The effects of public offerings on stock performance: Borsa Istanbul practice

The development of capital markets has great contributions to financial markets and the economy. Companies need financial resources to increase their level of development and ensure their growth. Companies can meet this need either from internal financing sources or external financing sources. However, as the internal financing resources become insufficient, companies also need external financing sources. Companies can meet this need either by borrowing from banks or by offering their own stocks to the public as another method. In this study, it is aimed to analyze the medium and long-term performance of the stocks of companies that were offered to the public for the first time in the technology, information and energy sectors within Borsa Istanbul between the years 2010-2021, and to evaluate them with the event study method. According to the information obtained as a result of the analyzes, the confidence of the investors in the capital market, the contribution of the companies that have been offered to the public for the first time to the development of the capital market and the effect of the public offerings on the financial structure of our country will be measured. As a result of the research, it has been concluded that the investors of the companies that have been offered to the public for the first time in the relevant period and sectors, make profits in the medium and long term and that the companies do not provide excessively positive abnormal returns compared to the market index.