The effect of syndicated and securitization loan on the value of borrowers share prices

International involvement has emerged since 1980?s years as a result of financial liberalisation. Banks and other financial institutions search for international sources. The most important sources of international credits are syndicated and securitization loan that are heavily used by the Turkish Banks since 2004. This thesis aims to investigate the effect of these loans on the value of borrower banks that quoted on the stanbul Stock Exchange Market (ISEM) by employing event-study methodology. The loan aggrements should convey an information about the security prices. The effect is usually measured by Abnormal Return (AR) which exists on the announcement day or Cumulative Abnormal Return (CAR) that is measured in the several different event windows. The results indicate that announcements of these credits by individually produce AR, but the aggregation by several criteria do not exhibit a strong effect. Syndicated announcement documents neither AR nor CAR while Securitization aggrements produce a statistically significant AR and CAR. Moreover, we are able to say that the reactions of market as expected i,e. High interest rates produce negative CAR but low interest produce a positive CAR, high proportion to the equity shows a negative CAR but low proportion to equity capital brings a positive CAR. Key Words: Syndicated Loan, Securitization Loan, Event Study, Stock Market