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Full Length Research Paper
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The firm-level determinants
underlying the profitability in brokerage institutions: Some
evidence from Turkey
Önder Kaymaz1* and Özgür Kaymaz2
İzmir
University of Economics, İzmir, Turkey.
CPA,
MSc., inspector at the Board of Inspection, Turkish Airlines
Inc.
*Corresponding author. E-mail:
onder.kaymaz@ieu.edu.tr.
Accepted 12 November, 2009 |
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Abstract |
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Sampling the period of 2005-2007 on a quarter basis, this
paper made a comprehensive empirical investigation on
identifying the firm-level determinants underlying the
profitability in brokerage institutions operating in Turkey. We
performed multiple regression and panel data analyses for a
large array of brokerage institutions and observations. Two sets
of dependent variables were built to control for profitability.
The first regressed variable was the operating profitability of
total assets and the second one was the pre-tax profitability of
total assets. We found that, the balance sheet-based factors
such as current trade receivables to total assets, financial
assets to total assets and short-term liabilities to total
assets significantly, robustly and commonly account for the
brokerage houses’ profitability. We also found that, the
firm-level factors do better explain the changes in the
profitability should the former ratio be proxied as a
profitability indicator. Paper concludes with some concrete
policy recommendations.
Key words:
Brokerage institutions (investment houses), profitability,
firm-level factors, ACMIIT (the association of capital market
ıntermediary Institutions of Turkey). |
