Investigation Of The Effect Of Asset-Backed Securitization On Compaines' Financial Failure Possibilities

Authors : Mehmet Ozan GÜNER

Pages : 29-38

View : 34 | Download : 8

Publication Date : 2020-12-31

Article Type : Research Paper

Abstract :Securitization is a financial method that enables companies to remain liquid by converting their future receivables (such as mortgage, automobile loan, trade receivables) into securities with favorable interest rates. This method is yet to be widespread in Turkey demonstrates the need to investigate the utility of this method. For this reason, in this study, what kind of change occurs in the financial failure probability of the firms that make securitization under appropriate conditions is investigated. The telecommunications sector from the real sector was chosen as the sample. Balance sheet information disclosed to the public between 2015 and 2019 was used. As a result of the study, where Springate S-Score was calculated as a financial failure model, it was concluded that securitization also reduces the probability of financial failure of firms.
Keywords : Asset Backed Securitization, Financial Failure, Springate S Score

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