Akademik Veri Yönetim Sistemi
Gazi İktisat ve İşletme Dergisi, cilt.8, sa.1, ss.35-46, 2022 (Hakemli Dergi)
COVID-19, which emerged as of the end of December 2019, proceeded to spread all over the world. On March 11, 2020, the World Health Organization (WHO) declared the disease a pandemic and warned countries to take certain precautions. While governments were taking restrictive measures, they also tried to support the economy. This research analyzes the impact of the Turkish government’s interventions against COVID-19 on Borsa Istanbul for the period between March 10, 2020 and April 17, 2020 applying the pooled OLS. The stringency index, containment and health index, and economic support index are used to evaluate the government’s responses to the pandemic. According to the findings, the increase in the number of cases negatively affects stock market returns. While social distancing measures taken by the government have a negative impact on stock returns, containment and healthcare policies and economic support packages have a positive effect on stock returns. Lastly, the interaction of the growth in confirmed cases with stringency index, containment and health index and economic support index are respectively examined. The findings are not significant as investors apparently expect that the social distancing measures, healthcare policies, and economic support packages are not adequate to control the pandemic.