UNRAVELING MARKET EFFICIENCY THROUGH BANK STOCK RETURNS INSIGHTS FROM SYNDICATED LOAN ANNOUNCEMENTS IN BORSA ISTANBUL

This study explores the effect of syndicated loan announcements on the stock returns of banks listed on Borsa Istanbul, utilizing the event study methodology over the 2017–2022 period. Eight publicly traded banks were analyzed to assess abnormal returns (AR), average abnormal returns (AAR), and cumulative abnormal returns (CAR) within an extensive event window. The findings reveal that syndicated loan announcements did not result in statistically significant abnormal returns, indicating a deviation from the semi-strong form of market efficiency in Borsa Istanbul. Unlike previous studies, this research makes an original contribution by focusing specifically on syndicated loan events in an emerging market context, applying a longer observation window and a rigorous empirical setup. By isolating bank-specific stock reactions to syndicated loans, the study enhances the understanding of informational efficiency in developing capital markets. Moreover, it addresses an underexplored topic in Turkish financial literature, offering new insights for investors, policymakers, and academics interested in market behavior and external financing announcements.