The Factors Affecting Firm Performance: The Case of Turkey

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In this study, there has been intended to analyze the factors affecting the performance of firms. Year end closing price of stocks and rate of stock return were used to measure performance of the firm. There has been analyzed the relationships between the variables of year-end closing price of the stock, rate of stock return and cash dividend payout ratio, return on assets, price/earnings ratio, earnings per share, net profit growth, market to book value ratio, market value and return on equity. In the study, there have been analyzed 16 companies included in ISE 30 Index for 1998-2010 years using the panel regression model. There were created two models in the research and according to this, whereas Closing Price of the Stock (CLS) was increased by the change in Dividend Payout Ratio (DPR) and Earnings Per Share (EPS) in Model 1, it increased the change in Return on Assets (ROA) and it did not affect the Market to Book value (M_B) and Market Value Increase (MVI) and Closing Price of Stock (CLS). In Model 2, there has been observed that whereas Market Value Increase (MVI) and Earnings Per Share (EPS) have increased the Rate of Stock Return (RSR), it has not affected Return on Assets (ROA).

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Firm performance , panel regression , closing price of stock , rate of stock return

Ege Academic Review (EAR)

179

Ege Academic Review (EAR)