The impacts of International Portfolio Investments on İstanbul Stock Exchange Market

ABSTRACT
The aim for this study is to investigate the role of international investors during 
the financial crisis in 2001. The impacts of two basic investment strategies of 
international investors on Istanbul Stock Exchange had been analyzed during the crisis 
and after crisis period that is between 2001-2004. These investment strategies are 
positive feedback trading and herding. Previous researches have revealed that foreign 
investors are more successful in timing of buying and selling securities. In addition, there 
is too much discussion about herding behaviors of the institutional investors. Main data 
of this study is the monthly stock positions of 455 active financial institutions that are 
provided from Istanbul Stock Exchange, Takasbank and Finnet Financial Information 
Company. The findings revealed that the foreign investors was engaged in negative 
feedback trading activity that was stabilized the financial market during the crisis, 
whereas domestic investors caused the instability in markets by engaging in positive 
feedback trading. The second outcome of the study was related with the herding 
behavior of investors. It is found that the both of investor groups have been participated 
the herding behavior in the market not only in the peak period of the crisis but also post 
crises periods. 

Tamami icin Kaynak:http://dergi.sayistay.gov.tr/icerik/der77m6.pdf