Yerli ve Yabancı Yatırımcıların BIST-100 Endeksi Üzerine Etkilerinin İncelenmesi
Investigation of The Effects of Local and Foreign Investors on BIST-100 Index

Summary/Abstract: Purpose – Finding out the effects of foreign capital investments on Turkey’s economy as herd effect, positive feedback trading and stock transaction volume. Finding empirical evidence of the effects thought to influence Turkey’s economy in times like August 2018 or May 2013. Design/methodology/approach – In this study, indexes developed to study levels of investment behavior. Whether or not results of the calculation methods used in stock trading volumes, momentum measure and herd effect are zero were evaluated using t-statistic. the end of day custody clearing balances at the brokerage houses trading on behalf of domestic and foreign investors in Borsa Istanbul between January 1, 2013 and December 31, 2018 were obtained from Istanbul Stock Exchange Settlement and Custody Bank, Inc. and daily share price data from Borsa Istanbul. The results were analyzed with the help of SPSS 20 program. Findings – Except of the time frames May-June 2013 and August 2018, there have been no instances of positive feedback trading being done by foreign investors while local investors used positive feedback trading all the time. Local investors has contributed higher percentage of the trading volume than foreign investors throughout the whole research interval. Results of this study shows that foreigners had a stronger impact on herd effect compared to locals. Also it has been found that both foreign and local investors traded collectively but this effect was found to be stronger on foreign investors. Discussion – The underlying reason behind the transaction densities of foreign investors in times of crisis like Gezi Park and Brunson Crisis; herd psychology effect and positive feedback processes created accordingly can be explained by the instinct to reduce the losses and, if possible, make profits during the crisis. The incentives of the foreign investors in the Turkish stock market are found to be long-term investing and staying permanently in Turkey's market rather than speculation.

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