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Saving Behavior of Non-Financial Firms in Turkey


  • Hamza Demircan

    () (Koc University-TUSIAD Economic Reserch Forum and Koc University)

  • Sumru Oz

    () (Koc University-TUSIAD Economic Reserch Forum)


This paper proposes a method to calculate undistributed profits, thus saving rates of non-financial firms using only the information given in their balance sheets. This allows us to analyze the saving behavior of non-financial firms even in the absence of their statement of cash flows, which contains "dividend payments" data. The balance sheets of non-financial firms are provided by TurkStat only for 2013 and 2014, so this paper is confined to the cross sectional analysis of the saving behavior of non-financial firms in Turkey. We find that the saving rate increases as past net profit margin increases for firms with profits in the preceding year. For the firms which declare loss in the preceding year, saving rate increases as the past value of net profit margin decreases. Our findings for the rest of the firm-level determinants are consistent with the previous studies: Firm size plays a role on corporate savings; leverage ratio has a negative impact on the saving rate; and the positive impact of export orientation is higher for SMEs.

Suggested Citation

  • Hamza Demircan & Sumru Oz, 2017. "Saving Behavior of Non-Financial Firms in Turkey," Koç University-TUSIAD Economic Research Forum Working Papers 1720, Koc University-TUSIAD Economic Research Forum.
  • Handle: RePEc:koc:wpaper:1720

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    References listed on IDEAS

    1. Charles Yuji Horioka & Akiko Terada-Hagiwara, 2014. "Corporate Cash Holding in Asia," Asian Economic Journal, East Asian Economic Association, vol. 28(4), pages 323-345, December.
    2. Francesco Grigoli & Alexander Herman & Klaus Schmidt-Hebbel, 2014. "World Saving," IMF Working Papers 14/204, International Monetary Fund.
    3. Loukas Karabarbounis & Brent Neiman, 2012. "Declining Labor Shares and the Global Rise of Corporate Saving," NBER Working Papers 18154, National Bureau of Economic Research, Inc.
    4. Erdal Ozmen & Saygin Sahinoz & Cihan Yalcin, 2012. "Profitability, Saving and Investment of Non-Financial Firms in Turkey," Working Papers 1214, Research and Monetary Policy Department, Central Bank of the Republic of Turkey.
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    More about this item


    Firm Behavior; Savings of non-financial firms; Turkey.;

    JEL classification:

    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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