Determinants of financial distress in the Turkish manufacturing sector: a research on Borsa İstanbul between 2005 -2020

This study was carried out in order to present quantitative data to publicly traded enterprises in order to determine and prevent the risk of financial failure, and to show the ways in which enterprises can eliminate the risk of financial failure. financial failure; It has definitions and criteria such as the inability of the enterprises to fulfill their obligations, bankruptcy, inability to perform their activities, stop of production, closing the losses for the period of interest, loss of assets. In the study, the financial failure criterion was determined as 'Losing 10% of the Asset Amount'. The data used in the study were calculated from the financial statements of 175 companies operating in the BIST Manufacturing Sector as of June 2021, between the years 2005-2020. In the study, 55 financial ratios were included in the factor analysis, and as a result of the analysis, 11 financial ratios with the power to explain 92.36% of the total data set were obtained. In the study, as a result of the correlation analysis performed with 11 financial ratios, 4 financial ratios representing 11 financial ratios were obtained. In order to create a balanced panel data set without performing panel data analysis, the data of 63 enterprises with no continuity in their data were excluded from the sample and the analysis was carried out with the data of 112 enterprises. Panel data analysis was performed with Asset Change Ratio as dependent variable and Current Ratio, Financial Leverage Ratio, Asset Turnover Ratio and EBITDA Margin as independent variables. As a result of the study, no statistically significant relationship could be found between Current Ratio and Asset Change Ratio. A positive and linear relationship was found between Financial Leverage Ratio, Asset Turnover, EBITDA Margin and Asset Change Ratio. It was found that 1% increase in Financial Leverage Ratio, Asset Turnover Rate and EBITDA Margin increased Asset Change Ratio by 0.32%, 0.10% and 0.16%, respectively. In later studies, the application of the quantitative data in the study to these periods by considering different periods is offered as a suggestion to valuable researchers.