The roots of holdings through state: Evidence from turkish industry and maadin bank in Turkey

Abstract

Despite the unfavorable circumstances, huge efforts were made to build a developed economic structure and establish necessary conditions for improvement during the establishment period (1923-1938) of Turkey. The improvement efforts of young republic and resulting business entities were off from sufficient academic interest and research. Although the topic was examined to a certain point by the economists, it was not discussed by business economic researchers. The research on Turkish business entities are not historical and center mostly on the holdings which were established in the recent decades and have an increasing effects today. This study, by focusing on Turkish industry and Maadin Bank established during the early years of Turkish Republic as a case study, aims to explain and evaluate the financial policies implemented in the establishment period of the new Republic. Considering the establishment conditions, its organizational structure and vision, it is clear that Maadin, instead of being a bank, had many features of a business entity in fact. This finding, generally, is important to put forward the underlying reasons behind the relative economic success of the new Republic in the paw of equity capital shortages, economic depressions and recessions, and to put forward the first discussions of the holdings processes in Turkey. © Muzaffer Aydemir, Ferit Murat Ozkaleli, Salih Turan Katircioglu, 2012.