DETERMINANTS OF CAPITAL STRUCTURE IN ENERGY SECTOR: EVIDENCE FROM BORSA İSTANBUL

Author:

Bayraktar Güneş Beyza1ORCID,Şavlı Tuba1ORCID

Affiliation:

1. Yeditepe Üniversitesi

Abstract

This study aims to examine the determinants of capital structure in the energy sector of Turkey and their relation to relevant theories. The panel data analysis method was used to analyze annual data from 8 energy companies operating in Borsa Istanbul between 2014 and 2021. Results of the analysis showed that while the median debt ratio on a sector basis affects leverage positively; asset structure, growth opportunities, profitability, liquidity, industrial production and distribution index, and GDP annual growth variables negatively affect leverage. No significant relationship was found between the size of the business, non-debt tax shield, inflation, tax revenue, and leverage. It has been noted that the findings are in line with the previous studies, and the capital structure of the Turkish energy sector is generally compatible with the pecking-order theory.

Publisher

M.U. Iktisadi ve Idari Bilimler Dergisi

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