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The Factors Affecting Capital Structure: A Panel Data Analysis in the Context of Behavioural Corporate Finance

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  • Bilgehan TEKİN

Abstract

In this study, the effects of “Real Sector Confidence Index” as well as the effects of firmspecific and macroeconomic factors on the capital structure were investigated. In line with the studies conducted in behavioral corporate finance, Real Sector Confidence Index has been considered as a measure of the overconfidence of managers. Other variables considered in the study are net sales, change in assets, return on assets, gross domestic product and inflation. In the study, leverage ratio is used as the variable capturing the capital structure. Fims listed in the BIST Industry Index were examined using panel data analysis. According to the results of the study, no evidence could be found towards an effect of Real Sector Confidence Index on capital structure. However, the effect of other variables on capital structure has been determined at certain levels of confidence.

Suggested Citation

  • Bilgehan TEKİN, 2019. "The Factors Affecting Capital Structure: A Panel Data Analysis in the Context of Behavioural Corporate Finance," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(42).
    • Handle: RePEc:sos:sosjrn:190408
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    More about this item

    Keywords

    Real Sector Confidence Index; Overconfidence; Capital Structure.;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G3 - Financial Economics - - Corporate Finance and Governance
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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