Examining the relationship between financial ratios and stock returns: An application on BIST 30 index

Ã-zgun Åanli ()
Additional contact information
Ã-zgun Åanli: Tekirdag Namik Kemal University/Turkiye

Journal of Applied Microeconometrics, 2024, vol. 4, issue 1, 1-11

Abstract: Investors trading in capital markets aim to maximize the returns they will obtain from this market. For this reason, determining the factors affecting stock returns is important for investors. The aim of this study is to examine the relationship between financial ratios and stock returns of companies that are listed on the BIST 30 Index as of 2024 and traded on the stock exchange uninterruptedly between the 2016Q2-2023Q4 periods. The financial ratios used in the research include the current ratio, return on equity ratio, asset turnover ratio, inventory turnover ratio, debt/equity ratio, and debt/asset ratio. Stock returns are measured by the rate of return. The relationship between the return rates of stocks of companies listed on the BIST 30 index and the financial ratios of these companies will be examined through the panel data analysis method. In the analysis results; According to the analysis results, the relationship between the current ratio and inventory turnover ratios and the return rate of stocks is significant and negative. The relationship between return on equity ratio, asset turnover ratio and debt/equity ratio and stock returns is significant and positive. The relationship between debt/asset ratio and return rate is meaningless.

Keywords: Financial Ratio; Stock Returns; Panel Data Analysis; BIST 30 Index; Driscoll-Kraay Robust Standard Estimator (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:jle:joujam:jame2424

DOI: 10.53753/jame.2424

Access Statistics for this article

Journal of Applied Microeconometrics is currently edited by Ebru Caglayan AKAY

More articles in Journal of Applied Microeconometrics from Holistence Publications
Bibliographic data for series maintained by Mehmet SAHIN ().