Analyzing the impact of COVID-19 on the financial failure risk in Borsa İstanbul manufacturing companies

Abstract

There is no agreed and precise definition of the concept of financial failure. This situation causes the studies of the concept to be associated with bankruptcies. Although not every company experiencing financial failure goes bankrupt, it can be noted that economic fluctuations that happen on a global scale cause many companies to face the risk of financial failure and even bankruptcy. Furthermore, the COVID-19 pandemic has also affected the economic policies of countries and thus affected the operations of companies. This study aims to analyze the financial failure risk of Borsa İstanbul (BIST) manufacturing companies before and after COVID-19. In the research, financial statements of BIST manufacturing industry companies published quarterly between the years 2019-2020 were used. Within the scope of the research, the quarterly financial statements of 146 BIST companies listed in the manufacturing industry for the years 2019-2020 were analyzed with the financial failure models of Altman (1968), Springate (1978), Taffler (1983) and Zmijewski (1984).