The Efficiency of Public Disclosure for Capital Markets in Turkey

It is crucial to have an efficiently working public disclosure mechanism for capital markets in orderto effectively operate. This is mainly because these systems help to minimize the problem ofasymmetric information by providing robust information flow between issuers, inventors and allother related parties. In this regard, not only the rights of investors and other related parties will bebetter protected but also inactive funds will be used more efficiently in the economy. In this study,the Turkey’s public disclosure system and the recent developments with regard to transparency are analyzed along with their contributions to the Turkish capital markets. Accordingly, since thepublic disclosure platform became operational, the volatility of the equity market returns hasshrinked.