TY  - JOUR
TI  - GOOD FORECASTING OR INFORMATION LEAKAGE EXPLAINING MARKET BEHAVIOR PRIOR TO THE ANNOUNCEMENT OF SOVEREIGN RATING DOWNGRADES: EVIDENCE FROM TURKEY
AB  - This paper aims to empirically test the impact of Turkey’s sovereign credit rating downgrades by threemajor credit rating agencies on the Borsa İstanbul equity market prior to the official announcement,and to ascertain whether any significant impact found is due to market players’ accurate forecasting orinformation leakages. In this paper, the effects of nine downgrade announcements between 2016 and 2018are analyzed using the Event Study method. In eight of the nine events, statistically significant negativecumulative abnormal returns were estimated during the five trading days before the announcement.Evidence suggests that three of the eight events reflected information leakage to the market, and fiveindicated sound forecasting by market players alongside some information leakage. These results revealthat it is necessary to take preventive measures against information leakage before the announcement ofthe ratings assessments.
AU  - Delikanli, Ihsan Ugur
AU  - Kılıç, Saim
AU  - Alp, Ali
DO  - 10.14780/muiibd.854499
PY  - 2020
JO  - Marmara Üniversitesi İktisadi ve İdari Bilimler Dergisi
VL  - 42
IS  - 2
SN  - 2149-1844
SP  - 327
EP  - 339
DB  - TRDizin
UR  - http://search/yayin/detay/457728
ER  -