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Group Affiliation and Corporate Performance: Evidence from an Emerging Economy

8 Pages Posted: 22 Jun 2001  

Lokman Gunduz

Beykent University - Department of International Trade

Ekrem Tatoglu

Beykent University - Department of Business

Abstract

This study compares overall financial characteristics of the Turkish nonfinancial firms across a variety of ownership variables. We essentially analyze the performance of affiliates of diversified Turkish business groups relative to unaffiliated firms. We find that group affiliated firms have higher return on assets than unaffiliated focused firms. This positive relationship, however, does not hold for other accounting and stock market measures of performance. Our findings also indicate that the performance measures of family-owned are not different from those of nonfamily-owned firms. Results also suggest that foreign-owned firms perform significantly better in terms of return on assets than domestic firms, but not in terms of other performance measures.

Keywords: Group affiliation; corporate performance; Turkey

JEL Classification: G32

Suggested Citation

Gunduz , Lokman and Tatoglu, Ekrem, Group Affiliation and Corporate Performance: Evidence from an Emerging Economy. EFMA 2001 Lugano Meetings. Available at SSRN: https://ssrn.com/abstract=274595 or http://dx.doi.org/10.2139/ssrn.274595

Lokman Gunduz (Contact Author)

Beykent University - Department of International Trade ( email )

Buyukcekmece
Istanbul 34900
Turkey
+90-212-872 64 32 Ext. 199 (Phone)
+90-212-872 24 89 (Fax)

Ekrem Tatoglu

Beykent University - Department of Business

Buyukcekmece
Istanbul 34900
Turkey

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