The Impact of Terrorism on Turkish Banks' Stocks and Cross-bank Variation of Abnormal Returns
Document Type
Article
Source of Publication
Global Economy Journal
Publication Date
6-1-2020
Abstract
© 2020 World Scientific Publishing Company. This paper investigates the impact of the recent terrorist attacks on the Turkish banking sector. Specifically, an event study analysis is executed to estimate the abnormal returns of banks' stocks in Turkey. According to the results, negative and significant abnormal returns were observed on the event dates of terrorist attacks, those of which especially occurred at international points and touristic places. The study continues with a regression analysis that looks into the cross-bank variation of abnormal returns by using important bank characteristics as predictors. The regression analysis exhibits that banks with higher leverage and larger size are prone to getting more negatively affected by the terrorist attack. On the other hand, banks with higher liquidity and higher income level are likely to have less negative abnormal returns.
DOI Link
ISSN
Publisher
World Scientific
Volume
20
Issue
2
Disciplines
Business
Keywords
abnormal returns, banking sector, leverage, size, Terrorism, Turkey
Scopus ID
Recommended Citation
Orhun, Eda, "The Impact of Terrorism on Turkish Banks' Stocks and Cross-bank Variation of Abnormal Returns" (2020). All Works. 3484.
https://zuscholars.zu.ac.ae/works/3484
Indexed in Scopus
yes
Open Access
no