Heterogeneous Effects of Financial Indicators on Firms' Exports: Evidence from Turkish Manufacturing Firms

Şahin, Yavuz Selim
Using an extensive firm-level database that combines customs and balance sheets data, this paper investigates the heterogeneity in the effects of financial indicators on the exports of Turkish manufacturing firms. The panel data estimations for the period 2010-2020 suggest that improvement in the firm-level financial indicators have stimulating effects on the firms’ exports. More specifically, it is found that profitability and liquidity ratios are positively associated with firms’ exports, while increases in the leverage ratios hinder the export performances. Estimation results also reveal that, bank loans support the exports of firms that are able to have access to those loans. In this regard, the study demonstrates that firm characteristics are sources of heterogeneity for the export performances. The effects of financial indicators along with real exchange rate and foreign demand on real exports are shown to differ depending on firms’ size, age (experience), permanence in exporting, technology intensity of production, the degree of imported input intensity and the level of foreign ownership.


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This study examines the effects of the exchange rate volatility and the firm-specific features representing the liquidity, profitability, and leverage performance of firms on excess stock returns for the manufacturing firms listed in Borsa İstanbul (BIST) using dynamic panel data model. The exchange rate volatility is modeled by single regime generalized autoregressive conditional heteroscedasticity (GARCH) models and Markov-switching GARCH (MSGARCH) models. The MSGARCH models show evidence that the evoluti...
Citation Formats
Y. S. Şahin, “Heterogeneous Effects of Financial Indicators on Firms’ Exports: Evidence from Turkish Manufacturing Firms,” M.S. - Master of Science, Middle East Technical University, 2022.