The effect of the precautionary principle on financial sustainability: BIST application

With this thesis, the businesses that were continuously traded in Borsa Istanbul (BIST) between 2005 and 2019 were analyzed on an annual basis. Based on these data, it has been tested whether there is a relationship between the prudence levels of the businesses and their financial sustainability. In the context of financial sustainability, period profit and comprehensive profit figures and end-of-period stock prices of businesses reporting according to TMS / TFRS were examined in the long run. "Negative Accruals Method" developed by Givoly and Hayn (2000) was used in calculating the prudence levels of businesses. In this research, the statement of financial position, cash flow statements and profit / loss and other comprehensive income statements of the companies were used. These collected data were tested by using the panel data statistical analysis method. As a result of the research, it has been determined that as the prudence levels of the businesses increase negatively, the total comprehensive profit and the stock prices of the businesses at the end of the period increase and the period profits decrease in the long term.