Test of the applicability of capital structures determinanst: An emprical study on Turkish agricultural credit koopratives

In this study, factors that influence capital structure have been analyzedfrom various perspectives to determine their relative importance incooperatives and regional unions. To this end, first 10 regional union andcooperatives that are associated with them has been chosen to investigate therelative importance of financial variables that effect capital structure. Analysiscovers the financial results of fiscal years of 2001- 2005 and, financialstatements represents inflation-adjusted figures. The cost of debts, both short-term and long-term, has been calculated from interest rates charged by ZiraatBank over the same period. In the analysis, Actual Debt Ratio has been takenas dependent variable, while, Sales Expenditure/ sales; Operating Profit /Sales; Operating profit / Assets; Equity multiplier; EBIT / Net Interest, andTotal Equity capital has been taken as independent (predictors) variables. Andmultiple regression analysis and partial correlation has been applied todetermine effects of these financial variables on Actual Debts Ratio orequivalently, amount of debt utilized in capital structure of Regional Unionsand Associated Cooperatives. To test the significance of result of theanalysis, ANOVA model has been applied; to test sources of inter groupdifferences Tukey?s_B test has been applied. Findings of the study showedthat; an increase in sales expenditure directly increase need for equity capital,regarding statistical techniques partial correlation analysis produced morestable predictions and consistent results with that of multiple regressionanalysis in determination capital structure. Excluding fiscal year 2003,statistical signifance of analysis for all years has come out to be high (P<0,5).Finally, existence of homogeneous subgroups has been determined throughTukey?_B test that took into account of the differences in capital structurebetween Regional Unions and Associated Cooperatives.