The effect of capital structure and competition on performance in the Turkish manufacturing industry

In this study, the financial performance, capital structure, and market competition in the Turkish Manufacturing Industry were examined. In the study, the manufacturing industry data presented in the real sector statistics of The Central Bank of the Republic of Türkiye were used. The units of the research consisted of 24 industries according to the NACE Rev.2 two-digit classification. The research dataset consisted of balance sheets and income statements data for the years 2009- 2019 for each industry. The research data were analyzed with the Driscoll-Kray estimator. As a result of the analysis, it has been revealed that the capital structure and market competition affect the performance in the Turkish Manufacturing Industry. The relationship between capital structure and performance is consistent with Agency Cost theory. The effect of competition on performance supports the Structure-Conduct-Performance hypothesis.