Effects of political preferences on portfolio selection

In recent years, various reasons such as the increase in anomalies in financial markets and the inadequacy of traditional finance theories in explaining irrational investor preferences and behaviors have led to an increase in studies in the field of behavioral finance in the international literature. It is thought that the limited number of studies in this field in our country will increase the importance of the contribution that can be made to the related field. In recent studies in the literature, it has been observed that individual investors diversify their investments in a heterogeneous way. In previous studies, it is seen that the factors affecting the relevant distribution are mainly macro variables (exchange rates, interest rates, inflation, etc.). In the studies conducted as of the 2000s, macro variables were replaced by; personal factors such as personal preferences, values and expectations. It is thought that mental shortcuts have an important effect among the reasons for individual investors to resort to irrational methods, especially in moments of uncertainty. mental shortcuts; It means that individual investors do not resort to reasoning when choosing a portfolio and make decisions based on past experiences and prejudices. In this sense, the concept of cognitive dissonance also comes to the fore. According to the related theory, investors determine their behaviors and thoughts according to their past values. These values are; beliefs, attitudes, and various needs. Experiences gained over time, together with the impact of environmental factors, shape the personality and therefore the behavior of investors. Among the factors examined in previous studies; It was observed that various factors such as age, gender, marital status, risk appetite, experiences were tested. The political preference factor, which is the main subject of the study, is thought to be one of the other personal variables that affect the portfolio selection of individual investors. By applying a questionnaire to individual investors, it is aimed to determine the possible relationship between the political preference variable and other factors and in this context, behavioral finance concepts.