Capital structure decisions impact of active size and efficiency on firm profitability-Panel data analysis

The primary objective of corporations is to ensure their survival and achieve profitability. The factors influencing firm profitability continue to be the subject of ongoing research. This study investigates the relationship between capital structure decisions, firm size, efficiency, and firm profitability. The dataset comprises financial information from 75 companies listed on the BIST 100, spanning the period from 2017 to 2021. The dependent variable in this study is the net profit margin, while the independent variables include the long-term debt ratio, debt ratio, asset size, and efficiency ratios. Panel data analysis is employed as the research methodology, with the analysis conducted using the EViews 11 software. The findings indicate no statistically significant relationship between the long-term debt ratio and net profit margin. However, statistically significant relationships are observed between the remaining independent variables, namely asset size, debt ratio, efficiency, and net profit margin. The results suggest a positive association between size and efficiency and net profit margin, while a negative association is found between debt ratio and net profit margin.