Do Turkish Companies and German Companies in Germany Differ in Terms of Financial Performance?

Abstract

Turkish immigrants have always been an important dynamic for the social and business life in Germany since October 1961, "Agreement for Sending the Turkish Workers to Germany". They have then started to become important players as entrepreneurs in the economy after 1990s. This study aims to analyze performance of Turkish and German companies in production and service industries operating in Germany by using financial analysis methodology, and it aims to compare the results. Using 2007 financial data, the empirical results show that Turkish firms in both industries take more liquidity risk than their German counterparts while they are using less leverage in order to finance their investments. Moreover, Turkish companies have less profitability than German companies with the effect of high cost of debt. Especially in service industry, Turkish firms have low level of return for a unit of risk and low level of output for a unit of input.

Challenges and opportunities of Turkish food retail in Germany from a value chain perspective

“…The fact that there is such little investigation into Turkish food trade in Germany, as summarized in Table I, might result from definition and classification problems, lack of data (Aydin et al, 2012;Floeting et al, 2005;Liakova, 2011) as well as little networking (cf. Hingley et al, 2010;Liakova, 2011), the heterogeneity of Turkish food retailers, and their occasional resistance to consulting (Floeting et al, 2005).…”

“…In general, production and service companies managed by Turkish migrants seem to be less efficient and profitable than those managed by other migrant groups (Floeting et al, 2005) or Germans (Aydin et al, 2012). In addition, the economic situation of a large number of migrant companies generally seems to have become more difficult (Sen and Sauer, 2005).…”