THE EFFECT OF CAPITAL STRUCTURE ON THE VALUE OF FIRM. A STUDY OF TURKEY NON-METAL MINERAL PRODUCTS INDEX

Year 2018, , 34 - 37, 30.12.2018

Oktay Tas Sinan Ede

https://doi.org/10.17261/Pressacademia.2018.976

Abstract

Purpose - This study aims to examine the effect of capital structure on firm specific variables such as stock performance, growth, profitability. The study also aims to investigate relationship between GDP, inflation and capital structure of firms in a macro view.

Methodology - To apply our study, we use eight main companies of Turkey Non-Metal Mineral Products Index which are carrying out its operations in cement industry. To represent firm value, growth and, profitability, we use stock price, sales and EBITDA margin, respectively. We retrieve our data from Rasyonet on a quarterly basis from 2000 to 2018.

Findings - Our regression analysis shows that leverage generally does not have any significant relationship with examined variables. Also, we could not find any relationship with debt ratio and inflation for our companies.

Conclusion- Investment purpose debt increase is mostly observed in recent years, so it takes time to see result of it.

Keywords

Capital structure, Debt ratio, Turkey Non-Metal Mineral Products Index

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