Trading Volume Trend As the Investor’s Sentiment Indicator in Istanbul Stock Exchange = Trading Volume Trend As the Investor’s Sentiment Indicator in Istanbul Stock Exchange / stanbul Menkul K ymetler Borsas nda Yat r mc Duyarl l G stergesi Olarak lem Hacmi Trendi

This study relates the changes of trading volume to investor sentiment, and investigates its ability in predicting stock returns. Investor sentiment is the enthusiasm of irrational investors on an asset, relative to that of rational investors. Having investigated the effects of Investor Sentiment on Stock Prices, Baker and Stein argued that an increase in trading volume reflects a rise in investor sentiment, which can be defined as the change in trading volume per unit of time; called the trading volume trend, it can be used as a measure of investor sentiment on individual stocks. This work aims to find out the volume trend characteristics of all listed equities in the Istanbul Stock Exchange. Results suggest that almost all beta coefficients of volume trend values have positive signs, which reflects the positive contribution of volume changes on the corresponding stock returns.