Of the 2008 financial crisis, its impact on the profitability of equity capital: An aplication in BİST

Globalization did not only approach countries to each other and increase their similarities, but also generated a phenomenon that incidents in a particular state impact other states. This new appearance is more frequently seen with financial and economic happenings. Moreover, financial crises began to influence all economic and social layers of the countries in which they arise. Therefore, it is examined in this study whether the USA-sourced financial crisis which then spread to developed, and subsequently to developing countries, was influenced by the equity profitability of publicly held corporations that are dealt at the 17 sub-indexes of BIST; and if so,with the influence of which of the three factors that constitute equity profitability according to the DuPont method it has surfaced. In this respect, data of the corporations that deal at BİST, which is published between 2004 and 2014, has been reviewed and assessed on the basis of DuPont method; towards reaching findings that reveal the effects of the crisis. In conclusion of the analysis conducted on 257 corporations which are listed in a total of 17 sub-indexes, it has been found out that the equity profitability rates of the corporations have decreased especially in 2008; the year that the crisis surfaced. Moreover, it has been detected via correlation analysis that the factors which most influenced the manifestation of this effect are net profit margin and own capital. Keywords: Financial Crisis, BIST, The Profitability of Equity, DuPount Analysis