ECTAP
 
HomeDespre ECTAEventsPolitica editorialaTrimite un articolParteneri / link-uri utileArchiveAbonamentContact
 

ISSN 1841-8678   (print)
ISSN 1844-0029   (online)

News

Archive ECTAP

Note: for the period 1994-2003 the archive of the magazine will not be available online

Supplements ECTAP

If you cannot open the pdf file you need Adobe Reader.
download Adobe Reader

Creative Commons License

Theoretical and Applied Economics
No. 4 / 2017 (613), Winter

Target P/E ratio determinants in the Turkish Stock Market: Earning volatility effect

Halil ARSLAN
İstanbul Şehir University, Turkey
Yuksel ILTAS
Ahi Evran University, Turkey
Temur KAYHAN
İstanbul Şehir University, Turkey

Abstract. This paper investigates that what are the determinants of target PE in the case of Turkish Stock Market. The general outputs: i) Projected dividend yield is the dominant factor on PE. ii) Boosted investments and growing top-line raise PE ratio. iii) PE ratios come down as companies' financial leverage and working capital needs grow. iv) Although stabilizing foreign exchange risks and gross profit margins with the aid of hedge tools and product diversity of the companies decreases the acceleration of profitability, it eventually augments PE ratio. Data from Borsa İstanbul covering 2000-2014 term have been modeled by GMM.

Keywords: PE, earning volatility, dividend yield, working capital, leverage.

Download the full article:  

Contents

Open acces

ECTAP

Search

BOOKS

The Economicity. The Epistemic Landscape, Marin Dinu, 2016

Partners


ISSN 1841-8678 (ediția print) / ISSN 1844-0029 (ediția online)
© Copyright Asociația Generală a Economiștilor din România (AGER) / General Association of Economists From Romania  (GAER)
Redacția: 010702, București, Calea Griviței nr. 21, sector 1, E-mail: economia.ta@edeconomica.com

© 2006-2017 AGER