THE EFFECT OF CONFİDENCE FACTOR ON USED OF BANK CREDİT BY FIRMS

Abstract

Capital structure is complex areas of financial decision making due to its interrelationship with macroeconomic değişkens. In this study for Turkey, the relationship between confidence factor and the usage of bank credit is investigated with cointegration analysis and error-correction mechanism. Real sector confidence index is used for domestic country and international VIX is for outside country. The period includes 106 month and 8 years for 2000 and 2008. Monthly data is obtained from yahoo, IFS and CBTR. According to the results of the analysis, there seems to be a causality from real sector confidence index to bank credit. Besides, It is not found causality from VIX to bank credit.Bank credits, confidence, Johansen co- integration, VAR model, Error correction