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Şirket Büyüklüğü ile Kârlılık Arasındaki Doğrusal Olmayan Bir İlişki

Year 2025, Volume: 18 Issue: 1, 151 - 170

Bahadır Karakoç

https://doi.org/10.29067/muvu.1569770

Abstract

Firmalarda büyüme, yönetimin servet maksimize etme çabalarının doğal bir sonucudur. Ancak, bunun kârlılık üzerindeki etkileri tam olarak anlaşılamamıştır. Bu çalışma, halka açık Türk şirketlerinden elde edilen üç aylık verileri kullanarak firma büyüklüğü-kârlılık ilişkisini incelemektedir. Bulgular, firma ölçeğinin kârlılıkla pozitif bir şekilde ilişkili olduğunu göstermektedir. Ancak, bu ilişki doğrusal değildir. Firma hacminde belirli bir nokta aşıldıktan sonra marjinal katkısı negatif hale gelmektedir ki ve bu durum büyüme ile ilgili kararların sorgulanması gerektiği anlamını taşımaktadır. Bulguların, alternatif ekonometrik yöntemler (GMM ve FE-OLS), alternatif büyüklük ölçüleri ve doğrusal olmayan farklı spesifikasyonlar kullanılarak tutarlı olduğu gösterilmiştir.

Keywords

Firma Büyüklüğü Karlılık Doğrusal Olmayan İlişki ROA Halka Açık Firmalar

References

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A Nonlinear Relationship Between Corporate Size and Profitability

Year 2025, Volume: 18 Issue: 1, 151 - 170

Bahadır Karakoç

https://doi.org/10.29067/muvu.1569770

Abstract

Corporate growth is a natural consequence of management's wealth maximization efforts. However, its effects on profitability are not fully understood. This study examines the size-profitability relationship using quarterly data from publicly listed Turkish firms. The findings indicate that size is positively correlated with profitability. However, this relationship is not linear. After reaching a certain point in size, the marginal return becomes negative, raising questions about growth-related decisions. The findings are robust to alternative econometric methods (GMM and FE-OLS), alternative measures of size, and alternative specifications of nonlinearity.

Keywords

Firm Size Profitability Nonlinear Relationship ROA Publicly Listed Firms

References

  • Alarussi, A. S., & Alhaderi, S. M. (2018). Factors affecting profitability in Malaysia. Journal of Economic Studies, 45(3), 442-458.
  • Al-Ali, A. H. H., & Al-Shabeeb, S. K. I. (2024). Relationship between profitability indicators and maximization market value added and intrinsic for the industrial companies. Global Business & Finance Review, 29(2), 71-84.
  • Almashhadani, M. (2021). A brief review of corporate governance structure and corporate profitability in developed and developing economy: A review. International Journal of Business and Management Invention, 10(11), 42-46.
  • Ashley, R. A., & Parmeter, C. F. (2015). Sensitivity analysis for inference in 2SLS/GMM estimation with possibly flawed instruments. Empirical Economics, 49(4), 1153-1171.
  • Azzabi, A., & Lahrichi, Y. (2023). Bank Performance Determinants: State of the Art and Future Research Avenues. arXiv preprint arXiv:2311.08617.
  • Atabek, A., Andrews, D., & Gönenç, R. (2017). "Rebalancing Turkey’s growth by improving resource allocation and productivity in manufacturing", OECD Economics Department Working Papers, No. 1367, OECD Publishing, Paris, https://doi.org/10.1787/c35af920-en.
  • Barauskaite, G., & Streimikiene, D. (2021). Corporate social responsibility and financial performance of companies: The puzzle of concepts, definitions and assessment methods. Corporate Social Responsibility and Environmental Management, 28(1), 278-287.
  • Balasubramanian, N., & Lieberman, M. B. (2010). Industry learning environments and the heterogeneity of firm performance. Strategic Management Journal, 31(4), 390-412.
  • Baydoun, M. (2011). Risk management of large-scale development projects in developing countries: Cases from MDI's projects. International Journal of Technology Management & Sustainable Development, 9(3), 237-249.
  • Benito-Osorio, D., Colino, A., & Zúñiga-Vicente, J. Á. (2015), The link between product diversification and performance among Spanish manufacturing firms: Analyzing the role of firm size. Can J Adm Sci, 32: 58–72. doi: 10.1002/cjas.1303.
  • Bilgili, F., Ünlü, F., Gençoğlu, P., & Kuşkaya, S. (2022). Modeling the exchange rate pass-through in Turkey with uncertainty and geopolitical risk: a Markov regime-switching approach. Applied Economic Analysis, 30(88), 52-70.
  • Brooks, C. (2019). Introductory econometrics for finance. Cambridge University Press.
  • Brouwer, E., & Kleinknecht, A. (1996). Firm size, small business presence and sales of innovative products: a micro-econometric analysis. Small Business Economics, 8, 189-201.
  • Canback, S., Samouel, P., & Price, D. (2006). Do diseconomies of scale impact firm size and performance? A theoretical and empirical overview. ICFAI Journal of Managerial Economics, 4(1), 27-70.
  • Celli, M. (2013). Determinants of economies of scale in large businesses—A survey on UE listed firms. American Journal of Industrial and Business Management, 3(3). DOI:10.4236/ajibm.2013.33031
  • Dalci, I. (2018). Impact of financial leverage on profitability of listed manufacturing firms in China. Pacific Accounting Review, 30(4), 410-432.
  • Dang, H. N., Vu, V. T. T., Ngo, X. T., & Hoang, H. T. V. (2019). Study the impact of growth, firm size, capital structure, and profitability on enterprise value: Evidence of enterprises in Vietnam. Journal of Corporate Accounting & Finance, 30(1), 144-160.
  • De Luca, P., & De Luca, P. (2018). Company profitability analysis. Analytical Corporate Valuation: Fundamental Analysis, Asset Pricing, and Company Valuation, 43-76.
  • Delannay, A. F., & Weill, L. (2004). The determinants of trade credit in transition countries. Economics of Planning, 37, 173-193.
  • Demir, B., & Javorcik, B. (2018). Don’t throw in the towel, throw in trade credit!. Journal of International Economics, 111, 177-189.
  • Demirel, P., & Mazzucato, M. (2012). Innovation and firm growth: Is R&D worth it? Industry and Innovation, 19(1), 45-62.
  • Dey, P. (2009). Managing risks of large-scale construction projects. Cost Engineering, 51(6), 23-27. DiTraglia, F. J. (2016). Using invalid instruments on purpose: Focused moment selection and averaging for GMM. Journal of Econometrics, 195(2), 187-208.
  • Dodoo, R. N. A., Appiah, M., & Donkor, D. T. (2020). Examining the factors that influence firm performance in Ghana: a GMM and OLS approach. National Accounting Review, 2(3), 309-323.
  • Dolderer, J., Felber, C., & Teitscheid, P. (2021). From neoclassical economics to common good economics. Sustainability, 13(4), 2093.
  • Escolar, R. B., Khametshin, D., Pujadas, Á. M., & Ríos, M. M. (2023). Pass-through of rising production costs to the selling prices of non-financial corporations in 2022. Economic Bulletin, (2023/Q3), 1-12.
  • Farooq, R., Vij, S., & Kaur, J. (2021). Innovation orientation and its relationship with business performance: moderating role of firm size. Measuring Business Excellence, 25(3), 328-345.
  • Figueira‐de‐Lemos, F., Silva, S. C., Pinto, R. P., & Kury, B. (2024). Impacts and Trends on Global Supply Chain After COVID‐19 Outbreak. Thunderbird International Business Review. https://doi.org/10.1002/tie.22401
  • Firli, A., Primiana, I., & Kaltum, U. (2015). The impact of increasing CAPEX on customer number, profit, and ROI in Indonesia telecommunication industry. American Journal of Economics, 5(2), 135-138.
  • Fonseca, S., Guedes, M. J., & da Conceição Gonçalves, V. (2022). Profitability and size of newly established firms. International Entrepreneurship and Management Journal, 18(2), 957-974.
  • Gaur, V., & Kesavan, S. (2015). The effects of firm size and sales growth rate on inventory turnover performance in the US retail sector. Retail supply chain management: Quantitative models and empirical studies, 25-52.
  • Ghasemi, M. & Hisyam Ab Razak, N. (2017). Determinants of Profitability in ACE Market Bursa Malaysia: Evidence from Panel Models. International Journal of Economics & Management, 11 (S3): 847 – 869
  • Gofman, M., & Wu, Y. (2022). Trade credit and profitability in production networks. Journal of Financial Economics, 143(1), 593-618.
  • Gui-long, Z., Yi, Z., Kai-hua, C., & Jiang, Y. (2017). The impact of R&D intensity on firm performance in an emerging market: Evidence from China’s electronics manufacturing firms. Asian Journal of Technology Innovation, 25(1), 41-60.
  • Harris, G. S. (2023). Turkey: Coping with crisis. Routledge.
  • Hidayah, N. (2024). Exchange Rate Volatility and International Trade in Turkey. International Journal of Finance and Accounting, 9(1), 46-56.
  • Hirsch, S., Lanter, D., & Finger, R. (2021). Profitability and profit persistence in EU food retailing: Differences between top competitors and fringe firms. Agribusiness, 37(2), 235-263.
  • Hoskisson, R.E., Hitt, M.A., Johnson, R.A., & Moesel, D.D. (1993). Construct validity of an objective (Entropy) categorical measure of diversification strategy. Strategic Management Journal, 14(3), 215–235.
  • Huang, C. H., & Hou, T. C. T. (2019). Innovation, research and development, and firm profitability in Taiwan: Causality and determinants. International Review of Economics & Finance, 59, 385-394.
  • Hui, G., Al Mamun, A., Masukujjaman, M., Makhbul, Z. K. M., & Ali, M. H. (2024). The relationship between mass customization and sustainable performance: The role of firm size and global E-commerce. Heliyon, 10(6).
  • Irmak, F. (2024). The Relationship between Financial slack, ownership-board structure, and firm performance: Evidence from BIST 100. Journal of Research in Economics, Politics & Finance, 9(3), 520-548.
  • Isik, O., Unal, E. A., & Unal, Y. (2017). The effect of firm size on profitability: evidence from Turkish manufacturing sector. Journal of Business Economics and Finance, 6(4), 301-308.
  • Järvinen, J., Lamberg, J. A., Murmann, J. P., & Ojala, J. (2009). Alternative paths to competitive advantage: a fuzzy-set analysis of the origins of large firms. Industry and Innovation, 16(6), 545-574.
  • Kebewar, M. (2013). Does debt affect profitability? An empirical study of French trade sector. An Empirical Study of French Trade Sector (January 23, 2013).
  • Kaur, A., Joshi, M., Singh, G., & Sharma, S. (2024). The Impact of Corporate Reputation on Cost of Debt: A Panel Data Analysis of Indian Listed Firms. Journal of Risk and Financial Management, 17(8), 367.
  • Khouja, M., & Smith, M. A. (2007). Optimal pricing for information goods with piracy and saturation effect. European Journal of Operational Research, 176(1), 482-497.
  • Laari, S., Rintala, O., Töyli, J., Solakivi, T., & Ojala, L. (2024). Evaluating firm resilience through responsiveness and logistics outsourcing in the COVID-19 era. Supply Chain Management: An International Journal, 29(7), 71-82.
  • Lazonick, W. (2024). Is the most unproductive firm the foundation of the most efficient economy? Penrosian learning confronts the neoclassical fallacy. International Review of Applied Economics, 38(1-2), 58-89.
  • Lefebvre, V. (2022). Performance, working capital management, and the liability of smallness: A question of opportunity costs? Journal of Small Business Management, 60(3), 704-733.
  • Lenox, M. J., Rockart, S. F., & Lewin, A. Y. (2010). Does interdependency affect firm and industry profitability? An empirical test. Strategic Management Journal, 31(2), 121-139.
  • Lim, H., & Rokhim, R. (2021). Factors affecting profitability of pharmaceutical company: an Indonesian evidence. Journal of Economic Studies, 48(5), 981-995.
  • Liu, S. (2024). Impact of Exchange Rate Fluctuation on Import and Export Enterprises in China and Japan and Countermeasures. Highlights in Business, Economics and Management, 24, 322-330.
  • Liu, X., & Zhao, Q. (2024). Banking competition, credit financing and the efficiency of corporate technology innovation. International Review of Financial Analysis, 94, 103248.
  • Maani, K., & Li, A. (2010). Decision‐making in complex systems: Relationship between scale of change and performance. Systems Research and Behavioral Science, 27(5), 567-584.
  • Mayer, C. (2021). The future of the corporation and the economics of purpose. Journal of Management Studies, 58(3), 887-901.
  • Mathuva, D. (2015). The Influence of working capital management components on corporate profitability.
  • Mazur, K. (2007). The Determinants of Capital Structure Choice: Evidence from Polish Companies. International Advances in Economic Research, 13(4), 495-514. https://doi.org/10.1007/s11294-007-9114-y
  • Modigliani, F., & Miller, M. H. (1963). Corporate income taxes and the cost of capital: a correction. The American Economic Review, 53(3), 433-443.
  • Myers, S. C. (2001). Capital structure. Journal of Economic Perspectives, 15(2), 81-102.
  • Myers, S. C. (1984). Corporate Financing and Investment Decisions When Firms Have Information that Investors do not have. Journal of Financial Economics,13(2), 187-221.
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Details

Primary Language English
Subjects Financial Accounting
Journal Section Issue
Authors

Bahadır Karakoç 0000-0001-8137-2233

Early Pub Date February 19, 2025
Publication Date
Submission Date October 18, 2024
Acceptance Date December 23, 2024
Published in Issue Year 2025 Volume: 18 Issue: 1

Cite

APA Karakoç, B. (2025). A Nonlinear Relationship Between Corporate Size and Profitability. Journal of Accounting and Taxation Studies, 18(1), 151-170. https://doi.org/10.29067/muvu.1569770

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