Analysis of the relationship between financial performance indicators and earnings per share using panel data method

Authors : İdris Adıgüzel

Pages : 192-198

Doi:10.56723/dyad.1680993

View : 48 | Download : 90

Publication Date : 2025-07-28

Article Type : Research Paper

Abstract :This study aims to examine the effects of financial ratios on earnings per share (EPS). Using panel data analysis, variables such as firm value, asset turnover, short-term debt to total debt ratio, and liquidity ratio were considered as determinants of EPS. The study utilised quarterly financial data from a total of 14 companies operating in the energy and automotive sectors listed on the BIST between the first quarter of 2018 and the fourth quarter of 2024. A fixed effects model was applied, and model selection was validated using the Hausman test. The model estimation was performed using the Driscoll-Kraay robust standard error estimator. According to the findings, firm value and asset turnover ratio have a positive effect on EPS at the 1% significance level. On the other hand, the effect of the liquidity ratio on EPS was determined to be negative and significant at the 5% level. The ratio of short-term debt to total debt has no statistically significant effect on EPS. These findings indicate that companies need to use their assets efficiently and maintain their liquidity levels at optimal levels to increase their earnings per share.
Keywords : Hisse başına kâr, finansal oranlar, panel veri

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