THE FACTORS AFFECTING THE DECISION OF PORTFOLIO MANAGERS ININVESTING COMMON STOCKS: AN APPLICATION IN TURKEY

Year 2009, , 137 - 144, 10.01.2009

Bengü Vuran , Tuğba Şimşek Gürsoy

https://doi.org/10.14783/maruoneri.677465

Abstract

The high volatility of Capital market instruments in Turkey combined with the unpredictable nature of economy and dynamic political situation makes investment decision a complex and challenging task. Under these circumstances the role of portfolio managers gains importance. The portfolio managers who possess superior market knowledge, who have extensive experience and in-dept analysis and strong forecasting ability are able to make successful investment decisions.
As an investment alternative, common stocks are a popular form of investing used by portfolio managers. They are popular, in part, because they offer investors the opportunity to tailor their investment programs to meet individual needs and preferences. With the growing importance in the role of equities to investors, the selection of attractive stocks is utmost importance to ensure a good return.
This paper is conducted to determine the major criteria and their relative weights taken into consideration by portfolio managers when investing in common stocks in İstanbul Stock Exchange (İSE).

Keywords

Stock Selection, Analytic Hierarchy Process, Multiple Criteria Decision Making, Stock Exchange.

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