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The Effect of External Factors on Financially Distressed Companies: An Analysis on Borsa Instanbul

The Effect of External Factors on Financially Distressed Companies: An Analysis on Borsa Instanbul

Aslihan Yetim, Bekir Elmas
Copyright: © 2023 |Pages: 22
ISBN13: 9781668451816|ISBN10: 1668451816|ISBN13 Softcover: 9781668493120|EISBN13: 9781668451823
DOI: 10.4018/978-1-6684-5181-6.ch009
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MLA

Yetim, Aslihan, and Bekir Elmas. "The Effect of External Factors on Financially Distressed Companies: An Analysis on Borsa Instanbul." Bankruptcy and Reorganization in the Digital Business Era, edited by Fahri Özsungur, et al., IGI Global, 2023, pp. 149-170. https://doi.org/10.4018/978-1-6684-5181-6.ch009

APA

Yetim, A. & Elmas, B. (2023). The Effect of External Factors on Financially Distressed Companies: An Analysis on Borsa Instanbul. In F. Özsungur, N. Tetik, & E. Kanat (Eds.), Bankruptcy and Reorganization in the Digital Business Era (pp. 149-170). IGI Global. https://doi.org/10.4018/978-1-6684-5181-6.ch009

Chicago

Yetim, Aslihan, and Bekir Elmas. "The Effect of External Factors on Financially Distressed Companies: An Analysis on Borsa Instanbul." In Bankruptcy and Reorganization in the Digital Business Era, edited by Fahri Özsungur, Nevzat Tetik, and Ersin Kanat, 149-170. Hershey, PA: IGI Global, 2023. https://doi.org/10.4018/978-1-6684-5181-6.ch009

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Abstract

The aim of this study is to examine the causality relationship between external factors and financial risk situations of companies experiencing financial distress among companies traded on Borsa Istanbul. In the study covering the periods of 2016-2021, financial ratios measuring liquidity risk and capital structure risk were used from the financial statements for 20 periods. In addition, 20-period data in quarterly periods were utilized for inflation, interest rates, and exchange rates as external factors. In the study where Toda Yamamoto causality test was used as a method, the relationship between the financial risks of the companies subject to the application and the situations affected by external factors was analyzed. As a result of the study, it has been determined that the most encountered causal relationship is from foreign exchange to liquidity and CPI to leverage, while the least encountered causal relationship is from CPI to liquidity and interest to leverage.

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