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The effect of financial performance measures on firm value: An analysis on İstanbul Stock Exchange

2020
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Advisor: Doç. Dr. Murat Ertuğrul

Abstract (EN)

The aim of this study is to reveal the long-term effect of financial performance measures on firm value in Turkey. In the study, this effect has been examined under two different groups as capital-intensive and labor-intensive firms. For this, first of all, two different capital intensity ratios were reduced to single criterion and the firms traded on Istanbul Stock Exchange were separated on the basis of this criterion. These firms were then examined during the period between 2006 Q4 and 2019 Q2. In the study, stock returns and market value added were selected as dependent variables, and economic profit, net income, return on equity, market to book value and Tobin's Q were selected as explanatory variables. As a result of second generation panel cointegration analysis, a long-term relationship has been determined in the models established. According to the model estimation results, it was found that, return on equity, market to book value and Tobin's Q ratio have a significant and positive long-term effect on stock returns for both groups of firms, while, for capital-intensive firms, economic profit and net income, for labor-intensive firms, only economic profit have significant and positive long-term effect on market value added.

Author

Dr. Ahmet Melik Sahabi

How to Cite

Ahmet Melik Sahabi (Doctorate thesis). The effect of financial performance measures on firm value: An analysis on İstanbul Stock Exchange, 2020, Anadolu University.

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