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

Year 2024, Volume: 38 Issue: 1, 32 - 38, 26.01.2024

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.

References

  • 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]
  • 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]
  • Boungou, W., & Yatié, A. (2022). The impact of the Ukraine–Russia war on world stock market returns. Economics Letters, 215, 110516. [CrossRef]
  • Brooks, C. (2014). Introductory econometrics for finance. Cambridge Uni- versity Press.
  • Brown, S. J., & Warner, J. B. (1985). Using daily stock returns. Journal of Financial Economics, 14(1), 3–31. [CrossRef]
  • 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]
  • 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
  • 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]
  • 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
  • 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]
  • Erol, K. K. (2022). Turizmde karanlık bir kavram: Savaş Turizmi ve Rusya’nın taraf olduğu İki Olay. Journal of Applied Tourism Research, 3(1), 95–104. https://dergipark.org.tr/en/pub/jator/issue/68723/1115283
  • Fama, E. F. (1970). Efficient capital markets: A review of theory and empiri- cal work. Journal of Finance, 25(2), 383–417. [CrossRef]
  • Gaio, L. E., Stefanelli, N. O., Pimenta, T. P., Bonacim, C. A. G., & Gatsios, R. C. (2022). The impact of the Russia-Ukraine confict on market effi- ciency: Evidence for the developed stock market. Finance Research Letters, 50, 103302. [CrossRef]
  • Güney, T., Göktepe, S., & Kokonalıoğlu, H. T. (2022). Rusya-Ukrayna Savaşı’nın Türkiye turizmine olası etkileri. Batman Üniversitesi Yaşam Bilimleri Dergisi, 12(1), 92–104. [CrossRef]
  • Güneysu, Y. (2022). Rusya-Ukrayna Savaşının BIST gıda, İçecek Endeksi üzerindeki Etkisinin İncelenmesi. Hitit Sosyal Bilimler Dergisi, 15(2), 361–372. [CrossRef]
  • Izzeldin, M., Muradoğlu, Y. G., Pappas, V., Petropoulou, A., & Sivaprasad, S. (2023). The impact of the Russian-Ukrainian war on global financial mar- kets. International Review of Financial Analysis, 87, 102598. [CrossRef]
  • Kamal, M. R., Ahmed, S., & Hasan, M. M. (2023). The impact of the Russia- Ukraine crisis on the stock market: Evidence from Australia. Pacific- Basin Finance Journal, 79, 102036. [CrossRef]
  • Keleş, E. (2023). Stock market response to the Russia-Ukraine war: Evi- dence from an emerging market. Journal of East-West Business, 29(3), 307–322. [CrossRef]
  • Kothari, S. P., & Warner, J. B. (2007). Econometrics of event studies. In Handbook of empirical corporate finance (pp. 3–36). Elsevier.
  • Kumari, V., Kumar, G., & Pandey, D. K. (2023). Are the European Union stock markets vulnerable to the Russia–Ukraine war? Journal of Behavioral and Experimental Finance, 37, 100793. [CrossRef]
  • Martins, A. M., Correia, P., & Gouveia, R. (2023). Russia-Ukraine confict: The effect on European banks’ stock market returns. Journal of Mul- tinational Financial Management, 67, 100786. [CrossRef]
  • Mojanoski, G., & Bucevska, V. (2022). Event study on the reaction of the Balkan stock markets to the confict between Russia and Ukraine. Croatian Review of Economic, Business and Social Statistics, 8(2), 18–27. [CrossRef]
  • Pandey, D. K., Assaf, R., & Rai, V. K. (2023). Did the Indian stock market sail the Russia-Ukraine storm safely? Journal of Economic Asymmetries, 28, e00319. [CrossRef]
  • Pandey, D. K., & Kumar, R. (2023). Russia-Ukraine War and the global tour- ism sector: A 13-day tale. Current Issues in Tourism, 26(5), 692–700. [CrossRef]
  • Peterson, P. P. (1989). Event studies: A review of issues and methodology. Quarterly Journal of Business and Economics, 36–66. https://www.jst or.org/stable/40472954
  • Sun, M., Song, H., & Zhang, C. (2022). The effects of 2022 Russian invasion of Ukraine on global stock markets: An event study approach. SSRN Electronic Journal. [CrossRef]
  • Sun, M., & Zhang, C. (2022). Comprehensive analysis of global stock mar- ket reactions to the Russia-Ukraine war. Applied Economics Letters, 1–8. [CrossRef]
  • Yousaf, I., Patel, R., & Yarovaya, L. (2022). The reaction of G20+ stock mar- kets to the Russia–Ukraine confict “black-swan” event: Evidence from event study approach. Journal of Behavioral and Experimental Finance, 35, 100723. [CrossRef]
  • Yürük, M. F. (2022). Rusya-Ukrayna Savaşının Borsa İstanbul BİST 100 Endeksine Etkisinin Olay Çalışması ile Analizi. Turkish Studies-Eco- nomics, Finance, Politics, 17(3), 869–881. [CrossRef]

Rusya-Ukrayna Krizinin Borsa İstanbul Turizm Endeksine Etkisi

Year 2024, Volume: 38 Issue: 1, 32 - 38, 26.01.2024

Abstract

Bu çalışmanın amacı, Rusya ve Ukrayna arasında yaşanan krizin Borsa İstanbul turizm endeksinde yer alan şirketleri nasıl etkilediğini incelemektir. Anormal getirileri tespit etmek için olay çalışması yöntemi uygulanmıştır. Olay günü 24 Şubat 2022 olarak belirlenmiştir. Olay ve tahmin dönem- leri sırasıyla 21 ve 210 işlem günü olarak belirlenmiştir. Şirketlerin beşi 24 Şubat 2022 tarihinde negatif anormal getiri göstermiştir, ancak şirketler arasında savaştan en olumsuz etkilenen şir- ket PKENT olmuştur. Tüm şirketlerin kümülatif ortalama anormal getirilerine göre; sadece olay gününde negatif ve anlamlı bir negatif getiri söz konusudur. Dolayısıyla, Borsa İstanbul’da işlem gören turizm şirketleri Rusya-Ukrayna savaşına hemen tepki vermiş, ancak bu etki hızla azalmıştır. Yatırımcılar ve finansal analistler sektör çeşitlendirmesi yoluyla riskten korunma stratejileri geliş- tirerek bu sonuçlardan faydalanabilir ve politika yapıcılar da benzer siyasi belirsizliklerle başa çık- mak için etkili stratejiler geliştirebilirler.

References

  • 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]
  • 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]
  • Boungou, W., & Yatié, A. (2022). The impact of the Ukraine–Russia war on world stock market returns. Economics Letters, 215, 110516. [CrossRef]
  • Brooks, C. (2014). Introductory econometrics for finance. Cambridge Uni- versity Press.
  • Brown, S. J., & Warner, J. B. (1985). Using daily stock returns. Journal of Financial Economics, 14(1), 3–31. [CrossRef]
  • 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]
  • 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
  • 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]
  • 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
  • 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]
  • Erol, K. K. (2022). Turizmde karanlık bir kavram: Savaş Turizmi ve Rusya’nın taraf olduğu İki Olay. Journal of Applied Tourism Research, 3(1), 95–104. https://dergipark.org.tr/en/pub/jator/issue/68723/1115283
  • Fama, E. F. (1970). Efficient capital markets: A review of theory and empiri- cal work. Journal of Finance, 25(2), 383–417. [CrossRef]
  • Gaio, L. E., Stefanelli, N. O., Pimenta, T. P., Bonacim, C. A. G., & Gatsios, R. C. (2022). The impact of the Russia-Ukraine confict on market effi- ciency: Evidence for the developed stock market. Finance Research Letters, 50, 103302. [CrossRef]
  • Güney, T., Göktepe, S., & Kokonalıoğlu, H. T. (2022). Rusya-Ukrayna Savaşı’nın Türkiye turizmine olası etkileri. Batman Üniversitesi Yaşam Bilimleri Dergisi, 12(1), 92–104. [CrossRef]
  • Güneysu, Y. (2022). Rusya-Ukrayna Savaşının BIST gıda, İçecek Endeksi üzerindeki Etkisinin İncelenmesi. Hitit Sosyal Bilimler Dergisi, 15(2), 361–372. [CrossRef]
  • Izzeldin, M., Muradoğlu, Y. G., Pappas, V., Petropoulou, A., & Sivaprasad, S. (2023). The impact of the Russian-Ukrainian war on global financial mar- kets. International Review of Financial Analysis, 87, 102598. [CrossRef]
  • Kamal, M. R., Ahmed, S., & Hasan, M. M. (2023). The impact of the Russia- Ukraine crisis on the stock market: Evidence from Australia. Pacific- Basin Finance Journal, 79, 102036. [CrossRef]
  • Keleş, E. (2023). Stock market response to the Russia-Ukraine war: Evi- dence from an emerging market. Journal of East-West Business, 29(3), 307–322. [CrossRef]
  • Kothari, S. P., & Warner, J. B. (2007). Econometrics of event studies. In Handbook of empirical corporate finance (pp. 3–36). Elsevier.
  • Kumari, V., Kumar, G., & Pandey, D. K. (2023). Are the European Union stock markets vulnerable to the Russia–Ukraine war? Journal of Behavioral and Experimental Finance, 37, 100793. [CrossRef]
  • Martins, A. M., Correia, P., & Gouveia, R. (2023). Russia-Ukraine confict: The effect on European banks’ stock market returns. Journal of Mul- tinational Financial Management, 67, 100786. [CrossRef]
  • Mojanoski, G., & Bucevska, V. (2022). Event study on the reaction of the Balkan stock markets to the confict between Russia and Ukraine. Croatian Review of Economic, Business and Social Statistics, 8(2), 18–27. [CrossRef]
  • Pandey, D. K., Assaf, R., & Rai, V. K. (2023). Did the Indian stock market sail the Russia-Ukraine storm safely? Journal of Economic Asymmetries, 28, e00319. [CrossRef]
  • Pandey, D. K., & Kumar, R. (2023). Russia-Ukraine War and the global tour- ism sector: A 13-day tale. Current Issues in Tourism, 26(5), 692–700. [CrossRef]
  • Peterson, P. P. (1989). Event studies: A review of issues and methodology. Quarterly Journal of Business and Economics, 36–66. https://www.jst or.org/stable/40472954
  • Sun, M., Song, H., & Zhang, C. (2022). The effects of 2022 Russian invasion of Ukraine on global stock markets: An event study approach. SSRN Electronic Journal. [CrossRef]
  • Sun, M., & Zhang, C. (2022). Comprehensive analysis of global stock mar- ket reactions to the Russia-Ukraine war. Applied Economics Letters, 1–8. [CrossRef]
  • Yousaf, I., Patel, R., & Yarovaya, L. (2022). The reaction of G20+ stock mar- kets to the Russia–Ukraine confict “black-swan” event: Evidence from event study approach. Journal of Behavioral and Experimental Finance, 35, 100723. [CrossRef]
  • Yürük, M. F. (2022). Rusya-Ukrayna Savaşının Borsa İstanbul BİST 100 Endeksine Etkisinin Olay Çalışması ile Analizi. Turkish Studies-Eco- nomics, Finance, Politics, 17(3), 869–881. [CrossRef]

Details

Primary Language English
Subjects Behavioural Economy
Journal Section Research Articles
Authors

Zeliha CAN ERGÜN

Publication Date January 26, 2024
Published in Issue Year 2024 Volume: 38 Issue: 1

Cite

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.

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

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