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FACTORS EFFECTING AUTOMOTIVE COMPANIES

Paper ID: UTISGAD-10-2021-5256.V2
Title: FACTORS EFFECTING AUTOMOTIVE COMPANIES’ EXPORTING PERFORMANCE: FACTOR ANALYSIS OF ‘FORD, TOFAS AND HONDA’ BETWEEN THE YEARS 2009 AND 2019
Author: Duygu HIDIROĞLU

Abstract:

Export is the most crucial dynamic of foreign trade since it provides economic development and economic equilibrium in many countries. Exporting firms have to meet their export expenditures with their own equity, with the raw materials and investment goods they export in order to increase their export performance. Thus, in order to increase the export performance of automotive companies, gathering the information about factors such as existing data of export, R&D expenditures, market value, Return on Assets (ROA) and dividend payment rate is extremely important for exporters. Besides, obtaining the information about which of these factors are the most effective on exports is important for the success of exporters as well. In this study, how the independent variables (Export Rate, R&D Expenditures, Market Value, Return on Assets (ROA) and Dividend Payment Rate) affect the automotive companies’ export performance is discussed. By applying the factor analysis, which is a statistical and econometric method, the effects of independent variables on the dependent variable: the firm export performance are examined. As a result of analysis, the most effective variable on the firm exporting performance rate is R&D Expenditures. Market Value leads to an increase in the firm exporting performance rate. Dividend Payment Rate, affects cost of exports negatively and weakens the rivalry in the foreign market. The competitiveness of a country in global market depends on the well operated and stable Return on Assets (ROA) of production process. As the condition of being competitive and reducing export costs by increasing effectiveness and efficiency in monetary policies could increase productivity, exports and the firm exporting performance in the economy.

Keywords: Export, Exporting Performance, Foreign Trade, R&D Expenditures, Exporters.

JEL Codes: M11, L10