EFFECT OF INVESTMENT AND FİNANCİNG DECİSİONS ON FİRM VALUE; EXAMPLE OF BIST INDUSTRİAL INDEX

Year 2020, Volume: 13 Issue: 2, 13 - 24, 31.12.2020

Emine Karaçayır , Aslı Afşar

Abstract

The purpose of this study is to investigate the effect of investment and financing decisions on firm value. Productivity and profitability ratios representing investment decisions, leverage ratio and current ratio representing financial decisions, firms representing firm value were chosen as the last trading day share values. Investment and financing decisions and the impact of the 2008 global crisis on the firm value were tested for 100 firms operating in the Borsa Istanbul Industrial Index, using the annual data for the period 2003-2018 and the fixed effects panel data method. According to empirical findings, asset turnover rate, return on assets, intangible assets, current ratio and profit per share variables positively and significantly affect firm value. Leverage ratio, debt turnover rate, stock turnover rate and crisis variable affect the firm value negatively and significantly. In addition, it was concluded that the effects of the receivable turnover rate and firm size variables on the firm value are meaningless.

Keywords

Firm value, investment decisions, financing decisions, panel data

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