Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms

Aslı Yıkılmaz

Article Details

Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms

Authors:

Aslı Yıkılmaz

Publisher:

İdeal Kent Yayınları

Journal:

OPUS Toplum Araştırmaları Dergisi Vol.20 Issue 51, pp.67-75

Document Type:

Article

Publication Date:

1/2023

Document Language:

English

Document ID (Org No.):

2001283269

pISSN:

2791-9862

Keywords:

Abstract:

 In this study, the capital structure adjustment speed of 19 food sector firms in the Borsa Istanbul BIST 100 index has been estimated between 2010 and 2021. The effect of ownership identity on the capital structure adjustment speed has been investigated within the scope of family and non-family firms. The seven firms have been classified as non-family firms NFF and twelve as family firms FF. The capital structure adjustment speed for family and non-family firms has been composed of the classical dynamic partial adjustment model. The Generalized Moments Method GMM model has been used as the econometric model in estimating the models. The results obtained from the study revealed that there is no significant difference between the debt ratios of family companies and non-family firms. The adjustment speed of family firms has been determined as 68, and the adjustment speed of non-family firms has been approximately 56. The capital structure adjustment speed of family firms is higher than non-family firms. The results show that family firms are less exposed to financial constraints than other firms increasing their borrowing capability, thus enabling them to reach the target debt level faster. The findings suggest that ownership structure plays a vital role in capital adjustment behavior.

 In this study, the capital structure adjustment speed of 19 food sector firms in the Borsa Istanbul BIST 100 index has been estimated between 2010 and 2021. The effect of ownership identity on the capital structure adjustment speed has been investigated within the scope of family and non-family firms. The seven firms have been classified as non-family firms NFF and twelve as family firms FF. The capital structure adjustment speed for family and non-family firms has been composed of the classical dynamic partial adjustment model. The Generalized Moments Method GMM model has been used as the econometric model in estimating the models. The results obtained from the study revealed that there is no significant difference between the debt ratios of family companies and non-family firms. The adjustment speed of family firms has been determined as 68, and the adjustment speed of non-family firms has been approximately 56. The capital structure adjustment speed of family firms is higher than non-family firms. The results show that family firms are less exposed to financial constraints than other firms increasing their borrowing capability, thus enabling them to reach the target debt level faster. The findings suggest that ownership structure plays a vital role in capital adjustment behavior.

 In this study, the capital structure adjustment speed of 19 food sector firms in the Borsa Istanbul BIST 100 index has been estimated between 2010 and 2021. The effect of ownership identity on the capital structure adjustment speed has been investigated within the scope of family and non-family firms. The seven firms have been classified as non-family firms NFF and twelve as family firms FF. The capital structure adjustment speed for family and non-family firms has been composed of the classical dynamic partial adjustment model. The Generalized Moments Method GMM model has been used as the econometric model in estimating the models. The results obtained from the study revealed that there is no significant difference between the debt ratios of family companies and non-family firms. The adjustment speed of family firms has been determined as 68, and the adjustment speed of non-family firms has been approximately 56. The capital structure adjustment speed of family firms is higher than non-family firms. The results show that family firms are less exposed to financial constraints than other firms increasing their borrowing capability, thus enabling them to reach the target debt level faster. The findings suggest that ownership structure plays a vital role in capital adjustment behavior.

 In this study, the capital structure adjustment speed of 19 food sector firms in the Borsa Istanbul BIST 100 index has been estimated between 2010 and 2021. The effect of ownership identity on the capital structure adjustment speed has been investigated within the scope of family and non-family firms. The seven firms have been classified as non-family firms NFF and twelve as family firms FF. The capital structure adjustment speed for family and non-family firms has been composed of the classical dynamic partial adjustment model. The Generalized Moments Method GMM model has been used as the econometric model in estimating the models. The results obtained from the study revealed that there is no significant difference between the debt ratios of family companies and non-family firms. The adjustment speed of family firms has been determined as 68, and the adjustment speed of non-family firms has been approximately 56. The capital structure adjustment speed of family firms is higher than non-family firms. The results show that family firms are less exposed to financial constraints than other firms increasing their borrowing capability, thus enabling them to reach the target debt level faster. The findings suggest that ownership structure plays a vital role in capital adjustment behavior.

Article Details

Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms

Authors:

Aslı Yıkılmaz

Publisher:

İdeal Kent Yayınları

Journal:

OPUS Toplum Araştırmaları Dergisi Vol.20 Issue 51, pp.67-75

Document Type:

Article

Publication Date:

1/2023

Document Language:

English

Document ID (Org No.):

2001283269

pISSN:

2791-9862

Capital Structure

Capital Structure Adjustment Speed

Family Firms

Capital Structure

Capital Structure Adjustment Speed

Family Firms

Issues

Article Details

Capital Structure Adjustment Speed and Ownership Structure: A Research on BIST 100 Index Food Sector Firms

Authors: Aslı Yıkılmaz

Publisher: İdeal Kent Yayınları

Journal: OPUS Toplum Araştırmaları Dergisi Vol.20 Issue 51, pp.67-75

Document Type: Article

Publication Date: 1/2023

Document Language: English

Document ID (Org No.): 2001283269

pISSN: 2791-9862

Capital Structure

Capital Structure Adjustment Speed

Family Firms

Capital Structure

Capital Structure Adjustment Speed

Family Firms

Issues

Authors:

Aslı Yıkılmaz

Publisher:

İdeal Kent Yayınları

Journal:

OPUS Toplum Araştırmaları Dergisi Vol.20 Issue 51, pp.67-75

Document Type:

Article

Publication Date:

1/2023

Document Language:

English

Document ID (Org No.):

2001283269

pISSN:

2791-9862