not discriminated between sectors and on the basis of sector, it was observed that ANFIS produced successful results on firm value prediction and models with Artificial Neural Network was inadequate with high error portions on prediction of firm value. In conclusion, the market value of the firm in (t+1) period was predicted with small error rates. MATLAB software was used on applying ANFIS and ANN models.Keywords: Artificial neural networks, ANFIS, Firm value, Capital structure.