The Effects of Natural Disaster on Financial Markets: The Empirical Analysis of 2023 Earthquakes in Türkiye

Abstract

Purpose: The aim of the study is to investigate the effects of the February 6 earthquakes on financial markets Design/Methodology: BIST100 index, BIST sustainability index and BIST 100 electricity index were analyzed by the cross quantilogram method.. Findings: As a result of the analysis; According to the findings, the highest negative correlation values are seen in the period after the earthquake date. While the correlation relations between the sustainability and electricity indices included in the study and the BIST100 index were negative shortly before the earthquake, they followed a fluctuating course and maintained a negative effect since the earthquake date. In both indices, the dates when the negative effects are most visible coincide with the post-earthquake period. This situation reveals that both indices were negatively affected by the earthquake. Limitations: The fact that the February 6 earthquakes are still new and their consequences have not yet fully emerged necessitates the study to be conducted with more comprehensive data in the future. Originality/Value: It is thought that the study will make a significant contribution to the literature in terms of seeing short-term results and determining economic projections accordingly. Due to the devastating earthquakes that have occurred in recent years, the economic effects of natural events have become very important for Turkey. Therefore, it is inevitable to discuss the consequences of these effects and what needs to be done in the light of these consequences.