Changes in Capital Structure in Seasoned Equity Offerings: BIST Implementation
This study evaluates changes in firms’ capital structures after a seasoned equity offering by testing the effects of firm-specific factors on leverage ratios. The relationship between the determined dependent variables and firm-specific factors is associated with the predictions of pecking order and...
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| Format: | Article |
| Language: | English |
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Istanbul University Press
2024-09-01
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| Series: | Istanbul Business Research |
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| Online Access: | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/908E71E4752040ABB0EA703E6489B5DC |
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| author | Zeynep Kalaycıoğlu Ahmet Kurtaran |
| author_facet | Zeynep Kalaycıoğlu Ahmet Kurtaran |
| author_sort | Zeynep Kalaycıoğlu |
| collection | DOAJ |
| description | This study evaluates changes in firms’ capital structures after a seasoned equity offering by testing the effects of firm-specific factors on leverage ratios. The relationship between the determined dependent variables and firm-specific factors is associated with the predictions of pecking order and trade-off theory. In 3 different models in which leverage ratios are determined as dependent factors and firm-specific factors as independent variables, 10 basic hypotheses are proposed, and the relationship between the variables is examined using panel data analysis. According to the results obtained in the analyses, as the number of seasoned equity offerings increases, firms’ leverage ratios decrease, and firms tend to use more debt because of the corporate tax base discount granted to seasoned equity offerings. In addition, it has been determined that rather than choosing to source resources through equity or borrowing, the view of benefiting from both sources of funds is dominant in the face of the resource requirements of seasoned equity offering firms. |
| format | Article |
| id | doaj-art-ee0b7107968448718ceeb8628bd49548 |
| institution | OA Journals |
| issn | 2630-5488 |
| language | English |
| publishDate | 2024-09-01 |
| publisher | Istanbul University Press |
| record_format | Article |
| series | Istanbul Business Research |
| spelling | doaj-art-ee0b7107968448718ceeb8628bd495482025-08-20T02:14:43ZengIstanbul University PressIstanbul Business Research2630-54882024-09-0153220122810.26650/ibr.2024.53.1216752123456Changes in Capital Structure in Seasoned Equity Offerings: BIST ImplementationZeynep Kalaycıoğluhttps://orcid.org/0000-0001-9635-8469Ahmet Kurtaran0https://orcid.org/0000-0003-1780-2491Karadeniz Teknik Üniversitesi, Trabzon, TurkiyeThis study evaluates changes in firms’ capital structures after a seasoned equity offering by testing the effects of firm-specific factors on leverage ratios. The relationship between the determined dependent variables and firm-specific factors is associated with the predictions of pecking order and trade-off theory. In 3 different models in which leverage ratios are determined as dependent factors and firm-specific factors as independent variables, 10 basic hypotheses are proposed, and the relationship between the variables is examined using panel data analysis. According to the results obtained in the analyses, as the number of seasoned equity offerings increases, firms’ leverage ratios decrease, and firms tend to use more debt because of the corporate tax base discount granted to seasoned equity offerings. In addition, it has been determined that rather than choosing to source resources through equity or borrowing, the view of benefiting from both sources of funds is dominant in the face of the resource requirements of seasoned equity offering firms.https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/908E71E4752040ABB0EA703E6489B5DCcapital structureleverage ratiosfirm-specific factorsseasoned equity offeringspanel data analysis |
| spellingShingle | Zeynep Kalaycıoğlu Ahmet Kurtaran Changes in Capital Structure in Seasoned Equity Offerings: BIST Implementation Istanbul Business Research capital structure leverage ratios firm-specific factors seasoned equity offerings panel data analysis |
| title | Changes in Capital Structure in Seasoned Equity Offerings: BIST Implementation |
| title_full | Changes in Capital Structure in Seasoned Equity Offerings: BIST Implementation |
| title_fullStr | Changes in Capital Structure in Seasoned Equity Offerings: BIST Implementation |
| title_full_unstemmed | Changes in Capital Structure in Seasoned Equity Offerings: BIST Implementation |
| title_short | Changes in Capital Structure in Seasoned Equity Offerings: BIST Implementation |
| title_sort | changes in capital structure in seasoned equity offerings bist implementation |
| topic | capital structure leverage ratios firm-specific factors seasoned equity offerings panel data analysis |
| url | https://cdn.istanbul.edu.tr/file/JTA6CLJ8T5/908E71E4752040ABB0EA703E6489B5DC |
| work_keys_str_mv | AT zeynepkalaycıoglu changesincapitalstructureinseasonedequityofferingsbistimplementation AT ahmetkurtaran changesincapitalstructureinseasonedequityofferingsbistimplementation |