THE DETERMİNANTS OF CAPİTAL STRUCTURE ACCORDİNG TO INDUSTRY BASE, AND EFFİCİENCY OF CAPİTAL STRUCTURE CHANGE TO PROTECTİON OF FİRMS FROM THE CRİSİS EFFECTS: AN APPLİCATİON IN ISE

Abstract

The decisions on capital structure are one of the most important issues in finance literature and these decisions change according to general economic situations and sector experiences. Therefore, firms have to amend their capital structure in the period of crisis. In this study, the effectiveness of changing capital structure in the period of crisis has been investigated. Using the firm and financial markets specific variables for the non-crisis and crisis periods of 111 firms traded on Istanbul Stock Exchange, the relationship between capital structure and crisis prevention has been tested with panel regression analysis.

According to the analysis results, in general the capital structure of firms quickly affected in crisis periods and decrease of the short term depth ratio in
whole capital structure is significant factor in the protection of firms from the crisis effects.