International Conference on Eurasian Economies

International Conference on Eurasian Economies

20-22 September 2022 – Baku - AZERBAIJAN

Paper properties

Paper ID : 2599
Status : Paper published
Language : Turkish
Topic : Finance and Financial Crises
Presenter: Mrs. Seda Nur Bastak
Session : 7B Borsa

The Relationship of Stock Prices and Stock Market Performance Ratios in Companies Trading on Borsa Istanbul: An Application in Companies with the Highest Trading Volume
Borsa İstanbul’da İşlem Gören Şirketlerde Pay Senedi Fiyatı ve Borsa Performans Oranları İlişkisi: İşlem Hacmi En Yüksek Şirketlerde Bir Uygulama

Abstract

In this study, the effect of certain ratios that investors pay attention to on stock prices in Borsa Istanbul is examined. For this purpose, 30 of the stocks with which the investors traded the most were taken as a sample. In the study, 30 companies with the highest average trading volume in the analysis period were selected according to their transactions in Borsa Istanbul. The study covers the period between 2010: 1Q-2019: 4Q. Variables included in the study are stock market price, P/E ratio, trading volume, market to book ratio, beta, free float percentage. In this study, it has been tried to understand at what level the stock market prices of companies' publicly traded stocks are affected by the indicators that emerge as a result of the transactions realized in the stock exchange, rather than the ratios discussed within the scope of financial analysis and ratio analysis, examples of which are very common in the literature. Panel regression analysis was performed in the study. Before proceeding to the panel regression analysis, preliminary tests were carried out and the model was tried to be given its most suitable form. For this purpose, multicollinearity tests, cross section dependency test, second generation unit root tests, varying variance test, panel regression model selection were made. The model created in the last stage was estimated. As a result of the study, it was seen that the Price/Earnings, Transaction Volume, Market Value/Book Value and Beta variables were significantly effective on the stock market prices of the companies' stocks. Among these variables, BETA affects negatively, while other variables affect positively. The variable with the highest effect on the share price is the negative BETA coefficient and the positive direction is the trading volume.

JEL codes: A10, E44, C01

Tekin, Bilgehan, Bastak, Seda Nur (2021). "The Relationship of Stock Prices and Stock Market Performance Ratios in Companies Trading on Borsa Istanbul: An Application in Companies with the Highest Trading Volume" in Proceedings of International Conference of Eurasian Economies 2021, pp.307-315, Istanbul, TURKEY and ONLINE.

DOI: https://doi.org/10.36880/C13.02599

Full paper in PDF format.

Session 7B: Borsa

Eurasian Economists Association Azerbaijan State University of Economics Beykent University Doğuş University Kyrgyzstan-Turkey Manas University