The relationship between firm size and export sales: Sector or size, what matters?

This paper examines the performance of export focused companies listed on the Borsa Istanbul trading in the emerging market of Turkey. Using the panel data of stock market prices (1995–2011), we study the performance of companies in different sectors and their return performance in the volatile exchange rate environment and devaluation periods of 1996, 1997, 1998, 1999, 2001 and 2008. The paper investigates sales, market capitalization or asset performances’ statistical significance level, with regard to these companies’ export level. We review the performance of these operational measures in an environment of changing foreign exchange rates. Regression analysis is used to measure the effects of currency devaluation on the companies analyzed. Finally, the study analyzes the export sales of companies by sector following a period of sharp devaluation.