Investors’ reaction to litigation announcements by Capital Markets Board of Turkey

Date

2019-09

Editor(s)

Advisor

Tanyeri, Ayşe Başak

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Language

English

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Abstract

I empirically investigate investors’ reaction to the litigations announcements published by Turkish Capital Markets Board (CMB). I use event study to analyze daily abnormal returns for significant market reactions. I compile a litigation announcements sample that spans 202 events of 145 unique stocks between January 20, 2012 and January 3, 2019. My findings show that investors perceive litigations announcements as bad news. Statistically significant negative responses happen both on event day and two days after, hinting difference in investor behavior. I find that the negative reaction to the news are significantly higher for corporations announcements than they are for individual announcements. The negative reaction is significantly higher for indictments announcements than they are for administrative fees.

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Book Title

Degree Discipline

Business Administration

Degree Level

Master's

Degree Name

MBA (Master of Business Administration)

Citation

Published Version (Please cite this version)