Effects of capital structure on firm's performance: A study on manufacturing firms listed on İstanbul stock exchange

The study based on secondary data collected from 139 manufacturing firms listed on Istanbul Stock Exchange Market for the period 2009-2013 with attempt to investigate the relationship between capital structure and firm performance by using dynamic panel data analysis. The study uses performance measures return on asset (ROA), return on equity (ROE)as dependent variable and capital structure measures leverage ratio (LEV) as independent variable. However, firm size and griwth used control variable. In the result, companies can increase their profitability with effective debt management. The expectation is firms that canfigure well-organized their level of debt are more conduct the others.