Cross sectional and based on economic factors anomalies: A study on manufacturing enterprises traded in Borsa İstanbul

The aim of this study is to examine the cross sectional and based on economic factors anomalies on companies that are traded in Borsa Istanbul and operate in the manufacturing sector. Cross-sectional and based on economic factors anomaly analysis was made by means of the data of 2007Q1-2021Q4 period. In the study, in order to examine the cross-sectional anomalies; equity/paid in capital ratios, M/B ratios, firm sizes and return on equity ratios were used. In order to examine anomalies based on economic factors in the study; interest rate, exchange rate, money supply, inflation and industrial production index values are used. According to the results of the analysis applied to the data of the manufacturing sector, firm size and profitability affect abnormal returns. As for macroeconomic variables; the relationships between interest rate, money supply, inflation rate and abnormal return are statistically significant. Anomalies based on economic factors observed in sub-sectors are similar to the manufacturing sector. According to the analysis results of the sub-sectors of food, beverage and tobacco and chemical, pharmaceutical, petroleum, rubber and plastic products; the relationships between firm size and abnormal returns are significant. According to the analysis results of textile, clothing and leather and stone and soil-based sub-sectors, all firm variables affect abnormal return. According to the results of the analysis applied to the sub-sectors of the paper and paper products printing and basic metal industry; the relationship between equity/paid-up capital ratio and firm size variables and abnormal return is significant. According to the analysis results of the metal goods, machinery, electrical devices and transportation vehicles sub-sector, the relationship between M/B ratio, firm size and profitability and abnormal return is significant. As a result, in the study; it has been concluded that the anomalies valid in the manufacturing sector differ in sub-sectors.