مرکز منطقه ای اطلاع رساني علوم و فناوري - Relationship between the Interest of Investors to Admired Companies and Financial Indicators

Abstract :

Capital Journal has published “Turkey’s Most Admired Companies” list on the basis of several parameters since 1999. This study aims to investigate whether the relationship between the several financial indicators of the companies which have been continuously listed in the admired list and processed İstanbul Stock Exchange Market (ISE) and interest of investors to the stocks of these companies. The financial indicators, which have been associated with investor numbers as using a indicator of interest of investors, are leverage ratio, market to book value ratio, net profit margin and sales size. The achieved results for the admired companies portfolio have been compared with the results of the market portfolio which has consisted of manufacturing companies that have been continuously processed in ISE. A significantly negative relation between market to book value ratio for t period and interest of investors for t+1 period has been found for both portfolios in this study by using panel data analysis. The relation between net profit margin and interest of investors is significantly positive for the market portfolio but there is not any significant relation for the admired companies portfolio.