iarjbmIARJBMIARJBM2708-5147https://doi.org/10.47310/iarjbm.2021.v02i01.025Scale-Specific Determinants of Profitability: Evidence from TurkeyTurkerAcikgozThe aim of this study is to investigate scale-specific determinants of profitability in Turkey. Data used in this study obtained from Real Sector Statistics published by Central Bank of Turkey. In this study, multiple linear regression models used to analyze the determinants of profitability. Profitability is represented by Return on Assets (ROA). Seven independent variables which were expected to explain profitability were selected. These independent variables are; Liquidity, Leverage, Tangibility, Cost Ratio, Operating Profit Margin, Interest Coverage Ratio and Lagged Profitability. The analysis established that liquidity is negatively affect profitability in all firm scales. Leverage ratio on the other hand, only affects micro firms positively. For other business scales, it is found that there is an inverse relationship between debt usage and profitability. Increase in tangibility also increases profitability of micro and small businesses but negatively influence on profitability for medium and large-scale enterprises. Analysis found that cost ratio, 1 unit increase operating margin and interest coverage ratio increases profitability for small, medium and large enterprises but operating margin is not significant for medium size enterprises. Lastly, analysis results indicate that lagged profitability is the most influential variable on profitability of micro and small size enterprises. Even though there is a positive and significant relationship between lagged profitability and current year’s profitability for medium size firms, its coefficient is not as strong as other variables. For large scale businesses, there is no significant relationship between lagged profitability and current year’s profitability.