Analysis of the Effects of the Central Bank's Interest Announcements on Tourism Index Returns

Creative Commons License


SOSYOEKONOMI, vol.30, no.51, pp.91-118, 2022 (ESCI) identifier

  • Publication Type: Article / Article
  • Volume: 30 Issue: 51
  • Publication Date: 2022
  • Doi Number: 10.17233/sosyoekonomi.2022.01.05
  • Journal Name: SOSYOEKONOMI
  • Journal Indexes: Emerging Sources Citation Index (ESCI), TR DİZİN (ULAKBİM)
  • Page Numbers: pp.91-118
  • Keywords: Index Returns, BIST Tourism, Interest Rates Announcements, CBRT, Event Study, STOCK-MARKET PERFORMANCE, MACROECONOMIC INDICATORS, IMPACT, POLICY, EVENT, FIRMS, TRAVEL
  • Anadolu University Affiliated: Yes


This paper examines the impact of interest rate announcements by the Central Bank of the Republic of Turkey (CBRT) on Borsa Istanbul tourism index returns. During the period covering 20102020, the effects of the CBRT's 20 decrease announcements and eight increase announcements on tourism index daily returns were examined separately using the event study method. Moreover, the BIST100 index was analysed for comparison purposes. According to the study results in which ARs were calculated with the mean adjusted return model, out of 20 announcements of decreases in the interest rate, only 3 showed statistically significant ARs on the event date. This result indicates that tourism investors' reactions to policy rate announcements are weak and suggests the policy rate does not affect tourism investors' reactions. The findings for the BIST100 support this idea.