Capital structure of new technology-based firms: A research on Technopark firms

This study aims to analyze the capital structure of new-technology-based firms (NTBFs) operating in Technoparks in Turkey and to understand the financing problems of these facilities. Data employed in this research is obtained through in-depth interview and survey methods. Generalized ordered logit models have been estimated to determine under what characteristics of firms and managing partners the capital structure of firms of various levels change. Estimation results find that the age, size and ownership structure of firms as well as the use of grant and the age of managing partners have significant effects on the probability of lying on different levels of internal equity ratios of firms. The likelihood of lying on external equity ratios has been found to be determined by the age of firms, the use of grant, the existence of physical products and the experience of managing partners. In addition, it has been observed that the size of firms, the use of support, gender and experience of managing partners significantly influence the probability of different-levels of debt ratios of firms. Multinomial logit model is used to determine the firm and managing partner characteristics that shape financing preferences of managing partners of new-technology-based firms. The results show that these preferences are determined by the size of firms and the use of grant. Keywords: New Technology Based Firms (NTBFs), Capital Structure, Technopark, Generalized Ordered Logit Model, Multinomial Logit Model