Investigation of Financial Performance of Companies Operating in BIST Wood, Paper & Printing Components Index (XKAGT)

Abstract

Purpose - The aim of this study is to examine the financial performances of 14 companies operating in the Borsa Istanbul Wood, Paper & Printing Components Index.

Design/methodology/approach –The fact that the outputs of the enterprises operating in this sector have a strategic share, the active use of paper in the labor market and its need in every field, the fact that the printing press has a great importance in education, news and other administrative works indicates the importance of the sector. For this purpose, the financial performances of the firm operating in the BIST Wood, Paper & Printing Index were investigated using financial ratios. The dependent variable of the research is the return on assets and equity of the firms. Receivable Turnover, Inventory Turnover, Average Collection Time of Receivables, Time to Cash in Stock, Equity Turnover, Asset Turnover, Current Asset Turnover, Tangible Fixed Assets Turnover, and Commercial Debt Turnover were used as dependent variables in this study. Data for the period 2010 Q1 – 2021Q1 analyzed quarterly. Pedroni Cointegration test and FMOLS coefficient estimator were used as methods in the study.

Findings –As a result of the study, it was concluded that the activity rates of the companies operating in the index affect the financial performance of the companies.

Originality/value –It is expected that the study will contribute to the examined sample sector. It is expected that the transition to online working and education life will affect the sector, especially during the pandemic period.In addition, it is expected that the study will contribute to the literature in terms of including the pandemic period. It will contribute to the improvement of the financial performance of companies operating in the BIST Wood, Paper and Printing Components Index. It also reveals the importance of activity ratios for these companies.