The Impact of Political Elections on Financial Markets as Political Risk Factor: A Case Study of the 2023 Turkey Presidential Elections

Esra Karpuz; Yasemin Deniz Koç; Onur Demir

doi:10.59372/turajas.1348877

EN TR

The Impact of Political Elections on Financial Markets as Political Risk Factor: A Case Study of the 2023 Turkey Presidential Elections

Abstract

The aim of the study is to analyze the impact of the 2023 Presidential elections on the BIST-30 index using the event study methodology. When evaluating the findings regarding the impact of the 2023 Presidential elections held in Turkey on the stock returns of companies traded in the BIST-30 index, in the 1st round election is a negative abnormal return while the 2nd round election has a positive abnormal return. According to the research findings, while investors' expectations during the election process were towards the continuation of market stability, the elections proceeding to the 2nd round led to a negative reaction contrary to those expectations. In the second round, the election outcome, which aligned with market expectations, is met with a positive abnormal return in the market. The absence of a study conducted on the 2023 political elections is the originality of the research and its contribution to the literature.

Keywords

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Details

Primary Language

English

Subjects

Finance and Investment (Other)

Journal Section

Research Article

Authors

Esra Karpuz ^*
0000-0003-2765-4082
Türkiye

Yasemin Deniz Koç
0000-0001-8280-7657
Türkiye

Onur Demir
0009-0000-0837-5577
Türkiye

Early Pub Date

December 31, 2023

Publication Date

January 3, 2024

Submission Date

August 23, 2023

Acceptance Date

December 26, 2023

Published in Issue

Year 1970 Volume: 6 Number: 2

DOI

https://doi.org/10.59372/turajas.1348877

IZ

https://izlik.org/JA82GT59KD

Cite

RIS / Bibtex

APA

Karpuz, E., Koç, Y. D., & Demir, O. (2024). The Impact of Political Elections on Financial Markets as Political Risk Factor: A Case Study of the 2023 Turkey Presidential Elections. Turkish Research Journal of Academic Social Science, 6(2), 139-146. https://doi.org/10.59372/turajas.1348877

Cited By

Gelişmekte Olan Ülkeler Perspektifinden Politik Riskin Pay Senedi Piyasalarına Yansımalarına Yönelik Ekonometrik Kanıtlar

TESAM Akademi Dergisi

https://doi.org/10.30626/tesamakademi.1422381

The Impact of Political Elections on Financial Markets as Political Risk Factor: A Case Study of the 2023 Turkey Presidential Elections

The Impact of Political Elections on Financial Markets as Political Risk Factor: A Case Study of the 2023 Turkey Presidential Elections

Abstract

Keywords

Politik Risk Unsuru Olarak Siyasi Seçimlerin Finansal Piyasalara Etkisi: 2023 Türkiye Cumhurbaşkanlığı Seçimleri Olay Çalışması

Öz

Anahtar Kelimeler

References

Details

Primary Language

Subjects

Journal Section

Authors

Early Pub Date

Publication Date

Submission Date

Acceptance Date

Published in Issue

DOI

IZ

Cite

Cited By

Gelişmekte Olan Ülkeler Perspektifinden Politik Riskin Pay Senedi Piyasalarına Yansımalarına Yönelik Ekonometrik Kanıtlar