Theoretical and Applied Economics
No. 4 / 2017 (613), Winter
Target P/E ratio determinants in the Turkish Stock Market: Earning volatility effect
İstanbul Şehir University, Turkey
Yuksel ILTAS
Ahi Evran University, Turkey
Temur KAYHAN
İstanbul Şehir University, Turkey
Abstract. This paper investigates that what are the determinants of target PE in the case of Turkish Stock Market. The general outputs: i) Projected dividend yield is the dominant factor on PE. ii) Boosted investments and growing top-line raise PE ratio. iii) PE ratios come down as companies' financial leverage and working capital needs grow. iv) Although stabilizing foreign exchange risks and gross profit margins with the aid of hedge tools and product diversity of the companies decreases the acceleration of profitability, it eventually augments PE ratio. Data from Borsa İstanbul covering 2000-2014 term have been modeled by GMM.
Contents
The financial stability index – An insight into the financial and economic conditions of Romania
The strategy for reducing unemployment. Employment in the European Union
Economic value of portfolio diversification: Evidence from international multi-asset portfolios
Inflation convergence among the next eleven economies: Evidence from asymmetric nonlinear unit root test
Bitcoin as digital money: Its growth and future sustainability
Target P/E ratio determinants in the Turkish Stock Market: Earning volatility effect
Wavelets based multiscale analysis of select global equity returns
The cost to have a healthy population – The European Union's strategy
The relationship between oil and stock prices: The case of developing and developed countries
Macroeconomic determinants of income inequality in India and Pakistan
Urbanisation and inequalities in China and India. Overview and comparative study
Examination of the exchange rate and interest rate channels of the monetary transmission mechanism during the inflation targeting: Turkey and Mexico countries examples
Macroeconomic determinants of public debt growth: A case study for Tunisia
Dynamic regime switching behaviour between cash and futures market: A case of interest rates in India