A comparative analysis of the structural and firm-specific characteristics affecting the share earnings in Turkey

The characteristics that affect share earnings are one of the conspicuous topics in finance. The aim of this study is to determine the structural and firm-specific characteristics that have an effect on share earnings in Turkey, as well as to reveal the relationship between those characteristics and share earnings, by using the regression method via panel data standardised variables. Determining which characteristics are more effective on share earnings is also an objective of the study. The characteristics examined here comprise 7 structural (exchange rate, money supply, inflation, foreign portfolio investment, balance of payments, gold, GDP) and 12 firm-specific ones (liquidity, profitability, leverage, asset structure, price-earnings ratio, earnings per share, market value, market to book value ratio, sales potential, asset growth rate, risk, size). Index earnings and all the characteristics were found to have a significant relationship as a result of the analysis that demonstrate the relationship between index earnings and structural characteristics. Ten structural and firm-specific characteristics were found to be significantly related to firm earnings as a result of the analysis that demonstrates the comparative relationship among firm earnings and structural and firm-specific characteristics. In line with the results of the study, it was concluded that both individual and corporate investors, as well as company owners, managers, policymakers and economists should evaluate the structural and firm-specific characteristics together.