An Event Study Analysis on the Effect of Interest Rate Decisions of the Central Bank of the Republic of Turkey on the Share Earnings of Istanbul Stock Exchange, Holdings and Investment Companies

Authors : Zühal Arslan

Pages : 33-42

Doi:10.55026/jobaf.1585914

View : 51 | Download : 67

Publication Date : 2025-01-13

Article Type : Research Paper

Abstract :The aim of this study is to measure the effect of the first interest rate increase decision of the Central Bank of the Republic of Turkey (CBRT) monetary policy committee dated June 22, 2023 on the share earnings of Istanbul Stock Exchange, Holding and Investment Companies regarding the monetary tightening process of increasing the policy rate, which is the one-week repo auction interest rate from 8.5 percent to 15 percent. In the study, the impact of the central bank monetary policy decision on share earnings on 49 companies within the scope of Istanbul Stock Exchange, Holding and Investment Companies was examined with the event study method and dependent sample t-test. In the study, abnormal and cumulative abnormal returns were calculated and within the scope of the determined event windows, share earnings before and after the event were examined, and it was determined that 49 holding and investment companies were positively affected by the monetary policy decision of the Central Bank of The Republic of Turkey dated June 22, 2023.23.
Keywords : Monetary Policy, Share Earnings, Event Study