Investigating Performances of Turkish Manufacturing Industry Firms by Logistic Regression Analysis Method

Abstract

Performance evaluation, especially financial performance evaluation is extremely important for firms to maintain their existance, to cope with sustainable competition conditions, and to enhance their operations. Financial performance evaluation is assumed to be unbiased and objective as it contains net and easily interpretable indicators. In this study, the relationship between financial performance indicators and the factors affecting the performances were analyzed by logistic regression analysis. Financial performance indicators, which have great importance for the enterprise, have been analyzed in terms of profitability, productivity, market performance and growth, liquidity ratios, financial structure ratios, operating rates, the ratio of exports in sales and capital intensity. Clustering Analysis (CA) was examined how many clusters could be collected by using performance indicators and performance levels were determined by using the number of clusters resulting from Logistic Regression Analysis (LRA) and CA. Consequently, Logistics Regression Analysis (LRA) is used to identify the factors that impact performance on the basis of low, medium, and high based on the number of clusters generated by CA.

In the analysis, the effects of financial structure ratio, liquidity ratio, activity rate, capital density, export rate and market share, which are expected to affect performance, were examined. As a result, it is seen that the power of the firms to pay their short-term debts, the amount of borrowings in proportion to their assets and equity, affect the performance levels of their size and export rates within the sector.

Keywords: Financial Performance, BİST, Clustering Analysis (CA), Logistics Regression Analysis (LRA)