Determinants of Investment in Turkey: A Firm-Level Investigation

Gezici, Armaǧan; Orhangazi, Özgür; Yalçın, Cihan

doi:10.1080/1540496x.2018.1473247

Cited by 11 publications

(11 citation statements)

References 32 publications

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“…In addition, So (2004) found that many foreign investors in Turkey saw economic and political instability as the most important obstacle. Whatever measures were used, small and medium‐sized manufacturing companies in Turkey would be subject to financing restrictions (Gezici, Orhangazi, & Yalçın, 2019). Agricultural cultivation in Georgia is still based on the way of collective farming and has problems of single planting structures and lack of technological renewal, etc.…”

Section: Resultsmentioning

confidence: 99%

Evaluation of agricultural investment environment in countries around the Black Sea under the background of The Belt and Road

Chen

Shi

et al. 2021

Natural Resources Forum

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The stable development of agriculture is of great significance to alleviate the problem of food insecurity. As a significant yield zone along the Belt and Road Initiative, the Black Sea area is an ideal object for China to invest in agriculture. Therefore, it is particularly important to evaluate the agricultural investment environment in this region reasonably and effectively. This paper selects the countries around the Black Sea as the research objects and uses an Entropy‐ technique for order preference by similarity to an ideal solution (TOPSIS) model to analyse the agricultural investment environment and its influencing factors. The results show that: (a) There are significant differences in the agricultural investment environment among the six countries around the Black Sea, ranking as follows: Russia(0.5583) > Bulgaria(0.4782) > Georgia(0.4072) > Ukraine(0.3539) > Turkey(0.3493) > Romania(0.3167); (b) in primary indexes, agricultural production conditions, political environment, and social development have a relatively large impact, among which agricultural production is the most important factor; (c) among the secondary indexes, human capital index and railway (total kilometres) have high levels of impact. Unemployment rate, inflation rate and employment in agriculture (% of total employment) also have a significant impact. On this basis, suggestions are put forward according to the research results.

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Section: Resultsmentioning

confidence: 99%

Evaluation of agricultural investment environment in countries around the Black Sea under the background of The Belt and Road

Chen

Shi

et al. 2021

Natural Resources Forum

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“…In the literature, total assets, total sales, or the number of employees (Gezici et al 2019;Özmen et al 2012;Riaz et al 2016;Yeşiltaş, 2009) are used as a financial proxy for size. Following the previous studies (Almeida et al 2004;Arslan et al 2006;Chang et al 2007;Crisóstomo et al 2014;Devereux & Schiantarelli, 1990;Gertler & Gilchrist, 1993, 1994Kadapakkam et al 1998), total assets are used as a financial proxy for size, and we rank firms in each country based on their total assets and classify them as financially constrained or unconstrained if their size is below or above the median size value.…”

Section: Sizementioning

confidence: 99%

Cash - Cash Flow Sensitivity: Evidence From Emerging Markets

Tan

Avcı

2022

Muhasebe Bilim Dünyası Dergisi

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This study analyzes cash-cash flow sensitivity by comparing financially constrained and unconstrained firms in eight markets. 486 manufacturing firms are examined between 2005 and 2018 using the Generalized Method of Moments. These firms are categorized based on size, age, and Size-Age, Sales-Age, and Kaplan and Zingales indices. We find that both constrained and unconstrained firms evince positive cash-cash flow sensitivity. Although unconstrained firms obtain external financing easily, they prefer to first use internally generated funds in accordance with the pecking order theory. The results also reveal that cash-cash flow sensitivity cannot be used to test financial constraints in emerging markets.

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“…This positive relationship is more visible for large than for small size firms. Gezici et al (2019) reported that Turkish small and medium-sized firms have more constraints due to financing frictions and face underinvestment problem than counterpart firms. Mahmood et al (2019a, b) reported a positive association between banking sector development and financial leverage, showing enhanced borrowing ability of a firm, such increased borrowing capacity enable firms to invest more.…”

Section: Literature Reviewmentioning

confidence: 99%

Do corporate financial flexibility, financial sector development and regulatory environment affect corporate investment decisions?

Mahmood

Rashid

Rizwan

2021

JEAS

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PurposeThis study aims to examine how corporate financial flexibility, financial sector development and the regulatory environment influence corporate investment decisions in an emerging economy after controlling for several macroeconomic factors.Design/methodology/approachThe authors estimated random-effects models to empirically examine the impacts of corporate financial flexibility, banking sector development, equity market development, regulatory quality and corruption on corporate investment decisions. The empirical analysis is based on an unbalanced annual panel data set of a sample of 198 non-financial firms listed on the Pakistan Stock Exchange for the period 1992–2018.FindingsThe results show that financially flexible firms tend to invest more. The increased banking sector development, stock market development and better regulatory quality play a pivotal role for enabling firms to increase their investment ability. However, the results reveal that corruption acts as a barrier and reduces corporate investments during the examined period. The results suggest that unused borrowing capacity is a good source of financial flexibility. These results strongly support the pecking order theory, which explains why firms incline toward internal sources for financing their investments and why they prefer debt to equity when go for external financing.Practical implicationsThe empirical findings of the study enable corporate managers to make better financing and investment decisions by understanding the significance of the attainment and maintenance of the corporate financial flexibility to enhance firm value. Furthermore, the findings enable corporate managers to examine and understand the role of banking sector development (BSD), equity market development (EMD), regulatory quality and the role of corruption in affecting corporate firms' investment ability, allowing them to make appropriate investment decisions, especially from an emerging economy perspective. The findings also help investors in making appropriate investment decisions while they are purchasing financial assets. Finally, the findings of the study have some implications for regulators as well. Specifically, the findings suggest that the authorities should implement economic and financial policies favoring banking sector as well as equity market development to enhance corporate investment.Originality/valueThe study significantly adds to the literature by examining the impact of financial flexibility, financial sector development and regulatory environment on corporate investment decisions. According to the authors' knowledge, the empirical evidence examining the impact of all of these factors on corporate investment is very scarce. Therefore, this study is an effort to fill the gap left in the literature.

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Determinants of Investment in Turkey: A Firm-Level Investigation

Cited by 11 publications

References 32 publications

Evaluation of agricultural investment environment in countries around the Black Sea under the background of The Belt and Road

Evaluation of agricultural investment environment in countries around the Black Sea under the background of The Belt and Road

Cash - Cash Flow Sensitivity: Evidence From Emerging Markets

Do corporate financial flexibility, financial sector development and regulatory environment affect corporate investment decisions?

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