Stock market response to natural disasters: Does corporate sustainability performance make difference?

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Tarih

2024

Yazarlar

Aksoy, Mine
Yılmaz, Mustafa Kemal

Dergi Başlığı

Dergi ISSN

Cilt Başlığı

Yayıncı

Elsevier

Erişim Hakkı

info:eu-repo/semantics/openAccess

Araştırma projeleri

Organizasyon Birimleri

Dergi sayısı

Özet

This study aims to examine the short-term price reactions of the stocks listed on Borsa Istanbul (BIST) after the severe earthquake of February 6, 2023, that happened in the southeastern region of Türkiye covering 11 provinces and causing more than 50,000 fatalities. Using a sample of 450 companies listed on the BIST All Index, this study estimates the abnormal returns (ARs) of stocks by employing an event study methodology. Using BIST 100 companies as a sub-sample, this study also explores whether sustainability performance creates resilience against downside risk after the earthquake. The results of the market model and the mean-adjusted model show that on the event day, most of the sectors had negative and significant ARs, while only the non-metal mineral products had positive and significant ARs. Most of the sectors continued to decline in the following 10 days except basic metal and non-metal mineral products sectors. The telecommunications sector was the most negatively affected sector in both models after the event day as it has underperformed in ensuring uninterrupted access to communication. The findings also indicate that firms in the financial sector that have higher sustainability performance are more resilient in responding to the disaster.

Açıklama

Anahtar Kelimeler

Abnormal Returns, Earthquake, Stock Market, Sustainability Performance, Türkiye

Kaynak

Journal of Cleaner Production

WoS Q Değeri

Scopus Q Değeri

Q1

Cilt

454

Sayı

Künye

Aksoy, M. ve Yılmaz, M. K. (2024). Stock market response to natural disasters: Does corporate sustainability performance make difference? Journal of Cleaner Production, 454, 1-9. https://www.doi.org/10.1016/j.jclepro.2024.142294