Factors affecting the capital structure: Panel data analysis on companies trading in Borsa Istanbul in the context of foreign partnership

Production enterprises are capital-intensive businesses that require fixed asset investments on large lands and plots during the investment phase, as well as machinery and equipment investments. Depending on the changing and developing economic conjuncture, globalization and global economic conditions oblige companies to exist, maintain their viability and gain competitive advantage with stronger capital structures. Therefore, it is important to determine the composition of capital structure and variables that affect borrowing decisions for production companies. Within the scope of this thesis, it has been tried to determine which capital structure determinant and theory is valid in explaining the capital structures of 42 foreign capital and 106 non-foreign capital enterprises by separating the variables that affect the capital structures of the production enterprises operating in the BIST 100 as ownership structure. In this context, data on determinants affecting the capital structure of companies in the manufacturing sector in BIST 100 were obtained over the years (2010-2018). These obtained data were tried to be determined by using dynamic panel data analysis and fixed effect estimation model. While the dependent variable is represented by financial leverage ratio, the independent variables considered to affect the capital structure are considered as cash conversion time, asset profitability ratio, firm size and asset structure. Financial hierarchy and balancing theories are the most influential factor on the capital structure of companies with foreign partners in terms of ownership of the capital structures of Turkish manufacturing companies whose shares are traded on the BIST, and that the most influential factor on the capital structure in companies with foreign partners is the firm asset structure. It was determined that he explained the explanators on the basis of variables in accordance with the literature.