Foreign Capital, Real Sector Financing and Excessive Leverage in Turkey: What Went Wrong?

Emerging Markets Journal

Bahadır Karakoç¹ 

[1] Muş Alparslan University;

关键词: financial liquidity;    financing constraint;    foreign capital inflow;    small firm financing;    excessive leverage;   

DOI  :  10.5195/emaj.2020.190

来源: DOAJ

【 摘 要 】

Recently, large swings in inflation and exchange rates revealed that non-financial sector is heavily geared and extremely vulnerable. Therefore, a study trying to identify the contributing factors is needed. Separating firms into groups, based on size and stock market trading status; changes in financing patterns are investigated via panel data methodology. The study aims at fulfilling the need for analyzing the consequences of foreign capital flow at firm level and documenting its significance in addition to assessing the efficacy of contemporary monetary policy. Economic conditions significantly facilitated lending process, strengthening corporate access to credit, and resulted in excessive borrowing both in the form of foreign and domestic currency. With such heavy burden of debt, non-financial sector has been facing both exchange rate and the liquidity risks. The more severely a firm was previously challenged by financing limitations, the more it borrowed once the limitations are relaxed, contributing to excessive debt burden of the economy in proportion to its previous financing challenges.

【 授权许可】

Unknown