Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging Market
The purpose of this study is to test how equity market timing affects capital structure from the perspective of IPO (Initial Public Offering) event in ISE for the period between 1999-2008. Our dataset comprises of all firms (75 firms) that went public from the period of January 1999 to December 200...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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EconJournals
2012-12-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/347 |
| _version_ | 1797908240767385600 |
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| author | Sibel Çelik Yasemin Deniz Akarim |
| author_facet | Sibel Çelik Yasemin Deniz Akarim |
| author_sort | Sibel Çelik |
| collection | DOAJ |
| description |
The purpose of this study is to test how equity market timing affects capital structure from the perspective of IPO (Initial Public Offering) event in ISE for the period between 1999-2008. Our dataset comprises of all firms (75 firms) that went public from the period of January 1999 to December 2008 in Turkey that are available in ISE database. We analyse the market timing theory by applying cross sectional regression method. For this purpose, first, we test the impact of market timing on the amount of equity issued by IPO firms. Second we examine the impact of market timing on capital structure. We conclude that market timing theory is not valid for Turkey.
Keywords: Capital Structure; Market Timing; IPO; Turkey
JEL Classifications: G30; G32
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| first_indexed | 2024-04-10T10:49:42Z |
| format | Article |
| id | doaj.art-335a0885b4b44c269c83c358b1cf8bf3 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T10:49:42Z |
| publishDate | 2012-12-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-335a0885b4b44c269c83c358b1cf8bf32023-02-15T16:20:10ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382012-12-0131Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging MarketSibel Çelik0Yasemin Deniz Akarim1Dumlupinar University Insurance and Risk Management DepartmentDumlupinar University Banking and Finance Department The purpose of this study is to test how equity market timing affects capital structure from the perspective of IPO (Initial Public Offering) event in ISE for the period between 1999-2008. Our dataset comprises of all firms (75 firms) that went public from the period of January 1999 to December 2008 in Turkey that are available in ISE database. We analyse the market timing theory by applying cross sectional regression method. For this purpose, first, we test the impact of market timing on the amount of equity issued by IPO firms. Second we examine the impact of market timing on capital structure. We conclude that market timing theory is not valid for Turkey. Keywords: Capital Structure; Market Timing; IPO; Turkey JEL Classifications: G30; G32 https://www.econjournals.com/index.php/ijefi/article/view/347 |
| spellingShingle | Sibel Çelik Yasemin Deniz Akarim Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging Market International Journal of Economics and Financial Issues |
| title | Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging Market |
| title_full | Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging Market |
| title_fullStr | Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging Market |
| title_full_unstemmed | Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging Market |
| title_short | Does Market Timing Drive Capital Structure? Empirical Evidence from an Emerging Market |
| title_sort | does market timing drive capital structure empirical evidence from an emerging market |
| url | https://www.econjournals.com/index.php/ijefi/article/view/347 |
| work_keys_str_mv | AT sibelcelik doesmarkettimingdrivecapitalstructureempiricalevidencefromanemergingmarket AT yasemindenizakarim doesmarkettimingdrivecapitalstructureempiricalevidencefromanemergingmarket |