The link between exchange rate volatility and capital structure under financial liberalization: evidence from the Turkish manufacturing sector
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Tarih
2022
Yazarlar
Dergi Başlığı
Dergi ISSN
Cilt Başlığı
Yayıncı
Springer Heidelberg
Erişim Hakkı
info:eu-repo/semantics/closedAccess
Özet
The main purpose of this article is to examine the effect of exchange rate volatility on the corporate capital structure for firms in the Turkish manufacturing sector during the period of 1990-2017. This period is considered the post-financial liberalization period. This article uses a novel dynamic multiplier analysis which is based on the Panel Vector Autoregressive Model which takes into account endogeneity, firm dynamics, and omitted variable bias. The obtained findings show that real exchange rate volatility forces the firms to use their internal finance sources in the Turkish manufacturing sector even though the Turkish economy experienced a much earlier financial liberalization process than other emerging markets. In addition, the exporter, and those firms without special business group affiliates (non-TUSIAD member firms), have more exposure to real exchange volatility than their exporter and TUSIAD member peers.
Açıklama
Anahtar Kelimeler
Corporate capital structure, Turkish manufacturing sector, Panel VAR, Exchange rate volatility, Financial liberalization, Exporter firms, TUSIAD member firms
Kaynak
Eurasian Business Review
WoS Q Değeri
Q2
Scopus Q Değeri
Q1
Cilt
12
Sayı
3
