Analysis of factors affecting the growth performance of businesses in BIST manufacturing industry with panel binary qualitative choice models

Growth performance in businesses is a subject need to be examined due to its contributions to both the economic growth of countries and employment. While it is stated that the increase in growth performance is an important incentive for the national economy, it is also a subject of special interest for academics and policy makers due to its contribution to increasing market dynamism. In this study; using the data of the 2005-2020 period, the factors affecting the growth performance of the businesses in the BIST manufacturing industry are estimated with panel binary qualitative choice models. The main purpose of the study; it provides the determination of financial ratios and macroeconomic variables that have an effect on the probability of growth performance of businesses being greater than 1. According to the results obtained from the analysis; the fixed effect panel logit model was found to be suitable with the Hausman test. For the panel probit model, random effect panel probit model estimation was performed. When choosing between the fixed effect panel logit model and the random effect panel probit model, the model with the smallest value from both AIC and BIC information criteria is preferred. In this direction, it was concluded that the fixed effect panel logit model is the most suitable model. According to the estimation results of the fixed effect panel logit model; profitability, asset turnover ratio and gross domestic product variables are statistically significant in explaining the dependent variable and affect positively. Current rate and interest rate variables, on the other hand, have a statistically significant and negative effect on explaining the dependent variable.