Determination of leverage dynamics in real sector companies which is quoted to Borsa Istanbul (BIST)

Borrowing is the resources a firm obtains from capital markets or financial intermediaries on the condition that it repays with a certain interest rate after a certain period if it cannot meet the funds it needs from within the enterprise. In this study, it is aimed to determine the firm-specific, sector-specific and macroeconomic factors that affect the leverage dynamics of the companies in the BİST Industrials Indice (XUSIN). Although one or more of these factor groups are used in the literature, in this study all three groups are included in this investigation. The period of 2010Q1 - 2019Q4 is determined as the analysis period, and panel data analysis method is used in the study. Based on the results of the study; between short-term financial debt ratio and non-debt tax shield, liquidity ratio, banking sector, and economic confidence index; between long-term financial debt ratio and size; significant results are obtained between the total financial debt ratio and the variables of size, liquidity ratio, inflation, and the capital market. Besides, a significant relationship between all three leverage and profitability, asset structure, and sector averages has been determined. Keywords: BİST Industrials Indice (XUSIN), Leverage Dynamics, Factors Affecting Capital Structure, Financial Liberalization, Panel Data Analysis