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Assessing the Impact of the Turkey-Syria Earthquake on Global Stock Markets

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  • Dharen Kumar Pandey
  • M. Kabir Hassan
  • Makeen Huda
  • Muhammad Arif Khan

Abstract

Using the event study and cross-sectional analysis, we show that the impact of the Turkey-Syria earthquake on the leading stock market indices of 53 nations was not uniform. While the global, European, and developed markets exhibit negative returns on t+1 and t+4, positive returns were observed on t+2 and t+3, indicating that market participants later adjusted their perceptions and expectations of the event. The country-wise analysis suggests that investors' optimistic view leads to positive returns. We show that trade dependence and proximity to the event zone negatively impact returns, while past returns just before the event can predict returns during the event windows.

Suggested Citation

  • Dharen Kumar Pandey & M. Kabir Hassan & Makeen Huda & Muhammad Arif Khan, 2023. "Assessing the Impact of the Turkey-Syria Earthquake on Global Stock Markets," International Journal of Accounting, Business and Finance, Indian Accounting Association, Patna Branch, vol. 2(2), pages 15-27.
    • Handle: RePEc:dbs:ijabfi:v:2:y:2023:i:2:p:15-27:id:113
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    References listed on IDEAS

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    1. Hassan, M Kabir & Boubaker, Sabri & Kumari, Vineeta & Pandey, Dharen Kumar, 2022. "Border disputes and heterogeneous sectoral returns: An event study approach," Finance Research Letters, Elsevier, vol. 50(C).
    2. Yousaf, Imran & Goodell, John W., 2023. "Reputational contagion and the fall of FTX: Examining the response of tokens to the delegitimization of FTT," Finance Research Letters, Elsevier, vol. 54(C).
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