The Determinants of Foreign Portfolio Investments Based on Firm Levels: The Example of Borsa Istanbul (Yabancı Portföy Yatırımlarının Firma Düzeyinde Belirleyicileri: Borsa İstanbul Örneği)

Zekai Senol and Tuba Gulcemal
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Zekai Senol: Sivas Cumhuriyet University
Tuba Gulcemal: Sivas Cumhuriyet University

Business and Economics Research Journal, 2022, vol. 13, issue 3, 435-448

Abstract: Foreign portfolio investments are critical for developing countries such as Turkey in terms of financing the current account deficit, deepening financial markets, increasing firm values, and making investment decisions. For many years, the percentage of foreign investors in Borsa Istanbul (BIST) has been greater than 60%. As a result, it is interesting to see which firms foreign investors invest in and how they make decisions in firms based on internal factors. The determinants of foreign portfolio investments are investigated at the firm level in this study. For the period 2009-2019, data from 41 firms in the BIST manufacturing sub-industries of Metal Goods, Machinery, Electrical Devices, and Transportation Vehicles, as well as Chemical, Pharmaceutical, Petroleum, Tire and Plastic Products, were used. According to the results of the study, it has been determined that Tobin's Q firm value affects the foreign investor ratio positively, while the stock return and volume per share variables affect the foreign investor ratio negatively.

Keywords: Foreign Portfolio Investment; Domestic Investors; Borsa Istanbul (search for similar items in EconPapers)
JEL-codes: C33 G10 G11 (search for similar items in EconPapers)
Date: 2022
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