AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs

Findings of this study suggest that Turkish SMEs happen to experience obstacles in raising finance to improve and develop their business environment. In particular, as information asymmetry and uncertain economic environment are the key barriers, financial constraints turn out to be main handicap for SMEs’ survival. Despite its own merits, SME owners, in family business case, are reluctant to take external finance for their projects with the intention not to lose their independence and control. The main purposes of this study are firstly to investigate the issue of financing of SMEs in Turkey in the theoretical context and secondly to make policy suggestions for the future. Miller and Modigliani (1958)’s basic capital structure theory, Myers, (1984)’s trade off theory, and Myers and Majluf (1984)’s the pecking order theory are the key standing theories to examine SMEs’ capital structure needs. The results of this study are similar to those reported for most Western economies that owners of SMEs follow a pecking order theory and prefer retained profit to external finance in order to cover their financing gaps.

Keywords:

SMEs capital structure theories, financing,

Tam Metin

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Bibtex	@araştırma makalesi { pap371539, journal = {PressAcademia Procedia}, eissn = {2459-0762}, address = {Siteler Sok. No.12/18 Maltepe, 34843, Istanbul}, publisher = {PressAcademia}, year = {2017}, volume = {4}, number = {1}, pages = {400 - 408}, doi = {10.17261/Pressacademia.2017.560}, title = {AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs}, key = {cite}, author = {Demirbas, Safa and Demirbas, Dilek} }
APA	Demirbas, S. & Demirbas, D. (2017). AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs . PressAcademia Procedia , 4 (1) , 400-408 . DOI: 10.17261/Pressacademia.2017.560
MLA	Demirbas, S. , Demirbas, D. "AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs" . PressAcademia Procedia 4 (2017 ): 400-408 <
Chicago	Demirbas, S. , Demirbas, D. "AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs". PressAcademia Procedia 4 (2017 ): 400-408
RIS	TY - JOUR T1 - AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs AU - SafaDemirbas, DilekDemirbas Y1 - 2017 PY - 2017 N1 - doi: 10.17261/Pressacademia.2017.560 DO - 10.17261/Pressacademia.2017.560 T2 - PressAcademia Procedia JF - Journal JO - JOR SP - 400 EP - 408 VL - 4 IS - 1 SN - -2459-0762 M3 - doi: 10.17261/Pressacademia.2017.560 UR - Y2 - 2022 ER -
EndNote	%0 PressAcademia Procedia AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs %A Safa Demirbas , Dilek Demirbas %T AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs %D 2017 %J PressAcademia Procedia %P -2459-0762 %V 4 %N 1 %R doi: 10.17261/Pressacademia.2017.560 %U 10.17261/Pressacademia.2017.560
ISNAD	Demirbas, Safa , Demirbas, Dilek . "AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs". PressAcademia Procedia 4 / 1 (Haziran 2017): 400-408 .
AMA	Demirbas S. , Demirbas D. AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs. PAP. 2017; 4(1): 400-408.
Vancouver	Demirbas S. , Demirbas D. AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs. PressAcademia Procedia. 2017; 4(1): 400-408.
IEEE	S. Demirbas ve D. Demirbas , "AN EVALUATION OF CURRENT CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs", , c. 4, sayı. 1, ss. 400-408, Haz. 2017, doi:10.17261/Pressacademia.2017.560

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