(Financial Factors Affecting the Stock Returns of the Energy Firms Enlisted in Istanbul Stock Exchange)

Abstract

Purpose – In this study, financial factors affecting the stock returns of energy companies enlisted in Istanbul Stock Exchange are examined. Design/methodology/approach – Factors that might have effect on the stock returns are identified and firm size, sales revenue, operating profit and short-term liabilities are chosen. Akenerji, Aksa, Aksu, Ayen and Zorlu which are enlisted in Istanbul Stock Exchange are selected for the analysis. How the change in the factors affects the stock returns of energy companies is examined through panel data analysis method. Findings – The results revealed that the change in the short-term liabilities has negative and statistically meaningful effect on the stock returns. Moreover, the change in the sales revenue has positive and statistically meaningful effect on the returns. To sum up, an increase in the short-term liabilities has negative while an increase in the sales revenue has positive effect on the stock returns of energy firms in Turkey. Discussion – The stock returns of energy firm enlisted in Istanbul Stock Exchange are affected by the unsystematic risk factors found as change in the total sales and the current liabilities.