AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs

Safa DEMİRBAS; Dilek DEMİRBAS

doi:https://doi.org/10.17261/Pressacademia.2017.560

Article Details

AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs

Authors:

Safa DEMİRBAS | Dilek DEMİRBAS

Publisher:

PressAcademia

Main Topics:

Social Sciences

Journal:

PressAcademia Procedia 2017 Vol.4 Issue 1, pp.400-408

Document Type:

Article

Publication Date:

6/2017

Document Language:

Turkish

Document ID (Org No.):

2000776925

Frequency:

Tri-annual

eISSN:

2459-0762

DOI:

https://doi.org/10.17261/Pressacademia.2017.560

Abstract:

 


Findings of this study suggest that Turkish SMEs happen to experience
obstacles in raising finance to improve and develop their business environment.
In particular, as information asymmetry and uncertain economic environment are
the key barriers, financial constraints turn out to be main handicap for SMEs’
survival. Despite its own merits, SME owners, in family business case, are
reluctant to take external finance for their projects with the intention not to
lose their independence and control.  The
main purposes of this study are firstly to investigate the issue of financing
of SMEs in Turkey in the theoretical context and secondly to make policy
suggestions for the future.  Miller and
Modigliani (1958)’s basic capital structure theory, Myers, (1984)’s trade off
theory, and Myers and Majluf (1984)’s the pecking order theory are the key
standing theories to examine SMEs’ capital structure needs.  The results of this study are similar to
those reported for most Western economies that owners of SMEs follow a pecking
order theory and prefer retained profit to external finance in order to cover
their financing gaps.   

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Article Details

AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs

Authors: Safa DEMİRBAS | Dilek DEMİRBAS

Publisher: PressAcademia

Main Topics: Social Sciences

Journal: PressAcademia Procedia 2017 Vol.4 Issue 1, pp.400-408

Document Type: Article

Publication Date: 6/2017

Document Language: Turkish

Document ID (Org No.): 2000776925

Frequency: Tri-annual

eISSN: 2459-0762

DOI: https://doi.org/10.17261/Pressacademia.2017.560

Issues

Authors:

Safa DEMİRBAS | Dilek DEMİRBAS

Publisher:

PressAcademia

Main Topics:

Social Sciences

Journal:

PressAcademia Procedia 2017 Vol.4 Issue 1, pp.400-408

Document Type:

Article

Publication Date:

6/2017

Document Language:

Turkish

Document ID (Org No.):

2000776925

Frequency:

Tri-annual

eISSN:

2459-0762

DOI:

https://doi.org/10.17261/Pressacademia.2017.560