Factors affecting leverage during a financial crisis: Evidence from Turkey

Jermias, Johnny; Yiğit, Fatih

doi:10.1016/j.bir.2018.07.002

Cited by 45 publications

(49 citation statements)

References 28 publications

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“…Using BIST data, Yıldız (2018) shows that the GFC negatively affected the adjustment speed of leverage of Turkish firms. Jermias & Yigit (2019) also confirm the inverse trend on the adjustment speed of leverage after the GFC. Besides, employing CBRT data, Köksal & Orman (2015) and Orman & Köksal (2017) find that both listed and unlisted (small or private) Turkish firms may change their capital structure decisions depending on whether the economy is stable or not.…”

Section: Capital Structure Decisions and The Global Financial Crisis supporting

confidence: 68%

“…The literature mentions that the GFC has a negative impact on capital structure decisions of Turkish firms. For example, Yıldız (2018) and Jermias & Yigit (2019) show that Turkish firms decreased their adjustment speed of capital structure after the GFC. Typically, these studies use the dataset of Borsa Istanbul (BIST) in which mainly larger firms are listed.…”

Section: Introductionmentioning

confidence: 99%

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THE GLOBAL FINANCIAL CRISIS AND CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs: A REVIEW

Tekin¹,

Polat²

2020

International Journal of Management Economics and Business

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Küresel finansal krizle birlikte belirsizlikler artmış, böylece, sermaye yapısı kararları Türk firmaları, özellikle küçük ve orta ölçekli (KOBİ) firmalar için çok önemli hâle gelmiştir. KOBİ'ler daha yüksek bilgi asimetrisi, işlem maliyetleri ve riskle karşı karşıya olduğundan, finansal piyasalardaki kargaşa sırasında finansmana erişimde daha fazla güçlükle karşılaşırlar. Bu incelemede, Türk firmalarının sermaye yapısı kararlarından elde edilen bulguları karşılaştırmalı olarak analiz ediyoruz. Tahmin edilebileceği gibi, ciddi kriz koşullarında KOBİ'lerin Borsa İstanbul'da listelenen firmalardan daha fazla önlem almasını bekliyoruz.

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Section: Capital Structure Decisions and The Global Financial Crisis supporting

confidence: 68%

Section: Introductionmentioning

confidence: 99%

THE GLOBAL FINANCIAL CRISIS AND CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs: A REVIEW

Tekin¹,

Polat²

2020

International Journal of Management Economics and Business

View full text Add to dashboard Cite

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“…Profitability is the return on capital investment, which is calculated from net profit divided by investment. Some previous studies show that firms with high returns on investment or assets use relatively smaller debt ( Jermias & Yigit, 2019;Santosa et al, 2020). The high profitability enables management to finance most of its investment internally with its retained earnings.…”

Section: Relationship Of Profitability To Leveragementioning

confidence: 99%

The Effect of Financial Performance and Innovation on Leverage: Evidence from Indonesian Food and Beverage Sector

Santosa

2020

OMEE

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This article aims to investigate the determinants of firm’s capital structure (debt ratio) such as asset structure, profitability, agency cost, innovation and technology, and firm size as a moderating variable. This study used quarterly data from the financial statements of food and beverage firms at the Indonesia Stock Exchange with a purposive sampling method that met the research criteria with panel data analysis. The findings show that firm size and asset structure affect leverage positively; however, profitability and innovation and technology negatively affect the debt ratio, while agency cost does not affect leverage. All findings are in line with the hypotheses except agency cost. The firm size as a moderating variable shows strengthening of the interaction between agency cost and innovation with leverage. However, interacting with firm size weakens the effect of the relationship between assets structure and profitability with the debt ratio. Managerial implications of the target of debt ratio that creates the value of the firm need to be flexible and controlled by the interaction of the firm size with firm characteristics and innovation to achieve an optimal firm value of F & B sector.

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“…Berger and Humphrey (1997) use a national database to assess the technical, configuration, and cost efficiency of conventional banks and participating banks. Us (2017) and Jermias and Yigit (2018) suggest that analyzing traditional loans such as mortgage lending may also help policymakers directly identify loan types and the factors that result in NPLs. Isik and Hassan (2002) observe the efficiency of Turkish banks for 1988-1996.…”

Section: Introductionmentioning

confidence: 99%

Does abnormal lending behavior increase bank riskiness? Evidence from Turkey

et al. 2019

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This study empirically analyzes whether the rapid growth of loans and risktaking behavior during the expansion of loans affected non-performing loans (NPLs) and the solvency of financial institutions in the Turkish banking system. Design/methodology/approach: Using the GMM Generalized Method of Moments, this study used data on Turkish banks from 2011 to 2017 to test two hypotheses on the effects of loan growth on NPLs and solvency. Findings: This study finds significant results for the effect of loan growth on NPLs and solvency. NPLs rose from the previous year's loan growth, which tended to reduce solvency. Research limitations/implications: Due to selected research methods, the results may lack generality. Therefore, future studies should test the propositions herein further. Practical implications: The results indicate that careful allocation behavior is required when lending. Additionally, these findings may be helpful to financial managers and decision makers. Originality/value: This study confirms the need to determine how to allocate loans during the loan boom periods.

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Factors affecting leverage during a financial crisis: Evidence from Turkey

Cited by 45 publications

References 28 publications

THE GLOBAL FINANCIAL CRISIS AND CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs: A REVIEW

THE GLOBAL FINANCIAL CRISIS AND CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs: A REVIEW

The Effect of Financial Performance and Innovation on Leverage: Evidence from Indonesian Food and Beverage Sector

Does abnormal lending behavior increase bank riskiness? Evidence from Turkey

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