IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Finansallasma Sorunsali ve IMKB Ornegi

Listed author(s):
  • Isýl Tellalbasi


    (Abant Izzet Baysal University)

Registered author(s):

    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. As financial centers, traditionally crucial for providing world liquidity, has become increasingly global, the local financial markets inevitably had to be integrated with each other. 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”. This study is done to fill a gap in the literature by observing historical roots of theoretical fundamentals of financialization. Here it is defined as the latest stage of capitalism particularly by focusing on the financial transformation that occured in the financial markets. Since existing literature on this topic is limited in scope and breadth the present study develops primarily a qualitative explanation of change in monetary and capital markets and then uses quantitative techniques to measure financialization in Turkey. In this thesis, the financialization of companies listed in the Istanbul Stock Exchange’s Industrial Index are 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. The results of quantitative analyses indicates that financialization, in the form of company indebtedness, might provide positive value added to the amount of investments, particularly in the manufacturing sectors. On the other hand, both models revealed a negative relationship between higher financial benefits and amount of investments. In this case, the thesis highlights and claims that the returns on financial investments might have a decreasing influence on motivation of real investment.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Article provided by Department of Econometrics, Faculty of Economics, Istanbul University in its journal Istanbul University Econometrics and Statistics e-Journal.

    Volume (Year): 16 (2012)
    Issue (Month): 1 (May)
    Pages: 12-43

    in new window

    Handle: RePEc:ist:ancoec:v:16:y:2012:i:1:p:12-43
    Contact details of provider: Web page:

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:ist:ancoec:v:16:y:2012:i:1:p:12-43. 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: (Kutluk Kagan Sumer)

    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.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.