Applying Factor Analysis on the Financial Ratios of Turkey's Top 500 Industrial Enterprises

Erdogan, Aysa

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Applying Factor Analysis on the Financial Ratios of Turkey's Top 500 Industrial Enterprises

International Journal of Business and Management, Vol. 8, No. 9, 2013

6 Pages Posted: 13 Jan 2014

See all articles by Aysa Erdogan

Aysa Erdogan

Bogazici University, Department of Tourism Administration

Date Written: January 13, 2014

Abstract

Factor analysis is a method that is used to reduce several variables into fewer dimensions that are called factors.This study conducts factor analysis on the financial ratios of the top 500 industrial enterprises in Turkey for 2010. The purpose of the study is to group the financial ratios into categories and eliminate redundancy among them. Our results provide partial support for the textbook classification of financial ratios.

Keywords: financial ratio analysis, factor analysis, classification of financial ratios, Turkey

JEL Classification: C29, G30

Suggested Citation: Suggested Citation

Erdogan, Aysa, Applying Factor Analysis on the Financial Ratios of Turkey's Top 500 Industrial Enterprises (January 13, 2014). International Journal of Business and Management, Vol. 8, No. 9, 2013, Available at SSRN: https://ssrn.com/abstract=2378158