Essays in corporate finance : an analysis of stock market investment patterns in emerging countries from a behavioral and a traditional perspective
Author(s)
Advisor
Date
2017-07Publisher
Bilkent University
Language
English
Type
ThesisItem Usage Stats
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Abstract
This thesis investigates the investment patterns in emerging stock markets first from a
behavioral then from a traditional perspective.
The first two chapters deal with affective motivations in the stock investment
decision. First, we develop the hypothesis concerning the affect-based investment
motivations in the stock markets and the role of affective self-affinity. Based on
Social Identity Theory, Affect literature, Socially Responsible Investing literature and
Home Bias literature, we propose that identification with different dimensions of a
company may trigger affect-based extra investment motivation. The following chapter
tests the hypotheses developed in the first chapter using partial least squares path
analysis with Turkish stock investors. We conclude that the ideas of socially
responsible investing and nationalism have significant positive effects on the
investment motivation. Likewise, the people and the groups that the investors identify themselves with have significant positive effects on the affect-based motivations to
invest in the companies, which are perceived to support those people and groups.
The last chapter, studies the return patterns in MENA stock markets during the Arab
Spring events in an event study setting. Considering the three-year period of 2010-
2013, we study the effects of 172 events on the stock markets of nine countries in the
region, namely; Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Saudi Arabia,
Syria, and Tunisia. Using Brown and Warner (1985) event study methodology, we
have found some events have relatively large effects, though we cannot find
significant reactions on the average. Hence, we cannot conclude that stock markets
react significantly to the events during Arab Spring.
Keywords
AffectEmerging Markets
Investor Behavior
Socially Responsible Investing
Stock Market Investment Patterns