A Panel Dupont Regression Approach to Evaluate Financial Performance and Market Value of Transportation Firms in Türkiye

Abstract

In this study, we examine the financial performance and market value of transportation firms in Türkiye, by utilizing a combination of panel data models and Dupont analysis. We use data from publicly traded transportation firms, starting from 2017 Q3 to 2022 Q2, and exhibit which factors influence financial performance and market value in the industry. Financial performance model results show that profitability and productivity positively and significantly impact transportation firms' performance whereas debt usage negatively impacts performance. Our findings on market value analysis show that profitability has no impact on the market value of transportation firms whereas debt usage and productivity have a positive effect on market values in the sector. The findings offer many practical implications that can be used for managers, financial investors, and stakeholders in the transportation industry.

Evaluating the financial performance of listed REIT firms in South Africa: A 7-step DuPont model technique

“…They noted that asset efficiency and equity multiplier have a positive impact on the market value of technology enterprises and that profitability and asset efficiency, respectively, affect financial performance. The researchers Açikgöz and Kiliç (2021) concluded that factors other than financial performance indicators like profitability, asset utilization efficiency, and capital structure are responsible for the market value of technological firms.…”

“…According to original research by Pakšiová and Oriskóová (2020), the components of asset turnover and profit margin have the most impact on return on equity, whereas the equity multiplier has the least. Açikgöz and Kiliç (2021) argue that the DuPont model is insufficient for market valuation of companies as there are different determinants of market value for technology firms than financial performance components such as profitability, asset utilization efficiency, and capital structure. In sum, few studies have applied the DuPont model in the South African context, and they only used a 5-factor model like the study by Doorasamy (2016).…”