Impact of macroeconomic uncertainty on firm profitability: A case of BIST non-metallic mineral products sector

As a result of globalization and financial liberalization that accelerated since the 1980s, the integration of real and financial markets has increased and the frequency or severities of financial crises have also increased relative to the past. As a result, ensuring and sustaining domestic and global macroeconomic stability has become difficult and macroeconomic uncertainties take part as an important variable in firms' decision-making processes. In this study; the effect of macroeconomic uncertainty on Return on Assets (ROA) and Return on Operating Profits (ROAF) has been analyzed by using panel regression analysis within the sample of Borsa Istanbul Non-Metallic Mineral Products sector. As a result of the study; the obtained findings have shown that exchange rate, interest rate and growth rate uncertainty have a negative impact on both ROA and ROAF. Additionally; it has been seen that leverage ratio affects profitability negatively and that current ratio affects profitability positively.