DURSUN, Adem Atatürk Üniversitesi - İİBF İşletme Bölümü, Turkey , AYRIÇAY, Yücel Sütçü İmam Üniversitesi - İİBF İşletme Bölümü, Turkey

ANALYSIS OF WORKING CAPITAL PROFITABILITY RELATION FOR 1996-2005 VIA ISE EXAMPLE

36691

The purpose of this study is to determine the relation between working capital and gross profit at the enterprises which registered in Istanbul Stock Exchange (ISE) in Turkey. The dataset of the study is a panel dataset including annual data of 120 production and trade companies, as well as 1200 observations. Enterprises that carry on financial activities are excluded from present research. The study applies Least Squares Method (LSM) for research, and Fixed Effects Model was taken into account during specifications of built models. The models built in present study reveal that the working capital, which is expressed at different levels with different variants in enterprises within ISE, is compatible with theoretical estimates when it comes to its relation with gross profit ratio. Besides, a negative relation between variants of working capital and gross profits is found in the built models.

199

Working Capital , Profitability , Gross Profit , ISE

Journal Of Economics and Administrative Sciences, Ataturk University

214