Geri Anasayfa

Detay


FINANCIAL INDEPENDENCE, AUTONOMY AND PROFITABILITY: A RESEARCH ON THE BORSA ISTANBUL CHEMICAL, PETROL, PLASTIC INDEX FIRMS

Abstract
This study is aimed at revealing the relationship between financial independence, autonomy and profitability. In accordance with this purpose, the data from the 17 firms, whose shares are continuously traded on Borsa Istanbul (BIST) chemical, petrol, plastic index between 2002-2017. In the study, four different models were formed based on the dependent variables of return on assets, return on equity, return on sales and operating profitability. Financial independence and financial autonomy were included in the models as independent variables. The relationship between financial independence, autonomy and profitability is analyzed by the panel data analysis. Within the scope of the analysis, multicollinearity, cross-sectional dependence, homogeneity, stationarity, estimation model selection, autocorrelation and heteroscedasticity assumptions were tested. After the tests, the White period and the Period SUR (PCSE) methods developed by Beck and Katz (1995) were used. As a result of research, while a positive and significant relationship was found between financial independence and the return on assets, equity and sales profitability, positive and significant relationship was found between financial autonomy and return on assets and sales profitability. On The Other Hand, while no significant relationship was observed with financial independence and autonomy and operating profitability, no significant relationship was found financial autonomy and return on equity. In this context, it has been revealed that companies want to maximize profits need to increase their financial independence and financial autonomy levels.

Keywords
Financial Independence, Financial Autonomy, Profitability, Panel Data Analysis, Borsa İstanbul.