The Relationship between Corporate Profitability and Macroeconomic Indicators: Evidence from 500 Largest Industrial Organizations in Turkey

Tuncay, Ferhan Emir; Cengiz, Hülya

doi:10.5539/ibr.v10n9p87

Cited by 4 publications

(2 citation statements)

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“…Profitability must receive serious attention, because if profitability decreases and even losses are possible, this will have a negative impact on economic growth (Anugrah et al, 2020). Research conducted by (Adekola, 2016;Klein & Weill, 2019;Lee, 2014;Tuncay & Cengiz, 2017) explains that profitability in companies negatively affects economic growth.…”

Section: Previous Study and Hypothesismentioning

confidence: 99%

The Impact of Company Financial Performance on Economic Growth

Putra,

Musthofa

2023

JEBA

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Introduction: The relationship between companies and economic growth needs to be analyzed. What if the company's performance is not effective then economic growth will not be in good condition or the company's financial performance does not affect economic growth. Methods: This research is a quantitative study using the balanced scorecard method with variables namely financial ratio indicators ROA and DER, and economic growth as measured by Gross Domestic Product (GDP). Data were collected from the financial reports of 11 companies for 10 years, and were processed using panel data regression analysis with the Random Effect Model (REM) approach with the help of the Econometric Views 10 Application (Eviews 10). Results: The results of the study show that ROA and DER have no effect on Indonesia's economic growth. Conclusion and suggestion: This study can be used as an additional reference in financial management activities, and then for institutions that have supervisory authority to ensure that the profits and debts of a company must be strictly controlled so that in the future financial performance can increase economic growth.

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Section: Previous Study and Hypothesismentioning

confidence: 99%

The Impact of Company Financial Performance on Economic Growth

Putra,

Musthofa

2023

JEBA

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“…Macroeconomic factors (economic growth, interest, and exchange rates) were studied by Dhasmana [28]. Tuncay and Cengiz [29] focused on the top 500 largest industrial companies in Turkey, stating that exchange rates and interest payments have the most negative effects on their profitability, while inflation and GDP growth had positive effects. On the other hand, they emphasized the fact that enterprises that mainly export are not so negatively influenced, as they may diversify their risks internationally.…”

Section: Literature Review and Theoretical Considerationsmentioning

confidence: 99%

A Study from Slovakia on the Transfer of Slovak Companies to Tax Havens and Their Impact on the Sustainability of the Status of a Business Entity

et al. 2019

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The main aim of this paper is to provide empirical evidence about profit-shifting to selected tax havens by Slovak companies. This contribution focused on the very rare evidence of use of tax havens by Slovak companies not only in the field of corporate income tax, but also in selected areas of profitability. Two sources of data were used. Lists of Slovak companies with tax haven links were provided by the company, Bisnode, and financial statements of investigated companies were gained from the Finstat database. Based on the available data, the investigated period was between 2008 and 2016. We statistically tested selected indicators (ETR, taxes per assets, ROE, ROA, and ROS) of Slovak companies with direct ownership links to tax havens compared to their counterparts. Our findings suggest that Slovak companies with an ownership link to tax havens pay significantly lower taxes compared to companies without ownership links to tax havens during the period monitored. The aggressive tax planning was not only confirmed by the significantly lower reported values of ETR and taxes per assets, but also by the lower values of ROA. On the one side, Slovak companies with ownership links to midshore tax havens had the highest values of ROE, ROA, and ROS, but on the other side, these Slovak companies reported the highest ETR among the appointed categories (onshore, midshore, and offshore). The lowest taxes paid per unit of total assets were found in Slovak companies with ownership links to onshore tax havens. The analysis was supplemented by the changes of the selected indicators before and after obtaining an ownership link to a tax haven.

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