The Systematic Risk Determinants of Tourism Industry in Turkey

ABSTRACT: Many empirical research has been performed about systematic risk wich related firm specific variables to the Capital Asset Pricing Model (CAPM) (Ying & Cheng, 2007). This thesis studies six listed tourisms industries in Turkey which are five different hotels from five different geographic areas in Turkey and Turkish Airline for the period of 1997-2011. Panel econometric analysis is employed with six financial variables which are explored as determinants of systematic risk in this respect. Financial indicators such as, the liquidity, debt leverage, operating efficiency, profitability, firm size and growth of the hotels are also linked to their systematic risk of the tourism industry in Turkey. Models which releted with systematic risk end up that, growth are negatively associated with the systematic risk. However; liquidity, debt leverage, operating efficiency and profitability are not found statistically significantly related to the systematic risk. Results of this research will be important in effectively managing the hotel business not only in Turkey but also in other tourist destination countries. Keywords : Systematic risk (Beta), Financial Variables, Listed Companies, Systematic-risk determinants. ……………………………………………………………………………………………………………………………………………………………………………………………………………………