Does Parasocial Breakup Affect the Stock Market Returns?

Abstract

This chapter analyzes the impact of parasocial breakup on the stock returns in Borsa Istanbul as an emerging stock market. In this study, 129 Turkish TV series finales, broadcast between 2005 and 2015, are employed as a negative mood proxy. In line with the purpose of this chapter, GARCH-M model is used to obtain a more efficient parameter and alternative mood proxy dummies and other macroeconomic variables are incorporated into the analyses to examine the robustness of the effect of parasocial breakup on stock market returns. The analysis presents robust evidence that the negative mood increases the stock market returns. It also found that the effect of parasocial breakup on returns depends on the types of TV series and the channels they are broadcast on.