Foreign Ownership and Corporate Performance in Turkey

Abstract

This study examines the relationship between the degree of foreign ownership and performance of recipient firms and test whether different levels of foreign ownership have different effects on corporate performance, using a balanced panel of 270 Turkish firms over the period of 2008-2012. It is found that there is a positive and statistically significant relationship between foreign ownership and corporate performance. However, there does not exist a significant difference among firms with different degrees of freedom in terms of corporate performance, except for the major foreign capital and wholly foreign capital firms in profitability.