The Impact of Reputation Capital on Stock Return in Banks: A Case Study in Borsa Istanbul

The aim of this study is to calculate the reputational capital of nine Turkish commercial banks whose stocks are traded on Borsa Istanbul between 2015 and 2021, in accordance with the reputational capital model (CRMF - The Reputational Capital of Banks in the Financial Markets) developed by Pacelli (2016), and to determine the impact of changes in certain micro and macro indicators on stock returns through panel data analysis. According to the results of analysis, at the 1% level of statistical significance, the price-earnings ratio positively affects stock returns, while the economic growth rate has a negative effect. At the 5% level of statistical significance, the change rate of reputational capital, net profit growth rate, and exchange rate positively affect stock returns. At the 10% level of statistical significance, the CBRT overnight interest rate negatively affects stock returns. It has been observed that the trading volume rate and consumer price index do not have statistically significant effects on stock returns.