What is it about?
Turkey experienced an extreme political event on Friday July 15 2016 in the form of an attempted coup. This paper examines the impact of this event on the components of the Banks Index of the Istanbul Stock Exchange using event study methodology.
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Why is it important?
These studies have generally used the banking institutions listed in the Istanbul Stock Exchange (ISE) that constitute the Banks Index. While political instability is associated with reduced investment, there is a lack of evidence regarding the specific impact of the Turkish attempted coup of 2016 on the ISE. Therefore, providing evidence to fill this research gap would contribute significantly to the literature.
Perspectives
Banks are often excluded from stock return studies on the basis they are different in important respects from non-financial stocks, reducing the available literature on this important sector. With this motivation, we analyze the listed stocks on the Banks Index of the ISE to examine the effect of the coup on banks’ returns. Focusing on the banking sector is justified by the commanding role they play in providing business investment in the country and their success in attracting foreign direct capital flows which has contributed to the rising value of bank stocks
Dr. Salah Alhammadi
Gulf University for Science and Technology
Read the Original
This page is a summary of: Political turmoil and banks’ stock returns: Evidence from Turkey’s 2016 coup attempt, Accounting, January 2020, Growing Science,
DOI: 10.5267/j.ac.2020.7.002.
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