Rapid Change in the Number of Investments in Stock Markets: The Case of Turkey

Year 2022, Issue: 7, 15 - 25, 24.06.2022

Volkan Kaymaz , Aykut Akdağ

Abstract

During the Covid-19 period in Turkey, the number of investors in the stock market has increased in an unprecedented way. The change in the number of investors is associated with many factors such as behavioural factors, macroeconomic indicators, and returns on alternative investment instruments. However, in Turkey, with the effect of the recession, companies started to be offered to the public to be funded by their own sources. This study examines the relationship between the initial public offering index (IPO), the USA dollar rate, the largest alternative to the local currency, the Borsa Istanbul index, and the number of investors, using VAR analysis with data between 2012-2022. Although the results show a positive relationship between the IPO and the number of investors, the increase in the number of investors will not maintain the current trend due to the limited number of companies to be offered to the public.

Keywords

exchange rate, stock market, VAR analysis

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