Capital structure decisions: A study on companies whose shares are traded on the BIST

Theories that are effective in determining the capital structure are divided into two: classical and modern capital structure theories. Net income approach, net operating income approach, traditional approach and Modigliani-Miller approach are among the classical capital structure theories. Balancing theory, financing hierarchy theory, agency costs approach and signaling effect are examined within modern capital structure theories. Within the scope of the study, financial data of 133 manufacturing industry enterprises traded on BIST as of October 2020 for the period 2010 - 2019 were investigated. The manufacturing industry enterprises subject to the study were divided into two groups, with the majority of shareholders being domestic or foreign, taking into account their partnership structure, and two review groups were created. Factors specific to the businesses that determine the capital structure to be used in the study are depreciation expenses/total assets, percentage change in sales, percentage change in operating profit, profit before interest and tax/total assets, current ratio, fixed assets/total assets, long-term debts/total debts, equity. Data on profitability, net sales, receivables turnover rate and depreciation are generated. It is aimed to examine the effects of these figures and ratios on the capital structures of the mentioned enterprises, taking into account their partnership structures. Panel data analysis was applied as a method in the study. As a result of the GMM analysis conducted with variables that do not have a unit root problem and are found to be stationary, the relationship between the dependent variable leverage ratio and the independent variables is interpreted.When the results of the study were examined, it was concluded that the borrowing behavior of the companies was in line with the Financing Hierarchy Theory, in line with the general studies in the literature, and that profit before interest and tax/total assets ratio affected the capital structure of the companies in the DOMESTIC group the most, and fixed asset investments affected the capital structure of the companies in the FOREIGN group the most.