The 2001 Economic Crisis of Turkey and Holding Companies’ Diversification Strategies: Does Bank Ownership Make Difference?

Abstract

The objectives of the study is to search whether there are any difference in holding companies’ diversification strategies before and after 2001 crisis in Turkey. In this context, diversification strategies are adopted by the holding companies is tried to be determined. The holding companies included in study divided into two groups one of them is before the economic crisis of 2001 having bank and continue in the same way after 2001. The study tests whether having bank is advantageous in diversification strategies or not.  A quantitative research is used for reaching on the data. The data related with holding companies which is obtained by Borsa Istanbul. Holding companies and industries they performed and the industry relationships are tried to be explained. The study concludes that 2001 economic crisis enhance the diversification especially for bank owner holding companies due to the fact that the crisis provides opportunities which can be easily used by the holding companies that have strong banks. The result implicates that bank owner holdings’ risk appetite and capabilities increased after the 2001 crisis.

Keywords: Borsa Istanbul, Diversification, Economic Crisis, Holding Companies