Browsing by Author "Yildirim, Nuri"

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Citation - WoS: 3
Citation - Scopus: 3
Capital flows and economic growth across spectral frequencies: Evidence from Turkey
(Savez Ekonomista Vojvodine, 2012) Nuri Yildirim; Hüseyin Taştan; Tastan, Huseyin; Yildirim, Nuri
This paper examines interactions and feedbacks between categories of capital flows and economic growth in Turkey for the 1992:01-2009:08 period. Our empirical analysis is based on a new version of the causality test of John Geweke (1982 p. 77) and Yuzo Hosoya (1991 p. 88) in the frequency domain proposed recently by Jörg Breitung and Bertrand Candelon (2006 p. 132). In addition using standard methods in spectral analysis we decompose the total covariance between capital flows and growth across main frequency bands and capture lead/lag interactions between them. Some of our findings are as follows: Variance decompositions over frequency bands reveal that variations in individual capital flow categories are largely concentrated over high (seasonal) frequencies. The nature of the interaction/feedback between growth and capital flows varies significantly over frequency bands and subcategories of flows. Over business cycle frequencies two out of four subcategories of inflows short-term external borrowings and portfolio investments on government bonds drive growth whereas the other two components long-term borrowings and portfolio investments on shares are driven by growth. Furthermore for the post-2001 financial crisis period we found significant bidirectional causality between long-term external borrowings and growth whereas portfolio investments bond flows and short-term external borrowings do not affect growth in the long run. © 2012 Elsevier B.V. All rights reserved.
No Appealing Future For High Growth - Low Profitability Firms: Evidence from Turkey's Top 1000
(BILGESEL YAYINCILIK SAN & TIC LTD, 2011) Nuri Yildirim; Yildirim, Nuri
The view that profitability not growth is the main driving force behind the firm performance and unprofitable high growth can not lead to financial success has often been discussed in the literature. In this study I tested this hypothesis on Turkey's top 1000 data using an extended version of the method of Davidson et al. (2009). My sample strongly supports the hypothesis that controlling for leverage low growth-high profitability firms (profit-focused firms) outperform high growth-low profitability firms (growth-focused firms) regarding both directions of their transition to an upper (i.e. high growth-high profitability) state and a lower (i.e. low growth-low profitability) state in subsequent periods. The hypothesis that controlling for firm type (growth-focused or profit-focused) leverage matters with respect to firm's future performance is weakly supported by 3-year transition data.