Impact of “Aircraft Crisis” Between Turkey and Russia on Borsa Istanbul Food, Beverage and Tourism Indexes

On November 24, 2015 at the Syrian border, boundary violations of Russian combat aircraft was shot down by Turkish warplanes that has caused serious problems in terms of bilateral relations. After the incident, Russia unilaterally froze all its military and economic cooperation and has decided to apply economic sanctions to Turkey. Many of the sectors, especially tourism and food sector, were directly affected by these sanctions decisions. In this context, the purpose of the study is to reveal how the companies of BIST Food, Beverage and BIST Tourism Indexes react to this circumstance by employing the event study methodology. According to the findings, it is observed that the companies that are listed in the BIST Food, Beverage Index generally are affected negatively. Also, it has been determined that companies in the BIST Tourism Index exhibit positive AR values in the post-event period. On the other hand, it was noted that the majority of CAAR values were negative. Moreover, although there are no obvious predictable trends, the presence of statistically significant results in the event window on some days has shown that the market is not efficient in a semi-strong form.