The effect of derivatives on financial performance: a case on BIST manufacturing sector

Risk is a fact that,encountered in all areas of businesses. Businesses are exposed to financial risks in their investments. To reduce the losses of these risks and turn them into opportunities, they need to manage risk.On the other hand, Risk management is help to identify risks, minimized their losses and turn them into opportunities and derivatives products are used to achieve this. In this study, the operating performance of the commercial exploitation of the derivative and derivative control in Turkey was investigated whether any effect. The financial statements and footnotes of 162 enterprises operating in the manufacturing industry sector included in the Public Disclosure Platform between 2013-2017 were analyzed. The information has been collected from financial statements and footnotes that , confirming through the situation in the usage of derivatives for the companies in the BIST manufacturing sector due to which enterprises how many derivatives whether they use or not.. In this context, Mann Whitney U Test was applied to determine whether there is a difference between the financial performance of companies using derivatives and those that do not. According to the results obtained from the analysis; The derivative products used have no effect on the operating performance.