IDEAS home Printed from https://ideas.repec.org/a/ris/betajl/0025.html
   My bibliography  Save this article

Factors Affecting Profitability in Companies: An Application on BIST Corporate Governance Index

Author

Listed:
  • Turaboğlu, Tuncay Turan

    (Mersin Üniversitesi, İ.İ.B.F., İşletme Bölümü, Mersin, TÜRKİYE)

  • TİMUR, Ersin

Abstract

The main objective of this study is to analyze the basic determinants that affect firm profitability. For this purpose, the financial data of the companies traded on Borsa İstanbul (BIST) markets and traced in the “Corporate Governance Index-XKURY” for the period of 2010-2015 have been used. Return on Assets and Return on Equity used as dependent variables while asset turnover rate, current ratio, liquidity ratio, cash ratio, turnover of receivables, inventory turnover, leverage ratio, size, growth, asset structure and tax shield used as the independent variables. The study made use of the stepwise multivariate regression models to evaluate the relationships between firm profitability and the other variables. The results indicate statistically significant and positive relationships between profitability and other independent variables namely, liquidity ratio, asset turnover rate, cash ratio and current ratio.

Suggested Citation

  • Turaboğlu, Tuncay Turan & TİMUR, Ersin, 2018. "Factors Affecting Profitability in Companies: An Application on BIST Corporate Governance Index," Bulletin of Economic Theory and Analysis, BETA Journals, vol. 3(2), pages 135-156, June.
    • Handle: RePEc:ris:betajl:0025
    as

    Download full text from publisher

    File URL: https://dergipark.org.tr/download/article-file/553375
    File Function: Full text
    Download Restriction: betajournals@gmail.com
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Keywords

    Firm Profitability; Return of Equity (ROE); Return of Assets (ROA); BIST Corporate Governance Index (XKURY); Stepwise Multiple Regression Analysis;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:betajl:0025. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Erginbay Ugurlu (email available below). General contact details of provider: https://dergipark.org.tr/beta .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.