A Nonlinear Relationship Between Corporate Size and Profitability

Öz

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.

Anahtar Kelimeler

• Firm Size
• Profitability
• Nonlinear Relationship
• ROA
• Publicly Listed Firms

Şirket Büyüklüğü ile Kârlılık Arasındaki Doğrusal Olmayan Bir İlişki

Öz

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.

Anahtar Kelimeler

• Firma Büyüklüğü
• Karlılık
• Doğrusal Olmayan İlişki
• ROA
• Halka Açık Firmalar

Kaynakça

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