The theory of asymmetric information : Application on credit markets

In this study, in the framework of the asymmetric information theory in credit markets, it has been tried to determine that, in case of asymmetric information, whether the credit rationing phenomenon and risky portfolio structure, which are claimed by Stiglitz-Weiss Model, are viable in the commercial loan market of private companies running in manufacturing industry and non manufacturing industry or not.As a result of Granger Causality Analyses, which have been carried out, it can be said that the credit rationing phenomenon, which is claimed by Stiglitz-Weiss Model, is not viable and not affected by proportion of liquidated loan to total loan in the commercial loan market of private companies running in manufacturing industry and non manufacturing industry. In the meantime, it has been found that, the proportion of liquidated commercial loans to total loans is affected by the proportion of credit to total assets of companies, running in both industries. This result shows that commercial banks follow a credit plasman strategy, which is unrelated with the information gained about risky structure in the commercial loan market of companies which run in both industries. This situation could make firms to follow Ponzi finance strategy in the industry, in which they operate.Moreover, for the construction sector, it has been understood that, the proportion of liquidated commercial loan to total loan is not affected by financial structure ratios of the sector. But, structure of taking a long term credit is affected by the proportion of liquidated loans to total loansIn conclusion, it has also been found that for the textile industry, the proportion of liquidated loans to total loans is affected by the ratio of credit to assets and the proportion of liquidated loans to total loans is not affected by the financial structure ratios of the textile sector which has exchange rate risk