ANALYSIS OF THE RISK PROFILE OF GREEN STOCKS IN TÜRKİYE IN THE PROCESS OF NEW INDUSTRIALIZATION STRATEGIES

The incentives and mechanisms implemented by Turkey regarding renewable energy sources have increased the number of companies operating in this sector, and the stocks of these companies have been traded on Borsa Istanbul since 2010. Turkey's emphasis on green transformation in its new industrialization strategy provides investors with information that the development of green stocks in the financial market will continue in the coming years. The aim of the study is to reveal the risk profile of green stocks traded on Borsa Istanbul during the new industrialization strategy process. The Capital Asset Pricing Model (CAPM) was used to determine the risk profiles of green stocks. In the study, the returns of the stocks of companies included in the BIST100 index between November 17, 2022 and September 19, 2024 were used to calculate how much systematic and unsystematic risk an investor investing in these stocks would be exposed to. The coefficients of the model show that a portfolio consisting of green stocks has a specific risk profile. In addition, when the stocks are considered individually, it is seen that their specific risks are higher than their systematic risks. This situation shows that the risk-return returns of green stocks are quite sensitive to the risks originating from companies operating in the renewable energy sector. The CAPM model was also calculated for the period May 24, 2024- September 19, 2024, when the new industrialization strategy was announced to the market. It is seen that the return of the portfolio is more affected by specific risks in this process. However, it was found that the specific risks of green stocks decreased in this process. This situation is related to the news effect of the new industrialization strategy on green stocks and the important role of state support in renewable energy sector investments.  Keywords: Green Finance, Risk Separation, Capital Asset Pricing Model