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Effect of Operating Expenses on Firm Profitability: A Study on Firms Traded in the BIST30 Index

Author

Listed:
  • Turan Öndeş

    (Ataturk University)

  • Muhammet Levet

    (Mus Alparslan University)

Abstract

This study aims to examine the effect of firms’ operational expenses on their profitability. To this end, the relationship between the marketing, sales, and distribution expenses, general administrative expenses, and research and development expenses of 16 companies traded in the BIST30 index and their net profits were examined through Panel Regression Analysis. The analysis covers the annual data for the 2010-2021 period. The results showed that the general administrative and research-development expenses positively predicts the net profits of companies. However, no statistically significant relationship was found between marketing, sales, and distribution expenses and net profit for the period.

Suggested Citation

  • Turan Öndeş & Muhammet Levet, 2023. "Effect of Operating Expenses on Firm Profitability: A Study on Firms Traded in the BIST30 Index," Journal of Finance Letters (Maliye ve Finans Yazıları), Maliye ve Finans Yazıları Yayıncılık Ltd. Şti., vol. 38(119), pages 77-96, April.
    • Handle: RePEc:acc:malfin:v:38:y:2023:i:119:p:77-96
    DOI: https://doi.org/10.33203/mfy.1205139
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    More about this item

    Keywords

    Operating Expenses; Profitability; Panel Regression; BIST;
    All these keywords.

    JEL classification:

    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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