The Effect of FED Interest Rate Decisions on Stocks: S&P 500 Financials Analysis

Faruk Temel; Hidayet Güneş

Makale detayları

The Effect of FED Interest Rate Decisions on Stocks: S&P 500 Financials Analysis

Yazarlar:

Faruk Temel | Hidayet Güneş

Yayıncı:

Bolu Abant Izzet Baysal University

Ana Başlıklar:

Finansal Piyasalar ve Kurumlar

Dergi:

Abant Sosyal Bilimler Dergisi Vol.24 Issue 1, pp.1-17

Belge Tipi:

Makale

Yayın Tarihi:

3/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001304858

pISSN:

2757-9425

Anahtar kelimeler:

Özet:

 The aim of this study is to examine reactions of the stocks in the SP 500 Financial Index to the interest rate decisions of the FED by using the event study method. In the study, in which 4 events with sufficient forecast periods among the interest rate changes between 2015 and 2023 were examined for 12 event windows, and it was determined that abnormal returns were mostly not statistically significant. Due to the limited statistically significant positive or negative abnormal returns, efficiency can be attributed to the SP 500. Given the efficiency of the market, investors may not consistently beat the market, so they can adopt a passive investment strategy by turning to index funds or exchange-traded funds. In addition, investors can reduce the risk of their investments through portfolio diversification. The study, which provides a comprehensive analysis, fills an important gap in the literature.

 The aim of this study is to examine reactions of the stocks in the SP 500 Financial Index to the interest rate decisions of the FED by using the event study method. In the study, in which 4 events with sufficient forecast periods among the interest rate changes between 2015 and 2023 were examined for 12 event windows, and it was determined that abnormal returns were mostly not statistically significant. Due to the limited statistically significant positive or negative abnormal returns, efficiency can be attributed to the SP 500. Given the efficiency of the market, investors may not consistently beat the market, so they can adopt a passive investment strategy by turning to index funds or exchange-traded funds. In addition, investors can reduce the risk of their investments through portfolio diversification. The study, which provides a comprehensive analysis, fills an important gap in the literature.

 The aim of this study is to examine reactions of the stocks in the SP 500 Financial Index to the interest rate decisions of the FED by using the event study method. In the study, in which 4 events with sufficient forecast periods among the interest rate changes between 2015 and 2023 were examined for 12 event windows, and it was determined that abnormal returns were mostly not statistically significant. Due to the limited statistically significant positive or negative abnormal returns, efficiency can be attributed to the SP 500. Given the efficiency of the market, investors may not consistently beat the market, so they can adopt a passive investment strategy by turning to index funds or exchange-traded funds. In addition, investors can reduce the risk of their investments through portfolio diversification. The study, which provides a comprehensive analysis, fills an important gap in the literature.

 Bu çalışmanın amacı SP 500 Financials Endeksindeki hisse senetlerinin, FEDin faiz kararlarına karşı verdiği tepkilerin olay çalışması yöntemi ile incelenmesidir. 2015-2023 yılları arası faiz değişikliklerinden, yeterli tahmin periyoduna sahip 4 olayın 12 olay penceresi için incelendiği çalışmada anormal getirilerin çoğunlukla istatistiksel olarak anlamlı olmadığı tespit edilmiştir. İstatistiksel olarak anlamlı pozitif ya da negatif anormal getirinin sınırlı olması nedeniyle SP 500 için etkinlikten söz edilebilmektedir. Piyasanın etkinliği nedeniyle yatırımcılar piyasayı sürekli yenemeyeceği için endeks fonlarına ya da borsa yatırım fonlarına yönelerek pasif yatırım stratejisi izleyebilirler. Ayrıca yatırımcılar portföy çeşitlendirmesi ile yatırımlarının riskini azaltabilirler. Kapsamlı analizin yapıldığı çalışma, literatürdeki önemli bir boşluğu doldurmaktadır.

Makale detayları

The Effect of FED Interest Rate Decisions on Stocks: S&P 500 Financials Analysis

Yazarlar:

Faruk Temel | Hidayet Güneş

Yayıncı:

Bolu Abant Izzet Baysal University

Ana Başlıklar:

Finansal Piyasalar ve Kurumlar

Dergi:

Abant Sosyal Bilimler Dergisi Vol.24 Issue 1, pp.1-17

Belge Tipi:

Makale

Yayın Tarihi:

3/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001304858

pISSN:

2757-9425

FED Interest Rate Decisions

S&P 500 Financials

Event StudyFED Faiz Kararları

S&P 500 Financials

Olay Çalışması

Sayı

Makale detayları

The Effect of FED Interest Rate Decisions on Stocks: S&P 500 Financials Analysis

Yazarlar: Faruk Temel | Hidayet Güneş

Yayıncı: Bolu Abant Izzet Baysal University

Ana Başlıklar: Finansal Piyasalar ve Kurumlar

Dergi: Abant Sosyal Bilimler Dergisi Vol.24 Issue 1, pp.1-17

Belge Tipi: Makale

Yayın Tarihi: 3/2024

Belge Dili: Türkçe

Document ID (Org No.): 2001304858

pISSN: 2757-9425

FED Interest Rate Decisions

S&P 500 Financials

Event StudyFED Faiz Kararları

S&P 500 Financials

Olay Çalışması

Sayı

Yazarlar:

Faruk Temel | Hidayet Güneş

Yayıncı:

Bolu Abant Izzet Baysal University

Ana Başlıklar:

Finansal Piyasalar ve Kurumlar

Dergi:

Abant Sosyal Bilimler Dergisi Vol.24 Issue 1, pp.1-17

Belge Tipi:

Makale

Yayın Tarihi:

3/2024

Belge Dili:

Türkçe

Document ID (Org No.):

2001304858

pISSN:

2757-9425