Eurasian Journal of Business and Economics

1-21

Authors: Shilpi TYAGI & D. K. NAURIYAL

This paper analyses the determinants of profitability of the Indian drug and pharmaceutical industry, which is known for historically weak innovative R&D initiatives. The change in the economic environment brought out by the TRIPS compliance, this industry was found to have fast adjusted to new working environment by substantially modifying its strategies. The study uses inflation adjusted time-series data for a period 1990-2014 and applies OLS regression model with Newey-West standard errors. It has found that export intensity, A&M intensity, and post-product patent regime have exercised positive influence on industries’ profitability. The negative and statistically significant influence of Leverage ratio and operating expenditure to total assets ratio points to the need for firms to better their efficient management of funds, and contain costs. The study suggests that firms are required to pay far more attention to optimize their operating expenditures, advertisement and marketing expenditures and improve their export orientation, as part of the long term strategy.

37-50

Authors: Mehmet Akif DESTEK

In this study, the long term relationship between military spending and economic growth in newly industrialized countries is analyzed with panel data methods for the years of 1988-2013. The study, where panel unit root, panel co-integration, panel co-integration estimator and panel causality tests that allow cross-sectional dependence are used, shows that the feedback hypothesis is valid in newly industrialized countries. And when these countries are analyzed separately, it is seen that the growth hypothesis is valid for India, Malaysia, Mexico and South Africa; the neutrality hypothesis is valid for China, Indonesia, Philippines, Thailand and Turkey and the growth detriment hypothesis is valid for Brazil.

67-86

Authors: Buhari DOGAN , Mesut ALBENI, Vedat BAYDAR, Omer AKCAYIR

This study aims to determine the factors affecting the performance of companies operating in the Turkish manufacturing industry. The sample of the study consists of 25394 firms which have been active in Turkish manufacturing industry between the years 2005 and 2011. Heckman sample selection model is used for the assessment of the growth and survival probabilities of the firms. According to the research model, it was found that the factors affecting firm performance are firm and industry based factors. It is concluded that Innovation, R&D, export and branch variables have positive significant effects on the performance of the manufacturing industry firms.

109-124

Authors: Mahmut ERDOGAN , E. Ebru AKSOY

The crises that are frequently observed in the banking industries of emerging markets which affect banks’ profits necessitate regulations and supervision of these markets. This paper investigates the determinants of Turkish banks’ profits and the effects of the regulations implemented in this industry on profits. In this research, 468 firm year observations for 36 Turkish banks for the period 1995-2007 were used and analyzed with Prais-Winsten regression method. The empirical findings of the study show positive and statistically significant relations between capital, size, offbalance sheet transactions, liquidity and loans and performance and negative and statistically significant relations between quality of loans, concentration and performance.

153-164

Authors: Ahmet AKIN, Nizamettin BAYYURT

Emerging economies have been attracting considerable amount of foreign direct investments to the banking industry through cross-border acquisitions and new establishments. Whether mode of entry influences the performance of foreign banks is an important question. This study analyzes the impact of entry mode on the foreign bank performance in Turkey for the period before and after the global financial crisis. Profitability and relative efficiencies are used to measure the performance of banks. Then, Tobit and multivariate regressions are performed to detect the performance differentials between the bank groups. Analysis reveals that greenfield banks have superior performance over the takeover banks in terms of only profitability. Mode of entry does not have a statistically significant effect on efficiency. Besides, there are no efficiency or profitability gains for takeover banks after acquisition.