Investigation of the Impact of Tax Penalty Announcements on Banks’ Stock Returns

Soner Yakar, Gözde Elbir and Serkan Kandır
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Soner Yakar: Çukurova University
Gözde Elbir: Cag University
Serkan Kandır: Cukurova University

Journal of Finance Letters (Maliye ve Finans Yazıları), 2021, vol. 36, issue Special2, 219-232

Abstract: Penalties are imposed for unlawful acts under Tax Procedure Law numbered 213. Administrative fine is imposed for misdemeanor in the form of loss of tax revenue and tax-related irregularity. Public banks announce tax penalty information via Public Disclosure Platform. In this study, impact of 13 tax penalty announcements of 5 Borsa Istanbul banks during 2012-2018 period on banks’ stock returns is examined by event study methodology. Empirical findings suggest that tax penalty announcements do not have a significant impact on stock returns of the banks. This finding implies that stock market appears to be efficient in semi-strong form.

Keywords: Stock returns; tax penalty announcements; event study (search for similar items in EconPapers)
JEL-codes: G14 K34 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:acc:malfin:v:36:y:2021:i:special2:p:219-232

DOI: 10.33203/mfy.846073

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