Faaliyet Kaldıracının Finansal Performans Üzerindeki Etkisini Belirlemede Satış Büyümesinin Rolü:  Türkiye Örneği

Kalash, İsmail; Bilen, Abdulkadir

doi:10.25095/mufad.842340

Cited by 5 publications

(4 citation statements)

References 32 publications

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“…In France, the CAPRAT ratio was seen to have a positive and statistically significant impact on the ROA of the firms, and the results are the same as the findings obtained from a Turkish study [24]. In both countries, the results showed that the DEEUTY ratio and LTTTTA that deviated from the golden ratio had a negative and significant impact on ROA, and the results are consistent with the findings obtained by the following researchers [84][85][86].…”

Section: The Impact Of a Golden Ratio-based Capital Structure On Epssupporting

confidence: 88%

“…Numerous investigatio formance [22][23][24][25]. A study o covered that short-term de ROA, ROE, and EPS but has that long-term debt to total c and ROE, while a negative a…”

Section: Introductionmentioning

confidence: 99%

“…Numerous investigations have revealed that capital structure affects company performance [22][23][24][25]. A study on the effect of capital structure on financial performance discovered that short-term debt to the total asset has a statistically insignificant effect on ROA, ROE, and EPS but has a statistically significant effect on Tobin's Q.…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Golden Ratio-Based Capital Structure on Firm’s Financial Performance

Amin

Çek

2023

Sustainability

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This study aims to apply the golden ratio to the capital structure of non-financial institutions in France and the United Kingdom to find the effect of the golden ratio’s deviation from the capital structure on financial performance. A golden ratio is an irrational number with an approximate value of 1.618. In this paper, the golden ratio was applied to develop the assumption that the firm should use debt at a percentage of 61.8% and equity at 38.2%, which deviates from the capital structure variables. The final study sample consisted of 150 non-financial institution firms from France and 200 from the U.K. between 2002 and 2021. In addition, the general method of movement (GMM) was chosen to estimate the effect of capital structure variables deviating from the golden ratio on firms’ financial performance. The study results show that when a firm uses equity at a percentage of 38.2% in its capital structure, it can have a positive and significant impact on its financial performance in both France and the U.K. However, the results show that the debt-to-equity ratio deviated from the golden ratio and had a negative and statistically significant effect on both countries’ TOBQ, EPS, ROA, and ROE. Moreover, the firms’ adoption of IFRS can positively and significantly impact financial performance in France and the UK. Generally, managers in France are encouraged to use 38.2% equity and 61.8% debt in their capital structure. However, managers in the U.K. should apply equity of 38.2% and debt of 61.8%, depending on the performance measurement demanded.

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Section: The Impact Of a Golden Ratio-based Capital Structure On Epssupporting

confidence: 88%

“…Numerous investigatio formance [22][23][24][25]. A study o covered that short-term de ROA, ROE, and EPS but has that long-term debt to total c and ROE, while a negative a…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Effect of Golden Ratio-Based Capital Structure on Firm’s Financial Performance

Amin

Çek

2023

Sustainability

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“…Afolabi et al (2019) found that sales growth has a positive and statistically significant effect on ROCE, which is commensurate with the study's findings. A study by Mamaro and Legotlo (2021) and Kalash and Bilen (2021) found that the size of the firms has a positive and significant effect on ROE, and the findings are commensurate with the study results.…”

Section: Financial Leverage and Financial Performancesupporting

confidence: 87%

The effect of financial leverage on financial performance: evidence from non-financial institutions listed on the Tokyo stock market

Arhinful,

Radmehr

2023

JCMS

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PurposeThe study seeks to find the effect of financial leverage on the firm performance of non-financial companies listed in the Tokyo stock market.Design/methodology/approachThe study collected data from 263 companies in the automobile and industrial producer sectors listed on the Tokyo stock exchange between 2001 and 2021. The generalized method of moments was used to estimate the effect of leverage on financial performance due to its ability to overcome the problems of endogeneity and autocorrelation.FindingsThe study found that the equity multiplier has a positive and statistically significant effect on return on assets (ROA), return on equity (ROE) and earning per share (EPS). The study discovered that the interest coverage ratio has a positive and statistically significant effect on ROA, ROE, EPS and Tobin’s Q. The results revealed that the degree of financial leverage and debt to earnings before interest, taxes, depreciation and amortization (EBITDA) have a negative and statistically significant effect on ROE, EPS and Tobin’s Q. The study also found that the capitalization ratios of the firms have a negative and statistically significant effect on ROA, ROE, EPS and Tobin’s Q.Practical implicationsThe use of debt financing, which presents financial leverage, indicates that the companies can make enough earnings to pay off the interest and principal (debt service obligations), which were shown by the interest coverage ratio, as well as to pay all the long-term fixed expenses, which were shown by the fixed charge coverage ratio. Interest and fixed charge coverage have a positive statistically significant effect on the financial performance of automobile and industrial producer companies.Originality/valueThe study focused on the effect of financial leverage on financial performance by relying on pecking and trade-off theories to contribute to the existing body of literature in finance.

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The relationship between investment intensity and profitability measures from the perspective of foreign investors

Ani

Chavali

2023

Humanit Soc Sci Commun

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Investment intensity is the level of investment in fixed assets that affects a company’s long-term growth prospects. In order to make good investment decisions, investors pay more attention to achieving a high level of investment intensity. This study examines the impact of two non-GAAP measures of profitability—earnings before interest, tax, depreciation, and amortization and earnings before interest and tax—on investment intensity in Gulf Cooperation Council (GCC) member countries. The study also examines the preference for two non-GAAP measures of profitability from the perspective of foreign investors. The study conducts panel data regressions using 205 firm observations covering the period 2010–2019 to examine the relationship between earnings before interest, tax, depreciation and amortization, earnings before interest and tax, and investment intensity. The study used various statistical estimators to overcome the heterogeneity and endogeneity problems of panel data and employed many diagnostic tests to increase robustness. The study finds that earnings before interest, tax, depreciation and amortization are positively and significantly associated with investment intensity in all GCC countries, but earnings before interest and tax are negatively associated with investment intensity in these countries. The results indicate that foreign investors prefer to use earnings before interest, tax, depreciation, and amortization to make decisions about investment intensity. The main implication of the study is that capital market regulators and foreign investors should use earnings before interest, tax, depreciation, and amortization information as a guideline to improve investment intensity decisions and achieve a better allocation of resources in capital markets.

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Faaliyet Kaldıracının Finansal Performans Üzerindeki Etkisini Belirlemede Satış Büyümesinin Rolü: Türkiye Örneği

Cited by 5 publications

References 32 publications

The Effect of Golden Ratio-Based Capital Structure on Firm’s Financial Performance

The Effect of Golden Ratio-Based Capital Structure on Firm’s Financial Performance

The effect of financial leverage on financial performance: evidence from non-financial institutions listed on the Tokyo stock market

The relationship between investment intensity and profitability measures from the perspective of foreign investors

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