This study investigates possible connections between two performance ends - foreign trade and financial performance - of a leading drug company in Turkey within January 2014-December 2018 period. A unique approach is that these two are not under the spotlights directly, in other words, their financial figures are not under consideration. Instead, the primary goal is to calculate each performance end’s concentration index values. Put other way, this study primarily seeks to explore the extent, to which the company is able to keep its outcomes of foreign trade and financial activities steady. The main and secondary aim, in this case, is to scrutinize if and how foreign trade concentration (steadiness) is a descriptor of financial performance concentration. Due to foreign trade being an important factor of business financial performance, it is also expected that the trade’s extent of steadiness should also be a determinant of the financial performance stability. For the analysis, foreign trade and real operating profits’ data on a quarter-basis that belong to 2014 January-2018 December period are collected. After concentration calculations of the trade and financial performance using Hirschman-Herfindahl Index (HHI) are made, analyses reveal that there are indeed some similarities and differences between the concentration index values of foreign trade and financial performance. It is, however, not much possible to state that foreign trade concentration is able to affect concentrated financial performance.
Adedeji, E. A. (2014). A Tool for Measuring Organization Performance Using Ratio Analysis. Advances in Social Sciences Research Journal, 1(8), 95-103.
Akal, Z. (2005). Measurement and Control of Performance in Businesses: Multifaceted Performance Indicators (In Turkish), National Productivity Center Publications No: 473, Ankara, Turkey.
Aliona, B. (2016). Financial Performance Measurement Tools. Annals of Economy Series, 3, 169-173.
Alzgool, M. (2019). Nexus between Green HRM and Green Management towards Fostering Green Values. Management Science Letters, 9(12), 2073-2082.
Ayranc?, E. (2009). Measurement of Turkey’s Globalization in Economic Terms and a Related Research (In Turkish). Journal of Anadolu Bil Vocational School, 4(16), 50-64.
Ayranc?, E. (2014). A Study on the Influence of Family on Family Business and Its Relationship to satisfaction with Financial Performance. E+ M Ekonomie a Management, 17(2), 87-105.
Ba?, M. (2005). Market Concentration as a Factor that Affects Competition and Concentration Levels of Some Sectors in Turkey (In Turkish). Third Sector Cooperatives Journal, 148, 1-14.
Battal, M. Z. (2014). Concentration Levels of the Firms that Operate in Turkish Drug Sector and an Application. Master’s thesis, Bayburt University, Bayburt, Turkey.
Bhamorasathit, S., & Katawandee, P. (2014). Ratio Analysis of Publicly Traded Hotel Companies Listed on the Stock Exchange of Thailand (Set). ASBBS Proceedings, 21(1), 92-96.
Boddin, D., Raff, H., & Trofimenko, N. (2017). Foreign Ownership and the Export and Import Propensities of Developing?Country Firms. The World Economy, 40(12), 2543-2563.
Caba, N. (2017). Effects of Financial Leverage and Firm Size on Financial Performance: An Application on the Businesses that are Traded in Istanbul Stock Exchange Industry Index (In Turkish). International Journal of Management, Economics and Business, 13(5), 796-811.
Campbell, K., & Mínguez-Vera, A. (2008). Gender Diversity in the Boardroom and Firm Financial Performance. Journal of Business Ethics, 83(3), 435-451.
Chen, C. M., & Chang, K. L. (2012). Diversification Strategy and Financial Performance in the Taiwanese Hotel Industry. International Journal of Hospitality Management, 31(3), 1030-1032.
Clement, J. P., McCue, M. J., Luke, R. D., Bramble, J. D., Rossiter, L., Ozcan, Y. A., & Pai, C. W. (1997). Strategic Hospital Alliances: Impact on Financial Performance. Health Affairs, 16(6), 193-203.
Demirel, O. (2014). Market Power Research in Banking Sector in Turkey. Doctoral dissertation, Süleyman Demirel University, Isparta, Turkey.
Ertu?rul Ayranc?, A. (2018). New Financing Perspectives in terms of Innovative Entrepreneurship. In E. Ayranc? (Ed.), Innovativeness and Entrepreneurship: Approaches with Management, Marketing, and Finance Perspectives, Beta Publications, ?stanbul, Turkey, pp. 187-213.
Evren, A., & Bayer, Z. A. (2018). Herfindahl-Hirschmann and Similar Indexes that are Derivated from the Entropy Concept to be Used to Determine Market Concentration Levels (In Turkish). Journal of Applied Social Sciences, 2(1), 1-13.
Fosu, S. (2013). Capital Structure, Product Market Competition and Firm Performance: Evidence from South Africa. The Quarterly Review of Economics and Finance, 53(2), 140-151.
Gleason, K. C., Mathur, L. K., & Mathur, I. (2000). The Interrelationship between Culture, Capital Structure, and Performance: Evidence from European Retailers. Journal of Business Research, 50(2), 185-191.
Ild?rar, M., & K?ral, E. (2018). Market Structure and Concentration: An Analysis on Turkish Automobile Sector (In Turkish). Journal of the Bolu Abant ?zzet Baysal University Social Sciences Institute, 18(1), 93-117.
Jank, M. S., Leme, M. F. P., Nassar, A. M., & Faveret Filho, P. (1999). Concentration and Internationalization of Brazilian Agribusiness Exporters. The International Food and Agribusiness Management Review, 2(3-4), 359-374.
Kaya, F. (2015). Foreign Trade Operations Management (In Turkish),
In-Text Citation: (Ayranci & Erdin, 2020)
To Cite this Article: Ayranci, E., & Erdin, Ç. (2020). Relationship Between Concentrations of Foreign Trade and Financial Performance: An Application in Drug Sector in Turkey. International Journal of Academic Research in Business and Social Sciences, 10(2), 768–781.
Copyright: © 2020 The Author(s)
Published by Human Resource Management Academic Research Society (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode
