An Analysis of the Relationship Between Piotroski F-Score and Market-Based Performance in Borsa Istanbul

Kerim Gökbörü GÃœLCAN and S.öznur Sakinã‡

Fiscaoeconomia, 2025, issue 2

Abstract: This research examines the financial performance of 145 companies listed on the Borsa Istanbul (BIST) Industrial Index from 2010 to 2022 through the Piotroski F-Score. The study investigates the relationship between the Piotroski F-Score and key financial indicators, including the market-to-book value ratio, price-to-earnings ratio, and stock returns. The analysis is based on data spanning 12 years and 1,740 observations. Methodologically, dynamic panel data models and the Arellano-Bond two-step Generalized Method of Moments (GMM) approach are employed. Results reveal a significant positive correlation between the prior year’s Piotroski F-Score and the market-to-book value ratio. Firms with stronger financial health exhibit higher market valuations compared to their book values. Additionally, the Piotroski F-Score positively influences both the price-to-earnings ratio and stock returns, indicating that financially robust companies attract higher investor valuations and deliver superior returns. These findings underscore the Piotroski F-Score’s effectiveness as a financial analysis tool within Turkey’s industrial sector and highlight the importance of accounting-based assessments in investment decision-making. Future research exploring various sectors and additional financial health indicators can further elucidate the broader applicability of the Piotroski F-Score.

Keywords: Piotroski F Score; Financial Performance; Borsa Istanbul Industrıal Index (search for similar items in EconPapers)
JEL-codes: C23 G30 I10 M41 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:fis:journl:250228

DOI: 10.25295/fsecon.1607749

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