Determinants of working capital requirements in Turkish automotive industrial enterprises: The example of Borsa Istanbul

The aim of this study is to examine the determinants of working capital requirements of businesses operating in the automotive sector in Borsa Istanbul (BIST). For this purpose, it was tried to be determined by panel data analysis method by using the 9-year balance sheet and income statement data of the 19 companies operating in the relevant sector for the period 2012-2020. In the study (current assets-short-term liabilities)/total assets and current assets/total assets ratios are used as dependent variables. Variables related to companies and macroeconomic variables were used as independent variables. Panel data analysis was applied for 6 models created using dependent variables, independent variables and macroeconomic variables. As a result, for Model 1-A, a significant relationship between Working Capital 1 and Cash Conversion Period, Firm Size, Return on Asset, Asset Leverage Ratio, Market Value, Asymmetric Information; Significant relationship between Working Capital 1 and Return on Asset, Equity Leverage Ratio, Market Value, Asymmetric Information and Consumer Price Index for Model 1-B; Significant relationship between Working Capital 1 and Firm Size, Return on Equity, Asset Leverage Ratio and Asymmetric Information for Model 1-C; Significant relationship between Working Capital 2 and Cash Conversion Time, Inventory Turnover and Growth Opportunities for Model 2-A; Significant relationship between Working Capital 2 and Inventory Turnover, Return on Asset and Equity Leverage Ratio for Model 2-B; For Model 2-C, a significant relationship was found between Working Capital 2 and Cash Conversion Period, Firm Size, Equity Leverage Ratio and Market Value.