Research Article

Effect of the Russian–Ukrainian Crisis on Borsa Istanbul Tourism Index

Volume: 38 Number: 1 January 26, 2024
Zeliha Can Ergün *
PDF Download
Trends in Business and Economics Cover Trends in Business and Economics
TR EN

Effect of the Russian–Ukrainian Crisis on Borsa Istanbul Tourism Index

Abstract

The aim of this study was to examine how the crisis between Russia and Ukraine has affected the companies included in the Borsa Istanbul tourism index. To identify abnormal returns, the event study method was applied. The event day was determined as February 24, 2022. The event and estimation periods were specified as 21 and 210 trading days, respectively. Five of the companies indicated negative abnormal returns on February 24, 2022, but among the companies, PKENT was the company that was most adversely affected by the war. According to the cumulative aver- age abnormal returns of the overall companies, there was a significant negative return only on the event day. Therefore, the tourism companies listed in Borsa Istanbul responded immediately to the Russian–Ukrainian war, but the impact quickly diminished. Investors and financial analysts could benefit from the results by developing hedging strategies through industry diversification, and policymakers could develop effective strategies to deal with similar political uncertainties.

Keywords

Borsa Istanbul , efficient market hypothesis , event study , stock markets , tourism

References

  1. Abbassi, W., Kumari, V., & Pandey, D. K. (2023). What makes firms vulner- able to the Russia–Ukraine Crisis? Journal of Risk Finance, 24(1), 24–39. [CrossRef]
  2. Ahmed, S., Hasan, M. M., & Kamal, M. R. (2022). Russia–Ukraine crisis: The effects on the European stock market. European Financial Manage- ment, 2022, 1–41. [CrossRef]
  3. Boungou, W., & Yatié, A. (2022). The impact of the Ukraine–Russia war on world stock market returns. Economics Letters, 215, 110516. [CrossRef]
  4. Brooks, C. (2014). Introductory econometrics for finance. Cambridge Uni- versity Press.
  5. Brown, S. J., & Warner, J. B. (1985). Using daily stock returns. Journal of Financial Economics, 14(1), 3–31. [CrossRef]
  6. Das, B. C., Hasan, F., Sutradhar, S. R., & Shafique, S. (2023). Ukraine–Russia confict and stock markets reactions in Europe. Global Journal of Flexible Systems Management, 1–28. [CrossRef]
  7. Demirkıran, M., Hekim, M., Çetin Kılıç, N., & Eser, G. (2022). Rusya-Ukrayna Savaşının Türkiye’deki turizm sektörüne etkileri: Kriz yönetimi stratejileri açısından Antalya ili örneği incelemesi. İktisat İşletme ve Uluslararası İlişkiler Dergisi, 1(1), 68–87. https://dergipark.org.tr/en/pu b/jebi/issue/72242/1145761
  8. Derindere Köseoğlu, S., Mercangöz, B. A., Khan, K., & Sarwar, S. (2023). The impact of the Russian-Ukraine war on the stock market: A causal analysis. Applied Economics, 1–11. [CrossRef]
  9. Doğan, M. (2022). The Impact of the Russia-Ukraine war on stock returns. Sosyal Bilimler Araştırma Dergisi, 11(1), 1–9. https://dergipark.org.tr/ en/pub/ssrj/issue/68794/1083034
  10. Dwijaya, I. K. B., & Kasim, S. M. Y. (2023). Russian-Ukraine invasion’s effect on the stock market: An event study on kompas 100 index. Jurnal Manajemen dan Bisnis (PERFORMA), 20(1), 24–35. [CrossRef]

Details

Primary Language

English

Subjects

Behavioural Economy

Journal Section

Research Article

Authors

Publication Date

January 26, 2024

Submission Date

July 28, 2023

Acceptance Date

December 22, 2023

Published in Issue

Year 2024 Volume: 38 Number: 1

DOI

https://doi.org/10.5152/TBE.2024.23210

IZ

https://izlik.org/JA26UE56RL

Cite

RIS / Bibtex
APA
Can Ergün, Z. (2024). Effect of the Russian–Ukrainian Crisis on Borsa Istanbul Tourism Index. Trends in Business and Economics, 38(1), 32-38. https://doi.org/10.5152/TBE.2024.23210

Content of this journal is licensed under a Creative Commons Attribution 4.0 International License

29928