An analysis of micro and macro factors affecting stock returns: An application on the BIST manufacturing sector

This study examines the micro and macro factors affecting the stock returns of companies operating in the manufacturing sector on Borsa Istanbul (BIST) in Turkey. In analyzing micro factors, variables such as internal cash flow, profitability, and liquidity were investigated for their impact on stock returns. The findings of the study reveal that cash flow from operations and debt ratios negatively affect stock returns, while the current ratio and gross profit margin have a positive impact. For macro factors, variables such as exchange rates, interest rates, inflation expectations, and industrial capacity utilization rates were utilized. The findings indicate that the consumer price index and interest rates have a negative impact on stock returns, whereas inflation expectations and exchange rates exhibit a positive effect.