Unveiling the Effects of Key Audit Matters on Stock Market Indicators: The Effectiveness of PCA and Curvilinear Regression

Authors : Murat Kurtlar

Pages : 237-254

Doi:10.17153/oguiibf.1548722

View : 79 | Download : 140

Publication Date : 2025-04-01

Article Type : Research Paper

Abstract :This study examines the effects of key audit matters on the stock market performance of 95 companies traded on Borsa Istanbul. Key audit matters such as Tangible Fixed Assets, Intangible Fixed Assets, Inventories, Revenue, Trade Receivables, Trade Payables and Cash are associated with the price-earnings ratio, market value/book value ratio and earnings per share. Due to the high correlation between key audit matters, dimensionality reduction has been performed using PCA. As a result of linear and curvilinear regression analyses, it has been determined that the curvilinear model provided higher accuracy and fit with lower MSE and MAE values and significant p-values.
Keywords : Kilit Denetim Konuları, Boyutsallık Azaltma, Regresyon Modelleri