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Economic Impact on Financial Ratios of Food Industry at Istanbul Stock Exchange Listed Firms

Author

Listed:
  • Metin Atmaca

    (Faculty of Economics and Administrative Sciences, Canakkale Onsekiz Mart University, Biga Campus, Canakkale, Turkey,)

  • Engin Demirel

    (Faculty of Economics and Administrative Sciences, Trakya University, Balkan Campus, Edirne, Turkey)

Abstract

In this study, 22 food and beverage sector companies traded on the Istanbul stock exchange were selected as scope for the period 2008-2015. This research aims to investigate the relation between firm's financial ratios and selected macroeconomic indicators which are income, poverty, and Gini coefficient value. Time series of financial ratios are obtained from firm's financial statements. We show that as an economic indicator poverty levels and minimum wage has a significant relation on firm's financial ratios which are cash ratio, sales profitability ratio, and net working capital ratio. This research found that only poverty level and minimum wage has a positive impact on cash and working capital financial ratios and negative impact on sales profitability ratios of listed firms

Suggested Citation

  • Metin Atmaca & Engin Demirel, 2017. "Economic Impact on Financial Ratios of Food Industry at Istanbul Stock Exchange Listed Firms," International Journal of Economics and Financial Issues, Econjournals, vol. 7(3), pages 537-541.
    • Handle: RePEc:eco:journ1:2017-03-70
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    References listed on IDEAS

    as
    1. Ramachandran Azhagaiah & Raju Deepa, 2012. "Determinants of Profitability of Food Industry in India: A Size-Wise Analysis," Management, University of Primorska, Faculty of Management Koper, vol. 7(2), pages 111-128.
    2. Isidoro GUZMÁN & Narciso ARCAS, 2008. "The Usefulness Of Accounting Information In The Measurement Of Technical Efficiency In Agricultural Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 107-131, March.
    3. Marga Peeters & Ronald Albers, 2013. "Food Prices, Government Subsidies and Fiscal Balances in South Mediterranean Countries," Development Policy Review, Overseas Development Institute, vol. 31(3), pages 273-290, May.
    4. Pinar Geylani, 2015. "Lumpy investments and capital adjustment patterns in the food manufacturing industry," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 39(3), pages 501-517, July.
    5. Epperson, J. E. & Escalante, C. L., 2013. "The Effect of the Eurozone Crisis on U.S. Food Companies," Journal of Food Distribution Research, Food Distribution Research Society, vol. 44(1), pages 1-8, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Financial Ratio; Panel Data Models; Food Industry; Economic Impact;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • L61 - Industrial Organization - - Industry Studies: Manufacturing - - - Metals and Metal Products; Cement; Glass; Ceramics
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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