Vol. 8 No. 4 (2020): Business & Management Studies: An International Journal


Pınar AVCI
Dr., Tekirdağ Namık Kemal University

Published 2020-12-10


  • Holding Firmalar, Piyasa Değeri, Muhasebe Verileri
  • Holding Companies Market Value Accounting Data

How to Cite

AVCI, P. (2020). ANALYSIS OF ACCOUNTING AND ECONOMIC DATA FOR THE COMPANY MARKET VALUE: A CASE OF HOLDING COMPANY. Business & Management Studies: An International Journal, 8(4), 387–408. https://doi.org/10.15295/bmij.v8i4.1721



Different policies, such as expanding financial markets and changing capital structures, have an impact on firm value. Accounting data generated by firms are used to evaluate this effect. In this case, it is seen that many researchers benefit from accounting book value for companies whose market data are not suitable (Bartholdy et al., 2000). According to, findings obtained by Ohlson (1995), Willett (2003) and Cooke et al. (2009) show that there is a relationship between the market value of the firm and the accounting information and other information.


The purpose of this study is to explain the relationship between the market value of holding companies and accounting data and macroeconomic data. Accounting data are obtained from the balance sheet, and income statement and these data are the book value and net profit of the firm. Macroeconomic data are the gross domestic product (GDP), interest rate, production index, exchange rate and BIST100 index. Holding companies need to take into account the data obtained from the balance sheet and income statement and market forces while measuring the market value.                      


The contribution to the literature of this study is that regarding these types of companies, there are no adequate studies in Turkey which investigate this topic. Therefore, this study differs from other studies.


This study is a research article.

 RESEARCH PROBLEMS                                                           

In this study, it researches whether there is a relationship between the market value of five holding companies in Turkey and both the book value and the profit or not.


The study takes the basis as five companies that have approximately 80% of the total market value of holding companies listed on Borsa Istanbul in 31.12.2018. These companies are Koç Holding A.Ş., Hacı Ömer Sabancı Holding A.Ş., TAV Havalimanları Holding A.Ş., Tekfen Holding A.Ş. and Petkim Petrokimya Holding A.Ş. The data of this study obtained from the Public Disclosure Platform (KAP), www.investing.com and the Central Bank Electronic Data Distribution System (EVDS).


In the study, a quantitative analysis is applied, and unit root tests, Johansen cointegration test and dynamic least squares method (Dynamic Ordinary Least Squares -DOLS) are used (Phillips ve Perron, 1988; Johansen, 1991; Stock ve Watson,1993; Ahmed, 2008; Katircioğlu, 2009).


Models (1) and (2) are obtained in order to examine the relationship between the market value of holding companies and both accounting data and macroeconomic variables.

PDt = b0 + b1DDt + b2NKt + εt                                                                                                                           (1)

PDt = b0 + b1GSYİHt + b2FOt + b3ÜEt + b4BİST100t + b5DKt + εt                                                      (2)

  1. FINDINGS AND DISCUSSION                         


In this study, findings are obtained in three steps. Firstly, according to the results of the unit root tests, the probability values ​​of the variables at the first difference level are less than 5%, and this shows that the variables are stationary at the first difference level.

Secondly, according to the results of the Johansen cointegration test of variables that become stationary at the first difference level, it has shown that there is a long-term link between the market value of al holding companies, book value and net profit. Besides, in this study, it is attained that there is a long-period relationship between the market value of all holding companies and macroeconomic factors.   

Test results of the DOLS method are obtained in the third step. These results indicate that there is a positive and statistically significant relationship between the market value and book value of all holding companies. While there is a positive relationship between the market value of Sabancı and TAV holding companies and their net profits, it is determined that there is a negative relationship between the market value and net profit of Koç holding company. Also, the findings show that GDP increases the market value of Koç, Sabancı and TAV holding companies and interest rate enhances the market value of TAV and TEKFEN holding companies. The BİST100 index also increases the market value of Sabancı, Petkim and Tekfen holding companies. On the contrary, the production index decreases the market value of Koç and Sabancı holding companies.


The results of this study are consistent with the model results obtained by Ohlson (1995), which accounting and non-accounting data affect the market value of firms. Besides, these findings coincide with the results obtained by Willett (2003), Cooke et al. (2009) Bhargava (2014) for, Eriabie & Egbide (2016), El-Diftar & Elkalla (2019) and Camilleria et al. (2019). However, the findings of this study in Turkey are not in line with the results of Elbakry et al. (2017) for German and U.K.


4.1. RESULTS of the ARTICLE                                                         

As a result, the existence of a long-term relationship between the market value of holding firms and both accounting data and macroeconomic data is determined by the Johansen cointegration test in this study. The market value of Koç, Hacı Ömer Sabancı, TAV, Tekfen and Petkim holding companies enhances with the book value and net profit. Besides, it is generally determined that while GDP, interest rate and BIST 100 index increase the value of holding companies, production index and exchange rates decrease it.



The findings obtained in this study may suggest that researchers should focus on different aspects of this topic in the future. First, researchers can examine this topic based on other accounting and other macroeconomic data which are not addressed in this study. Second, by investigating other holding companies in Turkey, panel data analysis can be done. Finally, by making comparisons between Turkey and other countries, the relationship between the market value of the firm and both the accounting and macroeconomic data can be examined.


The limitation of this study is five holding companies that have approximately 80% of the total market value of holding companies listed on Borsa Istanbul in 31.12.2018. Therefore, the study cannot be generalized.


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