The Effect of Cash Conversion Cycle on the Companies' Capital Structure: An Investigation on BIST Listing Cement Sector Companies

Abstract

In the financial planning process of companies during an operating period the sector concerned is important. Companies want their capital and debts ratio to get assets and direct their capital to the right investment preferences while fulfilling their activities. One of the most important factors in order for these processes to be realized is the receipt of receivables arising from the sale of stocks in advance or futures and the provision of cash inflows to companies. In this study, it was tried to determine the effect of the operation rates of the companies on the capital structure. At this stage, attempts have been made to measure how receivables, stocks and cash management are affected by the capital structure of companies. For this reason, how the cement industry's receivables, stocks and cash management, which are registered in the BIST in Turkey, will change the capital structure has been analyzed by Panel Data models. A positive relationship between the cash conversion cycle period and the capital structure has been identified.