The Effect of Bankruptcy Risk and Financial Stress on Firm Value

Abstract

The aim of this study is to investigate the effects of firm bankruptcy risk and auditing factors on the market value of firms and to investigate the effect of auditing on firm bankruptcy risk. The period of the research is 2011-2021. In the study on BIST Sustainability-25 Index, in the first model, the dependent variable is the market value/book value; the independent variables are Springate S Score, Fulmer H Score, Altman Z Score, Çolakoğlu MFA Score; the ratio of the number of independent auditor members to the total number of members; the number of members in the supervisory board; and the number of early risk detection committee members.