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Financial Ratios Affecting Systematic Risk In Joint-Stock Companies: Bist Technology (Xutek) Industry Companies Case In Turkey

Author

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  • TEKIN, Bilgehan

    (Faculty of Economics and Administrative Sciences, Cankiri Karatekin University, Turkey.)

Abstract

Systematic risk cannot be controlled by business managers and cannot be eliminated by portfolio diversification. Factors related to the systematic risk may be interest rate, inflation, exchange rate, market risk, and politics. Systematic risk may also mean the magnitude of the correlation between stock price and market return. The measure of this risk is the beta coefficient. This study aimed to help the company managers, investors, and technology sector researchers to understand better systematic risk based on the technology companies operating in Borsa Istanbul. Understanding the risk structure of the technology industry is essential for the effective management of business activities. This study aims to examine firm-specific variables that are thought to be directly related to Beta. Findings obtained by panel data analysis from 14 technology companies traded in the BIST Technology (XUTEK) index for 2011: 1Q-2019: 4Q show that liquidity, debt leverage and current ratio are positively associated with risk. No effect of total assets, return on assets, asset turnover, and return on equity have been determined on systematic risk

Suggested Citation

  • TEKIN, Bilgehan, 2021. "Financial Ratios Affecting Systematic Risk In Joint-Stock Companies: Bist Technology (Xutek) Industry Companies Case In Turkey," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 25(1), pages 95-113, March.
    • Handle: RePEc:vls:finstu:v:25:y:2021:i:1:p:95-113
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Systematic Risk; Panel Data Analysis; Financial Ratio;
    All these keywords.

    JEL classification:

    • C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Hypothesis Testing: General
    • D53 - Microeconomics - - General Equilibrium and Disequilibrium - - - Financial Markets
    • E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance

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