INTERNATIONAL JOURNAL OF SOCIAL HUMANITIES SCIENCES RESEARCH (JSHSR)

Abstract


TESTING THE EFFECT OF FINANCIAL RATIONS ON MARKET VALUE

The main purpose of financial management is to maximize the wealth of the owners, in other words, the market value of the firm. The market value of a firm is positively or negatively affected by many internal and external developments. The aim of this study is to determine the internal variables that affect the market value of the firm positively or negatively in the companies in Borsa İstanbul (BIST). The dependent variable of the study is the market value and the independent variables are used in total 17 financial rations under the profitability, financial structure, liquidity, turnover rate and market indicators group. In the research, 9 years data for 2010-2018 period of 25 companies in BIST Metal Goods, Machinery and Equipment Construction sector were used. In this study, small scale, large scale companies are considered as a whole. According to the general results obtained from the analyzes, the market value-book value ratio had a significant effect on the market value in all three companies groups, while the significance of other financial ratios was observed to vary according to the groups.



Keywords
Efficiency, Market Value, Profitability, Financial Structure, Liquidity, Stock Exchange



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