THE EFFECT OF SHARE BUYBACK NOTIFICATIONS ON COVID-19 PROCESS TO STOCKS RETURN: AN ANALYSIS OF COMPANIES IN THE BIST 100 INDEX

Year 2025, Volume: 5 Issue: 1, 1 - 13, 30.06.2025

Şevket Durmaz , Guven Sayılgan

https://doi.org/10.61725/abj.1718377

Abstract

The buyback of shares has gained great popularity in Turkey and in the world in the last 10 years. The purpose of this study is to determine the effect of share buyback notifications issued by companies on the return of stock in the process of COVID-19, where all world exchanges have bad times. For this purpose, buyback notifications published in KAP by companies at BIST 100 between 01.02.2020-15.04.2020, in which the effect of COVID-19 epidemic is felt in Turkey and global markets, was examined. The effect of share buyback notifications on stock return was handled by the event study method and the event window was determined as -10, +10 days. As a result of the analysis, it was concluded that the effect of share buyback notifications on stock returns is short-term and negative returns increase as a move away from the day of the event.

Keywords

Share Buyback Notifications , Stock Return , Abnormal Return , Cumulative Abnormal Return , BIST 100 , COVID-19.

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