The effect of exchange rate on the financial performance of tourism companies: A study on the BIST tourism index

In the study conducted to investigate the effect of exchange rate change on company performance in terms of tourism companies operating in Turkey, the financial data of 6 companies in the BIST Tourism index for the period 2010 – 2021 were used. In the study, in which the time series analysis method was applied, the market value / book value ratio and return on assets (ROA) ratio, which were selected as indicators of company performance, were used as dependent variables in the models. Real exchange rate, return on equity (ROE), inflation rate, real interest rate, real growth rate and the percentage change in the number of tourists coming to Turkey are the independent variables in the models. As a result of the analysis, it has been determined that the increase in the real effective exchange rate affects the market value / book value ratio and the return on assets (ROA) negatively in the long run. It has been concluded that the decrease in the value of the Turkish Lira against foreign currencies has a positive effect on the performance of tourism companies in the long run.