### AN EMPIRICAL INVESTIGATION ON THE USE OF DERIVATIVE INSTRUMENTS BY INDUSTRIAL FIRMS IN TURKEY

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#### Öz

This study examines the factors related to the use of derivative instruments by non-financial firms in

Turkey. The analysis is based on a sample of 115 firms listed on the Borsa İstanbul Industrial Index (XUSIN)

between the years 2009 and 2014. Generally, it is found that derivative instruments are used by 35 percent of

the sample. The results from univariate tests and logistic regression analysis show that the use of derivatives

is positively associated with leverage and firm size. In addition, earnings volatility and net profit margin are

negatively associated with the firm use of derivatives. However the data does not provide sufficient evidence

linking the use of derivative instruments to the firm value.

Turkey. The analysis is based on a sample of 115 firms listed on the Borsa İstanbul Industrial Index (XUSIN)

between the years 2009 and 2014. Generally, it is found that derivative instruments are used by 35 percent of

the sample. The results from univariate tests and logistic regression analysis show that the use of derivatives

is positively associated with leverage and firm size. In addition, earnings volatility and net profit margin are

negatively associated with the firm use of derivatives. However the data does not provide sufficient evidence

linking the use of derivative instruments to the firm value.

#### Tam metin:

PDFDOI: http://dx.doi.org/10.14784/jfrs.23358