Traditional or behavioural? A combined decision making trial and evaluation laboratory and analytic network process approach for capital structure determinants of Turkish companies

BANK S. , Collu D. A. , BULUT H. İ.

JOURNAL OF MULTI-CRITERIA DECISION ANALYSIS, vol.27, pp.159-172, 2020 (Journal Indexed in ESCI) identifier identifier

  • Publication Type: Article / Article
  • Volume: 27
  • Publication Date: 2020
  • Doi Number: 10.1002/mcda.1686
  • Page Numbers: pp.159-172


The aim of this study, following a new approach under the irrationality of managers, is to investigate the most effective determinants of capital structure decisions by combining traditional capital structure determinants with managerial-behavioural biases. In line with this objective, considering the capital structure decision as one that employs multicriteria decision making, two of the multicriteria decision-making methods-namely, Decision Making Trial and Evaluation Laboratory (DEMATEL) and Analytic Network Process (ANP)-are integrated into a hybrid method to analyse the interdependent relationships among traditional capital structure determinants and managerial-behavioural biases and to prioritize them by making dual comparisons. Our findings show that managerial-behavioural biases, not traditional capital structure determinants, are more effective in the capital structure decision and that anchoring is the most influential among managerial-behavioural biases.