Paris Climate Agreement`s Effect on Share Prices

Authors : Fatih KONAK, Sercan KIRIK

Pages : 73-83

View : 32 | Download : 28

Publication Date : 2023-06-30

Article Type : Research Paper

Abstract :The main purpose of this study is to reveal the possible impact of the entry into force of the Paris Agreement on the stock prices of the companies in the BIST Sustainability Index insert ignore into journalissuearticles values(XUSRD); with the case study method. The BIST 100 Index was used as a benchmark index, and the daily returns of 66 businesses among 67 companies traded in XUSRD were used to compute Average Abnormal Returns insert ignore into journalissuearticles values(AAR); and Cumulative Average Abnormal Returns insert ignore into journalissuearticles values(CAAR);. Within the scope of the applied methodology, while determining the event window of -20 days +20 days based on the date of the event, 10.11.2021, 250 was taken into account as the estimation period. The Paris Agreement\`s implementation has an impact on the stock returns of the firms in XUSRD, it has been found based on the findings gathered. The presence of a predicted trend, however, could not be classified as either positive or negative. These findings led to the conclusion that, under the parameters of the anomaly under consideration, the market is not efficient in semi-strong form.
Keywords : Paris Climate Agreement, Borsa İstanbul, Event Study