Firms' investment behavior in the financial crisis era: the Turkey case

Official URL: http://192.168.1.20/record=b1379294 (Table of Contents)

The Global Financial Crisis really started to show its effects in The USA and its negative effects widened to most of the countries including Turkey. The effects of the financially originated mortgage crisis were extended to the non-financial sector. In Turkey, there were contractions especially in the manufacturing sector which is one of the most important economic activity in GDP. In the existing economic conditions, firms in the manufacturing sector change their investment behavior. This master thesis undertakes an econometric analysis to identify relation between investment and cash flow in the economic crisis period for the manufacturing firms. Empirical results are used to derive the relation between investment and cash flow in the crisis period and results are evaluated among different type of firms. The results indicate that as firms' investment is affected from their cash holding and their sales revenues in a positive way. However, the results are not robust to claim that the cash flow and investment behavior change among different groupings of the firms and in the crisis period.