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Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies

Author

Listed:
  • Erdinc Karadeniz

    (University of Mersin, Turkey)

  • Serkan Yilmaz Kandir

    (University of Cukurova, Turkey)

  • Omer Iskenderoglu

    (University of Nigde, Turkey)

  • Yildirim Beyazit Onal

    (University of Cukurova, Turkey)

Abstract

Aim of this study is to investigate the role of firm size on capital structure decisions of Turkish lodging companies. In this context, a survey questionnaire is developed and sent to unquoted Turkish lodging companies. 163 lodging companies answered the survey and they are classified according to their sizes. Empirical findings reveal that firm size is a significant factor for capital structure decisions of Turkish lodging companies. Firm size seems to affect lodging companies in using incentives, issuing common stock, using personal debt and determining target debt ratio. Most of the empirical findings seem to support pecking order theory.

Suggested Citation

  • Erdinc Karadeniz & Serkan Yilmaz Kandir & Omer Iskenderoglu & Yildirim Beyazit Onal, 2011. "Firm Size and Capital Structure Decisions: Evidence From Turkish Lodging Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 1(1), pages 1-11.
    • Handle: RePEc:eco:journ1:2011-01-1
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    References listed on IDEAS

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    Cited by:

    1. Haeng-Sun KIM, 2016. "Firms' leverage and export market participation: Evidence from South Korea," International Economics, CEPII research center, issue 148, pages 41-58.
    2. Haeng-Sun Kim, 2016. "Firms’ Leverage and Export Market Participation: Evidence from South Korea," Working Papers halshs-01643899, HAL.

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    More about this item

    Keywords

    Firm Size; Capital Structure; Pecking Order Theory; Trade-off Theory; Lodging Companies.;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General

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