Abstract:

In Turkey, the companies that are traded on the stock exchange, from 2005 have the obligation to make two separate financial reports according to both the local Single Order Accounting Plan (TDHP) and the International Financial Reporting Standards (UFRS). Since the financial statements organized according to these two systems, which have different principles, are different from each other, the comparison of the two accounting systems is investigated. The objective of this study is to determine the relationship between the financial rates obtained from the financial statements prepared in accordance with the local accounting regulations and the UFRS and the returns of the stock and to investigate econometrically whether this relationship differs according to the applicable accounting standards. According to the findings, the financial interests obtained from the UFRS-compliant financial statements have increased the capacity to declare the return on the stock. Keywords: UFRS, Financial Statements, Stock Return, Panel Data Analysis. JEL Classification: C23, G32, M41