Financial fragilities of Turkish non-financial sectors

Download

index.pdf

Date

2015

Author

Kılıç, Abdurrahman

Metadata

Show full item record

Item Usage Stats

248
views

108
downloads

This thesis investigates financial structure of Turkish non-financial sectors and the impacts of their financial fragilities on profitability using the Central Bank of the Republic of Turkey (CBRT) sector level company accounts data base. The results suggest that corporate sector leverage dramatically increased after 2009. Despite the improvements in maturity and liability dollarization of the corporate sector, fragilities still appear to be substantially high. Foreign currency denominated assets have become far from being adequate to hedge dollarized debts. Liability dollarization of the corporate sector is funded heavily by domestic banking system and external loans. Empirical results from the dynamic panel data GMM models suggest that corporate sector’s profitability decreases with indebtedness and real interest rates and increases with export share for non-financial sectors. Real exchange rate appreciation tends to increase profitability for non-financial and manufacturing sectors with lower export ratios due to the availability of foreign exchange denominated funds with lower costs. The impact of appreciation is, however, negative for the sectors with higher export ratios suggesting that the trade and competitiveness channels dominate. The negative impact of leverage ratio tent to decrease and positive impact of appreciation tend to increase with the average firm size of the sectors.

Subject Keywords

Financial crises., Foreign exchange., Monetary policy., Dollarization., Interest rates.

URI

http://etd.lib.metu.edu.tr/upload/12618675/index.pdf
https://hdl.handle.net/11511/24567

Collections

Graduate School of Social Sciences, Thesis

Suggestions

OpenMETU
Core

An Empirical Analysis of the Risk-Taking Channel of Monetary Policy in Turkey Ozsuca, Ekin Ayse; Akbostancı Özkazanç, Elif (2016-03-01) This article investigates the bank-specific characteristics of risk-taking behavior of the Turkish banking sector as well as the existence of risk-taking channel of monetary policy in Turkey. Using bank-level quarterly data over the period 2002-2012 a dynamic panel model is estimated. We find evidence that low short-term interest rates reduce the risk of outstanding loans; however short-term interest rates below a theoretical benchmark increase risk-taking of banks. This result holds for macroeconomic contr...
Modeling advanced fund transfer pricing with an application of hull-white interest-rate tree in Turkish banking sector Shakirov, Begzod; Weber, Gerhard Wilhelm; Department of Financial Mathematics (2017) The Financial Crisis in 2008 has revealed the need for a more advanced management of liquidity risk in financial institutions. This thesis aims to introduce and implement an advanced Fund Transfer Pricing (FTP) model into banking industries of the developing countries. The methodology of the FTP model, constructed in this research, measures the cost of a product’s cash-flows by splitting them into a deterministic and a stochastic component. The cost of the deterministic part is assessed as an equivalent of ...
Currency and asset substitution in Turkey Taşdemir, Özlem; Özmen, Erdal; Department of Economics (2003) This study investigates the determinants and effects of currency and asset substitution in Turkey using quarterly data from 1987:1 to 2002:4. The empirical results from the application of Johansen procedure to a four-variable system containing currency-asset substitution proxy (M2Y/M2)), real income, real exchange rate, and ratchet effect proxy (past peak values of the depreciation of the real exchange rate) suggest the presence of a single cointegration vector among the variables. The results further sugge...
Responses of the term structure of interest rates and asset prices to monetary policy shocks: Evidence from Turkey Eroğlu, Burak Alparslan; Yıldırım Karaman, Seçil (Orta Doğu Teknik Üniversitesi (Ankara, Turkey), 2018-8) This paper investigates the impact of the policy decisions by the Central Bank of the Republic of Turkey (CBRT) and Federal Reserve (Fed) on the asset prices and the term structure of interest rates in Turkey between 2010 and 2016 using Vector Autoregression (VAR) framework, heteroscedasticity based identification (HBI) and daily data. What is particular about this period is that the CBRT added financial stability to its objectives in addition to price stability and adopted a new monetary policy mix th...
Monetary policy operating framework for financial and price stability: the case of Turkey Çufadar, Ali; Özmen, Erdal; Department of Economics (2012) This thesis aims to provide evidence on whether FDI occurring in the Turkish economy has any effect on domestic firms, especially whether and to what extent it leads to KTTs towards domestic firms by paying attention to the role of MNCs. In order to do so, we firstly conduct a series of econometric analyses to analyze the impact of FDI-related technology spillovers on domestic firms’ productivity level in the Turkish manufacturing industry. Estimation results produced positive evidence on horizontal and bac...

Citation Formats

A. Kılıç, “Financial fragilities of Turkish non-financial sectors,” M.S. - Master of Science, Middle East Technical University, 2015.