Research Article
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Year 2017, , 40 - 55, 30.09.2017
https://doi.org/10.25295/fsecon.322659

Abstract

References

  • Anderson, K., & Brooks, C. (2005). Decomposing The Price-Earnings Ratio. Journal Of Asset Management, 6(6), 456-469.
  • Afza, T., & Tahir, S. (2012). Determinants Of Price-Earnings Ratio: The Case Of Chemical Sector Of Pakistan. International Journal of Academic Research in Business and Social Sciences, 2(8), 331.
  • Alford, A. W. (1992). The Effect Of The Set Of Comparable Firms On The Accuracy Of The Price-Earnings Valuation Method. Journal of Accounting Research, 94-108.
  • Beaver, W., & Morse, D. (1978). What Determines Price-Earnings Ratios?. Financial Analysts Journal, 65-76.
  • Christodoulou, D., Clubb, C., & Mcleay, S. (2016). A structural accounting framework for estimating the expected rate of return on equity. Abacus, 52(1), 176-210
  • Friedman, J. (1991). Multivariate Adaptive Regression Splines. The Annals of Statistics, 19, 1-141.
  • Haldane, A. G., Millard, S., & Saporta, V. (2016). The Future of Payment Systems (Routledge International Studies in Money and Banking).
  • Kane, A., Marcus, A. J., & Noh, J. (1996). The P/E Multiple And Market Volatility. Financial Analysts Journal, 16-24.
  • Khan, M. I. (2009). Price Earning Ratio and Market to Book Ratio. IUB Journal of Social Sciences and Humanities, 2(9), 103-112.
  • Lutfi, M., & Arsitha, J. (2016). The Analysis of Factors Affecting Price Earnings Ratio on the Company Shares Registered in Jakarta Islamic Index. Academic Journal of Economic Studies, 2(3), 55-63.
  • Mahmood, W., Mansor, W., Fatah, A., & Syuhada, F. (2007). Multivariate Causal Estimates of Dividend Yields, Price Earning Ratio and Expected Stock Returns: Experience from Malaysia. MPRA Paper, 14614.
  • Nargelecekenler, M. (2011). Hisse Senedi Fiyatlari ve Fiyat/Kazanç Orani Iliskisi: Panel Verilerle Sektörel Bir Analiz*/Stock Prices and Price/Earning Ratio Relationship: A Sectoral Analysis with Panel Data. Business and Economics Research Journal, 2(2), 165-184.
  • Öztürk, M. B. (2007). Fiyat/Kazanç Oranını Etkileyen Değişkenler Üzerine İMKB’de Ampirik Bir Uygulama. Sosyal Bilimler Enstitüsü Dergisi Sayı:23 Yıl:2007/2, 275-284.
  • Park, S. (2000). What Does The PE Ratio Mean?. The Journal Of Investing, 9(3), 27-34.
  • Ramcharran, H. (2002). An Empirical Analysis Of The Determinants Of The P/E Ratio İn Emerging Markets. Emerging Markets Review, 3(2), 165-178.
  • Sezgin, F. H. (2010). An Empirical Investigation Of The Relationship Among P/E Ratio, Stock Return And Dividend Yiels For Istanbul Stock Exchange. International Journal Of Economics And Finance Studies, 1(2), 16-23.
  • Shamsuddin, A. F., & Hillier, J. R. (2004). Fundamental Determinants Of The Australian Price–Earnings Multiple. Pacific-Basin Finance Journal, 12(5), 565-576.
  • White, C. B. (2000). What P/E Will The US Stock Market Support?. Financial Analysts Journal, 30-38.
  • Zarowin, P. (1990). What Determines Earnings-Price Ratios: Revisited. Journal of Accounting, Auditing & Finance, 5(3).

Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method

Year 2017, , 40 - 55, 30.09.2017
https://doi.org/10.25295/fsecon.322659

Abstract

In this study, it is aimed to identify the factors influencing the price-earnings ratio
of deposit banks in Turkey. In this context, quarterly cumulative data of 10
deposit banks traded in Istanbul Stock Exchange for the periods between 2002:4
and 2017:1 is analyzed by using MARS method. According to the analysis
results, it is concluded that if the ROE of the banks is higher than 5.92%, it affects
price-earning ratio positively. However, this effect will be negative when ROE
exceeds 21.12%. This indicates that investors are willing to pay more for the
stocks of the banks when their profitability is increasing. Besides, it is also
identified that there is an adverse relationship between the market interest rate
and NPL of the banks with the price-earnings ratio. In case of any raise in the
interest rate and NPL of the banks, investors' expectation of the future
profitability of the banks will be negative. As a result, it is understood that the
investors are reluctant to pay more amounts to their bank shares. 

References

  • Anderson, K., & Brooks, C. (2005). Decomposing The Price-Earnings Ratio. Journal Of Asset Management, 6(6), 456-469.
  • Afza, T., & Tahir, S. (2012). Determinants Of Price-Earnings Ratio: The Case Of Chemical Sector Of Pakistan. International Journal of Academic Research in Business and Social Sciences, 2(8), 331.
  • Alford, A. W. (1992). The Effect Of The Set Of Comparable Firms On The Accuracy Of The Price-Earnings Valuation Method. Journal of Accounting Research, 94-108.
  • Beaver, W., & Morse, D. (1978). What Determines Price-Earnings Ratios?. Financial Analysts Journal, 65-76.
  • Christodoulou, D., Clubb, C., & Mcleay, S. (2016). A structural accounting framework for estimating the expected rate of return on equity. Abacus, 52(1), 176-210
  • Friedman, J. (1991). Multivariate Adaptive Regression Splines. The Annals of Statistics, 19, 1-141.
  • Haldane, A. G., Millard, S., & Saporta, V. (2016). The Future of Payment Systems (Routledge International Studies in Money and Banking).
  • Kane, A., Marcus, A. J., & Noh, J. (1996). The P/E Multiple And Market Volatility. Financial Analysts Journal, 16-24.
  • Khan, M. I. (2009). Price Earning Ratio and Market to Book Ratio. IUB Journal of Social Sciences and Humanities, 2(9), 103-112.
  • Lutfi, M., & Arsitha, J. (2016). The Analysis of Factors Affecting Price Earnings Ratio on the Company Shares Registered in Jakarta Islamic Index. Academic Journal of Economic Studies, 2(3), 55-63.
  • Mahmood, W., Mansor, W., Fatah, A., & Syuhada, F. (2007). Multivariate Causal Estimates of Dividend Yields, Price Earning Ratio and Expected Stock Returns: Experience from Malaysia. MPRA Paper, 14614.
  • Nargelecekenler, M. (2011). Hisse Senedi Fiyatlari ve Fiyat/Kazanç Orani Iliskisi: Panel Verilerle Sektörel Bir Analiz*/Stock Prices and Price/Earning Ratio Relationship: A Sectoral Analysis with Panel Data. Business and Economics Research Journal, 2(2), 165-184.
  • Öztürk, M. B. (2007). Fiyat/Kazanç Oranını Etkileyen Değişkenler Üzerine İMKB’de Ampirik Bir Uygulama. Sosyal Bilimler Enstitüsü Dergisi Sayı:23 Yıl:2007/2, 275-284.
  • Park, S. (2000). What Does The PE Ratio Mean?. The Journal Of Investing, 9(3), 27-34.
  • Ramcharran, H. (2002). An Empirical Analysis Of The Determinants Of The P/E Ratio İn Emerging Markets. Emerging Markets Review, 3(2), 165-178.
  • Sezgin, F. H. (2010). An Empirical Investigation Of The Relationship Among P/E Ratio, Stock Return And Dividend Yiels For Istanbul Stock Exchange. International Journal Of Economics And Finance Studies, 1(2), 16-23.
  • Shamsuddin, A. F., & Hillier, J. R. (2004). Fundamental Determinants Of The Australian Price–Earnings Multiple. Pacific-Basin Finance Journal, 12(5), 565-576.
  • White, C. B. (2000). What P/E Will The US Stock Market Support?. Financial Analysts Journal, 30-38.
  • Zarowin, P. (1990). What Determines Earnings-Price Ratios: Revisited. Journal of Accounting, Auditing & Finance, 5(3).
There are 19 citations in total.

Details

Journal Section Articles
Authors

Serhat Yüksel

İsmail Canöz

Zafer Adalı

Publication Date September 30, 2017
Published in Issue Year 2017

Cite

APA Yüksel, S., Canöz, İ., & Adalı, Z. (2017). Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method. Fiscaoeconomia, 1(3), 40-55. https://doi.org/10.25295/fsecon.322659

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