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Journals / Yönetim ve Ekonomi Araştırmaları Dergisi / 2023 / Cilt: 21 Sayı: 4

EXCHANGE RATE AND FIRM-LEVEL INVESTMENTS: EVIDENCE FROM BORSA ISTANBUL

Emin Avcı(Marmara Üniversitesi)0000-0003-3172-897X
Feride Kılınç0000-0003-4663-7923
Pages
152–170
Publication Date
2024-01-01
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

The findings indicated a negative relationship between firm-level investments and exchange rate volatility for all industries, but a positive relationship between firm-level investments and real exchange rates for most industries.

📌 3 Key Takeaways

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Objective & Hypothesis:The relationship between exchange rates and firm-level investments of the companies operating in the manufacturing sector listed on Borsa İstanbul (BIST) was investigated over a period of 2008 to 2021 using panel data analysis.
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Key Findings & Data:A total of 81 companies from 7 industries within the manufacturing sector were examined.
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Conclusion & Impact:The findings indicated a negative relationship between firm-level investments and exchange rate volatility for all industries, but a positive relationship between firm-level investments and real exchange rates for most industries.
🔬Design:Araştırma Makalesi
📍Scope:2008 Verileri
⚙️Variables:Investments · Exchange Rate Uncertainty · Exchange Rate Volatility

Abstract

The relationship between exchange rates and firm-level investments of the companies operating in the manufacturing sector listed on Borsa İstanbul (BIST) was investigated over a period of 2008 to 2021 using panel data analysis. A total of 81 companies from 7 industries within the manufacturing sector were examined. Exchange rate and firm-level relationships were identified using the Euro-USD basket standard deviation and real exchange rates index. The findings indicated a negative relationship between firm-level investments and exchange rate volatility for all industries, but a positive relationship between firm-level investments and real exchange rates for most industries. Furthermore, it is found that the effects of exchange rate volatility and real exchange rates on investments are realized with a delay for most industries. Overall, the results suggest that firms are reluctant to invest in times of high exchange rate volatility, but are more willing to invest when the value of Turkish Lira appreciates in real terms.

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Cite This Article

Avcı, E., Kılınç, F. (2024). EXCHANGE RATE AND FIRM-LEVEL INVESTMENTS: EVIDENCE FROM BORSA ISTANBUL. Yönetim ve Ekonomi Araştırmaları Dergisi, Cilt: 21 Sayı: 4, 152–170. https://doi.org/10.11611/yead.1293442

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