THE GLOBAL FINANCIAL CRISIS AND CAPITAL STRUCTURE DECISIONS OF TURKISH SMEs: A REVIEW

Abstract

Due to the arising uncertainties with the global financial crisis, capital structure decisions became crucial for Turkish firms, especially small and medium-sized (SMEs) firms. Since SMEs face higher information asymmetry, transaction costs and risk, they face more difficulties in accessing finance during the financial market turmoil. In this review, we comparatively analyze findings from capital structure decisions for Turkish firms. As might be anticipated, we expect that SMEs should take more precautionary steps under the severe crisis conditions compared to listed firms in Borsa Istanbul.