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Evaluating the Effects of Various Financial Ratios on Company Financial Performance: Application in Borsa İstanbul

Author

Listed:
  • Erdoğan, Eda Oruç

    (Akdeniz University)

  • Erdoğan, Murat

    (Akdeniz University)

  • Ömürbek, Vesile

    (Suleyman Demirel University)

Abstract

The purpose of this study was to determine the impact on the corporate financial performance to the several financial indicators. Companies that are traded continuously in Borsa İstanbul-30 (BIST-30) between 2002-2013 periods were analyzed in this study for this purpose. Current ratio, earnings per share, leverage ratio, firm size and market value to book value ratio were used as independent variables. Net profit margin was used as a dependent variables. The relationship between variables was analyzed by using panel data. According to the results of analysis, there is a positive and significant relation between corporate performance (t-period) and current ratio and corporate size (t- period) and there is a negative and significant relation between corporate performance (t-period) and leverage ratio (t-period).

Suggested Citation

  • Erdoğan, Eda Oruç & Erdoğan, Murat & Ömürbek, Vesile, 2015. "Evaluating the Effects of Various Financial Ratios on Company Financial Performance: Application in Borsa İstanbul," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 6(1), pages 35-42, January.
    • Handle: RePEc:ris:buecrj:0175
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    Citations

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    Cited by:

    1. Ilie Răscolean & Ileana - Sorina Rakos, 2020. "Empirical Study on the Example of an Economic Entity in Romania About Financial Performance Indicators," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 484-492, December.

    More about this item

    Keywords

    Financial ratios; current ratio; leverage ratio; company performance; panel data analysis;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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