Ownership structure in BIST - Capital structure relation Granger causality test a comparative application between BIST industrial index and service index
Abstract. In this study, it was aimed to determine whether there is a bidirectional relationship between the ownership and capital structures through the variables representing the ownership and capital structures of 142 businesses, which are included in the Service and Industrial Indexes of Borsa Istanbul (BIST) between the years of 2006-2014. The capital structure in the research is represented by the leverage ratio (TBTV), which determines the extent to which a business is dependent on debt and to determine how much of the assets owned by the business are financed with debt, while the ownership structure is represented by the largest shareholder’s equity (EBOP), the foreign share (YAP), the corporate investor ratio (KURY) and the number of the shareholders with more than 10% share of the business (ORTAK). The factors influencing the bi-directional causality between the ownership and the capital structures were researched with the Panel Vector Autoregressive Model (VAR). In the scope of the VAR analysis, Granger causality test and the impulse response analyzes were also performed. It was found in the result of the analysis that in the model where the capital structure (TBTV) is a dependent variable in the service index, none of the independent variables belonging to the ownership structure has a causality relation through the TBTV. In the model where the variables belonging to the ownership structure were dependent variables, it was found that the independent variable belonging to the capital structure (TBTV) is the reason of the change in the ownership variables of EBOP, HAO and KURY variables. According to the results obtained, 1 period delay in the capital structure causes decrease in EBOP and HAO; increase in KURY. As to the businesses in the industrial index, a causality relationship was not seen between the ownership structures and the capital structures in the context of these variables and the two structures do not effect each other.
Keywords. Ownership structure, Capital structure, Granger casuality, BIST.JEL. C33,G10, G32.
Akdi, Y. (2010). Zaman Serileri Analizi (Birim Kökler ve Kointegrasyon), Gazi Kitabevi, Ankara.
Akgüç, Ö. (1998). FinansalYönetim, 7. Baskı Avcıol Basın-Yayın, Istanbul.
Anderson, R.C., & Reeb, D.M. (2003). Founding-family ownership, corporate diversification, and firm leverage. The Journal of Law and Economics, 46(2), 653-684. doi. 10.1086/377115
Babuşçu, Ş., & Hazar, A. (2008).SPK İleri Düzey Lisanslama Sınavlarına Hazırlık, 2.Baskı, Akademi Consulting & Training.
Bahar, O. (2006). Turizm sektörünün Türkiye’nin ekonomik büyümesi üzerindeki etkisi: VAR analizi yaklaşımı. Yönetim ve Ekonomi: Celal Bayar Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 13(2), 137-150.
Berk, N. (2007). FinansalYönetim, 9. Baskı, Türkmen Kitabevi, Avcı Ofset Matbaacılık, Istanbul.
Berle, A.A., & Means, G.C. (1932). The Modern Corporation and Private Property, New York: Macmillan.
Bianco, M., & Nicodano, G. (2006). Pyramidal groups and debt. European Economic Review, 50(4), 937-961. doi. 10.1016/j.euroecorev.2004.11.001
Brailsford, T.J., Oliver B. R., Pua, S.L. (2002). On the relation between ownership structure and capital structure. Accounting & Finance, 42(1), 1-26. doi. 10.1111/1467-629X.00001
Chen, S., & Dodd, J.L. (1997). Economic value added (EVATM): An empirical examination of a new corporate performance measure. Journal of Managerial Issues, 318-333.
Demsetz, H. (1983). The structure of ownership and the theory of the firm. The Journal of Law and Economics, 26(2), 375-390. doi. 10.1086/467041
Demsetz, H., & Lehn, K. (1985). The structure of corporate ownership: Causes and consequences. The Journal of Political Economy, 93(6), 1155-1177. doi. 10.1086/261354
Demsetz, H., & Villalonga, B. (2001). Ownership structure and corporate performance. Journal of Corporate Finance, 7(3), 209-233. doi. 10.1016/S0929-1199(01)00020-7
Denis, D.J., & Sarin, A. (1999). Ownership and board structures in publicly traded corporations. Journal of Financial Economics, 52(2), 187-223. doi. 10.1016/S0304-405X(99)00008-2
Granger, C.W. (1988). Some recent development in a concept of causality. Journal of econometrics, 39(1-2), 199-211. doi. 10.1016/0304-4076(88)90045-0
Granger, C.W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 37(3), 424-438. doi. 10.2307/1912791
Hendry, D.F., Juselius K. (2000). Explaining cointegration analysis: Part II. [Retrieved from].
Holderness, C.G., Kroszner, R.S., & Sheehan, D.P. (1999). Were the good old days that good? Changes in managerial stock ownership since the great depression. The Journal of Finance, 54(2), 435-469. doi. 10.1111/0022-1082.00114
Im, K.S., Pesaran M.H., Shin Y. (2003). Testing for unit roots in heteregeneous panels Journal of Econometrics, 115(1), 53-74. doi. 10.1016/S0304-4076(03)00092-7
Jensen, G.R., Solberg, D.P., & Zorn, T.S. (1992). Simultaneous determination of insider ownership, debt, and dividend policies. Journal of Financial and Quantitative analysis, 27(2), 247-263. doi. 10.2307/2331370
Jensen, M.C. (1986). Agency costs of free cash flow, corporate finance and takeovers. The American Economic Review, 76(2), 323-329.
Jensen, M. C., & Meckling, W. H. (1976). Theory of the firm: Managerial behavior, agency costs and ownership structure. Journal of Financial Economics, 3(4), 305-360. doi. 10.1016/0304-405X(76)90026-X
King, M.R., & Santor, E. (2008). Family values ownership structure, performance and capital structure of Canadian firms. Journal of Banking & Finance, 32(11), 2423-2432. doi. 10.1016/j.jbankfin.2008.02.002
Koller, T., Goedhart,M.and Wessels,D.(2005).Valuation: Measuring and Managing the Value of Companies, Fourth Edition, Mc Kinsey & Company, Wiley Publishing.
Korkmaz, T., Başaran, Ü. & Gökbulut, R.İ., (2009). İMKB’de işlem gören otomotiv ve otomotiv yan sanayi işletmelerinin sermaye yapısı kararlarını etkileyen faktörler: Panel very analizi, İktisat-İşletme ve Finans Dergisi, 24(277), 30.
Levin, A., Lin, C.F., & Chu, C.S.J. (2002). Unit root tests in panel data asymptotic and finite-sample properties. Journal of Econometrics, 108(1), 1-24. doi. 10.1016/S0304-4076(01)00098-7
Litov, L.P. (2005). Corporate governance and financing policy: New evidence. Unpublished Working Paper.
Margaritis, D., & Psillaki, M. (2010). Capital structure equity ownership and firm performance. Journal of Banking & Finance, 34(3), 621-632. doi. 10.1016/j.jbankfin.2009.08.023
Modigliani, F., & Miller,M.(1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261-297.
Myers, S.C. (2001). Capital structure. Journal of Economic Perspectives, 15(2), 81-102. doi. 10.1257/jep.15.2.81
Myers, S.C., & Majluf, N.S. (1984). Corporate financing and investment decisions when firms have investment that investors do not have. Journal of Financial Economics, 13(2), 187-221. doi. 10.1016/0304-405X(84)90023-0
Pindado, J., & de la Torre, C. (2008). Financial decisions as determinants of ownership structure: Evidence from Spanish family controlled firms. Managerial Finance, 34(12), 868-885. doi. 10.1108/03074350810915824
Porta, R., Lopez-de-Silanes, F., & Shleifer, A. (1999). Corporate ownership around the world. The Journal of Finance, 54(2), 471-517. doi. 10.1111/0022-1082.00115
Schwartz, E. (1959). Theory of the Capital Structure of the Firm. The Journal of Finance, 14(1), 18-39. doi. 10.1111/j.1540-6261.1959.tb00483.x
Short, H., Keasey, K., & Duxbury, D. (2002). Capital structure, management ownership and large external shareholders: a UK analysis. International Journal of the Economics of Business, 9(3), 375-399. doi. 10.1080/1357151021000010382
Stulz, R. (1988). Managerial control of voting rights: Financing policies and the market for corporate control. Journal of Financial Economics, 20, 25-54. doi. 10.1016/0304-405X(88)90039-6
Türko, R.M. (2002). FinansalYönetim, Alfa Yayın Dağıtım, 2. Baskı Istanbul, s. 496-498.Zwiebel, J. (1996). Dynamic capital structure under managerial entrenchment. The American Economic Review, 86(5), 1197-1215.
- There are currently no refbacks.
Journal of Economics Bibliography - J. Econ. Bib. - JEB - www.kspjournals.org
Copyright © KSP Library