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

Year 2022, Volume: 8 Issue: 1, 1 - 4, 31.01.2022

Ömer İskenderoğlu Erdinç Karadeniz

https://doi.org/10.24288/jttr.1027187
Cited By: 1

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

References

  • Akmese, H., Aras, S., & Akmese, K. (2016). Financial performance and social media: A research on tourism enterprises quoted in Istanbul stock exchange (BIST). Procedia Economics and Finance, 39, 705-710. https://doi.org/10.1016/S2212-5671(16)30281-7.
  • Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277-297. https://doi.org/10.2307/2297968.
  • Asiri, B. K., & Hameed, S. A. (2014). Financial ratios and firm's value in the Bahrain Bourse. Research Journal of Finance and Accounting, 5(7), 1-9.
  • Barrows, C. W., & Naka, A. (1994). Use of macroeconomic variables to evaluate selected hospitality stock returns in the US. International Journal of Hospitality Management, 13(2), 119-128. https://doi.org/10.1016/0278-4319(94)90033-7.
  • Bhamornsathit, S., & Katawandee, P. (2016). An analysis of Thai listed hotels: Financial and operational performance. Journal of Business and Behavioral Sciences, 28(2), 55.
  • Chen, M. H. (2007). Macro and non-macro explanatory factors of Chinese hotel stock returns. International Journal of Hospitality Management, 26(4), 991-1004. https://doi.org/10.1016/j.ijhm.2006.04.002.
  • Chen, M. H., Agrusa, J., Krumwiede, D., & Lu, H. J. (2012). Macroeconomic influences on Japanese hotel stock returns. Journal of Hospitality Marketing & Management, 21(1), 81-99. https://doi.org/10.1080/19368623.2011.611731.
  • Chiu, C. N. (2020). Holiday effects on stock prices of the restaurant industry. Current Issues in Tourism, 23(9), 1109-1121. https://doi.org/10.1080/13683500.2019.1586846.
  • Hadi, D. M., Irani, F., & Gökmenoğlu, K. K. (2020). External determinants of the stock price performance of tourism, travel, and leisure firms: evidence from the United States. International Journal of Hospitality & Tourism Administration, 1-17. https://doi.org/10.1080/15256480.2020.1842838.
  • Demir, E., & Ersan, O. (2018). The impact of economic policy uncertainty on stock returns of Turkish tourism companies. Current Issues in Tourism, 21(8), 847-855. https://doi.org/10.1080/13683500.2016.1217195.
  • Gujarati, D. (2004), Basic econometrics. McGraw-Hill Companies.
  • Karadeniz, E., & Koşan, L. (2021). Finansal performans ve fiyat/kazanç oranı: Borsa İstanbul turizm şirketlerinde bir araştırma [Financial performance and price to earnings ratio: A research in Borsa Istanbul tourism companies]. Sosyoekonomi, 29(47), 249-266. https://doi.org/10.17233/sosyoekonomi.2021.01.12.
  • Kim, W. G., & Ayoun, B. (2005). Ratio analysis for the hospitality industry: A cross sector comparison of financial trends in the lodging, restaurant, airline, and amusement sectors. The Journal of Hospitality Financial Management, 13(1), 59-78. https://doi.org/10.1080/10913211.2005.10653800.
  • Liem, P. F., & Basana, S. R. (2012). Price earnings ratio and stock return analysis: Evidence from liquidity 45 stocks listed in Indonesia Stock Exchange. Jurnal Manajemen dan Kewirausahaan (Journal of Management and Entrepreneurship), 14(1), 7-12. https://doi.org/ 10.9744/jmk.14.1.7-12.
  • Roodman, D. (2009). An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86-136. https://doi.org/10.1177/1536867X0900900106.
  • Singh, A. J., & Schmidgall, R. S. (2002). Analysis of financial ratios commonly used by US lodging financial executives. Journal of Retail & Leisure Property, 2(3), 201-213. https://doi.org/10.1057/palgrave.rlp.5090210.
  • Yerdelen Tatoğlu, F. (2018). İleri panel veri analizi [Advanced panel data analysis]. Beta Basım Yayım Dağıtım.

Year 2022, Volume: 8 Issue: 1, 1 - 4, 31.01.2022

Ömer İskenderoğlu Erdinç Karadeniz

https://doi.org/10.24288/jttr.1027187
Cited By: 1

Abstract

References

  • Akmese, H., Aras, S., & Akmese, K. (2016). Financial performance and social media: A research on tourism enterprises quoted in Istanbul stock exchange (BIST). Procedia Economics and Finance, 39, 705-710. https://doi.org/10.1016/S2212-5671(16)30281-7.
  • Arellano, M., & Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. The Review of Economic Studies, 58(2), 277-297. https://doi.org/10.2307/2297968.
  • Asiri, B. K., & Hameed, S. A. (2014). Financial ratios and firm's value in the Bahrain Bourse. Research Journal of Finance and Accounting, 5(7), 1-9.
  • Barrows, C. W., & Naka, A. (1994). Use of macroeconomic variables to evaluate selected hospitality stock returns in the US. International Journal of Hospitality Management, 13(2), 119-128. https://doi.org/10.1016/0278-4319(94)90033-7.
  • Bhamornsathit, S., & Katawandee, P. (2016). An analysis of Thai listed hotels: Financial and operational performance. Journal of Business and Behavioral Sciences, 28(2), 55.
  • Chen, M. H. (2007). Macro and non-macro explanatory factors of Chinese hotel stock returns. International Journal of Hospitality Management, 26(4), 991-1004. https://doi.org/10.1016/j.ijhm.2006.04.002.
  • Chen, M. H., Agrusa, J., Krumwiede, D., & Lu, H. J. (2012). Macroeconomic influences on Japanese hotel stock returns. Journal of Hospitality Marketing & Management, 21(1), 81-99. https://doi.org/10.1080/19368623.2011.611731.
  • Chiu, C. N. (2020). Holiday effects on stock prices of the restaurant industry. Current Issues in Tourism, 23(9), 1109-1121. https://doi.org/10.1080/13683500.2019.1586846.
  • Hadi, D. M., Irani, F., & Gökmenoğlu, K. K. (2020). External determinants of the stock price performance of tourism, travel, and leisure firms: evidence from the United States. International Journal of Hospitality & Tourism Administration, 1-17. https://doi.org/10.1080/15256480.2020.1842838.
  • Demir, E., & Ersan, O. (2018). The impact of economic policy uncertainty on stock returns of Turkish tourism companies. Current Issues in Tourism, 21(8), 847-855. https://doi.org/10.1080/13683500.2016.1217195.
  • Gujarati, D. (2004), Basic econometrics. McGraw-Hill Companies.
  • Karadeniz, E., & Koşan, L. (2021). Finansal performans ve fiyat/kazanç oranı: Borsa İstanbul turizm şirketlerinde bir araştırma [Financial performance and price to earnings ratio: A research in Borsa Istanbul tourism companies]. Sosyoekonomi, 29(47), 249-266. https://doi.org/10.17233/sosyoekonomi.2021.01.12.
  • Kim, W. G., & Ayoun, B. (2005). Ratio analysis for the hospitality industry: A cross sector comparison of financial trends in the lodging, restaurant, airline, and amusement sectors. The Journal of Hospitality Financial Management, 13(1), 59-78. https://doi.org/10.1080/10913211.2005.10653800.
  • Liem, P. F., & Basana, S. R. (2012). Price earnings ratio and stock return analysis: Evidence from liquidity 45 stocks listed in Indonesia Stock Exchange. Jurnal Manajemen dan Kewirausahaan (Journal of Management and Entrepreneurship), 14(1), 7-12. https://doi.org/ 10.9744/jmk.14.1.7-12.
  • Roodman, D. (2009). An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86-136. https://doi.org/10.1177/1536867X0900900106.
  • Singh, A. J., & Schmidgall, R. S. (2002). Analysis of financial ratios commonly used by US lodging financial executives. Journal of Retail & Leisure Property, 2(3), 201-213. https://doi.org/10.1057/palgrave.rlp.5090210.
  • Yerdelen Tatoğlu, F. (2018). İleri panel veri analizi [Advanced panel data analysis]. Beta Basım Yayım Dağıtım.
There are 17 citations in total.

Details

Primary Language English
Subjects Tourism (Other)
Journal Section Research Articles
Authors

Ömer İskenderoğlu 0000-0002-3407-1259

Erdinç Karadeniz 0000-0003-2658-8490

Early Pub Date December 5, 2021
Publication Date January 31, 2022
Published in Issue Year 2022 Volume: 8 Issue: 1

Cite

APA İskenderoğlu, Ö., & Karadeniz, E. (2022). Determinants of price to earnings ratio: Evidence from Turkish tourism companies. Journal of Tourism Theory and Research, 8(1), 1-4. https://doi.org/10.24288/jttr.1027187

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