On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms
This study investigates the factors effective on Piotroski F-score which is a proxy for financial health of the firms. Manufacturing firms operate in Borsa İstanbul are considered in the analyses with using the time period of 2017:Q1-2024:Q3. This study contributes to the literature by identifying f...
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Mehmet Akif Ersoy University
2024-12-01
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| Series: | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
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| Online Access: | https://dergipark.org.tr/en/download/article-file/3900676 |
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| author | Sinan Aytekin Nida Abdioğlu |
| author_facet | Sinan Aytekin Nida Abdioğlu |
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| collection | DOAJ |
| description | This study investigates the factors effective on Piotroski F-score which is a proxy for financial health of the firms. Manufacturing firms operate in Borsa İstanbul are considered in the analyses with using the time period of 2017:Q1-2024:Q3. This study contributes to the literature by identifying financial determinants of Piotroski F-Score in Türkiye. Driscoll and Kraay (1998) estimator is used with fixed effect panel regression in order to handle issues of heteroscedasticity, cross sectional dependency and autocorrelation in the model. Altman Z-score, return on invested capital, market to book ratio, Tobin’s Q ratio and Beneish M-score significantly impact Piotroski F-score. According to the regression results, companies with lower financial distress risks (higher Altman Z-score) are expected to have better financial health. Similarly, those with improved return on invested capital tend to exhibit stronger financial health. Moreover, firms with higher market-to-book ratios are generally more profitable, potentially leading to higher Piotroski F-scores, indicating better financial health. A higher Tobin’s Q value suggests greater performance expectations from the company, which correlates with higher financial health. Conversely, a negative relation between the Beneish M-score and Piotroski F-score implies that companies with a higher likelihood of earnings manipulation tend to have weaker financial health. |
| format | Article |
| id | doaj-art-2999858ba57b458a83c98e4b3419ac96 |
| institution | Kabale University |
| issn | 2149-1658 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Mehmet Akif Ersoy University |
| record_format | Article |
| series | Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi |
| spelling | doaj-art-2999858ba57b458a83c98e4b3419ac962025-01-27T12:39:37ZengMehmet Akif Ersoy UniversityMehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi2149-16582024-12-011141457147610.30798/makuiibf.1477251273On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul FirmsSinan Aytekin0https://orcid.org/0000-0003-1502-2643Nida Abdioğlu1https://orcid.org/0000-0002-8498-9893BALIKESİR ÜNİVERSİTESİ, İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİBANDIRMA ONYEDİ EYLÜL ÜNİVERSİTESİ, İKTİSADİ VE İDARİ BİLİMLER FAKÜLTESİThis study investigates the factors effective on Piotroski F-score which is a proxy for financial health of the firms. Manufacturing firms operate in Borsa İstanbul are considered in the analyses with using the time period of 2017:Q1-2024:Q3. This study contributes to the literature by identifying financial determinants of Piotroski F-Score in Türkiye. Driscoll and Kraay (1998) estimator is used with fixed effect panel regression in order to handle issues of heteroscedasticity, cross sectional dependency and autocorrelation in the model. Altman Z-score, return on invested capital, market to book ratio, Tobin’s Q ratio and Beneish M-score significantly impact Piotroski F-score. According to the regression results, companies with lower financial distress risks (higher Altman Z-score) are expected to have better financial health. Similarly, those with improved return on invested capital tend to exhibit stronger financial health. Moreover, firms with higher market-to-book ratios are generally more profitable, potentially leading to higher Piotroski F-scores, indicating better financial health. A higher Tobin’s Q value suggests greater performance expectations from the company, which correlates with higher financial health. Conversely, a negative relation between the Beneish M-score and Piotroski F-score implies that companies with a higher likelihood of earnings manipulation tend to have weaker financial health.https://dergipark.org.tr/en/download/article-file/3900676piotroski f-scorebeneish m-scorealtman z-score financial healthfinancial performanceborsa i̇stanbulpanel data analysispiotroski f-scorebeneish m-scorealtman z-score financial healthfinancial performanceborsa i̇stanbulpanel data analysis |
| spellingShingle | Sinan Aytekin Nida Abdioğlu On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms Mehmet Akif Ersoy Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi piotroski f-score beneish m-score altman z-score financial health financial performance borsa i̇stanbul panel data analysis piotroski f-score beneish m-score altman z-score financial health financial performance borsa i̇stanbul panel data analysis |
| title | On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms |
| title_full | On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms |
| title_fullStr | On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms |
| title_full_unstemmed | On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms |
| title_short | On the Financial Determinants of the Piotroski F-Score: An Analysis of Borsa İstanbul Firms |
| title_sort | on the financial determinants of the piotroski f score an analysis of borsa istanbul firms |
| topic | piotroski f-score beneish m-score altman z-score financial health financial performance borsa i̇stanbul panel data analysis piotroski f-score beneish m-score altman z-score financial health financial performance borsa i̇stanbul panel data analysis |
| url | https://dergipark.org.tr/en/download/article-file/3900676 |
| work_keys_str_mv | AT sinanaytekin onthefinancialdeterminantsofthepiotroskifscoreananalysisofborsaistanbulfirms AT nidaabdioglu onthefinancialdeterminantsofthepiotroskifscoreananalysisofborsaistanbulfirms |