Research Article
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Stock recommendations and stock market effects

Year 2020, Volume: 2 Issue: 1, 33 - 39, 30.06.2020

Hilal Hümeyra Özsu Neda Hashemi , Halime Büşra Erdüzen Yılmaz

Abstract

The aim of this study is to detect whether investors can earn abnormal returns based on market makers’ recommendations in Borsa Istanbul. To test the existence of market maker effect, buy recommendations mentioned by Ak Investment Inc. and stock returns traded on Borsa Istanbul are used. The event study was conducted for combined, pre- and post-event days covering the periods from January 2019 to April 2020. To enhance and compare the results, stocks are divided into five sub-groups based on the sectors they are traded in. The results indicate that stock recommendations do not provide valuable information to investors in Borsa Istanbul. Hovewer, while stocks traded in financial institutions are affected from buy recommendations of the market makers, investment strategies based on these recommendations would not generate any abnormal returns to investors for the rest of the sectors.

Keywords

Stock Recommendations Event Study Borsa Istanbul

References

  • Boudoukh, J., Feldman, R., Kogan, S., & Richardson, M. (2013). Information, Trading and Volatility: Evidence from Firm-Specific News. The Review of Financial Studies, 32(3), 992-1033.
  • Brown, S. J., & Warner, J. B. (1985). Using Daily Stock Returns: The Case of Event Studies. Journal of Financial Economics, 14, 3-31.
  • Erdoğan, O., Palmon, D., & Yezegel, A. (2008). The News of No News in Stock Markets. 1-33, https://doi.org/10.1080/14697680802415495.
  • Erdoğan, O., Palmon, D., & Yezegel, A. (2010). Performance of Analyst Recommendations in the Istanbul Stock Exchange. http://ssrn.com/abstract=1003745.
  • Eyüboğlu, K., & Bulut, H. İ. (2016). Şirketlere Özgü Haberlerin Hisse Performansına Etkisi: BİST-30 Şirketleri Örneği. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 16, 113-138.
  • Eyüboğlu, K., & Bulut, H. İ. (2017). The Effects of Business Magazine Recommendations on the Stock Prices in Turkey: Case of Para. Anadolu University Journal of Social Sciences, 17 (1), 109-121.
  • Fama, E. F. (1965). Random Walks in Stock Market Prices. Financial Analysts Journal, 21(5), 55-59.
  • Jory, S. R., Ngo, T. N., Wang, D., & Saha, A. (2015). The Market Response to Corporate Scandals Involving CEOs. Applied Economics, 47 (17), 1723–1738.
  • Keown, A. J., & Pinkerton, J. M. (1981). Merger Announcements and Insider Trading Activity: An Empirical Investigation. The Journal of Finance, 36 (4), 855-869.
  • Kıymaz, H. (2001). The Effects of Stock Market Rumors on Stock Prices: Evidence from an Emerging Market. Journal of Multinational Financial Management, 11, 105-115.
  • Ostrovsky-Berman, E. (2020). Can CEOs Change the Market Perception by Giving Interviews to the Media?. Journal of Behavioral Finance, ISSN:1542-7560, 1-9.
  • Özsu, H. H. (2015). Empirical Analysis of Herd Behavior in Borsa Istanbul. International Journal of Economic Sciences, 4(4), 27-52.
  • Palmon, D. and E. F. Sudit and A. Yezegel (2009). The Value of Columnists’ Stock Recommendations: An Event Study Approach. Review of Quantitative Finance and Accounting, 33(3), 209-232.
  • Soon, Y. C. (2010). News Which Moves the Market: Assessing the Impact of Published Financial News on the Stock Market. (Master Thesis). Singapore Management University, Singapore.
  • Tetlock, P. C., Saar-Tsechansky M., & Macskassy, S. (2008). More Than Words: Quantifying Language to Measure Firms’ Fundamentals. The Journal of Finance, 53(3), 1437-1467.
  • Tetlock, P. C. (2007). Giving Content to Investor Sentiment: The Role of Media in the Stock Market. The Journal of Finance, 52 (3), 1139-1168.
  • Yazici, B., & Muradoğlu, G. (2002). Dissemination of Stock Recommendations and Small Investors: Who Benefits?. Multinational Finance Journal, 6(1), 29–42.
  • Zou, G., Han L., Meng J. G., & Wu, C. (2019). Asymmetric Effect of Media Tone on IPO Underpricing and Volatility. Emerging Markets Finance and Trade, ISSN: 1540-496, 1-17.

Hisse senedi tavsiyeleri ve hisse senedi piyasası üzerine etkileri

Year 2020, Volume: 2 Issue: 1, 33 - 39, 30.06.2020

Hilal Hümeyra Özsu Neda Hashemi , Halime Büşra Erdüzen Yılmaz

Abstract

Bu çalışmanın amacı, yatırımcıların piyasa yapıcıların verdikleri hisse senedi tavsiyelerine dayanarak aşırı getiri elde edip etmediklerini araştırmaktır. Bu kapsamda, Ak Yatırım tarafından yapılan hisse senedi “Al” tavsiyeleri ve Borsa İstanbul’da işlem gören hisse senedi getirileri kullanılmıştır. Ocak 2019 ve Nisan 2020 dönemi için olay öncesi, olay sonrası ve tüm aralıklar kullanılarak olay çalışması yöntemi uygulanmıştır. Araştırmanın sonuçlarını genişletmek ve karşılaştırma yapabilmek için, hisse senetleri faaliyet gösterdikleri sektörlere göre beş alt gruba ayrılmıştır. Araştırmanın sonuçları, Borsa İstanbul’da işlem gören hisse senetleri için yapılan tavsiyelerin hisse performanslarına önemli bir etkisinin olmadığını göstermektedir. Bununla birlikte, mali kuruluşlar kapsamında işlem gören hisse senetleri piyasa yapıcıların tavsiyelerinden etkilenirken, diğer sektörlerde işlem gören hisse senetleri için yapılan tavsiyelerin yatırımcılara aşırı getiri sağlamadıkları gözlemlenmiştir.

Keywords

Hisse Senedi Tavsiyeleri Olay Çalışması Borsa İstanbul

References

  • Boudoukh, J., Feldman, R., Kogan, S., & Richardson, M. (2013). Information, Trading and Volatility: Evidence from Firm-Specific News. The Review of Financial Studies, 32(3), 992-1033.
  • Brown, S. J., & Warner, J. B. (1985). Using Daily Stock Returns: The Case of Event Studies. Journal of Financial Economics, 14, 3-31.
  • Erdoğan, O., Palmon, D., & Yezegel, A. (2008). The News of No News in Stock Markets. 1-33, https://doi.org/10.1080/14697680802415495.
  • Erdoğan, O., Palmon, D., & Yezegel, A. (2010). Performance of Analyst Recommendations in the Istanbul Stock Exchange. http://ssrn.com/abstract=1003745.
  • Eyüboğlu, K., & Bulut, H. İ. (2016). Şirketlere Özgü Haberlerin Hisse Performansına Etkisi: BİST-30 Şirketleri Örneği. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 16, 113-138.
  • Eyüboğlu, K., & Bulut, H. İ. (2017). The Effects of Business Magazine Recommendations on the Stock Prices in Turkey: Case of Para. Anadolu University Journal of Social Sciences, 17 (1), 109-121.
  • Fama, E. F. (1965). Random Walks in Stock Market Prices. Financial Analysts Journal, 21(5), 55-59.
  • Jory, S. R., Ngo, T. N., Wang, D., & Saha, A. (2015). The Market Response to Corporate Scandals Involving CEOs. Applied Economics, 47 (17), 1723–1738.
  • Keown, A. J., & Pinkerton, J. M. (1981). Merger Announcements and Insider Trading Activity: An Empirical Investigation. The Journal of Finance, 36 (4), 855-869.
  • Kıymaz, H. (2001). The Effects of Stock Market Rumors on Stock Prices: Evidence from an Emerging Market. Journal of Multinational Financial Management, 11, 105-115.
  • Ostrovsky-Berman, E. (2020). Can CEOs Change the Market Perception by Giving Interviews to the Media?. Journal of Behavioral Finance, ISSN:1542-7560, 1-9.
  • Özsu, H. H. (2015). Empirical Analysis of Herd Behavior in Borsa Istanbul. International Journal of Economic Sciences, 4(4), 27-52.
  • Palmon, D. and E. F. Sudit and A. Yezegel (2009). The Value of Columnists’ Stock Recommendations: An Event Study Approach. Review of Quantitative Finance and Accounting, 33(3), 209-232.
  • Soon, Y. C. (2010). News Which Moves the Market: Assessing the Impact of Published Financial News on the Stock Market. (Master Thesis). Singapore Management University, Singapore.
  • Tetlock, P. C., Saar-Tsechansky M., & Macskassy, S. (2008). More Than Words: Quantifying Language to Measure Firms’ Fundamentals. The Journal of Finance, 53(3), 1437-1467.
  • Tetlock, P. C. (2007). Giving Content to Investor Sentiment: The Role of Media in the Stock Market. The Journal of Finance, 52 (3), 1139-1168.
  • Yazici, B., & Muradoğlu, G. (2002). Dissemination of Stock Recommendations and Small Investors: Who Benefits?. Multinational Finance Journal, 6(1), 29–42.
  • Zou, G., Han L., Meng J. G., & Wu, C. (2019). Asymmetric Effect of Media Tone on IPO Underpricing and Volatility. Emerging Markets Finance and Trade, ISSN: 1540-496, 1-17.
There are 18 citations in total.

Details

Primary Language English
Subjects Business Administration
Journal Section Research Articles
Authors

Hilal Hümeyra Özsu This is me

Neda Hashemi

Halime Büşra Erdüzen Yılmaz

Publication Date June 30, 2020
Published in Issue Year 2020 Volume: 2 Issue: 1

Cite

APA Özsu, H. H., Hashemi, N., & Erdüzen Yılmaz, H. B. (2020). Stock recommendations and stock market effects. Sakarya Üniversitesi İşletme Enstitüsü Dergisi, 2(1), 33-39.
AMA Özsu HH, Hashemi N, Erdüzen Yılmaz HB. Stock recommendations and stock market effects. Sakarya Üniversitesi İşletme Enstitüsü Dergisi. June 2020;2(1):33-39.
Chicago Özsu, Hilal Hümeyra, Neda Hashemi, and Halime Büşra Erdüzen Yılmaz. “Stock Recommendations and Stock Market Effects”. Sakarya Üniversitesi İşletme Enstitüsü Dergisi 2, no. 1 (June 2020): 33-39.
EndNote Özsu HH, Hashemi N, Erdüzen Yılmaz HB (June 1, 2020) Stock recommendations and stock market effects. Sakarya Üniversitesi İşletme Enstitüsü Dergisi 2 1 33–39.
IEEE H. H. Özsu, N. Hashemi, and H. B. Erdüzen Yılmaz, “Stock recommendations and stock market effects”, Sakarya Üniversitesi İşletme Enstitüsü Dergisi, vol. 2, no. 1, pp. 33–39, 2020.
ISNAD Özsu, Hilal Hümeyra et al. “Stock Recommendations and Stock Market Effects”. Sakarya Üniversitesi İşletme Enstitüsü Dergisi 2/1 (June 2020), 33-39.
JAMA Özsu HH, Hashemi N, Erdüzen Yılmaz HB. Stock recommendations and stock market effects. Sakarya Üniversitesi İşletme Enstitüsü Dergisi. 2020;2:33–39.
MLA Özsu, Hilal Hümeyra et al. “Stock Recommendations and Stock Market Effects”. Sakarya Üniversitesi İşletme Enstitüsü Dergisi, vol. 2, no. 1, 2020, pp. 33-39.
Vancouver Özsu HH, Hashemi N, Erdüzen Yılmaz HB. Stock recommendations and stock market effects. Sakarya Üniversitesi İşletme Enstitüsü Dergisi. 2020;2(1):33-9.

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