Profitability and size drive capital structure decisions for Turkish firms
The study looked at what factors influence how companies in Turkey decide to fund themselves. They found that factors like how profitable a company is, its size, and how much cash it has on hand play a big role in determining how much debt it takes on. Growth and risk, on the other hand, don't seem to have as much of an impact. Overall, companies in Turkey seem to prefer using their own cash or profits to fund themselves rather than taking on debt.