Market Composition

Over the past two decades, a series of behavioral finance studies has focused on investigating behavioral patterns and transactional performance in the category of individual investors and institutional investors. Indeed, this interesting research topic is very interesting for both academics and market practitioners, due to high academic value and industrial practical relevance. Specifically, valuable problems such as market composition, information transmission, asset price formation, market efficiency, etc. are clarified by grasping the transaction pattern and investment performance of each investor group in a specific country.

Factors such as asset quality, financial market conditions, foreign exchange market, asset composition, customer financial condition, profitability, capital adequacy ratio, etc. affect the degree of these risks. In order for individual institutions to detect the adverse effects of these risks on health, financial soundness checks should be carried out on a regular basis. Micro health indicators such as capital adequacy ratio, asset quality, robustness of management, profitability and profitability, liquidity, sensitivity to market risk, market-based indicators such as market prices of financial products and credit ratings Individual health and health indicators FI (Evan and others 2000). These indicators are explained in detail in the subsequent sections of this article.

The Stock Market Composite Index is a financial indicator that reflects the performance of the entire stock market. Stock market performance can be interpreted as stock market return or stock price fluctuation. Stocks are also called stocks. Daily stock index may rise or fall depending on overall trend of stock price. But what will raise or lower the stock market index? Basically, the stock price is influenced by supply and demand theory (Somoye, Akintoye, & Oseni, 2009). When more investors buy and sell shares, the price will rise. When people sell stocks, the price goes down. However, Somoye et al. (2009) stated that fairness could be affected by two group variables, macroeconomics and microeconomics. Microeconomics is a dividend and stock dividend (Somoye, Akintoye, & Oseni, 2009).