Thesis (MSc.) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department

Includes bibliography (sheets 39-46)

This thesis examines and measures the impact on the capital structure of a corporation. Although studies have been made to show how the geopolitical risk affect the overall economy and bank stability and other studies have shown how the level of debt in areas with huge geopolitical risks is reduced due to the uncertainty; in our paper, we will measure the level of significance of geopolitical risk on the leverage of firms based on companies data based in risky regions and region under risky events such as terrorism and election. We have used financial data from companies operating in turkey; the findings have shown that there is a low effect caused by the geopolitical risks and especially because of the influence of the market capitalization and the total current assets on the capital structure of the organization. Finally, the result shows a lower percentage of significance of the total current asset and the geopolitical risks but higher significance between the market capitalization and the return on asset which tells us that the variables represent well the capital structure and also there is a positive correlation between the market capitalization and the profitability with the capital structure of a firm.