Changes in Capital Structure in Seasoned Equity Offerings: BIST Implementation

Zeynep Kalaycıoğlu and Ahmet Kurtaran
Additional contact information
Ahmet Kurtaran: Karadeniz Teknik Üniversitesi

Istanbul Business Research, 2024, vol. 53, issue 2, 201-228

Abstract: This study evaluates changes in firms’ capital structures after a seasoned equity offering by testing the effects of firm-specific factors on leverage ratios. The relationship between the determined dependent variables and firm-specific factors is associated with the predictions of pecking order and trade-off theory. In 3 different models in which leverage ratios are determined as dependent factors and firm-specific factors as independent variables, 10 basic hypotheses are proposed, and the relationship between the variables is examined using panel data analysis. According to the results obtained in the analyses, as the number of seasoned equity offerings increases, firms’ leverage ratios decrease, and firms tend to use more debt because of the corporate tax base discount granted to seasoned equity offerings. In addition, it has been determined that rather than choosing to source resources through equity or borrowing, the view of benefiting from both sources of funds is dominant in the face of the resource requirements of seasoned equity offering firms.

Keywords: Capital structure; Leverage ratios; Firm-specific factors; Seasoned equity offerings; Panel data analysis (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/908E71E4752040ABB0EA703E6489B5DC (application/pdf)
https://iupress.istanbul.edu.tr/en/journal/ibr/art ... -bist-implementation (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ist:ibsibr:v:53:y:2024:i:2:p:201-228

DOI: 10.26650/ibr.2024.53.1216752

Access Statistics for this article

Istanbul Business Research is currently edited by Seda Tolun Tayalı

More articles in Istanbul Business Research from Istanbul University Business School Contact information at EDIRC.
Bibliographic data for series maintained by Istanbul University Press Operational Team (Ertuğrul YAŞAR) ().