The Impact of Bank-Specific and Macroeconomic Factors on the Capital Structure of Banks

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Hassen-Ali S., Dagli H., Faedfar S., Turan-Kurtaran A.

SOSYOEKONOMI, vol.30, no.54, pp.225-242, 2022 (ESCI) identifier identifier identifier

  • Publication Type: Article / Article
  • Volume: 30 Issue: 54
  • Publication Date: 2022
  • Doi Number: 10.17233/sosyoekonomi.2022.04.12
  • Journal Name: SOSYOEKONOMI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), Scopus, TR DİZİN (ULAKBİM)
  • Page Numbers: pp.225-242
  • Keywords: Bank, Capital Structure, Leverage, Panel Data Analysis, FINANCIAL POLICY, INTEREST-RATES, DETERMINANTS, LEVERAGE, FIRM
  • Karadeniz Technical University Affiliated: Yes


This study aims to investigate the bank-specific and macroeconomic factors that affect the capital structure of banks. The study used panel data from 42 banks operating in Turkey from year 2003 to 2017. In the analysis, total, long-term and short-term debt ratios are used as a proxy for capital structure. The findings show that bank size, growth opportunity, interest rate and exchange rate positively affect the three leverages, while profitability has a negative effect. Most of this study findings are related to the expectations of pecking order theory.