This study investigates the factors that affect the firm performance during the international financial crisis which also affected Turkish economy. Sample of 140 non-financial firms from Borsa Istanbul has been investigated for the financial crisis period of 2008. Market-to-book ratio has been taken as the measure of performance in the study whereas eleven financial ratios have been taken as independent variables. A factor analysis has been applied on independent variables and categorized them into four categories. Then multiple regression analysis has been applied by taking the factor scores of our four factors. Results of the study suggest that liquidity of the firm affects the firm’s market value positively whereas high leverage inversely affects the firm performance during crisis.

This study investigates the factors that affect the firm performance during the international financial crisis which also affected Turkish economy. Sample of 140 non-financial firms from Borsa Istanbul has been investigated for the financial crisis period of 2008. Market-to-book ratio has been taken as the measure of performance in the study whereas eleven financial ratios have been taken as independent variables. A factor analysis has been applied on independent variables and categorized them into four categories. Then multiple regression analysis has been applied by taking the factor scores of our four factors. Results of the study suggest that liquidity of the firm affects the firm’s market value positively whereas high leverage inversely affects the firm performance during crisis.