Determinants of Capital Structure The Evidence from European Energy Companies.
Karadeniz, Erdinç
The main aims of this study are to determine the factors which affect capital structure of corporations operating in energy sector and to detect capital structure theories with which capital structure of energy sector companies would comply. In this context, a panel data analysis was performed on totally 79 European energy companies operated between the years 2009 - 2012. According to results of the study; diminishing leverage rate caused by increased liquidity in European energy companies can be explained with the Pecking Order Theory, while escalating leverage rate caused by increased tangible fixed assets or equity turnover would be defined with the Trade-off Theory.
The Impact of Overconfidence on Capital Structure in Turkey
The aim of this study is to investigate the relationship between the overconfidence and capital structure in Turkish manufacturing firms. In addition to management confidence, the impact of the fundamental factors on the market leverage is analyzed. The annual data of 115 manufacturing firms on the Istanbul Stock Exchange (ISE) for the period between 2002 and 2011 is used for the analysis by means of the ordinary least squares regression model. The results show that the relationship between confidence and leverage is ambiguous. There isn’t enough evidence for the idea of overconfident managers tends to use more debt level. However, this study provides some evidence for firm specific factors like size and profitability effects on leverage.
