GLOBAL AND COUNTRY LEVEL DYNAMICS OF FOOD INDUSTRY STOCK PRICES IN TURKEY

Abstract

Since ancient times, agriculture and food sector have remained integral components of societies, playing crucial roles in their economy and social welfare. In this research, we analyze the dynamics of this sector through a financial perspective. This paper investigates long-run and short-run determinants of stock prices in food industry of Turkey. For this purpose, we utilize Autoregressive Distributed Lag Model (ARDL) bound test approach. We use four-factor model, including domestic financial market and economic performance as well as global energy and input prices. This study uses a dataset of monthly series covering the periods between February 1997 to October 2024. The result show cointegration relation between food sector stock prices and four-factors. In long-run, both domestic and global factor influence asset prices in the sector. On the other hand, only domestic factors are significant to explain stock price variation in short-run. Our study has remarkable findings in terms of policy implications and investment decision-making. The findings of this study can be used in terms of portfolio selection, diversification and corporate as well as policymaker decisions.