Determinants of firm performance: A study on BIST manufacturing industry
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https://doi.org/10.70736/ijoess.1661Keywords:
ARDL test, firm performance, profitabilityAbstract
Firm performance is considered one of the most effective ways to measure and manage the efficiency of a business. It is the basic indicator of how effectively the assets acquired by businesses can be used to achieve their goals. The main purpose of the study is to determine the determinants of firm performance of businesses operating in the Turkish manufacturing industry. In the study where return on assets (ROA), return on equity (ROE) and operating profit ratio (EFKO) were used as dependent variables, long-term relationships were tested with the ARDL bounds test using quarterly data between 2015Q1-2024Q1. Looking at the empirical findings of the study, there is a statistically significant relationship between return on equity and firm size and tangible asset ratios. It is significant between return on assets and firm size, leverage ratio and tangible asset ratio and net profit margin variables, and borderline significant with the cash conversion period variable. While there is a statistically significant relationship between the operating profit and the current ratio, firm size, leverage ratio, tangible assets ratio and net profit margin variables, no significant relationship was found with the cash conversion period variable.
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