The Determination of Financing Sources Affecting the Capital Budgets of Airline Companies
Korkmaz, Turhan | Turaboğlu, Tuncay Turan
This study aims to determine the impact of airline companies’ internal and external financing decisions on fixed asset investments. For this purpose, 25 airline companies worldwide were divided into two groups, with a market value greater than 10 billion dollars (BigCap) and below (SmallCap), and analyzed using the panel data method. External financing sources have a negative effect on fixed asset investments for BigCap airline companies, while external financing sources have a positive effect on SmallCap airline companies. Equity financing, return on assets, and net profit margin have statistically significant positive effects on fixed asset investments in SmallCap companies, while these effects are not statistically significant for BigCap companies.
Firm-Specific Financial Determinants of a Cash Holding Strategy in the Renewable Energy Sector
Korkmaz, Turhan
This study aims to examine the firm-specific financial determinants of cash holding strategies in renewable energy companies for the period 2011-2022 using econometric analysis methods. By employing a panel regression model, the study investigates the impact of operating profit margin, leverage, growth, earnings, dividend payout, and the COVID-19 pandemic on cash-on-hand. Empirical findings indicate that operating profit margin, debt financing, growth policies, and pre-tax earnings are significant determinants of cash holding strategies in renewable energy companies. The analysis reveals that the effect of dividend policy on cash holdings is insignificant. The findings offer substantial insights into agency cost theory and financial hierarchy theory in cash management and provide ...
Machine Learning for Out-of-Sample Prediction of Industry Portfolio Returns Within Multi-Factor Asset Pricing Models
Duran, Esra Sarıoğlu | Korkmaz, Turhan
Accurately predicting asset returns remains a central challenge in finance, with significant implications for portfolio optimization and risk management. In response to the challenge, this study evaluates the predictive performance of machine learning algorithms in estimating excess returns of U.S. industry portfolios, within the out-of-sample prediction framework of the Fama–French three-, four-, five- and six-factor asset pricing models. In the analysis, Support Vector Regression, Multilayer Perceptron, Linear Regression, and k-Nearest Neighbor were employed using monthly return data from 1992 to 2022, covering 5-, 10-, 12-, 17-, 30-, 38-, 48-, and 49-portfolio configurations composed of NYSE, AMEX, and NASDAQ-listed firms. The findings reveal that support vector regression achie...
Firm-Specific Financial Determinants of a Cash Holding Strategy in the Renewable Energy Sector
Korkmaz, Turhan
This study aims to examine the firm-specific financial determinants of cash holding strategies in renewable energy companies for the period 2011-2022 using econometric analysis methods. By employing a panel regression model, the study investigates the impact of operating profit margin, leverage, growth, earnings, dividend payout, and the COVID-19 pandemic on cash-on-hand. Empirical findings indicate that operating profit margin, debt financing, growth policies, and pre-tax earnings are significant determinants of cash holding strategies in renewable energy companies. The analysis reveals that the effect of dividend policy on cash holdings is insignificant. The findings offer substantial insights into agency cost theory and financial hierarchy theory in cash management and provide ...