Relationship Between Financial Indicators and Portfolio Investments: A Study on Developing Countries

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Bulut A. E., Acar Balaylar N.

ACTUAL PHENOMENONS OF SOCIAL SCIENCES, Ümit Güner,Alper Yılmaz, Editör, Ekin, Bursa, ss.140-170, 2021

  • Yayın Türü: Kitapta Bölüm / Araştırma Kitabı
  • Basım Tarihi: 2021
  • Yayınevi: Ekin
  • Basıldığı Şehir: Bursa
  • Sayfa Sayıları: ss.140-170
  • Editörler: Ümit Güner,Alper Yılmaz, Editör
  • Dokuz Eylül Üniversitesi Adresli: Evet

Özet

This study deals with portfolio investment from the perspective of Developing Countries (DC) because their financial systems are inadequate and their macroeconomic order is far from stable and is more influenced by short-term capital movements. In this context, the study used panel data analysis to analyze the relationship between Portfolio Investments (PI) entries and financial indicators in developing countries (Brazil, Turkey, South Africa, Mexico, India and Indonesia) with similar macroeconomic indicators. The study uses annual data from 2008 to 2019, credit default swap (CDS), real effective exchange rate and stock return were included as financial indicators in the model. Driscoll-Kraay estimator was used in regression estimation using one-way fixed effects model, one of the methods of panel data analysis. According to the results, there is an inverse and significant relationship between portfolio investment and CDS, real exchange rates have a potential and positive relationship with stock return variable.