An analytical approach aimed at forming capital structure factors of small and medium sized enterprises (SMEs): An application in İstanbul Stock Exchange (ISE)

With small and elastic structure, small and medium sized enterprises (SMEs), have become indispensable component of economies. SMEs, which create employment and added value and supplement economic development, have many problems. Especially for Türkiye, it is accepted that the most important problem is financial issues. If it is deal with in this respect, have inefficient capital structure is the head of financial issues.Dissertation consists of three sections.In the first section; devoted to concept of SMEs in Türkiye and several countries, role and importance of SMEs in economies, basic financial problems of SMEs and financial resources of SMEs.Second section includes, concept of capital structure, cost of capital and optimal capital structure, capital structure theories and the specific characteristics that influence capital structure decisions.In the third and the final section of the study it is analysed the specific characteristics that influence capital structure decisions of small and medium sized enterprises of which shares are traded in Istanbul Stock Exchange (ISE) between 1996-2007. Results and concluding comments are included in this section of the study.