The place of anomaly of january month on behavioral finance: An application in BIST

It has been observed that investors who are considered to be rational in investment decisions do not actually make full use of market valuation methods and that traditional and modern methods are lacking in explaining anomalies that do not coincide with the effective market hypothesis observed in the markets as a result of empirical studies. At this point, it has been determined that decisions of investors are not rational with the findings obtained through researches conducted with the help of disciplines such as psychology and sociology. Internal and external conditions affecting investment decisions; optimism, overconfidence, representation, anchoring, adjustment, mental accounting, herd such as behavior, conservatism have been examined. In the course of these studies,emergence of a new field has been provided. As a result, behavioral finance has been accepted in academic circles and has taken place in the literature. The purpose of this study is to try to explain the causes of abnormal price movements which are seen in stocks in financial markets from time to time, by examining them in terms of types of anomalies. In the study which covers 2006-2016 period of BİST-100 index located in stock data, the presence of abnormalities in January of seasonal anomaly types is examined. The results obtained are indicative of the presence of the January anomaly in the BIST 100 index. It is seen that BIST 100 index isn't active and investors can gain more than usual in January months.