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A Study On Effects Of Financial Ratio Of Publicly-Traded Energy Companies On Stock Market Performance

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  • Yıldırım Ercan ÇALIÅž

    (Marmara Ãœniversitesi)

  • Ä°brahim GEREKLÄ°

    (Marmara Ãœniversitesi)

Abstract

In this work, the relationship between the financial ratios and the closing prices of the stock market is examined of the energy companies. In this work, the financial reports were examined of 10 firms operating in the energy sector. The ratios of these firms are calculated as cash ratio, current ratio, market value/book value, net profit margin, profit per share, active turnover rate, short term debt/asset ratio, short term financial debt / total debt, equity capital and gross main activity profit margin. Between these calculated rates and the closing prices of the stock, firstly the extreme values were taken into consideration and then the correlation values were analyzed by removing the extreme values. Finally, Granger causality analysis was conducted. results achieved. According to the correlation analysis; There is a significant relationship between the share price per share, short-term debt / short-term debt, short-term debt / short-term debt and return on equity. However, no significant relationship was found between the cash ratio, current ratio, market value / book value, net profit margin and gross operating profit margin ratios and stock market closure values. According to Granger causality analysis, it was found that there was no significant result.

Suggested Citation

  • Yıldırım Ercan ÇALIÅž & Ä°brahim GEREKLÄ°, 2020. "A Study On Effects Of Financial Ratio Of Publicly-Traded Energy Companies On Stock Market Performance," Eurasian Academy Of Sciences Social Sciences Journal, Eurasian Academy Of Sciences, vol. 31(31), pages 86-99, March.
  • Handle: RePEc:eas:journl:v:31:y:2020:i:31:p:86-99
    DOI: 10.17740/eas.soc.2020.V31-05
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