Abstract
This paper examines the performance of export focused companies listed on the Borsa Istanbul trading in the emerging market of Turkey. Using the panel data of stock market prices (1995–2011), we study the performance of companies in different sectors and their return performance in the volatile exchange rate environment and devaluation periods of 1996, 1997, 1998, 1999, 2001 and 2008. The paper investigates sales, market capitalization or asset performances’ statistical significance level, with regard to these companies’ export level. We review the performance of these operational measures in an environment of changing foreign exchange rates. Regression analysis is used to measure the effects of currency devaluation on the companies analyzed. Finally, the study analyzes the export sales of companies by sector following a period of sharp devaluation.
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Notes
- 1.
http://www.tspakb.org.tr/tr/DesktopDefault.aspx?tabid=151 November 2010 Monthly Bulletin
- 2.
http://www.ise.org/Data/Consolidated.aspx. There are seven companies which are temporarily delisted by ISE Board of Directors.
- 3.
A total of 45,214 companies are listed and the total market capitalization is 50,200 billion USD on World Exchanges. There is 47,127 billion USD trading in World markets. Major exchanges in the US, NASDAQ and NYSE in total had 15 trillion USD, UK 2.8 trillion USD, Germany 1.3 trillion USD and Greece 113 billion USD market capitalization as of 2009. See Jan-Sep 2010, World Federation of Stock Exchanges, http://www.world-exchanges.org/statistics/key-market-figures and http://www.world-exchanges.org/statistics/annual/2009/equity-markets/domestic-market-capitalization.
- 4.
The US Dollar exchange rate is central bank closing rates. The PPI and CPI data from TUIK is used (dates 1995–2011).
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Appendix
Appendix
Year | US$/TL devaluation | Consumer price inflation |
31DEC1995 | −2.7 % | 76.0 % |
31DEC1996 | 80.7 % | 79.8 % |
31DEC1997 | 90.8 % | 99.1 % |
31DEC1998 | 52.9 % | 69.7 % |
31DEC1999 | 72.2 % | 68.8 % |
31DEC2000 | 24.4 % | 39.0 % |
31DEC2001 | 115.3 % | 68.5 % |
31DEC2002 | 13.3 % | 29.7 % |
31DEC2003 | −15.0 % | 18.4 % |
31DEC2004 | −4.1 % | 9.3 % |
31DEC2005 | 0.4 % | 10.5 % |
31DEC2006 | 4.8 % | 9.7 % |
31DEC2007 | −17.5 % | 8.4 % |
31DEC2008 | 31.3 % | 10.1 % |
31DEC2009 | −2.3 % | 6.5 % |
31DEC2010 | 3.4 % | 6.4 % |
31DEC2011 | 22.8 % | 10.4 % |
Average | 27.7 % | |
Minimum | 115.3 % | |
Maximum | −17.5 % |
Major one-off devaluation years are 2001 and 2008. Additionally 1996, 1997, 1998 and 1999 are years with high devaluation occurring gradually
- Market capitalization TL:
-
Price × number of shares of date in thousands of local currency units
- Sales TL:
-
Sales, measured in thousands of local currency units
- Export TL:
-
Total foreign sales in thousands of local currency units
- Domestic sales TL:
-
Local sales in thousands of local currency units
- Total assets TL:
-
Total assets in thousands of local currency units
- Net earnings TL:
-
Earnings in thousands of local currency units
- Operating profit TL:
-
Operating profit in thousands of local currency units
- Market capitalization USD:
-
Price × number of shares of date in thousands of foreign currency units
- Sales USD:
-
Sales, measured in thousands of foreign currency units
- Export USD:
-
Total foreign sales in thousands of foreign currency units
- Domestic sales:
-
USD Local sales in thousands of foreign currency units
- Total assets USD:
-
Total assets in thousands of foreign currency units
- Net earnings USD:
-
Earnings in thousands of foreign currency units
- Operating profit USD:
-
Operating profit in thousands of foreign currency units
- Devaluation dummy:
-
Equal to 1, if there is a 25 % change in the value of the currency in the previous 12 month, else 0
- Food sector dummy:
-
Equal to 1, if the company is in food sector, else 0
- Automotive and metal sector dummy:
-
Equal to 1, if the company is in automotive & metal sector, else 0
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Berk, N., Öztürkkal, B. (2017). The Relationship Between Firm Size and Export Sales: Sector or Size, What Matters?. In: Hacioğlu, Ü., Dinçer, H. (eds) Global Financial Crisis and Its Ramifications on Capital Markets. Contributions to Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-47021-4_37
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