Persistence of Firm-Level Profitability in Turkey

27 Pages Posted: 16 May 2012 Last revised: 21 Feb 2015

See all articles by B. Burcin Yurtoglu

B. Burcin Yurtoglu

WHU - Otto Beisheim School of Management

Date Written: November 2000


The paper studies the dynamics of company profits for 172 of the largest manufacturing firms in Turkey. A time-series analysis is used to estimate the long-run projected profits and firm-specific speed of adjustment parameters that measures the rate at which short-run rents are eroded. While we observe persistent profitability differences across firms, there is also a moderately quick erosion of rents except for the most highly profitable firms. Firm characteristics rather than industry effects account for the differences in permanent profits.

Keywords: Turkey, Persistence of Profits, Competition

JEL Classification: G34, L2, D4, O1

Suggested Citation

Yurtoglu, B. Burcin, Persistence of Firm-Level Profitability in Turkey (November 2000). Applied Economics, Vol. 36, 2004. Available at SSRN:

B. Burcin Yurtoglu (Contact Author)

WHU - Otto Beisheim School of Management ( email )

Chair of Corporate Finance
Burgplatz 2
Vallendar, 56179
+49 261 6509-721 (Phone)
+49 261 6509-729 (Fax)


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