Financialization of Turkey Industry Sector

Isil Tellalbasi and Ferudun Kaya

International Journal of Financial Research, 2013, vol. 4, issue 3, 127-143

Abstract: Financial markets in the world, especially for the last three decades, have been evolving significantly in terms of market volumes, operational intensity, institutional and regulations as well as the authorities governing them. The increase in operational volumes and the changing nature of financial markets, creations of new financial products; led to the increase of the importance of financial capital and how it affected day to day life directly became one of the most important theoretical problems. Thus, the transformation witnessed in the financial markets led to a new era, dubbed as ¡°financialization¡±. In this article, the financialization of companies listed in the Istanbul Stock Exchange¡¯s Industrial Index is analyzed using an econometric technique known as Generalized Method of Moments. The quantitative analysis has used two distinct methods to measure the relationship between firms¡¯ investments and their debts, financial profits, sales and financial payments, variables that constitute variables for measuring financialization. Both models revealed a negative relationship between higher financial benefits and amount of investments.

Keywords: financialization; mortgage crisis; generalized method of moments (search for similar items in EconPapers)
Date: 2013
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