Master'sOpen Access

The effects of the earthquake on the stock market: The case of the 6 February 2023 Kahramanmaraş

2024
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Advisor: Prof. Dr. Mine Aksoy Kavalcı

Abstract (EN)

In this study, the effects of the Kahramanmaraş Earthquake dated February 6, 2023 on Borsa Istanbul (BIST) Stock Market Index returns are analyzed using the event study methodology. The results of the analysis showed that there was a statistically significant and negative abnormal return in BIST Insurance Index and a statistically significant and positive abnormal return in BIST Non-Metal Min. Product Index on the day of the earthquake. When the abnormal returns for 5 days after the earthquake were analyzed, statistically significant and negative cumulative abnormal returns were observed in BIST Antalya, BIST Insurance, BIST Sports Indices, and statistically significant and positive cumulative abnormal returns were observed in BIST Non-Metal Min. Product Index. When the abnormal returns for the 10 days after the earthquake are analyzed, statistically significant and negative cumulative abnormal returns were observed in BIST Antalya, BIST Insurance, BIST Telecommunication, BIST Tourism, BIST Transportation Indices, while statistically significant and positive cumulative abnormal returns were observed in BIST Non-Metal Min. Product and BIST Basic Metal Indices. The results of the analysis show that on the day of the earthquake and for the following 10 days, the insurance sector reacted negatively to the earthquake, while the stone, soil and cement sectors reacted positively. In the 5 days after the earthquake, the stocks of companies with their main production or activity center in Antalya and football clubs were negatively affected by the earthquake due to postponed matches. In the 10 days after the earthquake, stocks in tourism, transportation and telecommunication sectors were negatively affected by the earthquake due to their poor performance in providing uninterrupted access.

Author

Dr. Mustafa Koray Akyüzlü

Institution

How to Cite

Mustafa Koray Akyüzlü (Master Thesis). The effects of the earthquake on the stock market: The case of the 6 February 2023 Kahramanmaraş, 2024, Yalova University.

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