THE RELATIONSHIP BETWEEN CORPORATE GOVERNANCE RATING AND RETURN OF THE STOCKS: AN INVESTIGATION ON COMPANIES OF BIST REAL ESTATE INVESTMENT TRUST

Huseyin Çetin, Mehmet Nuri Salur and Ahmet Akusta
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Huseyin Çetin: NECMETTIN ERBAKAN UNIVERSITY, FACULTY OF POLITICAL SCIENCES
Mehmet Nuri Salur: NECMETTIN ERBAKAN UNIVERSITY, FACULTY OF POLITICAL SCIENCES
Ahmet Akusta: KONYA TEKNİK UNIVERSITESI, REKTÖRLuK

Ekonomi Maliye Isletme Dergisi, 2020, vol. 3, issue 1, 66-74

Abstract: This paper, by using Cumulative Abnormal Returns method, investigates that whether the stocks have abnormal returns after the announcement of the corporate governance ratings of the companies in both BIST Corporate Governance Index and BIST Real Estate Investment Trust Index to the public in 2018, Event study method was used. Announcement of the corporate governance ratings is determined as event day (t0). Two event windows were selected, five days before and after the event day (t-5, t0, t+5), and five days following the event day (t0, t+5). It was determined that cumulative abnormal return was obtained for selected event windows. The stock prices are also more stable after the event day. After the Announcement of the corporate governance ratings, both abnormal returns stability of stock values indicates that the market is semi-strong form efficient.

Keywords: Corporate Governance; Return of Stock; Cumulative Abnormal Returns (search for similar items in EconPapers)
JEL-codes: G34 M40 M49 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:gnx:emid43:2020-3-1-746029

DOI: 10.46737/emid.746029

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