Asset turnover, capital structure, and financial performance: A Study on Real Estate Companies in Turkey (2020–2024)

This study explores the drivers of financial performance among Turkish Real Estate Investment Trusts (GYOs) during a period of economic volatility (2020–2024). Focusing on the roles of asset turnover, capital structure and liquidity, we analyzed a balanced panel of 23 firms using a quantitative approach, fixed-effects panel regression models, supported by comprehensive diagnostic tests and robustness checks. Our findings reveal that asset turnover significantly enhances return on assets, underscoring the importance of efficient asset utilization in the Turkish real estate sector. Liquidity exhibits a negative effect on performance in profitable firms, though this result is sensitive to outliers, suggesting cautious interpretation. Capital structure, measured by leverage, shows no consistent impact. Robustness checks, including outlier adjustments and controls for economic shocks, confirm the primary role of asset turnover. The study contributes to the literature by providing novel evidence from an emerging market, highlighting the interplay of operational efficiency and liquidity under economic turbulence. These insights inform investors and policymakers navigating Türkiye’s real estate dynamics, emphasizing strategies to optimize asset use while managing liquidity. They also suggest avenues for future research into firm-specific and macroeconomic factors.