مرکز منطقه ای اطلاع رساني علوم و فناوري - THE ROLE OF CAPITAL MARKETS ON FINANCING REAL SECTOR

Abstract :

The aim of this study is to examine to what extent the real sector makes use of funds presented to the capital markets in Turkey. The financial system in Turkey is in the process of rapid growth. The share of nonbank financial institutions in the financial system is increasing. Securities and issuance of securities and therefore the funds going towards the capital market have increased by years. However, the use of the majority of these funds by public sector indicates that the capital markets cannot carry out fully its function of transferring savings to productive investments. Recently, the increase in the diversity of financial instruments and real sector’s fund– raising by issuing corporate papers and corporate bonds again are important with respect to improvement in real sector’s raising funds and diversification of fund sources. Furthermore, the number of initial public offerings is low, but the rate of initial public offerings of companies is growing.