Determinants of price to earnings ratio: Evidence from Turkish tourism companies

Year 2022, , 1 - 4, 31.01.2022

Ömer İskenderoğlu , Erdinç Karadeniz

https://doi.org/10.24288/jttr.1027187

Cited By: 2

Abstract

This study tried to determine firm-specific variables that affect the price-to-earnings ratios of the listed tourism companies at Borsa Istanbul in Turkey over the period 2012q3 - 2020q3. For this purpose, the quarterly financial data of tourism companies were analyzed by using the Generalized Moments Method (GMM). As a result of the analysis, it was determined that a positive relationship existed between Tobin’s Q ratio and price-to-earnings ratio, whereas a negative relationship existed between leverage ratio as well as stock price volatility and price-to-earnings ratio. It was determined that no statistically significant relationship existed between sales size and price-to-earnings ratio.

Keywords

Price to earnings ratio, Tobin, Leverage, Stock price volatility, Tourism

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