FDI entry mode choice and ownership structure in Turkish market: A firm-level analysis

Figures & data

Figure 1. FDI inflows into Turkey from 1970 to 2015.

Source: Derived from the UNCTAD Statistics (www.unctad.org).

Table 1. Summary for deal type statistics

Deal type	Frequency	Percent	Cumulative
Full acquisition	160	71.43	71.28
Institutional buyout	4	1.79	73.21
JV	18	8.04	81.25
Merger	3	1.34	82.59
Minority stake	39	17.41	100
Total	224	100

Table 2. Estimation results of the MNL model

Full acquisition (base outcome)	Institutional buyout	JV	Merger	Minority stake
Category	−0.860 (0.264)	−0.5167 (0.143)	−1.2515 (0.024)^*	−0.3304 (0.217)
ROE	0.025 (0.360)	0.0128 (0.070)	0.0345 (0.019)^**	−0.0065 (0.097)
Profit margin	−0.0602 (0.008)^**	−0.0297 (0.075)	−0.0927 (0.025)^*	0.0410 (0.152)
Net asset turnover	0.0447 (0.328)	−0.3806 (0.163)	0.0585 (0.157)	−0.0722 (0.489)
Current ratio	−1.0373 (0.003)^**	−0.2120 (0.420)	−2.8713 (0.029)^*	0.2604 (0.162)
Observations	224
Wald χ^2(20)	78.01
Pseudo R^2	0.1113
Log likelihood	−174.50

Note: Probability values of the coefficients are presented in the parentheses.

^* Significance level at 5%.

^** Significance level at 1%.

Table 3. Relative risk ratios of MNL coefficients

Full acquisition (base outcome)	Institutional buyout	JV	Merger	Minority stake
Category	0.4231 (0.264)	0.5964 (0.143)	0.2860 (0.024)^*	0.7186 (0.217)
ROE	1.0262 (0.360)	1.0129 (0.070)	1.0351 (0.019)^**	0.9934 (0.097)
Profit margin	0.9415 (0.008)^**	0.9706 (0.075)	0.9114 (0.025)^*	1.0418 (0.152)
Net asset turnover	1.0457 (0.328)	0.6833 (0.163)	1.0603 (0.157)	0.9302 (0.489)
Current ratio	0.3543 (0.003)^**	0.8088 (0.420)	0.0566 (0.029)^*	1.2975 (0.162)
Observations	224
Wald χ^2(20)	78.01
Pseudo R^2	0.1113
Log likelihood	−174.50

Note: Probability values of the coefficients are presented in the parentheses.

^* Significance level at 5%.

^** Significance level at 1%.

Table 4. Conditional marginal effects

Full acquisition (base outcome)	Institutional buyout	JV	Merger	Minority stake
Category	−0.0057 (0.443)	−0.0252 (0.169)	−0.0010 (0.591)	−0.0384 (0.282)
ROE	0.0001 (0.293)	0.0007 (0.064)	0.00003 (0.582)	−0.0110 (0.047)^*
Profit margin	−0.0004 (0.056)^*	−0.0020 (0.090)	−0.00008 (0.582)	0.0059 (0.120)
Net asset turnover	0.0005 (0.340)	−0.0206 (0.063)	0.00008 (0.620)	−0.0061 (0.661)
Current ratio	−0.0078 (0.103)	−0.0137 (0.347)	−0.0025 (0.576)	0.0388 (0.115)

Note: Probability values of the coefficients are presented in the parentheses.

^* Significance level at 5%.