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Persistence of Profit in Energy Industry: Dynamic Evidence from Turkish Companies

Author

Listed:
  • Onur Gozbasi

    (Department of Business Administration, Nuh Naci Yazgan University, Kayseri, Turkey,)

  • Alper Aslan

    (Department of Economics, Nevsehir Haci Bektas University, Nevsehir, Turkey.)

Abstract

One of the main lacks of the profit persistence literature is the fact that it focuses on only manufacturing, banking and food industries. This study, for the first time, extends the literature by considering the intensity of competition in 13 energy companies from 1997 to 2011 in Turkey as an emerging market. The results show that the degree of persistence is higher in the energy industry mainly due to a low degree of market saturation, weak price competition and a lowly concentrated retailing industry, thus providing no support for the hypothesis that there is a lower persistence of profits in emerging markets due to more intense competition in Turkey.

Suggested Citation

  • Onur Gozbasi & Alper Aslan, 2015. "Persistence of Profit in Energy Industry: Dynamic Evidence from Turkish Companies," International Journal of Economics and Financial Issues, Econjournals, vol. 5(2), pages 624-628.
    • Handle: RePEc:eco:journ1:2015-02-35
    as

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    References listed on IDEAS

    as
    1. Geroski, Paul A & Jacquemin, Alexis, 1988. "The Persistence of Profits: A European Comparison," Economic Journal, Royal Economic Society, vol. 98(391), pages 375-389, June.
    2. Eralp Bektas, 2007. "The persistence of profits in the Turkish banking system," Applied Economics Letters, Taylor & Francis Journals, vol. 14(3), pages 187-190.
    3. Goddard, J. A. & Wilson, J. O. S., 1999. "The persistence of profit: a new empirical interpretation," International Journal of Industrial Organization, Elsevier, vol. 17(5), pages 663-687, July.
    4. John Goddard & Phil Molyneux & John O. S. Wilson, 2004. "The profitability of european banks: a cross‐sectional and dynamic panel analysis," Manchester School, University of Manchester, vol. 72(3), pages 363-381, June.
    5. Glen, Jack & Lee, Kevin & Singh, Ajit, 2001. "Persistence of profitability and competition in emerging markets," Economics Letters, Elsevier, vol. 72(2), pages 247-253, August.
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    Cited by:

    1. Omer Iskenderoglu & Ozkan Haykir, 2018. "Profit Persistence in Energy Industry: A Comparison Between Listed and Unlisted Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 8(4), pages 288-292.

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    More about this item

    Keywords

    Persistence of Profit; Energy Industry; Competition;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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