Effects of Financial Crises on Capital Structures of Firms: The Case of Turkey

Fatih Yiğit
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Fatih Yiğit: Istanbul Medeniyet University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2017, vol. 32, issue 108, 189-222

Abstract: A broad data set which covers 1989-2012 period was used to investigate the effects of financial crisis on capital structures of firms. It was found that the results which were gained from the system GMM estimator and collapsed instrumental variables are more consistent. Besides the effects of financial crises, the effects of profitability, firm size, growth opportunities, asset structure (tangibility) and industry median on leverage ratios have been exa¬mined. It has been found that while the effects of 1994 and 2001 crises were permanent, the effects of 2008 crisis were temporary.

Keywords: Financial crisis; optimal capital structure; Gene¬ralized Method of Moments (GMM); Partial Adjustment Model (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:acc:malfin:v:32:y:2017:i:108:p:189-222

DOI: 10.33203/mfy.357678

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