Financial Flexibility Value and Capital Structure Decisions: An Aplication on Borsa Istanbul Firms

The purpose of this study is to calculate the value of financial flexibilities of firms listed on Borsa Istanbul 100 Index and examine the relationship between the value of financial flexibility and capital structure decisions. In this context, the values of financial flexibility of the companies listed on Borsa Istanbul-100 Index for the period of 2006-2015 were calculated with the marginal value of cash and the method of five factors of financial flexibility (Rapp vd., 2014; Rapp vd., 2012). The relationship between the value of financial flexibility and financial decisions is examined using the method of panel regression analysis. According to the results obtained from the study, it is determined that the value of financial flexibility which offers significant information to executives, shareholders and creditors is a calculable value for enterprises operating in Turkey and the value of financial flexibility affects capital structure decisions in a negative way.