Profitability and Its Determinants in Turkish Manufacturing Industry: Evidence from a Dynamic Panel Model

Ozcan Isik and Umit Firat Tasgin

International Journal of Economics and Finance, 2017, vol. 9, issue 8, 66-75

Abstract: Our paper empirically analyses the factors that determine the profitability of 120 manufacturing firms listed in Borsa Istanbul Stock Exchange during the period 2005-2012. Estimation results from dynamic panel data model taking into account the endogeneity of variables indicate that lagged profitability, firm size, financial risk, R&D costs, net working capital, and economic growth are the most important variables affecting firm profitability. More specifically, profitability is positively and significantly affected by past profitability, firm size in terms of total sales, net working capital, and economic growth. On the other hand, R&D costs and financial risk have a dampening effect on the profitability.

Keywords: profitability; dynamic panel data; manufacturing industry; Borsa Istanbul; Turkey (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://ccsenet.org/journal/index.php/ijef/article/view/68679/37710 (application/pdf)
http://ccsenet.org/journal/index.php/ijef/article/view/68679 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibn:ijefaa:v:9:y:2017:i:8:p:66-75

Access Statistics for this article

More articles in International Journal of Economics and Finance from Canadian Center of Science and Education Contact information at EDIRC.
Bibliographic data for series maintained by Canadian Center of Science and Education ().