Abstract
Anormal Return Movements Around Political Election Dates: Case of ISE
Our country has been governed by coalition governments for many years and the life
span of many of these governments has been quite short. Frequent government changes,
in particular, prevent the continuation of economic policies. In addition, government
changes have a direct impact on stock markets. Equities are more risky investment
instruments than alternatives. For this reason, investors should closely follow the factors
affecting stock prices and returns. In the literature, it is indicated that there are abnormal
returns in shares the days closer to general elections. In this study, it is aimed to analyze
the relation between ISE 100 return index and the political elections between 1990 and
2015. In the relevant period, there were eight deputies general elections, four local
elections, three referendums and one presidential election. Using the event study method,
it has been found that abnormal returns are obtained in the ISE 100 index in the days
around the political election dates.
Keywords
General Elections, Event Study, ISE 100, Return, Abnormal Return.
