Financial Strategies of the Exporting Firms in Turkey

Article Information

Journal: Business and Economics Research Journal

Title of Article: Türkiye’de İhracat Yapan Firmaların Finansman Stratejileri
[Financial Strategies of the Exporting Firms in Turkey]

Author(s): Suleyman Degirmen, Yildiz Gundogdu

Volume: 1

Number: 4

Year: 1

Page: 1-18

ISSN: 1309-2448


The crises experiences of developing countries like Turkey have shown that moral hazard and adverse selection emerging via asymmetric information causes serious problems in financial markets. In this framework, firms’ capital structure decisions are one of the most important issues on finance literature. The aim of this article is to search an answer, by using the Modigliani-Miller, Trade off and Pecking Order theories, for the question of how exporting firms make their choices of financing along with analyzing the inevitable contribution of export to Turkish economic growth from micro aspect. In this study the relation between export/total sales, the growth rate of short run bank credit, the growth rate of long run bank credit, the growth rate of equity of firms that are ranked among the first and second 500 industrial firms in Turkey for the 1997-2008 periods is analyzed by “panel cointegration” method. A balanced panel is formed. In the series used, existence of unit root is tested by Im-Peasaran-Shin test. Finally, panel cointegration process is implemented. The result of empirical study indicate that there is a significant long run relationship between mentioned variables in Turkey for annual data from 1997 to 2008, and thus, support Pecking Order Theory.

Keywords: Finance of export, Pecking Order Theory, Trade-off Theory, Panel Cointegration

JEL Classification: G30, G32, C33 Full Text