The Effect of Debt Structure and Profitability on Financial Success: A Research on BIST Bank Index

Authors : Çağatay Mirgen

Pages : 91-100

View : 62 | Download : 95

Publication Date : 2024-06-30

Article Type : Research Paper

Abstract :Excessive borrowing can lead to liquidity problems for companies. Optimal borrowing can increase profitability. For investors, these indicators can be a source that reveals the financial performance of companies and can be taken into account when making investment decisions. In the study, the effect of debt structure and profitability on financial success was tested with panel data analysis for BIST Bank companies. To measure financial success, Piotroski used the F-Score. In the debt structure, short and long-term debts, gross profit and return on assets ratio are taken as basis for profitability. The current ratio is also included in the analysis. According to the findings, it was concluded that Return on Assets and Current Ratio positively affect financial success for BIST Bank companies. However, no statistically significant relationship could be detected between short and long-term debt, gross profit and financial success.
Keywords : Borçlanma Yapısı, Kârlılık, Finansal Başarı, Piotroski F Skor, BIST Banka