Berke, Burcu2024-11-072024-11-0720121300-3623https://hdl.handle.net/11480/14483There are two approaches for the relationship between exchange rates and stock prices including traditional and portfolio balance approaches. According to traditional approach, changes in exchange rates affect the profitability of firms and finally, results in a change in stock prices. In this approach, there is a positive relationship between these two variables. On portfolio balance approach, the increase in stock prices has a reducing effect on exchange rate and leads to a negative relationship. In this study questioning of the validity of these approaches for the period 01/04/2002-31/07/2012, the relationship between TL/USD exchange rate and IMKB100 price index is being investigated by using FMOLS, CCR and DOLS methods in Turkey. The results of the three tests show that there is a negative relationship between two variables and therefore, portfolio balance approach is supported.trinfo:eu-repo/semantics/closedAccessExchange RatesStock PricesFMOLSCCR and DOLS MethodsArticle163243257WOS:000420275800014N/A