The effect of ownership structure on financing decisions and financial performance: A research on banks trading on Borsa Istanbul

Ownership structure concept is examined from a financial perspective, it is seen that the concept explains how the working capital is distributed. Ownership structure reveals the level of ownership of working capital stakeholders in ownership interests. Ownership structure; It can be examined under six headings as family ownership, managerial ownership, public (state) ownership, institutional investor ownership, foreign ownership and scattered ownership. When the literature is examined, it is seen that the issues of financial performance and financing decisions have been intensively examined in recent years. Financial performance and financing decisions are seen as highly effective factors in the development and growth of companies. It is thought that these factors are affected by the ownership structure of the company. In this study, in which we examine the effect of ownership structure on financing decisions and financial performance, annual data of 10 banks that were continuously traded in the BIST Banking index between 2007 and 2018 were used. The obtained data were analyzed by panel data analysis method. Within the scope of the analysis, financial leverage ratio and return on assets variables were determined as dependent variables, first largest partner, second largest partner and size variables were determined as independent variables. In the analysis, two models, namely financial leverage ratio and return on assets, were created and analyzes were made on these models. When we examine the financial leverage ratio model, it is seen that the relationship between the first largest partner and the second largest partner variables is insignificant, and the relationship between them and the size variable is negative. When we examine the return on assets model, it was found that the first largest common was positive and significant, size variables were negative and significant, and no relationship was found with the second largest common variable. Key Words: Ownership Structure, Financial Performance, Financing Decisions, Panel Data Analysis.