Financial Failure Risks, Market Pricing, and Sustainable Growth in Information Technology Firms
Chapter from the book: Berberoğlu, M. & Şimşek, O. (eds.) 2026. Sustainable Finance, Risk, and Performance.

Cengizhan Karaca
Gaziantep University

Synopsis

This study examines the financial failure risks of technology firms listed on Borsa İstanbul within the framework of different financial failure prediction models and evaluates the findings in relation to market pricing. The main objective of the study is to reveal the predictive relationship among financial sustainability, financial resilience, and investor behavior in technology firms. In this context, the financial failure risks of 19 publicly traded technology firms were analyzed using the Altman Z-Score, Springate S-Score, and the newly developed MFA model. As indicated by public financial report data, periodical scores were calculated for each company and then matched against their respective recent share price movements. Based on the study's results, it has been found that most of the technology companies have a low level of financial failure risk based on the Altman Z-score and Springate S-score methods. Although, MFA score seems to generate more sensitive results especially during periods of crisis and macroeconomic vulnerability. The results obtained from the study have shown that financial sustainability within the technology industry must be evaluated not only by how well the firm performs financially but also by considering its market image.

How to cite this book

Karaca, C. (2026). Financial Failure Risks, Market Pricing, and Sustainable Growth in Information Technology Firms. In: Berberoğlu, M. & Şimşek, O. (eds.), Sustainable Finance, Risk, and Performance. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub1325.c5312

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Published

June 13, 2026

DOI