The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s

In today’s globally competitive environment, companies must keep up with these competitive conditions to be successful. Failure of companies to show the expected financial performance, fulfil their financial obligations, or reach their financial targets is considered a financial failure or bankruptc...

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Main Author: B. Tekin
Format: Article
Language:Russian
Published: Government of the Russian Federation, Financial University 2021-12-01
Series:Финансы: теория и практика
Subjects:
Online Access:https://financetp.fa.ru/jour/article/view/1386
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author B. Tekin
author_facet B. Tekin
author_sort B. Tekin
collection DOAJ
description In today’s globally competitive environment, companies must keep up with these competitive conditions to be successful. Failure of companies to show the expected financial performance, fulfil their financial obligations, or reach their financial targets is considered a financial failure or bankruptcy risk. Real Estate Investment Companies or Trusts (REICs or REITs) are capital market institutions that qualify as legal entities and are partnerships in a joint-stock company that provides financing to all kinds of real estate or real estate projects and bring together many investors for the desired real estate. REITs are an essential investment choice that continues its rapid development in Turkey. This study aims to examine the relationships between the ZScores calculated by periods of REIT companies traded in Borsa Istanbul between 2010–2019 and the stock price performances. In the study, primarily Altman Z-Score and Springate S-Score values of companies traded in Borsa Istanbul were calculated with the help of financial ratios. Then, Pedroni and Kao panel co-integration analysis and Dumitrescu-Hurlin panel causality analysis were performed. According to the analysis results, there is a long-term relationship between the financial failure scores of REIT companies and their stock prices. However, a causality relationship was found between the series.
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publishDate 2021-12-01
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spelling doaj-art-b60b3e5edd094b37818b7ab823055b822025-08-20T03:00:42ZrusGovernment of the Russian Federation, Financial UniversityФинансы: теория и практика2587-56712587-70892021-12-0125614516410.26794/2587-5671-2020-25-6-145-164889The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT sB. Tekin0Çankırı Karatekin UniversityIn today’s globally competitive environment, companies must keep up with these competitive conditions to be successful. Failure of companies to show the expected financial performance, fulfil their financial obligations, or reach their financial targets is considered a financial failure or bankruptcy risk. Real Estate Investment Companies or Trusts (REICs or REITs) are capital market institutions that qualify as legal entities and are partnerships in a joint-stock company that provides financing to all kinds of real estate or real estate projects and bring together many investors for the desired real estate. REITs are an essential investment choice that continues its rapid development in Turkey. This study aims to examine the relationships between the ZScores calculated by periods of REIT companies traded in Borsa Istanbul between 2010–2019 and the stock price performances. In the study, primarily Altman Z-Score and Springate S-Score values of companies traded in Borsa Istanbul were calculated with the help of financial ratios. Then, Pedroni and Kao panel co-integration analysis and Dumitrescu-Hurlin panel causality analysis were performed. According to the analysis results, there is a long-term relationship between the financial failure scores of REIT companies and their stock prices. However, a causality relationship was found between the series.https://financetp.fa.ru/jour/article/view/1386financial failurebankruptcy riskreitsaltman z-scorespringate s-scorepanel causality testpanel cointegration test
spellingShingle B. Tekin
The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s
Финансы: теория и практика
financial failure
bankruptcy risk
reits
altman z-score
springate s-score
panel causality test
panel cointegration test
title The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s
title_full The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s
title_fullStr The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s
title_full_unstemmed The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s
title_short The nexus between financial failure and stock prices: Panel Pedroni, Panel Kao and Panel AR DL Co-Integration Tests in Turkey REIT s
title_sort nexus between financial failure and stock prices panel pedroni panel kao and panel ar dl co integration tests in turkey reit s
topic financial failure
bankruptcy risk
reits
altman z-score
springate s-score
panel causality test
panel cointegration test
url https://financetp.fa.ru/jour/article/view/1386
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