Testing the pecking order theory of capital structure: Evidence from Turkey using panel quantile regression approach
| Autor: | Ali Kemal Çelik, Durmuş Yıldırım |
|---|---|
| Přispěvatelé: | Çelik, Ali Kemal |
| Jazyk: | angličtina |
| Rok vydání: | 2020 |
| Předmět: |
050208 finance
Capital structure Pecking order media_common.quotation_subject 05 social sciences Internal Funds Monetary economics Pecking Order Theory Investment (macroeconomics) Quantile regression Pecking order theory Debt Capital Structure 0502 economics and business General Earth and Planetary Sciences Manufacturing firms Quantile Regression Business Product (category theory) 050207 economics External Funds General Environmental Science media_common |
| Popis: | Çelik, Ali Kemal; Ardahan Üniversitesi - İktisadi ve İdari Bilimler Fakültesi - İşletme Bölümü - Sayısal Yöntemler Anabilim Dalı - Makale This study tests the validity of the pecking order theory at different investment levels for manufacturing firms listed on the Borsa Istanbul. The study covers the period from 2000 to 2018, and the quantile regression method was employed to determine the relative importance ofinternal and external funding sources in the financing of firm investments. The empirical findings of the present study reveal that the peckingorder theory is valid for the choice behaviour of firms listed on the Borsa Istanbul and that the sensitivity to internal funds and debts increases asinvestment levels increase. In addition, it is found that small firms act in accordance with the pecking order. The empirical findings show that thepecking order theory is not valid for high- and low-leverage firms; high-leverage firms prefer equity financing at high investment levels wheninternal funds are insufficient to finance investment expenditures, and low-leverage firms prefer to borrow as their first choice. Moreover, it isfound that the firms acted in accordance with the financial hierarchy in the period before the global crisis (2000e2009); in the post-crisis period(2010e2018), debt/borrowing was preferred for investment financing. Finally, firms operating in the food, drink and tobacco productmanufacturing; chemical, petroleum, rubber and plastic product manufacturing; and stone- and soil-based industrial product manufacturingsubsectors are found to display pecking order behaviour. |
| Databáze: | OpenAIRE |
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