The nexus between exchange rate risk and capital structure: Evidence from Bist manufacturing sector

Ferhat Canlıtepe; Oğuz Saygın

Makale detayları

The nexus between exchange rate risk and capital structure: Evidence from Bist manufacturing sector

Yazarlar:

Ferhat Canlıtepe | Oğuz Saygın

Yayıncı:

Nevsehir Haci Bektas Veli University

Ana Başlıklar:

Finansal Piyasalar ve Kurumlar

Dergi:

Nevşehir Hacı Bektaş Veli Üniversitesi SBE Dergisi Vol.14 Issue 3, pp.1235-1252

Belge Tipi:

Makale

Yayın Tarihi:

9/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001327896

pISSN:

2149-3871

Anahtar kelimeler:

Özet:

 Volatility in exchange rates is known to have a significant impact on firms operations, planning and profitability. In this context, the relationship between exchange rate risk and firms capital structure is the subject of this study. Firms should consider macroeconomic variables as well as firm-specific variables in their financial decisions. For this reason, this study examines the relationship between exchange rate risk, which is one of the macroeconomic variables, and firms borrowing. The main objective of the study is to examine whether there is a relationship between exchange rate risk and the capital structure of manufacturing firms. The sample of the study consists of the quarterly frequency data of 109 firms in the manufacturing sector of Borsa Istanbul between 2012 and 2022. In this paper, the System Generalized Moments System-GMM estimator, one of the panel data analysis estimators, was used to analyze the data. Accordingly, the relationship between the net foreign currency position, which is used to represent the exchange rate risk, and the financial leverage ratio, debt-equity ratio, short and long-term debttotal debt ratio, which are capital structure ratios, is analyzed. As a result of the study, the relationship between the net foreign currency position and capital structure ratios of the firms in the BIST manufacturing sector is determined. There is a positive relationship between the firms net foreign currency position and all capital structure variables. Manufacturing sector firms are expected to prefer foreign currency loans in case of a depreciation of the domestic currency or an increase in the exchange rate. With this method, firms can be said to provide hedging against exchange rate risk.

 Volatility in exchange rates is known to have a significant impact on firms operations, planning and profitability. In this context, the relationship between exchange rate risk and firms capital structure is the subject of this study. Firms should consider macroeconomic variables as well as firm-specific variables in their financial decisions. For this reason, this study examines the relationship between exchange rate risk, which is one of the macroeconomic variables, and firms borrowing. The main objective of the study is to examine whether there is a relationship between exchange rate risk and the capital structure of manufacturing firms. The sample of the study consists of the quarterly frequency data of 109 firms in the manufacturing sector of Borsa Istanbul between 2012 and 2022. In this paper, the System Generalized Moments System-GMM estimator, one of the panel data analysis estimators, was used to analyze the data. Accordingly, the relationship between the net foreign currency position, which is used to represent the exchange rate risk, and the financial leverage ratio, debt-equity ratio, short and long-term debttotal debt ratio, which are capital structure ratios, is analyzed. As a result of the study, the relationship between the net foreign currency position and capital structure ratios of the firms in the BIST manufacturing sector is determined. There is a positive relationship between the firms net foreign currency position and all capital structure variables. Manufacturing sector firms are expected to prefer foreign currency loans in case of a depreciation of the domestic currency or an increase in the exchange rate. With this method, firms can be said to provide hedging against exchange rate risk.

 Volatility in exchange rates is known to have a significant impact on firms operations, planning and profitability. In this context, the relationship between exchange rate risk and firms capital structure is the subject of this study. Firms should consider macroeconomic variables as well as firm-specific variables in their financial decisions. For this reason, this study examines the relationship between exchange rate risk, which is one of the macroeconomic variables, and firms borrowing. The main objective of the study is to examine whether there is a relationship between exchange rate risk and the capital structure of manufacturing firms. The sample of the study consists of the quarterly frequency data of 109 firms in the manufacturing sector of Borsa Istanbul between 2012 and 2022. In this paper, the System Generalized Moments System-GMM estimator, one of the panel data analysis estimators, was used to analyze the data. Accordingly, the relationship between the net foreign currency position, which is used to represent the exchange rate risk, and the financial leverage ratio, debt-equity ratio, short and long-term debttotal debt ratio, which are capital structure ratios, is analyzed. As a result of the study, the relationship between the net foreign currency position and capital structure ratios of the firms in the BIST manufacturing sector is determined. There is a positive relationship between the firms net foreign currency position and all capital structure variables. Manufacturing sector firms are expected to prefer foreign currency loans in case of a depreciation of the domestic currency or an increase in the exchange rate. With this method, firms can be said to provide hedging against exchange rate risk.

 Döviz kurlarında yaşanan dalgalanmalar, firmaların faaliyetleri, planlamaları ve karlılıkları üzerinde önemli derecede etkili değişken olduğu bilinmektedir. Bu kapsamda, döviz kuru riski ile firmaların sermaye yapısı arasındaki ilişki bu çalışmanın konusunu oluşturmaktadır. Firmalar, alacakları finansal kararlarda firmaya özgü değişkenlerin yanı sıra makro ekonomik değişkenleri de göz önünde bulundurmaları gerekmektedir. Bu sebeple çalışmada, makro ekonomik değişkenlerden biri olan döviz kuru riski ile firmaların borçlanma ilişkileri ele alınmıştır. Çalışmanın temel amacı, döviz kuru riski ile imalat firmalarının sermaye yapısı arasında bir ilişki olup olmadığının irdelenmesidir. Araştırmanın örneklemini Borsa İstanbul imalat sektöründe yer alan 109 firmanın 2012 ile 2022 yılları arasındaki çeyrek dönemlik frekanstaki verileri oluşturmaktadır. Çalışma kapsamında verilerin analiz edilmesinde, panel veri analiz tahmincilerinden, sistem genelleştirilmiş momentler Sistem-GMM tahmincisinden yararlanılmıştır. Buna bağlı olarak döviz kuru riskini temsilen kullanılan yabancı para net pozisyonu ile sermaye yapısı oranlarından finansal kaldıraç oranı, borç öz sermaye oranı, kısa ve uzun vadeli borçlartoplam borçlar oranı arasındaki ilişki incelenmiştir. Çalışmanın sonucunda, BİST imalat sektöründe yer alan firmaların, yabancı para net pozisyonu ile sermaye yapısı oranları arasında ilişki tespit edilmiştir. Firmaların, yabancı para net pozisyonu ile sermaye yapısı değişkenlerinin tümü ile pozitif bir ilişki saptanmıştır. İmalat sektörü firmaları yerli paranın değer kaybettiği veya döviz kurunun arttığı durumda, döviz cinsi kredilere yönelebileceği düşünülmektedir. Bu yöntemle firmalar kur kaynaklı riskten korunma hedging sağlayacağı söylenebilir. ABSTRACT Volatility in exchange rates is known to have a significant impact on firms operations, planning and profitability. In this context, the relationship between exchange rate risk and firms capital structure is the subject of this study. Firms should consider macroeconomic variables as well as firm-specific variables in their financial decisions. For this reason, this study examines the relationship between exchange rate risk, which is one of the macroeconomic variables, and firms borrowing. The main objective of the study is to examine whether there is a relationship between exchange rate risk and the capital structure of manufacturing firms. The sample of the study consists of the quarterly frequency data of 109 firms in the manufacturing sector of Borsa Istanbul between 2012 and 2022. In this paper, the System Generalized Moments System-GMM estimator, one of the panel data analysis estimators, was used to analyze the data. Accordingly, the relationship between the net foreign currency position, which is used to represent the exchange rate risk, and the financial leverage ratio, debt-equity ratio, short and long-term debttotal debt ratio, which are capital structure ratios, is analyzed. As a result of the study, the relationship between the net foreign currency position and capital structure ratios of the firms in the BIST manufacturing sector is determined. There is a positive relationship between the firms net foreign currency position and all capital structure variables. Manufacturing sector firms are expected to prefer foreign currency loans in case of a depreciation of the domestic currency or an increase in the exchange rate. With this method, firms can be said to provide hedging against exchange rate risk.

Makale detayları

The nexus between exchange rate risk and capital structure: Evidence from Bist manufacturing sector

Yazarlar:

Ferhat Canlıtepe | Oğuz Saygın

Yayıncı:

Nevsehir Haci Bektas Veli University

Ana Başlıklar:

Finansal Piyasalar ve Kurumlar

Dergi:

Nevşehir Hacı Bektaş Veli Üniversitesi SBE Dergisi Vol.14 Issue 3, pp.1235-1252

Belge Tipi:

Makale

Yayın Tarihi:

9/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001327896

pISSN:

2149-3871

Exchange Rate Risk

Capital Structure

Panel Data Analysis

System-GMMDöviz Kuru Riski

Sermaye Yapısı

Panel Veri Analizi

Sistem-GMM

Sayı

Makale detayları

Yazarlar: Ferhat Canlıtepe | Oğuz Saygın

Yayıncı: Nevsehir Haci Bektas Veli University

Ana Başlıklar: Finansal Piyasalar ve Kurumlar

Dergi: Nevşehir Hacı Bektaş Veli Üniversitesi SBE Dergisi Vol.14 Issue 3, pp.1235-1252

Belge Tipi: Makale

Yayın Tarihi: 9/2024

Belge Dili: Türkçe

Document ID (Org No.): 2001327896

pISSN: 2149-3871

Sayı

Yazarlar:

Ferhat Canlıtepe | Oğuz Saygın

Yayıncı:

Nevsehir Haci Bektas Veli University

Ana Başlıklar:

Finansal Piyasalar ve Kurumlar

Dergi:

Nevşehir Hacı Bektaş Veli Üniversitesi SBE Dergisi Vol.14 Issue 3, pp.1235-1252

Belge Tipi:

Makale

Yayın Tarihi:

9/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001327896

pISSN:

2149-3871