Industrial Diversification and Risk in an Emerging Market: Evidence from Turkey

Yucel E., ÖNAL Y. B.

EMERGING MARKETS FINANCE AND TRADE, cilt.51, sa.6, ss.1292-1306, 2015 (SSCI) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 51 Sayı: 6
  • Basım Tarihi: 2015
  • Doi Numarası: 10.1080/1540496x.2015.1011544
  • Dergi Adı: EMERGING MARKETS FINANCE AND TRADE
  • Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
  • Sayfa Sayıları: ss.1292-1306
  • Anahtar Kelimeler: generalized method of moments, industrial diversification, risk, two-stage least square instrumental variable regression, PANEL-DATA, CORPORATE DIVERSIFICATION, TESTS
  • Çukurova Üniversitesi Adresli: Evet

Özet

In this study, we analyze the relationship between industrial diversification and risk among the Turkish firms listed in the Borsa Istanbul using data from 2005 to 2012. These analyses make use of static and dynamic panel data models. The study indicates that diversification is negatively related to firm-specific risk and total risk in industrially diversified firms. Furthermore, the study demonstrates that the firm-specific risk and total risk of industrially diversified firms are lower than those of single-business firms.