Year 2017, Volume 1, Issue 3, Pages 40 - 55 2017-09-30

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

Serhat YÜKSEL [1] , İsmail CANÖZ [2] , Zafer ADALI [3]

264 307

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. 

MARS, Banking, Price-Earning Ratio, MARS
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Subjects Social
Journal Section Articles
Authors

Author: Serhat YÜKSEL

Author: İsmail CANÖZ

Author: Zafer ADALI
Country: Turkey


Bibtex @research article { fsecon322659, journal = {Fiscaoeconomia}, issn = {}, eissn = {2564-7504}, address = {Ahmet Arif EREN}, year = {2017}, volume = {1}, pages = {40 - 55}, doi = {10.25295/fsecon.322659}, title = {Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method}, key = {cite}, author = {YÜKSEL, Serhat and CANÖZ, İsmail and ADALI, Zafer} }
APA YÜKSEL, S , CANÖZ, İ , ADALI, Z . (2017). Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method. Fiscaoeconomia, 1 (3), 40-55. DOI: 10.25295/fsecon.322659
MLA YÜKSEL, S , CANÖZ, İ , ADALI, Z . "Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method". Fiscaoeconomia 1 (2017): 40-55 <http://dergipark.org.tr/fsecon/issue/31372/322659>
Chicago YÜKSEL, S , CANÖZ, İ , ADALI, Z . "Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method". Fiscaoeconomia 1 (2017): 40-55
RIS TY - JOUR T1 - Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method AU - Serhat YÜKSEL , İsmail CANÖZ , Zafer ADALI Y1 - 2017 PY - 2017 N1 - doi: 10.25295/fsecon.322659 DO - 10.25295/fsecon.322659 T2 - Fiscaoeconomia JF - Journal JO - JOR SP - 40 EP - 55 VL - 1 IS - 3 SN - -2564-7504 M3 - doi: 10.25295/fsecon.322659 UR - https://doi.org/10.25295/fsecon.322659 Y2 - 2017 ER -
EndNote %0 Fiscaoeconomia Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method %A Serhat YÜKSEL , İsmail CANÖZ , Zafer ADALI %T Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method %D 2017 %J Fiscaoeconomia %P -2564-7504 %V 1 %N 3 %R doi: 10.25295/fsecon.322659 %U 10.25295/fsecon.322659
ISNAD YÜKSEL, Serhat , CANÖZ, İsmail , ADALI, Zafer . "Determination of the Variables Affecting the Price Earning Ratios of Deposit Banks in Turkey by Mars Method". Fiscaoeconomia 1 / 3 (September 2017): 40-55. https://doi.org/10.25295/fsecon.322659