The COVID-19 Pandemic’s Impact on the Performance of Firms on the BIST 100 Index

Year 2024, Volume: 53 Issue: 1, 119 - 136, 30.04.2024

Meltem Altın , Mustafa Özgün Atalay

https://doi.org/10.26650/ibr.2024.53.1138732

Abstract

The coronavirus (COVID-19) pandemic that affected the world has caused a decline in most companies’ financial performance. This study aims to analyze the effects of the COVID-19 pandemic on the financial performance of companies traded in Türkiye’s Borsa Istanbul 100 (BIST 100) index for 2019-2021. Pooled ordinary least squares (OLS) regression was applied as the basic method to determine the effects of the COVID-19 pandemic on the financial performance of companies listed on the BIST 100 index. The study’s findings show the COVID-19 pandemic to have had effects on the profitability of companies listed on the BIST 100 index. The results reveal net working capital, size (total assets), and financial autonomy ratios to be the ratios that affect return on assets (ROA), with the return on equity ratio (ROE) being affected only by size. These results show the BIST 100 index to have adapted to a certain extent to the uncertainties caused by the pandemic, so the shock has not been devastating. This study provides valuable insights that can assist investors, managers, creditors, and other stakeholders in making informed decisions that lead to positive outcomes.

Keywords

COVID-19, firm performance, BIST 100, Türkiye

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