Factors Affecting Firm Competitiveness: Evidence from an Emerging Market

Elif Akben-Selcuk
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Elif Akben-Selcuk: Department of Business Administration, Kadir Has University, Istanbul, 34083, Turkey

IJFS, 2016, vol. 4, issue 2, 1-10

Abstract: The objective of this study is to investigate the factors affecting firm competitiveness in an emerging market—Turkey. In the paper, competitiveness is proxied by a firm’s financial performance. The empirical analysis is based on firms listed on Borsa Istanbul and covers the period between 2005 and 2014. Results from a firm-level panel data model indicate that return on assets is positively related to firm size, international sales, liquidity and growth, and negatively related to leverage and R&D expenditures. On the other hand, gross profit margin is positively related to size and international sales, and negatively related to leverage and R&D expenditures. Finally, results show that Tobin’s Q ratio is higher for firms with higher levels of debt and higher liquidity levels.

Keywords: financial performance; profitability; return on assets; gross profit margin; Tobin’s Q; panel data; fixed effects model; Turkey (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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