Testing the Impact of Working Capital on Profitability under High Financial Risk

Bahadır Uysal; İlkut Elif Kandil Göker

Makale detayları

Testing the Impact of Working Capital on Profitability under High Financial Risk

Yazarlar:

Bahadır Uysal | İlkut Elif Kandil Göker

Yayıncı:

Gumushane University

Ana Başlıklar:

Finansal Risk Yönetimi

Dergi:

Gümüşhane Üniversitesi Sosyal Bilimler Dergisi Vol.15 Issue 2, pp.469-482

Belge Tipi:

Makale

Yayın Tarihi:

5/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001318928

pISSN:

1309-7423

Anahtar kelimeler:

Özet:

 This study aims to determine the impact of working capital on profitability and how this impact is affected under the presence of high financial risk. In the study, the data of 23 manufacturing sub-sectors included in the Sector Balance Sheets of the Central Bank of the Republic of Turkey for the period 2009-2021 are used. According to the findings obtained as a result of the first model in which panel data analysis is applied, there is a positive significant relationship between return on equity and the ratio of net working capital to total assets. Then, a dummy variable is created in which the short-term borrowing ratios of the sub-sectors are accepted as 1 if they are above the sector average and 0 if they are below it. An interactive variable is created by multiplying this dummy variable by the ratio of working capital to total assets. This interactive variable is intended to represent working capital under the presence of financial risk. In the second model, which includes working capital under the presence of financial risk, it is found that there is a positive relationship between the interactive variable of financial risk and working capital and return on equity. However, one-unit increase in the ratio of net working capital to total assets has an impact of 0.552 units on return on equity, while the impact of one-unit increases in working capital under the presence of financial risk is 0.503. This suggests that the higher the financial risk, in other words, the higher the above-average level of borrowing, the lower the increase in return on equity.

 This study aims to determine the impact of working capital on profitability and how this impact is affected under the presence of high financial risk. In the study, the data of 23 manufacturing sub-sectors included in the Sector Balance Sheets of the Central Bank of the Republic of Turkey for the period 2009-2021 are used. According to the findings obtained as a result of the first model in which panel data analysis is applied, there is a positive significant relationship between return on equity and the ratio of net working capital to total assets. Then, a dummy variable is created in which the short-term borrowing ratios of the sub-sectors are accepted as 1 if they are above the sector average and 0 if they are below it. An interactive variable is created by multiplying this dummy variable by the ratio of working capital to total assets. This interactive variable is intended to represent working capital under the presence of financial risk. In the second model, which includes working capital under the presence of financial risk, it is found that there is a positive relationship between the interactive variable of financial risk and working capital and return on equity. However, one-unit increase in the ratio of net working capital to total assets has an impact of 0.552 units on return on equity, while the impact of one-unit increases in working capital under the presence of financial risk is 0.503. This suggests that the higher the financial risk, in other words, the higher the above-average level of borrowing, the lower the increase in return on equity.

 This study aims to determine the impact of working capital on profitability and how this impact is affected under the presence of high financial risk. In the study, the data of 23 manufacturing sub-sectors included in the Sector Balance Sheets of the Central Bank of the Republic of Turkey for the period 2009-2021 are used. According to the findings obtained as a result of the first model in which panel data analysis is applied, there is a positive significant relationship between return on equity and the ratio of net working capital to total assets. Then, a dummy variable is created in which the short-term borrowing ratios of the sub-sectors are accepted as 1 if they are above the sector average and 0 if they are below it. An interactive variable is created by multiplying this dummy variable by the ratio of working capital to total assets. This interactive variable is intended to represent working capital under the presence of financial risk. In the second model, which includes working capital under the presence of financial risk, it is found that there is a positive relationship between the interactive variable of financial risk and working capital and return on equity. However, one-unit increase in the ratio of net working capital to total assets has an impact of 0.552 units on return on equity, while the impact of one-unit increases in working capital under the presence of financial risk is 0.503. This suggests that the higher the financial risk, in other words, the higher the above-average level of borrowing, the lower the increase in return on equity.

 Bu çalışma, çalışma sermayesinin karlılık üzerindeki etkisini ve bu etkinin yüksek finansal risk varlığı altında nasıl şekillendiğini tespit etmek üzere ele alınmıştır. Çalışmada 2009-2021 dönemi içerisinde Türkiye Cumhuriyet Merkez Bankası TCMB Sektör Bilançolarında yer alan 23 imalat alt sektörü verileri kullanılmıştır. Panel veri analizinin uygulandığı birinci model sonucunda elde edilen bulgulara göre özsermaye karlılığı ile net çalışma sermayesinin toplam varlıklara oranı arasında pozitif anlamlı bir ilişki olduğu tespit edilmiştir. Daha sonra alt sektörlerin kısa vadeli borçlanma oranlarının sektör ortalamasının üzerinde olması halinde 1 altında olması halinde 0 kabul edildiği bir kukla değişken yaratılmıştır. Bu kukla değişkenin çalışma sermayesinin toplam varlıklara oranı ile çarpılması ile bir etkileşimli değişken yaratılmıştır. Bu etkileşimli değişkenin finansal risk varlığı altında çalışma sermayesini temsil etmesi amaçlanmıştır. Finansal risk varlığı altında çalışma sermayesinin dahil edildiği ikinci modelde ise, finansal risk ve çalışma sermayesi etkileşimli değişkeni ile özsermaye karlılığı arasında yine pozitif yönlü bir ilişki olduğu tespit edilmiştir. Ancak bununla birlikte net çalışma sermayesinin toplam varlıklara oranındaki bir birimlik artışın, özsermaye karlılığı üzerindeki 0.552 birim etki yaratırken, finansal risk varlığı altında çalışma sermayesindeki bir birimlik artışın etkisinin 0.503 düzeyinde olduğu tespit edilmiştir. Bu durum finansal risk arttıkça, başka bir ifade ile ortalamanın üzerinde bir borçlanma düzeyi söz konusu olduğunda ortaya çıkan finansal riskin, özsermaye karlılığında daha düşük bir artışa sebep olduğunu göstermektedir.

Makale detayları

Testing the Impact of Working Capital on Profitability under High Financial Risk

Yazarlar:

Bahadır Uysal | İlkut Elif Kandil Göker

Yayıncı:

Gumushane University

Ana Başlıklar:

Finansal Risk Yönetimi

Dergi:

Gümüşhane Üniversitesi Sosyal Bilimler Dergisi Vol.15 Issue 2, pp.469-482

Belge Tipi:

Makale

Yayın Tarihi:

5/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001318928

pISSN:

1309-7423

Working Capital

Profitability

Financial Risk

Interactive VariableÇalışma sermayesi

Karlılık

Finansal Risk

Etkileşimli Değişken

Sayı

Makale detayları

Yazarlar: Bahadır Uysal | İlkut Elif Kandil Göker

Yayıncı: Gumushane University

Ana Başlıklar: Finansal Risk Yönetimi

Dergi: Gümüşhane Üniversitesi Sosyal Bilimler Dergisi Vol.15 Issue 2, pp.469-482

Belge Tipi: Makale

Yayın Tarihi: 5/2024

Belge Dili: Türkçe

Document ID (Org No.): 2001318928

pISSN: 1309-7423

Sayı

Yazarlar:

Bahadır Uysal | İlkut Elif Kandil Göker

Yayıncı:

Gumushane University

Ana Başlıklar:

Finansal Risk Yönetimi

Dergi:

Gümüşhane Üniversitesi Sosyal Bilimler Dergisi Vol.15 Issue 2, pp.469-482

Belge Tipi:

Makale

Yayın Tarihi:

5/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001318928

pISSN:

1309-7423