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INVESTIGATION OF FINANCIAL RATIOS AFFECTING PROFITABILITY IN NASDAQ FINANCIAL TECHNOLOGY INDEX COMPANIES

Year 2022, Volume: 24 Issue: ÖZEL SAYI, 131 - 144, 28.12.2022
https://doi.org/10.16953/deusosbil.1191713

Abstract

Companies that effectively use and implement technological innovations in the financial sector are referred to as financial technology (FinTech) companies. Today, FinTech companies generally are engaged in activities such as payment, API providers, crypto money, interpersonal borrowing, accounting, auditing, personal finance, national/international money transfers, crowdfunding, and loans. The issue of whether FinTech companies will compete with traditional financial companies or act together is still a matter of debate. No matter how this discussion turns out, FinTech companies are also researched with analyses like the companies in the traditionally expressed financial sector. In the literature, the most frequently used method in performance measurement is the ratio analysis method. The aim of this study is to investigate the relationship between the financial ratios and profitability of FinTech companies operating in the KBW NASDAQ Financial Technology Index (KFTX). The NASDAQ Financial Technology Index is a FinTech index jointly announced by KBW Investment Bank, Stifel Financial Corporation and Nasdaq in 2016, and includes influential FinTech companies predominantly engaged in big data, currency-based transactions and payment. According to KBW, these companies make up 18% of the US financial sector and have a market capitalization of $785 billion. The financial ratios obtained from the financial statements of the companies in the KBW NASDAQ Financial Technology Index between the years 2016-2021 are the variables used in the study. In the analysis part of the study, panel regression models were used to measure the relationship between the variables. The dependent variables in the models created in the study are return on assets (ROA) and return on equity (ROE) and the independent variables are leverage ratio, current ratio, gross profit margin, asset turnover, receivables turnover and debt turnover.

References

  • Açıkgöz, T., & Kılıç, G. (2021). Investigation of financial performance and market value of technology firms with dupont-regression analysis. Journal of Accounting & Finance, (90), 209-226.
  • Anghelescu, A. A., & Tai, B. Y. (2005). Bankruptcy prediction in the high-tech industry. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=649501, (Erişim Tarihi: 05.06.2022).
  • Barroso, M., & Laborda, J. (2022). Digital transformation and the emergence of the Fintech sector: Systematic literature review. Digital Business, 2, 100028, 1-18.
  • Carbó-Valverde, S., Cuadros-Solas, P. J., & Rodríguez-Fernández, F. (2022). Entrepreneurial, institutional and financial strategies for FinTech profitability. Financial Innovation, 8(1), 1-36.
  • Chhaidar, A., Abdelhedi, M., & Abdelkafi, I. (2022). The effect of financial technology investment level on european banks’ profitability. Journal of the Knowledge Economy, 1-23.
  • Diaz, J. F., & Pandey, R. (2019). Factors affecting return on assets of US technology and financial corporations. Jurnal Manajemen dan Kewirausahaan, 21 (2), 134-144.
  • Feyen, E., Frost, J., Gambacorta, L., Natarajan, H., & Saal, M. (2021). Fintech and the digital transformation of financial services: implications for market structure and public policy. https://ideas.repec.org/b/bis/bisbps/117.html, (Erişim Tarihi: 01.06.2022).
  • Keefe, Bruyette & Woods. (2016). Introducing the KBW Nasdaq Financial Technology Index. https://www.kbw.com/uploads/pdf/thought-leadership/KBW-KFTX_7.18.16.pdf, (Erişim Tarihi: 05.06.2022).
  • Milian, E. Z., Spinola, M. D. M., & de Carvalho, M. M. (2019). Fintechs: A literature review and research agenda. Electronic Commerce Research and Applications, 34, 100833, 1-21.
  • Petcharabul, P., & Romprasert, S. (2014). Technology industry on financial ratios and stock returns. Journal of Business and Economics, 5(5), 739-746.
  • Putri, W. H., Nurwiyanta, N., Sungkono, S., & Wahyuningsih, T. (2019). The emerging fintech and financial slack on corporate financial performance. Investment Management & Financial Innovations, 16(2), 348-354.
  • Statista. (2022a). Total value of investments into fintech companies worldwide from 2010 to 2021. https://www.statista.com/statistics/719385/investments-into-fintech-companies-globally/, (Erişim Tarihi: 01.06.2022).
  • Statista. (2022b). Number of fintech startups worldwide from 2018 to November 2021, by region. https://www.statista.com/statistics/893954/number-fintech-startups-by-region/, (Erişim Tarihi: 01.06.2022).
  • Sukhinina, A., & Koroleva, E. (2020). Determinants of FinTech performance: case of Russia. The International Scientific Conference-Digital Transformation on Manufacturing, Infrastructure and Service (November 18-19, 2020), Bildirileri içinde (ss. 1-7). Saint - Petersburg, Russia.
  • T.C. Cumhurbaşkanlığı Finans Ofisi. (2021). Türkiye Fintek ekosistemi durum raporu. https://www.cbfo.gov.tr/sites/default/files/2021-12/turkiye-fintek-ekosistemi-durum-raporu-2021.pdf, (Erişim Tarihi: 01.06.2022).

NASDAQ FİNANSAL TEKNOLOJİ ENDEKSİ ŞİRKETLERİNDE KÂRLILIĞI ETKİLEYEN FİNANSAL ORANLARIN ARAŞTIRILMASI

Year 2022, Volume: 24 Issue: ÖZEL SAYI, 131 - 144, 28.12.2022
https://doi.org/10.16953/deusosbil.1191713

Abstract

Finans sektöründe teknolojik yenilikleri etkin bir şekilde kullanan ve uygulayan şirketler finansal teknoloji (FinTek) şirketi olarak ifade edilmektedir. FinTek şirketleri, genel olarak günümüzde ödeme, API sağlayıcıları, kripto para, bireyler arası borçlanma, muhasebe, denetim, kişisel finans, ulusal/uluslararası para transferleri, kitlesel fonlama, kredi gibi faaliyetlerde bulunmaktadır. FinTek şirketlerinin geleneksel finans şirketlerine rakip olup olmayacakları veya beraber hareket edip etmeyecekleri konusu halen bir tartışma konusudur. Bu tartışma nasıl sonuçlanırsa sonuçlansın neticede FinTek şirketleri de geleneksel olarak ifade edilen mevcut finans sektöründeki şirketler gibi analizlerle araştırılmaktadır. Literatürde performans ölçümünde en sık kullanılan yöntem oran analizi yöntemidir. Bu çalışmanın amacı, KBW NASDAQ Finansal Teknoloji Endeksinde (KFTX) faaliyet gösteren FinTek şirketlerinin finansal oranları ile kârlılık arasındaki ilişkinin araştırılmasıdır. NASDAQ Finansal Teknoloji Endeksi, KBW Yatırım Bankası, Stifel finansal şirketi ve Nasdaq tarafından 2016 yılından itibaren ortaklaşa açıklanan ve ağırlıklı olarak büyük veri, dövize dayalı işlemler ve ödeme ile uğraşan etkili FinTek şirketlerini içeren FinTek endeksidir. KBW’ye göre, bu şirketler ABD finans sektörünün %18’ini oluşturmakta ve 785 milyar dolarlık piyasa değerine sahiptir. KBW NASDAQ Finansal Teknoloji Endeksindeki şirketlerinin 2016-2021 yılları arasındaki finansal tablolarından elde edilen finansal oranlar çalışmada kullanılan değişkenlerdir. Çalışmanın analiz kısmında değişkenler arasındaki ilişkiyi ölçmek için panel regresyon modelleri kullanılmıştır. Çalışmada oluşturulan modellerdeki bağımlı değişkenler aktif kârlılığı (ROA) ve öz sermaye kârlılığıdır (ROE) ve bağımsız değişkenler ise kaldıraç oranı, cari oran, brüt kâr marjı, aktif devir hızı, alacak devir hızı ve borç devir hızıdır.

References

  • Açıkgöz, T., & Kılıç, G. (2021). Investigation of financial performance and market value of technology firms with dupont-regression analysis. Journal of Accounting & Finance, (90), 209-226.
  • Anghelescu, A. A., & Tai, B. Y. (2005). Bankruptcy prediction in the high-tech industry. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=649501, (Erişim Tarihi: 05.06.2022).
  • Barroso, M., & Laborda, J. (2022). Digital transformation and the emergence of the Fintech sector: Systematic literature review. Digital Business, 2, 100028, 1-18.
  • Carbó-Valverde, S., Cuadros-Solas, P. J., & Rodríguez-Fernández, F. (2022). Entrepreneurial, institutional and financial strategies for FinTech profitability. Financial Innovation, 8(1), 1-36.
  • Chhaidar, A., Abdelhedi, M., & Abdelkafi, I. (2022). The effect of financial technology investment level on european banks’ profitability. Journal of the Knowledge Economy, 1-23.
  • Diaz, J. F., & Pandey, R. (2019). Factors affecting return on assets of US technology and financial corporations. Jurnal Manajemen dan Kewirausahaan, 21 (2), 134-144.
  • Feyen, E., Frost, J., Gambacorta, L., Natarajan, H., & Saal, M. (2021). Fintech and the digital transformation of financial services: implications for market structure and public policy. https://ideas.repec.org/b/bis/bisbps/117.html, (Erişim Tarihi: 01.06.2022).
  • Keefe, Bruyette & Woods. (2016). Introducing the KBW Nasdaq Financial Technology Index. https://www.kbw.com/uploads/pdf/thought-leadership/KBW-KFTX_7.18.16.pdf, (Erişim Tarihi: 05.06.2022).
  • Milian, E. Z., Spinola, M. D. M., & de Carvalho, M. M. (2019). Fintechs: A literature review and research agenda. Electronic Commerce Research and Applications, 34, 100833, 1-21.
  • Petcharabul, P., & Romprasert, S. (2014). Technology industry on financial ratios and stock returns. Journal of Business and Economics, 5(5), 739-746.
  • Putri, W. H., Nurwiyanta, N., Sungkono, S., & Wahyuningsih, T. (2019). The emerging fintech and financial slack on corporate financial performance. Investment Management & Financial Innovations, 16(2), 348-354.
  • Statista. (2022a). Total value of investments into fintech companies worldwide from 2010 to 2021. https://www.statista.com/statistics/719385/investments-into-fintech-companies-globally/, (Erişim Tarihi: 01.06.2022).
  • Statista. (2022b). Number of fintech startups worldwide from 2018 to November 2021, by region. https://www.statista.com/statistics/893954/number-fintech-startups-by-region/, (Erişim Tarihi: 01.06.2022).
  • Sukhinina, A., & Koroleva, E. (2020). Determinants of FinTech performance: case of Russia. The International Scientific Conference-Digital Transformation on Manufacturing, Infrastructure and Service (November 18-19, 2020), Bildirileri içinde (ss. 1-7). Saint - Petersburg, Russia.
  • T.C. Cumhurbaşkanlığı Finans Ofisi. (2021). Türkiye Fintek ekosistemi durum raporu. https://www.cbfo.gov.tr/sites/default/files/2021-12/turkiye-fintek-ekosistemi-durum-raporu-2021.pdf, (Erişim Tarihi: 01.06.2022).
There are 15 citations in total.

Details

Primary Language Turkish
Journal Section Articles
Authors

Emre Kaplanoğlu 0000-0001-7287-1938

Mutlu Ege 0000-0002-8138-7432

Publication Date December 28, 2022
Submission Date October 19, 2022
Published in Issue Year 2022 Volume: 24 Issue: ÖZEL SAYI

Cite

APA Kaplanoğlu, E., & Ege, M. (2022). NASDAQ FİNANSAL TEKNOLOJİ ENDEKSİ ŞİRKETLERİNDE KÂRLILIĞI ETKİLEYEN FİNANSAL ORANLARIN ARAŞTIRILMASI. Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 24(ÖZEL SAYI), 131-144. https://doi.org/10.16953/deusosbil.1191713