REVIEW OF FOREIGN INVESTMENTS BEFORE AND AFTER THE IMPLEMENTATION OF TMS IN BIST FOR THE PERIOD 1997-2020

Abstract

In recent years, as a result of globalization, economic borders have disappeared and important developments have been experienced in financial markets as in many areas. Thanks to these developments in the financial markets, those who demand funds as well as those who supply funds have become able to benefit from international markets as well as national markets. After this dynamism of international financial markets, differences in financial reporting transactions revealed the need for investors to reach accurate and comparable information, and studies were carried out in this area to meet this need.

As a result of these studies, international financial reporting standards (IFRS) have been established. With IFRS, companies are provided with the opportunity to access accurate, comparable and transparent financial reports, enabling companies to obtain capital at low cost and make investments in the international arena. These standards also aim to ensure efficient resource allocation in national and international markets.

In order to adapt to the developments in the world in the field of accounting, TMSK has decided to implement the IFRS set published by the UMSK as it is in our country. As a result, within the framework of the copyright agreement with the IASB, Turkish translations of IFRSs were announced in the official gazette with the expression Turkish Accounting Standards (TMS) and Turkish Financial Reporting Standards (TFRS).

This study aims to reveal the changes in the amount of foreign capital investing in Borsa Istanbul (BIST) with the implementation of IFRS standards in our country. In the study, it was concluded that the economic crises and internal unrest in the world and in our country affected the amount of foreign investments, but with the implementation of IFRS, the total transaction volume of foreign investments in the BIST continued to increase.