International Journal of Research in Finance and Management
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E-ISSN: 2617-5762|P-ISSN: 2617-5754

2024, Vol. 7, Issue 1

Risks of household`s stock market participation rush after the monetary policy shifts in turkey

Mehmet Benturk

This study investigates the risks associated with rushing household stock market participation, with a specific focus on the impact of monetary policy adjustments in Turkey. After the implementation of heterodox policies, the real returns of almost all financial investment alternatives to the stock market became negative, foreign investors reduced their positions rapidly and considerably, and the size and number of IPOs reached record levels. The empirical investigation employed the SHapley Additive exPlanations (Shap) analysis in addition to the XGBoost machine learning method. The analysis has indicated that the increase in new participants in the stock market can be attributed to a reaction to insufficient financial alternatives and real returns. This phenomenon leads to the presence of the risk of irrational pricing in the market and exposes households to vulnerabilities arising from their risky portfolio.
Pages : 267-275 | 95 Views | 38 Downloads


International Journal of Research in Finance and Management
How to cite this article:
Mehmet Benturk. Risks of household`s stock market participation rush after the monetary policy shifts in turkey. Int J Res Finance Manage 2024;7(1):267-275. DOI: 10.33545/26175754.2024.v7.i1c.309
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