Reaction of stocks to administrative sanction announcements: The BIST 100 case

Gökçe Sinem Erbuğa

doi:10.26650/ibr.2025.54.1628617

Reaction of stocks to administrative sanction announcements: The BIST 100 case

Abstract

The purpose of this study is to determine the reaction of companies in the BIST 100 index in the case of administrative sanctions by the Capital Markets Board of Türkiye. For this purpose, 42 violations by 35 companies between 2013 and 2022 were evaluated. The event study methodology was used, and both parametric (Patell Z, Cross-sectional t-test, Standardized Cross-sectional t-test, and Skewness-adjusted t-test) and nonparametric (Generalized Sign and Rank tests) approaches were utilized. The event study methodology was as follows: The market model, which measures the returns of stocks to the returns of the market throughout a 200-day estimation window, is employed to determine CAARs. A 21-day period was established to monitor market reactions. The empirical outcomes consistently demonstrate negative CAARs, and in the [−10, +10] and [−5, +5] windows, statistically significant CAAR values are particularly evident (CAAR =-5.73% and −3.92%, respectively). Thus, the market responds negatively to the news of administrative sanctions. By applying various statistical approaches, this study contributes to the literature by offering solid empirical evidence on the short- and long-term effects of administrative sanctions on the market. It highlights the market’s responsiveness to corporate misconduct in an emerging market setting like Türkiye.

Keywords

References

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Details

Primary Language

English

Subjects

Business Administration

Journal Section

Research Article

Authors

Gökçe Sinem Erbuğa ^*
0000-0003-1604-4668
Türkiye

Publication Date

December 31, 2025

Submission Date

January 28, 2025

Acceptance Date

October 14, 2025

Published in Issue

Year 2025 Volume: 54 Number: 3

DOI

https://doi.org/10.26650/ibr.2025.54.1628617

IZ

https://izlik.org/JA33YY69KX

Cite

RIS / Bibtex

APA

Erbuğa, G. S. (2025). Reaction of stocks to administrative sanction announcements: The BIST 100 case. Istanbul Business Research, 54(3), 408-426. https://doi.org/10.26650/ibr.2025.54.1628617

AMA

1.Erbuğa GS. Reaction of stocks to administrative sanction announcements: The BIST 100 case. IBR. 2025;54(3):408-426. doi:10.26650/ibr.2025.54.1628617

Chicago

Erbuğa, Gökçe Sinem. 2025. “Reaction of Stocks to Administrative Sanction Announcements: The BIST 100 Case”. Istanbul Business Research 54 (3): 408-26. https://doi.org/10.26650/ibr.2025.54.1628617.

EndNote

Erbuğa GS (December 1, 2025) Reaction of stocks to administrative sanction announcements: The BIST 100 case. Istanbul Business Research 54 3 408–426.

IEEE

[1]G. S. Erbuğa, “Reaction of stocks to administrative sanction announcements: The BIST 100 case”, IBR, vol. 54, no. 3, pp. 408–426, Dec. 2025, doi: 10.26650/ibr.2025.54.1628617.

ISNAD

Erbuğa, Gökçe Sinem. “Reaction of Stocks to Administrative Sanction Announcements: The BIST 100 Case”. Istanbul Business Research 54/3 (December 1, 2025): 408-426. https://doi.org/10.26650/ibr.2025.54.1628617.

JAMA

1.Erbuğa GS. Reaction of stocks to administrative sanction announcements: The BIST 100 case. IBR. 2025;54:408–426.

MLA

Erbuğa, Gökçe Sinem. “Reaction of Stocks to Administrative Sanction Announcements: The BIST 100 Case”. Istanbul Business Research, vol. 54, no. 3, Dec. 2025, pp. 408-26, doi:10.26650/ibr.2025.54.1628617.

Vancouver

1.Gökçe Sinem Erbuğa. Reaction of stocks to administrative sanction announcements: The BIST 100 case. IBR. 2025 Dec. 1;54(3):408-26. doi:10.26650/ibr.2025.54.1628617