PERSISTENCE OF PROFITABILITY: EVIDENCE FROM ISO 500 FIRMS SELECTED BASED ON BASIC ACCOUNTING PROFITABILITY INDICATORS

The aim of this paper is to investigate Turkey’s largest 500 industrial enterprises and whether capital and customized capital persists to profitability of firms with public capital, private in active 1993-2016. For this purpose, the panel unit root test is applied for all three sample groups, and then the long run competition intensity and the profitability coefficient estimate are analyzed using the panel VAR method. The results indicate that long run profitability is not permanent for all firms under analysis. In addition, the highest long run asset return ratio coefficient belongs to private firms, while the highest return pn equity and profit margins belong to firms with public capital