The Effects of Growth, Size and Capital Structure Decisions on Profitability in Istanbul Stock Exchange (ISE):2008-2017

10.18535/ijsrm/v8i05.em01
Growth, Capital Structure, Profitability, ISE, Panel Data Analysis.

Authors

  • Selahattin KOC Associated Professors, Cumhuriyet University, Faculty of Economics and Administrative Sciences, Department of Business Administration., Türkiye https://orcid.org/0000-0003-4285-5632
  • Zekai ŞENOL Assistant Professors, Cumhuriyet University, Faculty of Economics and Administrative Sciences, Department of Banking and Finance., Türkiye
Vol. 8 No. 05 (2020)
Economics and Management
May 2, 2020

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The effect of firm size, growth and capital structure on firm profit rates has been searched by economists for several decades. The aim of this paper is to investigate the impacts of size, liquidity, growth and capital structure decisions on profitability in Stock Exchange Istanbul (BIST). For this aim, annual data of 114 manufacturing industry companies which are active at the moment in BIST. The financial data set covers the period 2005-2017. Results of the study using panel data analysis shows that while the ratios with regarding capital structure decisions negatively affect profitability, whereas size liquidity and growth positively affects profitability.