@article{article_1623894, title={THE IMPACT OF PRICE-EARNINGS RATIO ON BLUE-CHIP INDEX: AN EMPIRICAL ANALYSIS ON WORLD STOCK EXCHANGES}, journal={Uluslararası İktisadi ve İdari İncelemeler Dergisi}, pages={233–244}, year={2025}, DOI={10.18092/ulikidince.1623894}, author={Bağcı, Haşim}, keywords={Price-to-earnings ratio, Blue-Chip, Blue-Chip index, Stock exchanges}, abstract={There is high demand for firms with strong performance in the stock markets, leading to elevated prices for these shares. In this context, the study presented examines the impact of the price-to-earnings (P/E) ratio on the blue-chip index (BCI) across global stock exchanges. The aim of the study is to identify this effect, elucidate its rationale, and provide a different perspective on the topic. Accordingly, the research encompasses an 8-year period from 2016 to 2023, utilizing a sample of 9 global stock exchanges. The methods employed in the study include descriptive statistics, Pearson correlation coefficient, F-test, and simple linear regression analysis. The correlation analysis revealed the existence of a weak negative relationship between the P/E ratio and the BCI. The significance of the regression model was tested using the F-test, confirming that the model is significant. Based on the parameter estimates derived from the final regression equation, an increase in the P/E ratio reduces the BCI. The results obtained align with the effects of the P/E ratio emphasized in the literature. Therefore, firms with a low P/E ratio exhibit high performance. The BCI in the sample consists of high-performing, strong, stable, healthy growing, reliable, large, and well-known stocks.}, number={47}, publisher={Kenan ÇELİK}