Three essays on dynamics of firm-specific performance: Intangible asset, financial openness and uncertainity

Which characters of firms provide sustainable competitive economic performance gains importance nowadays. According to the Resource Based View (RBV) the key factor in this field is intangible assets. 3 dynamics on the economic performance of the firms are defined as company-specific internal dynamics, integration with financial markets and sectoral concentration and global and local risk factors. General derivations are i-) Size effect, trade openness and intangible assets enable the firms to gain competitive advantages in their sectors. ii-) Although the rise in the amount of intangible investment affects positively short-term economic performance of firms, it does not have a positive effect in achieving a sustainable competitive advantage. It has been observed that intangible investments and market power-trade openness simultaneously have a positive influence on sustainable competitive performance. iii-) While it is observed that financial openness alone decreases the economic performance of companies in the mean, the covariate effect of financial openness with trade openness and herfindahl index is more effective in economic performance. iv-) Sectoral concentration harms overall economic performance of the firms. v-) The uptrend in all indices of uncertainty has lowered the economic performance of the firms in the mean. vi-) In an environment of increased uncertainty, blue-chip companies and high exports firms are regarded as safe havens. The data obtained from financial statements between the years 1995-2014 of above 200 firms traded at Borsa Istanbul are used. Generalized Method of Moments is used to solve the equations through the thesis.