Testing the validity of capital structure theories with the dynamic panel data analysis: the case of Borsa Istanbul

Abstract

In this study, factors affecting capital structure are investigated and the validity of capital structure theories is tested within the scope of these factors. In the study, the data of the enterprises included in the BIST DIVIDEND (XTMTU) index between the years 2010-2019 were tested with dynamic panel data analys The study uses the leverage ratio as the dependent variable; whereas it uses the tangible fixed asset structure ratio, asset profitability, tax level, size, current ratio, liquid ratio, and non-debt tax shield as independent variables. At the end of the study, it has been determined that there is a negative and significant relationship between leverage ratio and tangible fixed asset structure, current ratio, and return on assets. On the other hand, it has been observed that there is a positive and significant relationship between leverage ratio and size and liquid ratio. In addition, it has been determined that there is no significant relationship between the leverage ratio and the tax level or the non-debt tax shield. Finally, the findings obtained in the study are evaluated within the scope of capital structure theories.

Internal Determinan Struktur Modal Pada Perusahaan Tambang Batubara Di Bursa Efek Indonesia

“…Pecking order theory mengindikasikan pengaruh negatif profitabilitas terhadap struktur modal sedangkan trade-off theory mengindikasikan pengaruh positif profitabilitas terhadap struktur modal. Pengaruh positif profitabilitas terhadap struktur modal ditemukan oleh Adepoju (2020), Akpinar (2016), Ariawan & Dudu (2019), Dewi & Sudiartha (2017). Pengaruh negatif profitabilitas terhadap struktur modal di temukan oleh Kuč & Kaličanin (2021) yang didukung temuan Febrianty dkk.…”