Effects of Changes in Financial Ratios of Companies on the Performance of Stock Prices in the Exchange Market: The Automotive Sector

Authors

DOI:

https://doi.org/10.5195/emaj.2022.242

Keywords:

Finance, Financial Ratio, Stock Price, Panel Data, Automotive Sector

Abstract

By examining the relationship between financial ratios of companies and stock prices, this study investigates whether changes in the financial ratios of companies affect stock prices. Twelve financial ratios were used as independent variables and stock price was used as the dependent variable. The study was conducted via panel data analysis method with data from seven automotive companies traded in Borsa İstanbul (BIST) and six automotive companies traded in stock markets of Germany, the USA, and Sweden for the period of 2007Q1-2018Q4. For automotive companies traded in BIST, stock price is affected by liquidity ratios, financial structure ratios, and activity ratios but there is no statistically significant relationship between stock price and profitability ratios. On the other hand, for the automotive companies traded in stock exchanges in other countries, stock price is seen to be affected by liquidity ratios, financial structure ratios, activity ratios, and profitability ratios.

Author Biographies

Nurten Dönmez, Beykent University

Çeşitli bankacılık gruplarında kazanılan yaklaşık 30 yıllık deneyime sahip, deneyimli bir idari ve yönetim uzmanıdır. Profesyonel kariyeri boyunca, yüksek lisansını da tamamlama şansı buldu. Emekli olduktan sonra akademik kariyer yapmak için zaman ve emek harcamış ve bu amaçla 2020 yılında İşletme Yönetimi doktora programından mezun olmuştur. Şimdi ise bilimsel alanda çalışmaktadır. Reel sektörden edindiği tecrübeleri teori ile birleştirerek bilimsel alanda faydalı olmaya çalışmaktadır. Aynı zamanda bir web sitesinde ve iki ayda bir yayınlanan ekonomi ve iş dünyası dergisinde köşe yazarlığı yapmaktadır.

Turgut Özkan, Doğuş University

He became a professor in Finance and Financial Economics in 2013. In addition to his duties as the Head of the Department of Business Administration in Turkish, Head of the Department of Business Administration, Head of the Department of Business Distance Education at this faculty, he served as the Dean of the Faculty of Economics and Administrative Sciences from January 2017 to March 13, 2020. He has advised master's and doctoral theses. and has numerous articles, research, and books. He leads pioneering efforts to help the future of higher education, working as The President of Doğuş University since 23 June 2020.

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Published

2022-08-17

Issue

Vol. 12 No. 1 (2022)

Section

Articles

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