Abstract
Investors in financial markets have recently sought rational investment decisions with advanced technology and information obtained from various sources. Therefore, investors need to accurately determine the value of the firm. The value of companies in the energy sector contains different dynamics than companies in other sectors. The aim of this study is to develop models that best represent the values of companies in the energy sector and make them available to shareholders. For this purpose, OLS regression and Panel Data Analysis were used in the study. The data of the models to be tested in the study were obtained from the data of 11 companies traded in the Borsa Istanbul (BIST) Electricity Index between 2009-2018. In the analysis of the study, 3 models, namely Market to Book Value, Standardized Economic Value Added and Standardized Market Value Added, were created to represent the company value, and the model that best represents the company value for the shareholder was presented.Keywords: Panel Data Analysis, Economic Value Added, Market Value, Market Value Added, Energy SectorJEL Classifications: G20, G32, M41, Q43DOI: https://doi.org/10.32479/ijeep.11520
Highlights
Correct determination of the market values of the companies in the energy sector is very important for the sustainability of these companies
In this part of the study, the findings obtained as a result of OLS regression analysis and panel data analysis are included
It was seen that the model established with the MVA criterion, which is related to EVA, is in the last step in the ranking. While stakeholders such as company managers and investors are trying to make efficient and optimal investment decisions according to the profitability structure of the companies, but nowadays they are trying to shape their decisions on the value created by companies
Summary
Correct determination of the market values of the companies in the energy sector is very important for the sustainability of these companies. While the aim of companies was only profit maximization between the years 1930 and 1960, today the main purpose of companies is to maximize the value of the company. It is a very complex issue for shareholders to determine what the value of the company is and to measure it realistically. There are different factors that affect the value of companies in the energy sector. Lucas and Mendes-Da-Silva (2018) analyzed the effect of climate change on firm value and found that temperature and precipitation affect firm value in the energy sector
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