TESTING FOR PROFIT PERSISTENCE OF LISTED MANUFACTURING COMPANIES IN ISTANBUL STOCK EXCHANGE

In this paper, using the return on assets (ROA) and return on equity (ROE) ratios of the manufacturing companies listed on ISE (Istanbul Stock Exchange), it has been analysed whether the profits of those companies are persistent or not, with the usage of Hadri-Kurozumi (2012) panel unit root test. In the paper focusing on the period between 2007-Q1 and 2013-Q4, the fact that the panels have a heterogeneous structure is determined by Pesaran and Yamagata (2008) Slope Homogeneity Test. The existence of cross-sectional dependency is tested with CDLMadj test developed by Pesaran et al. (2008). As a result of the paper, it is determined that the profit is persistent in sectors that operate in manufacturing areas such as paper, packaging, printing, and rock, soil, cement. On the other hand, it has been found that the profit is not persistent for the chemistry, petroleum, plastic, metal machines, main metal and textile sectors.


Editor(s):
Simonovic, Dragoljub
Simonovic, Zoran
Issue Date:
Jun 25 2015
Publication Type:
Journal Article
DOI and Other Identifiers:
Ekonomika Vol 61 Issue 2 pp 1-10 2015 (Other)
Record Identifier:
http://ageconsearch.umn.edu/record/206526
PURL Identifier:
http://purl.umn.edu/206526
Published in:
Ekonomika, Journal for Economic Theory and Practice and Social Issues
Volume 61
Issue 2
Page range:
1-10
Total Pages:
10
JEL Codes:
L25; C23




 Record created 2017-04-01, last modified 2018-01-23

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)