Financial Characteristics of High Performance Companies in Turkey: A Comparative Analysis of Stable Economy in the Financial Crisis Era
Previous research studied characteristics of high performance companies (HPCs) in mature economies (United States, Europe, and Australia) and in an Asian emerging economy (India). This study of HPCs in the developing economy investigates Turkish companies that are listed in the Istanbul Stock Exchange and companies that display specific characteristics of HPCs—sustained and superior cash flow returns, growth rates, and total shareholder returns. We test the hypothesis that there will be no significant difference between the financial performance drivers and measures from before the financial crisis era (2005–2007) and those of after the financial crisis (2008–2009). We identified 41 companies that met the criteria of HPCs over the 2005–2009 time period. When comparing HPCs with ISE ordinary companies, both in the pre-financial crisis period (2005–2007) and the post-financial crisis period 2008–2009, Turkish HPCs were shown to maintain superior asset management and performance profitability, lower financial risk, and stronger cash flow returns compared to the benchmark group over economic periods of rapid growth and stable market conditions and the periods of economic decline and uncertainty. The results provide direction for the management of companies that aspire to HPC status and to maintain HPC status, especially during periods of financial crisis. We identify five operating objectives that are important for maintaining high performance during periods of financial crisis.
Volume (Year): 11 (2012)
Issue (Month): 1 (March)
|Contact details of provider:|| |
When requesting a correction, please mention this item's handle: RePEc:ami:journl:v:11:y:2012:i:1:p:4-26. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cristina Tartavulea)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.