The impact of COVID-19 outbreak on Borsa Istanbul: an event study method

Yunus Karaömer and Songül Kakilli Acaravcı

Journal of Economic and Administrative Sciences, 2021, vol. 38, issue 4, 652-666

Abstract: Purpose - This study aims to research how the outbreak of coronavirus disease 2019 (COVID-19) impacts the selected sector price indices in Borsa Istanbul (BIST), Turkey. Design/methodology/approach - The authors use the event study method because it is a useful method as stock prices and market instantly reflect the effect of such an unusual event. Data are retrieved from thehttps://www.investing.com/. Findings - The authors find that selected sectors are impacted by the COVID-19 outbreak. The banking and transportation sectors, on the announcement of first death, were impacted negatively, while the telecommunication and food –beverage sectors were impacted positively. The transportation and banking sectors experience an obvious downturn after the spread of COVID-19, while the food–beverage and telecommunication sectors experience an obvious upturn after the spread of COVID-19. Besides, the most adversely impacted sector is banking. Originality/value - This study bridges the research gap and adds significant insights to the existing literature. The main contribution of this study to the existing literature is the unexpected outbreak impacts on financial markets, especially on BIST. It is also expected that this study will make a significant contribution to analysts, researchers and policymakers.

Keywords: COVID-19; Borsa Istanbul; Event study; Abnormal return (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jeaspp:jeas-06-2020-0111

DOI: 10.1108/JEAS-06-2020-0111

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