Behavioral Dimension of Cross-Sectoral Capital Structure Decisions: ISE (Istanbul Stock Exchange) Application

In our study, we tested whether average leverage level of sector and leverage level of sector leader are effective on capital structure decisions of selected firms and sectors listed in ISE. We depended on the Approach of Behavioral Finance to this matter as a supplementary approach of traditional finance to capital structure. In respect of its influence on leverage levels of the firms in four sector we addressed for the period of 19992006 (White Goods and Electronic, Banking, Cement, Paper and Packing), while sector averages are effective at a meaningful extent in white goods sector, it was seen that it affects leverage level of sector leader considerably. In the study we carried out by using panel data analysis method, when we consider the firms we addressed as a whole without discrimination in sector-specific terms, however, it was seen that both sector average and sector leader display a positive relation with leverage level of firms with a significance of 10%.