Research Article
BibTex RIS Cite

Yatırım Kararları ile Firma Karlılığı Arasındaki İlişki: Fon Akışları ve Yatırım Fırsatlarının Moderatör Rolü

Year 2023, , 171 - 188, 17.04.2023
https://doi.org/10.25095/mufad.1244004

Abstract

Çalışmada yatırım kararları ile firma karlılığı ilişkisinde fon akışları ve yatırım fırsatlarının moderator rolünün
2000-2020 döneminde Borsa İstanbul’da işlem gören 107 reel sektör firması için panel veri analizi ile araştırılması
amaçlanmıştır. Firma karlılığı için aktif karlılık ve özsermaye karlılığı, yatırım kararları için sabit varlıkların büyüme oranı,
toplam varlıkların büyüme oranı ve sermaye harcamalarının toplam varlıklara büyüme oranları değişkenleri seçilmiştir.
Gerçekleştirilen analizler sonucunda yatırım kararlarının firma karlılığını önemli derecede etkilediği tespit edilmiştir. Ayrıca
çalışmada fon akışları ve yatırım kararlarının etkileşimi ve yatırım fırsatları ve yatırım kararlarının etkileşiminin firma
karlılığı üzerinde anlamlı etkilerinin olduğu ve bu etkileşim değişkenleri modele dahi edildikten sonra yatırım kararlarının
firma karlılığı üzerindeki etkisini artırdığı bulgulanmıştır.

References

  • Akron, Sagi - Demir, Ender - Díez-Esteban, Jose. M., - García-Gómez, Condrada. D. (2020), “Economic Policy Uncertainty and Corporate Investment: Evidence from The US Hospitality Industry”, Tourism Management, 77, pp. 1-10.
  • Aksar, Muhammad - Hassan, Shoib - Kayani, Muhammad - Khan, Suleman - Ahmed, Tanvir (2022), “Cash Holding and Investment Efficiency Nexus for Financially Distressed Firms: The Moderating Role of Corporate Governance”, Management Science Letters, 12(1), pp. 67-74.
  • Baltagi, Badi. H. (2005), “Econometric Analysis of Panel Data”, England: John Wiley & Sons, Ltd. Bon, Sergius. F. - Hartoko, Sri (2022), “The Effect of Dividend Policy, Investment Decision, Leverage, Profitability, and Firm Size on Firm Value”, European Journal of Business and Management Research, 7(3), pp. 7-13.
  • Breusch, Trevor. S. - Pagan, Adrian. R. (1980), “The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics”, The Review of Economic Studies, 47(1), pp. 239-253.
  • Cleary, Sean (1999), “The Relationship between Firm Investment and Financial Status”, The Journal of Finance, 54(2), pp. 673-692.
  • Da Silva, Aldy. F. - Vieira, Afranio. M. C. - Navarro, Augusto. C. - Parisi, Claudio (2013), “Decisions on Investment and Profitability: An Empirical Study Using Generalized Linear Mixed Models in Non-Financial Brazilian Companies”, In European Financial Management Association (EFMA) Annual Conference, UK, pp.1-30.
  • DeAngelo, Harry - DeAngelo, Linda (2006), “The Irrelevance of the Mm Dividend Irrelevance Theorem”, Journal of financial economics, 79(2), pp. 293-315.
  • Fazzari, Steven. M. - Hubbard, R. Glenn - Petersen, Bruce. C. (2000), “Investment-Cash Flow Sensitivities Are Useful: A Comment on Kaplan and Zingales”, The Quarterly Journal of Economics, 115(2), pp. 695-705.
  • Galeotti, Marzio - Schiantarelli, Fabio - Jaramillo, Fidel (1994), “Investment Decisions and The Role of Debt, Liquid Assets and Cash Flow: Evidence from Italian Panel Data”, Applied Financial Economics, 4(2), pp. 121-132.
  • Gordon, Lawrance. A. - Iyengar, Raghavan J. (1996) “Return on Investment and Corporate Capital Expenditures: Empirical Evidence. Journal of Accounting and Public Policy, 15(4), pp. 305-325.
  • Hatem, Ben. S (2016), “Factors Explaining Firm Investment: An International Comparison”, International Business Research, 9(1), pp. 112-120.
  • Honda, Yuzo (1985), “Testing the Error Components Model with Non-Normal Disturbances”, Review of Economic Studies, 52, pp. 681-690.
  • Islam, M. Saif Ul – Meo, M. Saeed – Usman, Muhammad (2022), “The Relationship Between Corporate Investment Decision and Firm Performance: Moderating Role of Cash Flows”, Journal of Public Affairs, 22(2), pp. 1-10.
  • Jahanzeb, Agha - Rehman, Saif - Bajuri, N. Hafiz - Karami, Meisam, - Ahmadimousaabad, Aiyoub (2013), “Trade-Off Theory, Pecking Order Theory and Market Timing Theory: A Comprehensive Review of Capital Structure Theories”, International Journal of Management and Commerce Innovations, 1(1), pp. 11-18.
  • Kaplan, Steven N. - Zingales, Luigi (1997), “Do investment-cash flow sensitivities provide useful measures of financing constraints?”, The Quarterly Journal of Economics, 112(1), pp. 169-215.
  • Modigliani, Franco - Miller, Merton H. (1958), “The Cost of Capital, Corporation Finance and The Theory of Investment”, The American Economic Review, 48(3), pp. 261-297.
  • Myers, Stewart C. - Majluf, Nicholas S. (1984), “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have”, Journal of Financial Economics, 13(2), 187-221.
  • Nguyen, Phan. D. - Dong, Phan. T. A. (2013), “Determinants of Corporate Investment Decisions: The Case of Vietnam”, Journal of Economics and Development, 15(1), pp. 32 – 48.
  • Nugroho, Mulyanto (2021), “Corporate Governance and Firm Performance”, Accounting, 7(1), pp. 13-22.
  • Nurlela, Nurlela – Sulastri, Sulastri – Hamdan, Umar AJ – Hanafi, Agustina (2019), “The Influence of Investment Decisions and Financing Decisions on Firm Value with Profitability as Intervening Variables (Empirical Study on Companies Listed in Indonesian Sharia Stock Index)”, International Journal of Multicultural and Multireligious Understanding, 6(2), pp. 447-456.
  • Pesaran, M. Hashem - Ullah, Aman - Yamagata, Takashi (2008), “A Bias‐Adjusted LM Test of Error Cross‐Section Independence”, The Econometrics Journal, 11(1), pp. 105-127.
  • Pesaran, M. Hashem (2004). “General Diagnostic Tests for Cross Section Dependence in Panels”, https://doi.org/10.17863/CAM.5113
  • Prasetya, R. Alvian - Yulianto, Agung (2019), “Determinants of Investment Decisions with Growth Opportunities as Moderating Variable”, Accounting Analysis Journal, 8(1), pp. 17-23.
  • Putri, Nadya - Budyastuti, Triyani (2021), “The Effect of Investment Decisions, Dividend Policy and Profitability on Firm Value in the Indonesian Manufacturing Companies”, American Journal of Humanities and Social Sciences Research (AJHSSR), 5(4), pp. 47-53.
  • Suleman, Reza (2021), “Effect of Investment Decision, Capital Structure, Profitability, and Company Size on Company Values”, Jurnal Ekonomi, 26(1), pp. 134-152.

The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities

Year 2023, , 171 - 188, 17.04.2023
https://doi.org/10.25095/mufad.1244004

Abstract

The study aims to investigate the moderating role of fund flows and investment opportunities in the relationship
between investment decisions and firm profitability with a panel data analysis for 107 real sector firms traded in Borsa
Istanbul for the period 2000-2020. Return on assets and return on equity variables are selected for firm profitability, while
growth rate of fixed assets, growth rate of total assets and growth rate of capital expenditures to total assets are selected for
investment decisions. As a result of the analysis, it has found that investment decisions have a significant impact on firm
profitability. The study also finds that the interaction of fund flows and investment decisions and the interaction of investment
opportunities and investment decisions have significant effects on firm profitability and that the inclusion of these interaction
variables in the model increases the impact of investment decisions on firm profitability.

References

  • Akron, Sagi - Demir, Ender - Díez-Esteban, Jose. M., - García-Gómez, Condrada. D. (2020), “Economic Policy Uncertainty and Corporate Investment: Evidence from The US Hospitality Industry”, Tourism Management, 77, pp. 1-10.
  • Aksar, Muhammad - Hassan, Shoib - Kayani, Muhammad - Khan, Suleman - Ahmed, Tanvir (2022), “Cash Holding and Investment Efficiency Nexus for Financially Distressed Firms: The Moderating Role of Corporate Governance”, Management Science Letters, 12(1), pp. 67-74.
  • Baltagi, Badi. H. (2005), “Econometric Analysis of Panel Data”, England: John Wiley & Sons, Ltd. Bon, Sergius. F. - Hartoko, Sri (2022), “The Effect of Dividend Policy, Investment Decision, Leverage, Profitability, and Firm Size on Firm Value”, European Journal of Business and Management Research, 7(3), pp. 7-13.
  • Breusch, Trevor. S. - Pagan, Adrian. R. (1980), “The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics”, The Review of Economic Studies, 47(1), pp. 239-253.
  • Cleary, Sean (1999), “The Relationship between Firm Investment and Financial Status”, The Journal of Finance, 54(2), pp. 673-692.
  • Da Silva, Aldy. F. - Vieira, Afranio. M. C. - Navarro, Augusto. C. - Parisi, Claudio (2013), “Decisions on Investment and Profitability: An Empirical Study Using Generalized Linear Mixed Models in Non-Financial Brazilian Companies”, In European Financial Management Association (EFMA) Annual Conference, UK, pp.1-30.
  • DeAngelo, Harry - DeAngelo, Linda (2006), “The Irrelevance of the Mm Dividend Irrelevance Theorem”, Journal of financial economics, 79(2), pp. 293-315.
  • Fazzari, Steven. M. - Hubbard, R. Glenn - Petersen, Bruce. C. (2000), “Investment-Cash Flow Sensitivities Are Useful: A Comment on Kaplan and Zingales”, The Quarterly Journal of Economics, 115(2), pp. 695-705.
  • Galeotti, Marzio - Schiantarelli, Fabio - Jaramillo, Fidel (1994), “Investment Decisions and The Role of Debt, Liquid Assets and Cash Flow: Evidence from Italian Panel Data”, Applied Financial Economics, 4(2), pp. 121-132.
  • Gordon, Lawrance. A. - Iyengar, Raghavan J. (1996) “Return on Investment and Corporate Capital Expenditures: Empirical Evidence. Journal of Accounting and Public Policy, 15(4), pp. 305-325.
  • Hatem, Ben. S (2016), “Factors Explaining Firm Investment: An International Comparison”, International Business Research, 9(1), pp. 112-120.
  • Honda, Yuzo (1985), “Testing the Error Components Model with Non-Normal Disturbances”, Review of Economic Studies, 52, pp. 681-690.
  • Islam, M. Saif Ul – Meo, M. Saeed – Usman, Muhammad (2022), “The Relationship Between Corporate Investment Decision and Firm Performance: Moderating Role of Cash Flows”, Journal of Public Affairs, 22(2), pp. 1-10.
  • Jahanzeb, Agha - Rehman, Saif - Bajuri, N. Hafiz - Karami, Meisam, - Ahmadimousaabad, Aiyoub (2013), “Trade-Off Theory, Pecking Order Theory and Market Timing Theory: A Comprehensive Review of Capital Structure Theories”, International Journal of Management and Commerce Innovations, 1(1), pp. 11-18.
  • Kaplan, Steven N. - Zingales, Luigi (1997), “Do investment-cash flow sensitivities provide useful measures of financing constraints?”, The Quarterly Journal of Economics, 112(1), pp. 169-215.
  • Modigliani, Franco - Miller, Merton H. (1958), “The Cost of Capital, Corporation Finance and The Theory of Investment”, The American Economic Review, 48(3), pp. 261-297.
  • Myers, Stewart C. - Majluf, Nicholas S. (1984), “Corporate Financing and Investment Decisions When Firms Have Information That Investors Do Not Have”, Journal of Financial Economics, 13(2), 187-221.
  • Nguyen, Phan. D. - Dong, Phan. T. A. (2013), “Determinants of Corporate Investment Decisions: The Case of Vietnam”, Journal of Economics and Development, 15(1), pp. 32 – 48.
  • Nugroho, Mulyanto (2021), “Corporate Governance and Firm Performance”, Accounting, 7(1), pp. 13-22.
  • Nurlela, Nurlela – Sulastri, Sulastri – Hamdan, Umar AJ – Hanafi, Agustina (2019), “The Influence of Investment Decisions and Financing Decisions on Firm Value with Profitability as Intervening Variables (Empirical Study on Companies Listed in Indonesian Sharia Stock Index)”, International Journal of Multicultural and Multireligious Understanding, 6(2), pp. 447-456.
  • Pesaran, M. Hashem - Ullah, Aman - Yamagata, Takashi (2008), “A Bias‐Adjusted LM Test of Error Cross‐Section Independence”, The Econometrics Journal, 11(1), pp. 105-127.
  • Pesaran, M. Hashem (2004). “General Diagnostic Tests for Cross Section Dependence in Panels”, https://doi.org/10.17863/CAM.5113
  • Prasetya, R. Alvian - Yulianto, Agung (2019), “Determinants of Investment Decisions with Growth Opportunities as Moderating Variable”, Accounting Analysis Journal, 8(1), pp. 17-23.
  • Putri, Nadya - Budyastuti, Triyani (2021), “The Effect of Investment Decisions, Dividend Policy and Profitability on Firm Value in the Indonesian Manufacturing Companies”, American Journal of Humanities and Social Sciences Research (AJHSSR), 5(4), pp. 47-53.
  • Suleman, Reza (2021), “Effect of Investment Decision, Capital Structure, Profitability, and Company Size on Company Values”, Jurnal Ekonomi, 26(1), pp. 134-152.
There are 25 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Articles
Authors

Tuğba Nur 0000-0002-0974-4896

Publication Date April 17, 2023
Submission Date January 29, 2023
Published in Issue Year 2023

Cite

APA Nur, T. (2023). The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities. The Journal of Accounting and Finance(98), 171-188. https://doi.org/10.25095/mufad.1244004
AMA Nur T. The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities. The Journal of Accounting and Finance. April 2023;(98):171-188. doi:10.25095/mufad.1244004
Chicago Nur, Tuğba. “The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities”. The Journal of Accounting and Finance, no. 98 (April 2023): 171-88. https://doi.org/10.25095/mufad.1244004.
EndNote Nur T (April 1, 2023) The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities. The Journal of Accounting and Finance 98 171–188.
IEEE T. Nur, “The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities”, The Journal of Accounting and Finance, no. 98, pp. 171–188, April 2023, doi: 10.25095/mufad.1244004.
ISNAD Nur, Tuğba. “The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities”. The Journal of Accounting and Finance 98 (April 2023), 171-188. https://doi.org/10.25095/mufad.1244004.
JAMA Nur T. The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities. The Journal of Accounting and Finance. 2023;:171–188.
MLA Nur, Tuğba. “The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities”. The Journal of Accounting and Finance, no. 98, 2023, pp. 171-88, doi:10.25095/mufad.1244004.
Vancouver Nur T. The Nexus Between Corporate Investment Decisions and Firm Profitability: Moderating Role of Fund Flows and Investment Opportunities. The Journal of Accounting and Finance. 2023(98):171-88.