The interaction between company value and macroeconomic factors: An applicatio to the energy sector

The interaction between the stock prices of energy companies in the Borsa Istanbul Electricity Index and some macroeconomic factors is examined. Pedroni Cointegration Test, Panel ARDL Test and Panel Causality Test are employed by using monthly panel data from July 2002 to August 2015. We used closing prices as the independent variable, and exchange rate, interest rates, inflation, industrial production index, oil prices and electricity prices as dependent variables. The findings reveal that there is a long term relationship between the variables in question. The industrial production index, exchange rates and electricity prices have a positive impact on the firm value whereas oil prices, interest rates and inflation rates have a negative impact. Moreover, there are causal relationships between stock prices and exchange rate, industrial production index, interest rate, inflation, and electricity prices. Key Words: Firm Value, Energy Sector, Macroeconomic Factors