A RESEARCH ON BIST-100 INDEX ACCOUNTING PROFITS AND STOCK PRICES RELATIONSHIP

There are many macro and micro factors affecting stock prices. Some of these factors affect the investors' decisions and change the stock price. In this direction one of the important factors shaping investors' investment decisions is the financial reports of the companies. The purpose of this study is to determine the effect of the accounting profits on the stock price by using the profitability criteria which are found through the ratios of the companies’ financial reports. For this purpose, data were obtained from financial tables and stock prices of companies that are consistently located in Borsa Istanbul 100 Index between 2009-2017. Data from companies were analyzed by panel data analysis, regression analysis and Granger causality test. As a result of the analysis, it was determined that accounting profit affects stock prices. In particular, it has been understood that the accounting profit, the most commonly represented asset profitability in the literature, affects the stock price positively. On the other hand, the net profit margin has emerged as another variable affecting the stock price positively. The results of the study are consistent with the literature and expectations