The aim of this study is to reveal the major determinants which have impact on financial performance of paper and paper products firms listed in Borsa Istanbul. We examined the impact of the firm specific, industry specific and macroeconomic factors on Return on Assets and Return on Equity in paper and paper products firms listed in Borsa Istanbul during the period from 2011/01 to 2014/09 by using panel regression. The results show that except for Sales to Asset Ratio, firm specific and industry specific factors have statistically significant and material impact on both financial performance indicators. As macroeconomic factor, the impact of foreign trade deficit on the performance indicators is relatively weak. Through macroeconomic variables, commercial loan interest rate has no statistical significance for both ROA and ROE. The empirical result suggests that the impact of the variables on ROE is stronger compared to ROA.