Year 2017, Volume 6, Issue 1, Pages 43 - 47 2017-12-30

THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015

Engin Kurun [1] , Tansel Erkmen [2]

152 34

Objective- The main purpose of this study is to investigate the impact of global financial crisis on the financial structure of shipping industry in Turkey. According to the BRSA figures as of Dec. 2016, water transportation sector performed the highest (154.9%) non performing loan increase year to date among all other sectors. This research will throw light on the main resons of this situation and will also contribute the better understanding of the financial structure of maritime companies.

Methodology- The data related to company accounts were obtained from Central Bank of the Republic of Turkey (CBRT) for 2008-2015. C301 Building of Ships and Boats data series and H-502 Sea and Coastal Freight Water Transport data series are selected to show the impact of global financial crisis on the shipping industry. Main balance sheet and income statement data as well as financial ratios were published by CBRT regularly for 2008-2015 in three years interval. We aggregated them and analyzed to show the structural change in financial preferences and adequacy of capital, liquidity and similar performance figures.

Findings- The global financial crisis is affected the Turkish shipping industry as a whole. The equity funds accounted for around 47% in 2008 but decrease to 36% in 2011 and recovered again up to 40% at the end of 2015. In terms of financial structure of the sector, current liabilities almost doubled in last 8 years from 12.5% to 25%. It is resulted with especially worsen liquidity ratio such as cash ratio decreased from 78.5% to 17.3%. The global financial crisis adversely affected the profitability of the sector with an unstable and volatile profit margin and increased service and operating costs.

Conclusion- In conclusion there is no normalization sign after 2008 in the shipping industry in Turkey. We observed a gradual growth in the World trade. However historically lower freight rates and imbalances in the shipbuilding industry cause debt burden and huge losses for the maritime companies. This reseaach findings can be used as a benchmark for the maritime companies to better understand their performance since 2008. 

Maritime transport, shipping industry, global financial crisis, ratio analysis, financial performance
  • Berman, N. et al., (2012). Time to Ship during Financial Crises. NBER International Seminar on Macroeconomics, 9(1), pp.225–260. Available at: http://www.jstor.org/stable/info/10.1086/669587. (Erişim tarihi: 29.09.2017) Central Bank of Republic of Turkey (2016). Financial Accounts Report.
  • Drobetz, W., & Merikas, A. G. (2013). Editorial. Transportation Research Part E, pp. 1-2.
  • Drobetz, W., Gounopoulos, D., Merikas, A., & Schroeder, H. (2013). Capital structure decisions of globally-listed shipping companies. Transportation Research Part E, pp. 49-76.
  • Easton, P.D., McAnally, M.L., Sommers, G.A., Zhang, X.J. (2015). Financial Statement Analysis & Valuation. 4th edition, Cambrige Business Publishers.
  • European Parliament Directorate General for Internal Policies (2009). The Involving Role of EU Seaports in Global Maritime Logistics – Capacities, Challenges and Strategies. PE 419.121.
  • Midoro, R., Musso, E., and Parola, F. (2005). “Maritime Liner Shipping and the Stevedoring Industry: Market Structure and Competition Strategies.” Maritime Policy & Management 32 (2): 89-106.
  • OECD WP6 (2017). Imbalances in the Shipbuilding Industry and Assessment of Policy Responses.
  • Rodrigue, J.P., Notteboom, P., Pallis, A.A. (2011). The financialization of the port and terminal industry: revisiting risk and embeddedness. Maritime Policy and Management, Vol. 38, Issue 2, pp. 191-213.
  • Rodrigue, J.P.; Comtois, C. and Slack, B. (2009). The Geography of Transport Systems. 2nd edition. Routledge, New York.
  • Sayılgan, G & Uysal, B. (2011). “Türkiye Cumhuriyet Merkez Bankası Sektörel Bilançoları kullanılarak sermaye yapısını belirleyen faktörler üzerine bir analiz: 1996-2008” Ankara Üniversitesi, SBF Dergisi, Cilt 66, No 4, s. 101-124.
  • Stephenson Harwood. (2006). Shipping Finance. Euromoney Books.
  • Stopford, M. (2009). Maritime Economics. London: Routledge.
  • Subramanyam, K. R. And Wild, J.J., (2009). Financial Statement Analysis. 10th Edition, New York, NY, McGraw- Hill Irwin.
  • Widiantoro, D.M. & Elvenes, V. (2012). Managing Risk in Financial Risk in Financial Market in Shipping. ACRN Journal of Finance and Risk Perspectives, Vol. 1, Issue 1, pp. 32-49.
  • CBRT (2016). Definitions of the Ratios http://www3.tcmb.gov.tr/sektor/2016/Raporlar/eng/oran-ing.pdf. (Erişim tarihi: 28.09.2017).
  • http://www3.tcmb.gov.tr/sektor/2016/menu_eng.php. (Erişim tarihi: 28.09.2017)
  • http://www.denizticaretodasi.org.tr/sayfalar/dergi.aspx. (Erişim tarihi: 29.09.2017)
Subjects Humanities, Multidisciplinary
Journal Section Articles
Authors

Author: Engin Kurun

Author: Tansel Erkmen

Dates

Publication Date: December 30, 2017

Bibtex @research article { pap371893, journal = {PressAcademia Procedia}, issn = {}, eissn = {2459-0762}, address = {PressAcademia}, year = {2017}, volume = {6}, pages = {43 - 47}, doi = {10.17261/Pressacademia.2017.744}, title = {THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015}, key = {cite}, author = {Kurun, Engin and Erkmen, Tansel} }
APA Kurun, E , Erkmen, T . (2017). THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015. PressAcademia Procedia, 6 (1), 43-47. DOI: 10.17261/Pressacademia.2017.744
MLA Kurun, E , Erkmen, T . "THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015". PressAcademia Procedia 6 (2017): 43-47 <http://dergipark.org.tr/pap/issue/33436/371893>
Chicago Kurun, E , Erkmen, T . "THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015". PressAcademia Procedia 6 (2017): 43-47
RIS TY - JOUR T1 - THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015 AU - Engin Kurun , Tansel Erkmen Y1 - 2017 PY - 2017 N1 - doi: 10.17261/Pressacademia.2017.744 DO - 10.17261/Pressacademia.2017.744 T2 - PressAcademia Procedia JF - Journal JO - JOR SP - 43 EP - 47 VL - 6 IS - 1 SN - -2459-0762 M3 - doi: 10.17261/Pressacademia.2017.744 UR - https://doi.org/10.17261/Pressacademia.2017.744 Y2 - 2019 ER -
EndNote %0 PressAcademia Procedia THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015 %A Engin Kurun , Tansel Erkmen %T THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015 %D 2017 %J PressAcademia Procedia %P -2459-0762 %V 6 %N 1 %R doi: 10.17261/Pressacademia.2017.744 %U 10.17261/Pressacademia.2017.744
ISNAD Kurun, Engin , Erkmen, Tansel . "THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015". PressAcademia Procedia 6 / 1 (December 2017): 43-47. https://doi.org/10.17261/Pressacademia.2017.744
AMA Kurun E , Erkmen T . THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015. PAP. 2017; 6(1): 43-47.
Vancouver Kurun E , Erkmen T . THE IMPACT OF GLOBAL FINANCIAL CRISIS ON THE FINANCIAL STRUCTURE OF SHIPPING INDUSTRY IN TURKEY AND ANALYSIS OF NORMALIZATION PROCESS DURING 2008-2015. PressAcademia Procedia. 2017; 6(1): 47-43.