The effects of institutionalization of family businesses on foreign trade deficit in Turkey

The objective of this study is to identify and analyze the relationship between foreign trade performance of publicly listed family businesses and Turkey's foreign trade deficit. Via analyzing quarterly export and import transactions of these companies from 2008 to 2015 with econometrical times series methodology, a significant short and long term relationship between foreign trade deficit of Turkey and foreign trade transactions of these companies is identified. Second part of the analysis, by using the logistic regression analysis method, the most critical financial statement data about institutionalization performance of family business were analyzed, then they were sorted by their importance level. These financial statement data were also collected quarterly and from 2008 to 2015 year-end period. It is observed that return on equity (RoE) ratio is the most decisive criteria about institutionalization performance of family businesses. As a result, family-run businesses can improve their institutionalization performance by giving importance to their RoE ratio. Thus, they play an important role in improving Turkey's foreign trade deficit.