Analysis the effect of capital increase announcements on stock of publicly traded corporations with Event Study

It is of great importance for the companies whose shares are traded on the stock exchange to convey the information affecting the shares in a complete, timely and an accurate manner. This would indeed protect the rights and interests of the investors. The simultaneous learning of important information that affects the stock price and is disclosed to the public boosts the confidence in the market. So long as there are differences in the emergence of information and the process of obtaining information by investors, we cannot say much about protecting the rights and interests of investors.There are many factors that affect stock market prices in public companies. As a major factor affecting stock prices, paid and free capital increase has been the subject of many studies. In this study, the relationship between the stock prices of all companies except the financial companies has been included in the BIST 100 index, whose shares are traded in the Borsa Istanbul Stock Market and which saw increased the capital between 2014-2018, is examined. All the companies that have increased their capital in the specified years are determined under certain criteria and analyzed by the event study method. An attempt has been made to try to determine whether there is an opportunity for investors to provide abnormal returns independent of the market return, and if such a return is in question as well as on which days concentration is experienced.