Testing the effect of being a group company on the growth performance of the companies with growth convergence hypothesis: Istanbul Stock Exchange example

Business groups have extensively been reviewed in literature over many years. The existence of business groups has undeniable importance on economies. Specifically in emerging economies such as Turkey, the existence and development of business groups and their contribution to the development of the economy over long periods are remarkable. In this research, the firms quoted in Istanbul Stock Exchange (Borsa Istanbul) have examined with panel regression analysis method in the period between 2008-2017. It is aimed to reveal whether their growth shows convergence due to their presence in the business group. Panel regression analysis was performed with Stata 14.0 software using annual data of 253 companies (including group companies and non-group companies). While obtaining data, continuity has been used as criteria. A panel of data was created by including firm-based financial indicators that affect the growth of firms and econometric hypotheses were tested. Net sales, firm age, total assets and net profit variables were analyzed. The findings of the analysis were evaluated within the framework of convergence analysis. According to the results of the analysis, there is a convergence between the growth of the firms operating in the business groups in Istanbul Stock Exchange.