Abstract

All economic decisions, both at the macroeconomic and microeconomic levels, involve the assessment of various forms of business performance. Numerous indicators can be used to provide information about the interests of shareholders in evaluating investments and their relationships with the business. Understanding the relationship between business performance and equity is crucial, as negative equity can be considered a critical asset parameter. This assessment study aims to determine the relationship between negative equity and business performance in Türkiye by evaluating comprehensive financial data from companies with negative equity between 2020 and 2024. Furthermore, this assessment study uses the Altman Z-score and the IN05 index to assess the performance of companies with negative equity by dividing companies operating in the manufacturing sector into bankruptcy, prosperity, and gray zones.

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