The Impact of Firm Growth and Profitability on Debt Policy

Author:

KÖSE Eda1ORCID

Affiliation:

1. Nevşehir Hacı Bektaş Veli Üniversitesi, İİBF

Abstract

Debt policy is one of the decisions that a firm should consider. Managers should set a sound debt policy, taking the right risks and ratios into consideration to ensure the growth of the firm. There are factors that need to be taken into consideration when determining debt policy. These are the asset structure of the firm, firm size and profitability. The aim of this study is to determine the impact of firm growth, asset structure, and profitability on debt policy. Financial statement data of 312 firms traded on the BIST between 2012 and 2021 were used. Panel data analysis was conducted as the methodology in the study. According to the findings of the analysis, firm growth has a positive and statistically significant impact on debt policy. However, other independent variables have no statistically significant impact on the dependent variable.

Publisher

Mehmet Akif Ersoy Universitesi Uygulamali Bilimler Dergisi

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