Impact of Forward Looking Disclosures on Stock Prices: Evidence from Borsa İstanbul

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.