SARIGÜL, Haşmet Mevlana Üniversitesi - iþletme Fakültesi, Turkey

THE EFFECT OF SYNDICATED LOAN ANNOUNCEMENTS ON BORROWING BANKS’ STOCK RETURNS

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The aim of this study is to investigate the effects of the loan announcements on borrowing banks’ stock returns in Borsa Istanbul over the period 2006-2013 by using event study methodology. For each announcement; the +/- 20 trading days is used as event window and 100 days prior to the event window is used as the estimation window. After filtering the overlapping events in estimation window, the effect of 87 syndicated loan annoucements of 14 banks were evaluated by calculating abnormal returns and by computing t-statistics. The findings suggest that the syndication loan announcements of the banks did not create significant abnormal returns in Borsa İstanbul in the period of observation.

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syndicated loan , bank , event study

Journal Of Financial Researches an‎d Studies

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