The Effects of Terrorism on Turkish Financial Markets

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Tarih

2019

Dergi Başlığı

Dergi ISSN

Cilt Başlığı

Yayıncı

TAYLOR & FRANCIS LTD, 2-4 PARK SQUARE, MILTON PARK, ABINGDON OR14 4RN, OXON, ENGLAND

Erişim Hakkı

info:eu-repo/semantics/openAccess

Özet

In this research, we analyzed how Turkish financial markets and foreign investors in the stock market reacted to the terror attacks in Turkey. Our analysis, which was performed using the terror index for the stock market and the foreign exchange market, revealed that returns, abnormal returns, and cumulative abnormal returns were not affected by the terror attacks; however, foreign investors in the stock market were affected. When the geographic regions of the terror attacks were analyzed, the findings showed that foreign investors were negatively affected mainly by the terror attacks that occurred in southeast Anatolia. Attack type and target type were important only for foreign investors. An evaluation of the interaction between the terror attacks and the markets with the involvement of the terrorist organizations indicated that only the foreign investors in the stock market were affected by Al-Qaeda and PKK-linked terror attacks. An evaluation of the effect of terror attacks in foreign countries on Turkish financial markets revealed no effect on the domestic stock market and foreign exchange markets. We also examined the volatility spillovers from the terror index to the stock market and found that terrorist attacks increased the volatility of the stock market.

Açıklama

Anahtar Kelimeler

Stock market, foreign exchange market, foreign investors, volatility, terrorism

Kaynak

Defence and Peace Economics

WoS Q Değeri

Q3

Scopus Q Değeri

Q1

Cilt

30

Sayı

6

Künye