DoctorateOpen Access

Defining relationships between financial statements and company value

2021
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Advisor: Prof. Dr. Nalan Akdoğan

Abstract (EN)

When determining the value of a company, the nature, size and composition of the items in the financial statements of the company are of great importance. In the valuation process, financial statements function in two ways. First of all, since the financial statements show the past performance of the company subject to the valuation, they are used as a guide in the future estimates of the company. Secondly, the financial statements provide information to the analyst about the accounting policies and book keeping order applied by the company. Based on the important role of financial statements in company valuation, the relationships between the market defined company values and the accounting-based specific parameters obtained from the financial statements of the companies are examined. This study aims to reveal which financial statement items companies should give importance and priority in order to maximize the value of the company. For this purpose, the historical financial statements of 51 companies belonging to the periods of 2015, 2016, 2017 and 2018 were used as the data set of the thesis study. In addition, some parameters from the financial statements were determined, and the relationships between these determined parameters and company value were examined. According to the results obtained from the panel data regression analysis applied, it is seen that there is a positive and significant relationship between the share of intangible fixed assets in total assets and the market values of companies. Accordingly, the higher the share of intangible assets of a company in the total assets of the company, the higher the market value of the company. Keywords: Company Value, Financial Statements, Intangible Assets, Residual Income, Value Relevance

Author

Dr. Medine Türkcan

How to Cite

Medine Türkcan (Doctorate thesis). Defining relationships between financial statements and company value, 2021, Baskent University.

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