Determinants of Capital Structure: Empirical Evidence from Manufacturing Firms Listed on BIST

In this study, we analyze the impact of firm-level determinants on the capital structure decisions of Turkish publicly traded firms operating in the manufacturing sector over the period from 2010 to 2019, and we also investigate whether this impact is particularly associated with firm size and level of debt. Panel regression results based on the Driscoll-Kraay procedure imply that firm-specific variables selected within the framework of two dominant theories of capital structure play critical roles in explaining the changes in borrowing behaviors of the firms. Moreover, our empirical results reveal that the impact of the firm-level variables on capital structure varies over different groups of firms.