THE IMPACTS OF THE RUSSIAN PLANE CRISIS, THE JULY 15TH COUP D'ETAT ATTEMPT AND TERRORIST ATTACKS ON THE MARKET VALUES OF THE ISTANBUL STOCK EXCHANGE (ISE) TOURISM INDEX

Furthermore, the results indicate that increased numbers of fatalities and injuries influence stock market volatility greatly. [...]the purpose of this study is to examine whether Istanbul Stock Exchange Tourism Index reactions to terrorist attacks are determined by (1) the time (2) and the target, and (3) whether tourism index market values exhibited different reactions to the plane crisis with Russia and the July 15th coup attempt. Volatility is naturally an important matter in financial markets as well as in risk management and portfolio allocations. Since the impacts of the July 15th coup attempt, terrorist attacks and the Russian warplane shutdown near the Syrian border on tourism index market values are examined in this study, these three politically relevant events are detailed below. According to the efficient market hypothesis, a market can adapt to newly emerging information immediately. From the results obtained, the GARCH (2,1) model is the preferred option in GED distribution, because the sum of the a and ß parameters is the closest alternative to 1. [...]because the sum of the a and ß parameters is not close to 1 indicates that the current period's information on conditional variance is insignificant in the next period's forecast, this means that the volatility effect is not permanent. [...]the effect of volatility resistance is higher than the instantaneous response of price fluctuations in the market. [...]because the sum of the a and ß parameters is not close to 1 indicates that the current period's information on conditional variance is insignificant in the next period's forecast, this means that the volatility effect is not permanent.