Macroeconomic Determinants of Firm Performance: Evidence From Turkey

Doruk, Ömer Tuğsal

doi:10.1142/s0217590819500188

Cited by 11 publications

(5 citation statements)

References 48 publications

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“…For robustness check, we include two macroeconomic variables to the models of this study as additional control variables. Doruk (2019) finds that gross domestic product (GDP) growth rate and the real exchange rate exert significant effects on the performance of Turkish firms, which in turn could also affect the investment behavior of these firms. Accordingly, we re-estimate the study models after controlling for these two variables.…”

Section: Empirical Results and Discussionmentioning

confidence: 99%

Corporate sustainability performance in the emerging market of Turkey: the role of accounting information quality and firm risk

Kalash

2021

JEAS

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PurposeThe purpose of this study is to investigate the effect of accounting information quality (AIQ) and firm risk on the corporate sustainability performance (CSP) of Turkish listed firms.Design/methodology/approachThis study used data of 70 firms listed on Istanbul Stock Exchange during the period 2014–2019. Binary and ordinal logistic regression models are used to examine the factors affecting CSP as proxied by the membership to BIST Sustainability Index.FindingsThe results of this research indicate that AIQ is negatively related to CSP in firms with severe agency problem. The results also show a significant negative relationship between accounting earnings volatility and CSP. However, the effect of stock return volatility on CSP is not significant. Furthermore, the findings reveal that the possibility of being a member of Turkish sustainability index is higher for larger firms, firms that are included in BIST Corporate Governance Index and firms with high leverage, more research and development (R&D) intensity and high brand value.Practical implicationsThe results of this study provide implications for policymakers, investors and firms about the role of firm characteristics in determining CSP.Originality/valueTo the author's knowledge, this study is the first to explore the effect of AIQ and firm risk on CSP in the Turkish context.

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Section: Empirical Results and Discussionmentioning

confidence: 99%

Corporate sustainability performance in the emerging market of Turkey: the role of accounting information quality and firm risk

Kalash

2021

JEAS

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“…For a robustness check of the main models, macroeconomic variables that can significantly affect the firms' profitability are used, following Doruk (2019). The macroeconomic variables are the economic growth rate, financial deepening, real exchange rate and trade openness.…”

Section: Controlling the Effect Of Macroeconomic Variables On Profit ...mentioning

confidence: 99%

Neither Parasite nor Paragon: Are Business Groups a Source of Competitive Power?

Doruk¹

2022

Prague Economic Papers

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While profit persistence has been widely examined in the current literature, there have been no extensive studies on the link between business group membership and profit persistence on an emerging market. Using panel data econometric methods, this article examines the link between profit persistence and membership in a large industrialists' group, also known as the TUSIAD (Turkish Industrialists' and Businessmen's Foundation), in the Turkish manufacturing sector in the period 1990-2017. The findings show that the relative magnitude of profit persistence of firms with TUSIAD membership is higher than those without TUSIAD membership in the Turkish manufacturing sector.

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“…Alternatively, for robust checks, we replace time dummies with two macroeconomic variables in all models to control for unobservable year effects (Vithessonthi and Tongurai, 2015). Doruk (2019) finds that the real exchange rate and GDP growth rate significantly affect the financial performance of Turkish firms. Accordingly, we include these two variables into regression models.…”

Section: Financial Distress Risk and Currency Crisismentioning

confidence: 99%

The financial leverage–financial performance relationship in the emerging market of Turkey: the role of financial distress risk and currency crisis

Kalash

2021

EMJB

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PurposeThe purpose of this article is to examine how financial distress risk and currency crisis affect the relationship between financial leverage and financial performance.Design/methodology/approachThis study uses data of 200 firms listed on Istanbul Stock Exchange during the period from 2009 to 2019, resulting in 1950 firm-year observations. Pooled ordinary least squares, random effects, firm fixed effects and two-step system GMM models are used to investigate the hypotheses of this study.FindingsThe results reveal that financial leverage has negative and significant effect on financial performance, and that this effect is stronger for firms with higher financial distress risk. Furthermore, the findings provide moderate evidence that currency crisis exacerbates the negative association between leverage and performance.Practical implicationsThe results of this study have important implications for firms in emerging markets. Managers can enhance firm performance by reducing the level of financial leverage, especially in firms with higher financial distress risk. These firms incur higher debt costs, and then they can benefit more from the decreases in debt ratio in their capital structure. Moreover, the decreases in debt level have more importance in currency crisis times, when the access to external finance becomes more expensive and more difficult.Originality/valueTo the author's knowledge, this research is the first to examine the effect of currency crisis on the financial leverage–financial performance relationship and is one of few that investigate the role of financial distress risk in determining the linkage between leverage and firm performance.

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Macroeconomic Determinants of Firm Performance: Evidence From Turkey

Cited by 11 publications

References 48 publications

Corporate sustainability performance in the emerging market of Turkey: the role of accounting information quality and firm risk

Corporate sustainability performance in the emerging market of Turkey: the role of accounting information quality and firm risk

Neither Parasite nor Paragon: Are Business Groups a Source of Competitive Power?

The financial leverage–financial performance relationship in the emerging market of Turkey: the role of financial distress risk and currency crisis

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