Factors affecting firm stock market value: an application on bank and insurance firms

The purpose of this study is to examine whether there is a relationship between stock market value and profitability, capital structure and growth rate of banks and insurance companies. For this purpose, a panel regression analysis was made on a sample consisting of 12 banks and 5 insurances operated in Stock Exchange Istanbul, using quarterly data for 2008-2015 period. The price to book ratio and Tobin’s Q is used as a dependent variable in the study. Liquidity, return of equity, leverage ratio, size, asset growth and intangible asset ratios are used as independent variables. According to the results of the regression analysis, it is determined that the leverage ratio in insurance companies affects the price to book ratio positively and the return on equity negatively. Analysis results for banks show that the leverage and size variables affect the price to book ratio in the negative direction, the asset profitability and the intangible assets in the positive direction.