Abstract:

According to the Efficient Market Hypothesis, there is no possibility to predict price movements in the markets which does not allow investors to obtain return above average (abnormal return). However, deviation from the mean of stock returns is observed and patterns appeared during certain periods, so-called anomalies. In this context, the initial aim of this paper is to figure out the relationship between elections and market’s movements by determining the influence of 12 elections (general elections, local elections, by-elections and referendum) that took place in Turkey after 2000 on BIST 100 Index. In the overview, negative and statistically significant abnormal returns are observed days around (-15,+15) elections that took place in Turkey after 2000 by employing Event Study metedology which is widely used in finance literature.

Keywords: