ebyuiibfdergisi Erzincan Binali Yıldırım Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 2687-4431 Erzincan Binali Yıldırım Üniversitesi 10.46482/ebyuiibfdergi.1190526 Business Administration İşletme PERFORMANCE ANALYSIS ON PARTICIPATION COMPANIES: EVIDENCE FROM TURKEY PERFORMANCE ANALYSIS IN PARTICIPATION COMPANIES: THE CASE OF TURKIYE https://orcid.org/0000-0001-5073-5791 Karroum Sakina Akdeniz Üniversitesi İktisadi ve İdari Bilimler Fakültesi https://orcid.org/0000-0003-0819-3698 Badırou Afıssou AKDENIZ UNIVERSITY 12 31 2022 4 2 15 34 10 17 2022 12 06 2022 Copyright © 2019, Erzincan Binali Yıldırım Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi 2019 Erzincan Binali Yıldırım Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi

This paper aims to evaluate how the participation companies perform in Turkey during the period of 2016 to 2020. The study uses daily returns for evaluating performance for portfolios and companies. The evidence from the returns of 102 companies, consists of 1256 observations. The study adopts the CAPM extended to Fama and French model to evaluate six portfolios of companies and denoted that all portfolios from participation companies show better performance than the market during the period under review. It shows that the larger the size and value of the portfolio, or the smaller the size and value, the more efficient the performance is. Besides, the results show that most companies outperformed the market benchmark. This study contributes to analyzing performance of hundred and two types of participation companies, that are relevant and important for Turkish and foreign investments.

This study aims to evaluate the performance of unit fund companies in Turkey in the period of 2016-2020.For this purpose, daily returns are used to evaluate unit fund performance for portfolios and companies.Based on the data obtained from the returns of 102 companies, 1256 observations were examined.In the study, CAPM(Capital Asset Pricing Model), which was extended to the Fama and French model, was used to evaluate six company portfolios.According to the results obtained, participation funds outperform all portfolios from stock markets.Besides, the results show that most companies outperformed the market benchmark. This study contributes to the analysis of the performance of 102 participation companies that are relevant and important for Turkish and foreign halal investments.

 Fama and French model Capital Asset Pricing Model Participation companies Fama and French model Performance Capital Asset Pricing Model Participationcompanies Abdul G., I., Kusairi, S. (2010), “Aqad Characteristics, Fund Flows and Market Structure in Performance: A Cross Sectional Analysis of International Islamic Funds”, Universiti Sains Islam Malaysia. vol.6 no.1. Abdullah, F., Hassan, T., Mohamed, S. (2007), “Investigation of performance of Malaysian Islamic unit trust funds: Comparison with conventional unit trust funds”, Managerial Finance, 33: 142-153. Al-Shammari, M., and Salimi, A. (1998), “Modeling the operating efficiency of banks: a non-parametric methodology”, Logistics Information Management, 11, 5-12. Ang, J.S. and Lin, J.W. (2004), A fundamental approach to estimating economies of scale and scope of financial products: the case of mutual funds. Review of Quantitative Finance and Accounting, vol. 16, No. 3, pp. 205-22. Berger, A.N., Hunter, W.C. and Timme, S.G. (1993), “The efficiency of financial institutions: a review and preview of research past, present, and future”, Journal of Banking & Finance, Vol. 17 Nos 2/3, pp. 221-50. Mansor, F., Bhatti, M. I., Rahahleh, N. (2019). New Evidence of Fund Performance in Extreme Events. International Journal of Managerial Finance”, Vol. 15, No. 4, pp. 511-532 (SCOPUS-Indexed). Fikriyah A., Hassan T. and Shamsher M. (2007). ), “Investigation of Performance of Malaysian Islamic Unit Trust Funds”, Managerial Finance, pp. 142-153. Hayat, R., & Kräussl, R. (2011), “Risk and return characteristics of Islamic equity funds”, Emerging Markets Review, 12(2), 189–203. Irfan, U.S., Junaid, I., Faizan, M. (2012), “ Comparative Valuation between Islamic and Conventional Mutual Fund”, International Research Journal of Finance and Economics, 96. Ismail, A.G. and Shakrani, M.S. (2003), “ The conditional CAPM and cross-sectional evidence of return and beta for Islamic unit trusts in Malaysia”, IIUM Journal of Economics and Management, Vol. 11 No. 1, pp. 1-30. Jensen, M.C. (1968), “ The performance of mutual funds in the period 1945-1964”, Journal of Finance, Vol. 23, pp. 389-416. Lean, H.H., Parham, P. (2012), “Performance of Islamic Indices in Malaysia FTSE Market: Empirical Evidence from CAPM. Journal of Applied Sciences”, Olume: 12, Issue: 12, Page No: 1274-1281. Low, S.W. (2007), “Malaysian unit trust funds’ performance during up and down market conditions: a comparison of market benchmark”, Managerial Finance, Vol. 33 No. 2, pp. 154-66. Low, S.W. and Ghazali, N.A. (2005), “An evaluation of the market timing and security selection performance of mutual funds: the case of Malaysi”, International Journal of Management Studies, Vol. 12, pp. 215-33. Osamah, A., Lean, H.H., Samet, A. (2013) , “ Do Islamic stock indexes outperform conventionalstock indexes? A stochastic dominance approach”, Pacific-Basin Finance Journal 28 (2014) pp 29-46. Saad, N.M., Hadi A., F. S. (2010), “An Analysis on the Efficiency of the Malaysian Islamic Banking Industry: Domestic vs”, Foreign. International association for Islamic economics Review of Islamic Economics, Vol. 14, No. 1, 2010, pp. 27–47. Sadeghi, (2008), “Financial performance of Shariah-compliant investment: evidence from Malaysian stock market”, International research journal of finance and economics, 20. Sengupta, J.K. (1989), “Measuring economic efficiency with stochastic input-output data”, International Journal of Systems Science, Vol. 20 No. 2, pp. 203-13. Shamsher, M., Annuar, M.N. (1995), “The performance of unit trusts in Malaysia: some evidence”, Capital Market Review, Vol. 3, pp. 51-69. Tan, H.C. (1995), “ The investment performance of unit trust funds inMalaysia”,Capital Market Review, Vol. 3, pp. 21-50.