article.page.titleprefix Capital structure decisions under uncertainty: the case of Turkey
Date
2023-02
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Asia-Pacific Journal of Accounting & Economics
Abstract
This study analyzes the relationship between uncertainty and target leverage ratios on manufacturing firms listed in Borsa Istanbul between 2005–2020. To handle possible instrument proliferation and weak instrument problems of System GMM methodology of dynamic panel data, we mainly adopted the Quasi Maximum Likelihood estimator and found that uncertainty has a significant negative marginal effect on target leverage ratios. Our analysis revealed that firms with high levels of uncertainty have lower average leverage ratios than other firms. ANCOVA analysis results show that uncertainty is in the first three time-varying variables which have the highest impact on target leverage variation.
Description
Published by Asia-Pacific Journal of Accounting & Economics; https://doi.org/10.1080/16081625.2023.2170894; Burcu Dinçergök, Department of Business, Atılım University, Ankara, Turkey; Hakkı Ozan Eruygur, Department of Economics, Ankara Hacıbayram Veli University, Ankara, Turkey.
Keywords
Target capital structure; uncertainty; Quasi maximum likelihood estimation for the dynamic panel data (DPDQML); speed of adjustment; system GMM
Citation
http://hdl.handle.net/20.500.14411/1988