The determinants of financial performance in accommodation establishments traded in Borsa İstanbul: Panel data analysis

Tourism enterprises, one of the most important sub-components of service sector contributedirectly to economic growth and developmentby enhancing employment possibilities, foreign currency entry, country image, foreign trade deficit and innovation level. However especially in developing countries, TEs are not able to provide sufficient financing sources (funds)with a reasoble cost, and therefore benefit less from growth opportunities. In this regard, TEs facing problems, such as procurement of funds and management of them have to measure, control and regulate their financial performances in order to utilize limited sources efficiently and effectively. In this thesis, it has been aimed to determine which factors affect financial performances of TEs traded in Borsa Istanbul and panel data regression models have been established for this purpose. In the analysis, annualdata for the period of 2010-2016 of 8 tourism enterprises quoted in Borsa Istanbul have been used. According to the model predictions and results of the analysis, the first dependent variable, return on assets, is affected positively by equity multiplier and asset turnover ratio, and is affected by short-term liabilities/total assets and keverage ratio. It has been found that the other dependent variable, operating profit ratio, is affected positively by asset turnover ratio and net working capital turnover ratio, and is affected by leverage ratio and trade receivable turnover ratio. Asset turnover ratio and leverage ratio affect both financial performance indicators. The effect of asset turnover ratio is positive while the leverage ratio is negative on both indicators. Both models show that the internal variables that tourism enterprises traded in Borsa Istanbul can control are effective on financial performance indicators.