EVALUATE THE IMPACT OF CAPITAL STRUCTURE MODELING ON THE PERFORMANCE OF PRODUCTION PROCESSES

Abstract

The research aims to explore the impact of capital structure modeling on production business performance in order to arrive at a conclusion. Data were collected based on input from six Turkish cement producing companies. Analysis of the collected data was then used to achieve the goal. In the first part of the study, the concept of capital structure was explained, and the theories, namely the irrelevance theory, the trade-off theory (TOT), and their types, were discussed. The determinants of all capital structures and company-specific and capital structure models were also identified. The second part of the study was the practical part, where data on Turkish companies was used to achieve the goal. An input analysis of the capital structure of the selected sector was performed in order to generalize and clarify the conclusions regarding the capital structure of the analyzed companies. Where the main problem lies in determining the indicators of the capital structure that affect the performance of productive businesses. Performance was evaluated using economic value added (EVA) scale, correlation matrix, Cohen's scale, and SPSS. We have developed some capital structure measures to investigate the links between these indicators and the overall performance of the organization. Correlation research results have shown significant improvements using regression analysis and principal components analysis to study the impact of certain unrelated elements on the overall success of the company. As a result, we recommend developing a new option that is willing to bear the risks associated with both options. The results of this study will serve as the basis for further research, including the collection of more relevant data and a further set of analyses.