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BUSINESS AND ECONOMICS RESEARCH JOURNAL

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Article Information
Journal: Business and Economics Research Journal
Title of Article: Impact of Forward Looking Disclosures on Stock Prices: Evidence from Borsa İstanbul
Author(s): Saim Kilic
Volume: 10
Number: 4
Year: 2019
Page: 833-844
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.204
Abstract
The study examines the impact of disclosures of forward looking statements by companies listed on Borsa İstanbul on stock prices during the period of January 2014 – January 2019. For this purpose, a total of 43 disclosures, 23 of which were positive and 20 of which were negative, were included in the study and analyzed by the Event Study method. According to the results of the study, firstly, it has been found that forward looking disclosures have statistically significant impact on stock returns and investor’s investment decisions. Secondly, when the impact of the positive disclosures and the impact of the negative disclosures were compared; it has been seen that the first impact of the negative disclosures is stronger than the first impact of the positive disclosures, whereas the effect of the negative disclosures lasts shorter than the effect of the positive disclosures. Especially it has been observed that a great majority of the positive disclosures have been effective on the stock prices up to next five transaction days and a great majority of the negative disclosures on the next three transaction days.

Keywords: Forward Looking Statements, Forward Looking Information, Disclosure, Abnormal Return, Event Study

JEL Classification: G14, G19

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