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Journals / Uluslararası Avrasya Sosyal Bilimler Dergisi / 2020 / Cilt: 11 - Sayı: 40

THE EFFECT OF OPERATING RATIOS ON FIRM VALUE: AN APPLICATION IN EUROPEAN AIRLINES

Faruk DAYI
Tolga ULUSOY
Pages
493–505
DOI
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AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

As the financial productivity increases, the value of the firm increases.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:Firms should use their assets efficiently to increase their profit.
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Key Findings & Data:Ratio analysis is widely used to analyze productivity for financial performance.
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Conclusion & Impact:As the financial productivity increases, the value of the firm increases.
🔬Design:Research Article
📍Scope:2010-2016 Verileri
⚙️Variables:Domain Parameters

Özet

Firms should use their assets efficiently to increase their profit. There are many methods to evaluated the productivity of firms' activities. Ratio analysis is widely used to analyze productivity for financial performance. This study is used activity ratios to evaluate the financial productivity of airlines. Activity ratios are used the productivity of firms' assets, receivables, payables, inventories and fixed assets. As firms use their assets productively, their profit increases. Firms' high performance can raise their stock value, which in turn, increases their value. In this study, it is aimed in productivity in terms of activity ratios for Airlines. In addition, it is investigated the effect of activity ratios on firm value in this study. The 7-years (2010-2016) data of the top 10 airlines operating in Europe are used in the implementation. Asset turnover, inventory turnover, accounts receivables turnover, financial leverage ratio and stock price variables are analyzed using the method of panel data. According to analysis of results, firm value is positively affected by accounts receivables turnover and asset turnover, and negatively affected by inventory turnover and financial leverage ratio. As the financial productivity increases, the value of the firm increases.

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Cite This Article

DAYI, F., ULUSOY, T. (2020). THE EFFECT OF OPERATING RATIOS ON FIRM VALUE: AN APPLICATION IN EUROPEAN AIRLINES. Uluslararası Avrasya Sosyal Bilimler Dergisi, Cilt: 11 - Sayı: 40, 493–505. https://ajindex.com/articles/339177

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