The realtion between accounting information and firm value in stock market: a study on ise(İstanbul Stock Exchance)

In this research, the Ohlson model has been used in the analysis of the relation of the accounting information to firm value and interactions, and it is aimed to measure on a sectoral and yearly basis the level of the aforesaid relations at the firms traded constantly at ISE (Istanbul Stock Exchange) and involving in the manufacturing industry between 2005-2011.The sample in the research consisted of the firms which involved in manufacturing industry and whose data between 2005 and 2011 was fully accessed. Considering sub sectors in the manufacturing industry a sectoral analysis, an analysis on the basis of aggregation (manufacturing industry) without any discrimination, an annual analysis for one year-period have been conducted. Thus the change at relational level by years and the possible effects of the crisis in 2008 were attempted to be examined. In obtaining the data, Istanbul Stock Exchange (www.imkb.gov.tr) and Public Disclosure Platform (www.kap.gov.tr) websites were used and also Finnet Financial Analyst program (www.finnet.com.tr) was utilized. As the research findings are generally taken into consideration, it can be commented that the information provided by the accounting knowledge system is fairly important and influential in the determination of a firm?s market value. It was observed that the information in relation to balance sheet and income statement all together had a capability to explain the market value up to a level of 70 percent. It was also found out that the factors special to the business enterprise had positive-negative effects on the level of value relevance. Furthermore, it can be suggested that knowledge of balance sheet is generally able to explain market value better and that the book value model provides statistically more meaningful and reliable information. Key Words: Accounting information, Firm Value, Value Relevance, Ohlson Model, ISE ?