Role of financial rates in explaining the stock prices; an example of the companies in BIST industry index

In this study, the role of financial rates in explaining of the stock prices were investigated throughout the thesis, our aim is to investigate the effect of financial rate and rate groups using the rates obtained from financial statements of industrial enterprises involved in BİST between the years 2004 and 2014. The obtained data is panel data, the panel data is found appropriate to be able to conduct the analysis. As there are too many rates, the Stepwise Regression Method was used for selecting the most important variables to explain stock prices. According R2 Method corrected later, the book value ratio, price earning ratio, liabilities/total assets, net working capital speed, leverage, net sales growth, inventory turn over and liabilities/ total current liabilities rates are found to be the best rates explaining the stock prices and are statistically provided meaningful.This study is considered to contribute to investors, investment analyst, financial institutions and researchers who want to work in this area.