The Factors Affecting Capital Structure: A Panel Data Analysis in the Context of Behavioural Corporate Finance

In this study, the effects of "Real Sector Confidence Index" as well as the effects of firm-specific and macroeconomic factors on the capital structure were investigated. In line with the studies conducted in behavioral corporate finance, Real Sector Confidence Index has been considered as a measure of the overconfidence of managers. Other variables considered in the study are net sales, change in assets, return on assets, gross domestic product and inflation. In the study, leverage ratio is used as the variable capturing the capital structure. Fims listed in the BIST Industry Index were examined using panel data analysis. According to the results of the study, no evidence could be found towards an effect of Real Sector Confidence Index on capital structure. However, the effect of other variables on capital structure has been determined at certain levels of confidence.