THE EFFECT OF DERIVATIVE FINANCIAL ASSETS ON CAPITAL STRUCTURE: THE BANK EVIDENCE ON TURKEY

The purpose of this article is to investigate the effect of derivative financial instruments on banks' capital structure. For this purpose, between 2012 and 2017, banks operating in Turkey and analyzed regularly using derivative products. Panel data analysis method was used in the study. Capital structure variables were used as dependent variables, the use of derivatives on assets and liabilities, tangibility, profitability, size, risk, growth opportunities and liquidity variables were used as an independent variable. A total of 4 models have been established in order to analyze the effect of derivative use on assets and liabilities on capital structure. As a result of the analysis, the effect of derivative product on borrowing was found to be statistically significant and positive in all models. In addition, liquidity and profitability variables were negatively corelated with borrowing and risk, tangibility, growth opportunities and size variables were positively corelated with borrowing.