Factors Affecting Borsa İstanbul Trading Volume and Overconfidence Bias

The aim of this study is to examine the factors affecting trading volume Borsa Istanbul within framework overconfidence bias, one behavioral finance theories. For purpose, stock market volume, BIST 100 index closing values, historical volatility and credit default swaps (CDS) premium variables for period covering years 2010 – 2019 were used in study. During analysis process, firstly ADF, PP KPSS unit root tests performed then Granger causality was applied. findings showed that CDS premiums are cause but not volume. obtained compared with results literature interpreted. It interpreted linking earnings increase individual abilities, predictions achievements may a tendency bias investors. In addition, it thought new transactions thus an transaction premiums, on other hand, give positive negative signals about future accepted as risk indicator. can be evaluated investor who perceive opportunity have will try evaluate situation various positions However, fact explained by perception investors high returns pay less attention their own forecasts better than investors' forecasting power. As result, effect activity focus value they determined bias.