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The puzzle of convex/concave ESG returns and large banks in MENA region countries Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-03-12 Saadaoui Mallek, Mohamed Albaity, Ijaz Ur-Rehman, Shanmugam Thangavelu
This study examines the linear and nonlinear impacts of the environmental, social, and governance (ESG) components on bank stock returns in the region of the Middle East and North Africa (MENA). It also investigates the impact of bank size on the nexus between ESG and bank stock returns. Using a sample of 59 banks from the 12 countries in the MENA region between 2010 and 2021 and applying generalized
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Reverse technological spillovers from outward FDI on home countries’ total factor productivity: Does the mode of investment matter? Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-03-11 Ayesha Ashraf, Federico Carril-Caccia, Nadia Doytch
We examine the effect of outward foreign direct investment (OFDI) on total factor productivity (TFP) of home (source of FDI) countries in a global sample of 85 economies, distinguishing between outward greenfield FDI (OGFDI) and outward cross-border merger and acquisition (M&A) purchases. The goal of the study is to test for to the FDI source country. The hypothesis is that OGFDI and M&As have different
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Intellectual capital and asset quality: A nonlinear investigation in the Turkish Banking sector Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-03-10 Nasif Ozkan, Emin Zeytinoglu
This study aims to investigate the intricate relationship between intellectual capital and asset quality within the context of the Turkish banking sector to determine the optimal level of intellectual capital investment that can enhance the asset quality of deposit banks. The study relies on panel data regression analysis to explore this complex relationship, and its dataset encompasses 22 deposit
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The domino effect of silicon valley Bank's bankruptcy and the role of FED's monetary policy Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-03-09 Elif Erer, Deniz Erer
This paper examines the spillover effects of bankruptcy by important tech industry banks—Silicon Valley Bank (SVB), Silvergate Bank, and Signature Bank—on the top 10 institutions in the MSCI Bank Index and the role that monetary policy by the US Federal Reserve (the Fed) played in this contagion, using Dynamic Conditional Correlation-Exponentional Generalized Autoregressive (DCC-EGARCH) and time-varying
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Financial derivative instruments and their applications in Islamic banking and finance: Fundamentals, structures and pricing mechanisms Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-03-05 Burhan Uluyol
There is ongoing debate regarding the permissibility of financial derivatives in Islamic banking and finance. While traditional derivative products are rejected by most Islamic schools of thought as permissible tools for risk management, there have been developments in -compliant structured products to address this need. Therefore, the objectives of the study are twofold: i) to examine the permissibility
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Corporate environmental, social, and governance activities and financial reporting quality: An international investigation Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-03-04 Gökhan Özer, Nagihan Aktaş, İlhan Çam
This paper examines the impact of firms' environmental, social, and governance (ESG) activities on financial reporting quality (FRQ). The study uses 45,877 firm-year observations from 65 countries between 2003 and 2021. In the research model, firm characteristics and macroeconomic and institutional structure characteristics of the countries are controlled for. This study finds that firms with higher
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Board gender diversity and debt utilization: Evidence from the global microfinance industry Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-03-03 Arpita Sharma, Swati Chauhan, Md Aslam Mia, Sunil Sangwan, Shoaib Alam Siddiqui, Sanjeev Kumar
To support the continued expansion of their operations, microfinance institutions (MFIs) worldwide rely heavily on debt, which exposes them to bankruptcy risk. This underscores the need for prudent selection of debt instruments by MFIs. Therefore, this study aims to investigate the possible influence of board gender diversity on the choice of debt instruments utilized by MFIs. Data from unique 1670
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Confluence of COVID-19 and the Russia-Ukraine conflict: Effects on agricultural commodity prices and food security Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-02-28 Faruk Urak, Abdulbaki Bilgic, Wojciech J. Florkowski, Gürkan Bozma
The study investigates the effects of the Russian-Ukrainian war, the COVID-19 pandemic, and exchange rate fluctuations on the average return, contagion dynamics, and persistence of risks associated with three staples in Türkiye: wheat, sunflower oil, and corn. The pandemic and the war disrupted the grain, oil seed, and fertilizer supply from Russia and Ukraine to Türkiye and several Middle Eastern
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How does environmental, social, and governance (ESG) performance determine investment mix? New empirical evidence from BRICS Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-02-28 Zhichao Yu, Umar Farooq, Mohammad Mahtab Alam, Jiapeng Dai
Integrating environmental, social, and governance (ESG) principles into investment decisions has garnered increased attention in the business landscape. Thus, the current study aims to investigate the intricate interplay between ESG performance and investment patterns (capital vs. environmental) within the corporate setting. This study sought to identify the influence of ESG scores on earnings-driven
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Relationship between monetary policy and financial asset returns in Türkiye: Time, frequency, and quantile-based effects Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-02-23 Mustafa Tevfik Kartal, Ugur Korkut Pata, Dilvin Taşkın, Talat Ulussever
This study analyzes the effect of monetary policy, which are proxied by weighted average cost of funding (WACF) and Borsa Istanbul repurchase interest rate (REPO), on the returns of the main financial assets of monetary policy in Türkiye. Using daily data between January 4, 2011 and August 31, 2023, the study applies novel nonlinear time-series methods, such as wavelet coherence (WC) and quantile-on-quantile
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Lottery factor and stock returns: Evidence from India Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-02-20 Sanjay Sehgal, Vibhuti Vasishth, Florent Deisting
This study examines important aspects of lottery behavior in India using data from December 2001 to March 2021. We experiment with a new measure of lottery along with well-established measures. Our lottery measure focusing on more recent information is found to be appropriate for India. MAX has a unique role in predicting returns that is not subsumed by other risk measures. We find MAX, skewness, tail
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How do loan officer-borrower gender-driven behavioural differences impact on the microfinance lending market? Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-02-16 A. Blanco-Oliver, A. Samaniego, M.J. Palacin-Sanchez
This paper analyses the impact of the gender of the loan officer-borrower pair on the loan-size, credit availability and time spent in managing the credit application. A sample with 3020 lending transactions from Ecuador during 2016–2019 documents that the loan officer-borrower pair gender drives differences in the microcredit portfolio management. We find that female loan officers grant smaller microcredits
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Russian Currency's external shocks and domestic policy effectiveness amid geopolitical tensions Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-02-13 Anna Gainetdinova, Kazi Sohag, Nahla Samargandi
This study examines the dynamics of the Russian currency against the US dollar, exploring its responses to geopolitical risk, domestic policies, and oil and gas price shocks. Based on our quantile and time-frequency analyses from January 1998 to July 2022, focused on a subsample that covers the Russia-Ukraine conflict (January–July 2022), our research reveals that the Russian currency has significant
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The relationship between shari’ah convergence and market-to-book value: A case study of firms in Islamic countries Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-02-05 Deniz Parlak, Mehmet Emin Yildiz, Naci Yilmaz
This study ranks 1235 companies operating in 10 different Islamic countries according to their degree of Shari'ah convergence and investigates the relationship between a firm's market-to-book ratio and convergence to Shari'ah rules. We determine Shari'ah screening variables by reviewing existing Shari'ah market indices and their screening rules; variable weights are determined using the criterion impact
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A novel distance-based moving average model for improvement in the predictive accuracy of financial time series Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-02-03 Uğur Ejder, Selma Ayşe Özel
Time-series forecasting is essential for system analysis. Many traditional studies have paid attention to individual stock-oriented solutions and disregarded general approaches on financial time series or skipped the dynamics of the system and its triggering components. It is difficult to fully adapt to evolving market conditions with stable financial indicators. For this reason, the proposed novel
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Guest Editors’ introduction: Borsa Istanbul history (1836–2023) and an overview of selected papers on the 150th anniversary of the founding of Borsa Istanbul Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-01-18 Güzhan Gülay, Mahmut Aydoğmuş
Abstract not available
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Linear extrapolation and model-free option implied moments Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-01-17 Geul Lee, Doojin Ryu
This study proposes an approach for assessing the effectiveness of linear extrapolation (LE) for the implied moment estimators even in cases in which the true values of implied moments are unknown. To this end, we develop truncation sensitivity functions for simulation and empirical analyses. LE proves effective for implied volatility, skewness, and kurtosis estimators. However, higher moment (i.e
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The impact of women's empowerment and access to finance on greenhouse gas emissions: A framework for securing environmental tranquility Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-01-11 Juan Li, Jianying Li, Abdelmohsen A. Nassani, Imran Naseem, Khalid Zaman
This study explores corporate environmental responsibility, which is an integral aspect of corporate social responsibility, through the lens of women's empowerment and their role in shaping eco-friendly policies. Examining 74 nations, the study reveals that women's influence significantly reduces greenhouse gas emissions within an empowerment index of 67.5–75. However, we observe a decline in corporate
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Exploring the sentiment in Borsa Istanbul with deep learning Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-01-05 Alev Atak
Sentiment analysis holds immense importance in finance and economics, addressing crucial issues such as principal–agent dynamics and information imbalances. The rise of natural language processing signifies a groundbreaking era in sentiment analysis, enabling the effective extraction of insights from textual data. Our research investigates the impact of qualitative financial data on firm valuation
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Term premium in Turkish lira interest rates: The role of foreign investors’ share Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-01-04 Halil İbrahim Aydın, Özgür Özel
In this paper we decompose Turkish Lira interest rates into expected short rate and term premium components, using two well-established methods. Then we focus on the impact of the share of foreign investors on bond yields by instrumenting that share with VIX and Merry Lynch option volatility estimate (Move) indices while controlling for other macroeconomic determinants of term premium. We find that
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The role of financial and trade globalization in enhancing environmental sustainability: Evaluating the effectiveness of carbon taxation and renewable energy in EU member countries Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-01-04 Ayhan Nadiri, Veclal Gündüz, Tomiwa Sunday Adebayo
The study addresses the pressing issue of environmental degradation, pinpointing carbon dioxide (CO) emissions as its primary driver, posing a threat to global environmental sustainability, including the member countries of the European Union (EU). Global warming problems persist, but previous studies have not adequately explored the factors that contribute to a reduction in carbon emissions in EU
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Justice and finance: Does judicial efficiency contribute to financial system efficiency? Borsa Istanb. Rev. (IF 4.288) Pub Date : 2024-01-01 Muhammad Atif Khan, Muhammad Asif Khan, Mohammed Arshad Khan, Shahid Hussain, Veronika Fenyves
Efficient financial systems play a crucial role in promoting economic growth and development. This study explores the impact of judicial efficiency (JE) on financial system efficiency (FSE) and its components, financial institutions efficiency (FIE) and financial markets efficiency (FME), across 108 countries over the period from 2004 to 2020. Utilizing a fixed effect regression for our baseline analysis
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The efficiency of the new reference rate in Türkiye Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-29 Remzi Gök, Burak Pirgaip, Elie Bouri
The transition from the reference rate based on interbank offered rates, such as the Turkish lira interbank offer rate (TRLIBOR), to the risk-free rate (RfR), the Turkish lira overnight reference rate (TLREF), in Türkiye is a critical juncture, but it is not clear how it affects the market's ability to incorporate information precisely and promptly. Drawing on the adaptive market hypothesis (AMH),
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Unlocking profitability in Borsa Istanbul: The impact of noncash credit and maturity breakdown of cash credit on corporate performance Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-29 Rumeysa Bilgin, Yusuf Dinç, Ruslan Nagayev, Ahmet Faruk Aysan
Companies use either internal or external sources of financing to fund their operating or capital expenditure. When internal resources prove inadequate, businesses may turn to external financing options, such as issuing debt or equity in the capital market. In bank-dominated financial markets, cash credit is the primary funding source for most companies. In addition to cash credit, banks provide noncash
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Trading halts and the advantage of institutional investors: Historical evidence from Borsa Istanbul Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-25 Recep Bildik
The effects and effectiveness of trading halts remain controversial among academics and regulators. This paper provides historical evidence regarding the efficacy of trading halts from a leading emerging market with a unique microstructure, Borsa Istanbul (Istanbul Stock Exchange), by examining the return, volatility, and volume behavior around news-initiated trading halts using trade-by-trade data
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Immigrants and natives’ financial decision making: Evidence from Syrian refugees in Türkiye Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-21 Yaşar Ersan, Güzhan Gülay, Abdullah Selim Öztek
This study investigates the causal effects of Syrian migrants on the financial behavior of natives in Türkiye. Utilizing comprehensive administrative data, we employ a two-stage least square (2 S LS) estimation technique that isolates causal effects by exploiting substantial exogenous variation in the share of migrants relative to natives, arising from the geographical proximity to Syrian governorates
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The impact of non-financial disclosure on labor investment: International evidence Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-20 Paulo Pereira da Silva
This study examines the impact of non-financial disclosure (NFD) on firms' labor investment efficiency. We analyze a broad sample of firms located across 44 countries and the period 2006–2019. Using regression analysis, the association between abnormal employment growth and environmental, social and governance (ESG) disclosure volume is evaluated. Preliminary evidence reveals that this association
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Overlapping portfolio holdings and unique sources of emerging market risk Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-11 Aleksandr Tomtosov
Momentum, size, and low volatility in emerging markets regularly exhibit increased correlations across factors and markets in periods of negative returns. I provide a framework to distinguish a unique source of risk from a set of factors in the stage of portfolio formation. The framework is based on discarding duplicate positions that exceed half the portfolios in periods of factor comovement. Unique
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Do psychological factors exert greater influence on investment decisions than physiological factors? Evidence from Borsa Istanbul Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-08 Senay Acikgoz, Cem Onur Karatas
We investigate the impact of Ramadan, the Holy month of fasting, on the phenomenon of post-earnings announcement drift (PEAD) in Borsa Istanbul. Utilizing quarterly earnings announcements and employing both the analyst forecast method and time series forecast method as surprise measures, our study spans the earnings period from the first quarter of 2007 to the last quarter of 2018. Our objective is
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Can Islamic finance enhance the innovation capacity of Cameroonian SMEs? Empirical evidence based on a multivariate probit approach Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-10 Ali Haruna, Honoré Tekam Oumbé, Armand Mboutchouang Kountchou, Charles Bertin Pilag Kakeu
This study examines the effects of the Islamic mode of financing on the innovation capacity of SMEs in Cameroon using a sample of 1358 SMEs. Results of the multivariate probit model indicate that Islamic finance enhances process innovation, product innovation, and marketing innovation. While the effects on organizational innovation are positive, they are statistically insignificant. Our main results
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Exchange rates, credit default swaps and market volatility of emerging markets: Panel CS-ARDL approach Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-06 Alan T. Wang, Chin-Chia Liang
Using the panel-data approach with a sample of emerging countries, this study examines the relationship between exchange-rate movements from 2011 to 2022, on the one hand, and sovereign debt credit default swap (CDS) premiums and market volatility, on the other. To capture the short- and long-run relationships between exchange rates, sovereign CDS, and market volatility, our study applies the cross-section
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Tail-risk connectedness between sukuk and conventional bond markets and their determinants: Evidence from a country-level analysis Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-02 Syed Mabruk Billah, Burcu Kapar, M. Kabir Hassan, Luca Pezzo, Mustafa Raza Rabbani
The study investigates the tail-risk spillover between the markets for sukuk and conventional bonds across fifteen countries between 2016 and 2023. First, we estimate a time varying parameter-value at risk (TVP-VAR)-based frequency connectedness model to measure the total, short-, and long-term frequency connectedness, which address the varying investment horizons of different investors. The connectedness
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Does environmental innovation improve investment efficiency? Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-12-02 Ijaz Ur Rehman, Faisal Shahzad, Usama Laique, Muhammad Abdullah Hanif
Using a sample of 12,550 firm-year observations for the US over the period 2009–2021, we empirically examine the impact of environmental innovation on firm-level investment efficiency. Using fixed-effect regressions, our results indicate that eco-innovation has a significant and positive impact on firm-level investment efficiency. We show that eco-innovation raises investment efficiency and reducing
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Does financial liberalization spur economic growth? A meta-analysis Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-20 Josef C. Brada, Ichiro Iwasaki
Based on a survey of 54 published articles, we undertake a meta-analysis of 906 estimates of the effects of financial liberalization on economic growth. We conclude that the literature contains statistically significant evidence of a positive effect of financial liberalization on economic growth, and, in some cases, these effects can be considered as economically meaningful. Thus, some types of financial
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Firm climate change risk and financial flexibility: Drivers of ESG performance and firm value Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-18 Mirza Muhammad Naseer, Muhammad Asif Khan, Tanveer Bagh, Yongsheng Guo, Xiaoxian Zhu
This study investigates how a firm's climate change risk (FCCR) and financial flexibility (FIFL) affect its value and environmental, social, and governance (ESG) performance. We use data from publicly listed US firms for 2012–2021. We employed four estimation methods: bootstrap quantile regression, feasible generalised least squares, a generalised method of moments, and fixed effects with Driscoll-Kraay
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Does the inverted U-shape between corporate indebtedness and investment hold up for emerging markets? Evidence from Türkiye Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-11 İbrahim Yarba
While corporate indebtedness has increased substantially in emerging countries over the last decade, the literature on the negative consequences of this large build-up of debt on real consequences is very limited. In addition, they provide mixed results and suffer from the lack of representativeness of their samples, which can be attributed to data availability. Unlike the previous studies, this study
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Unlocking the green vault: A comparative analysis on the impact of green financing initiatives in mitigating ecological footprint in Europe Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-13 Xiaohua Sun, Zeeshan Rasool
The recent global concerns over environmental degradation spark interest in sustainable financial mechanisms, with momentum behind environmentally-friendly financing initiatives growing as a potential solution to ecological sustainability. This study analyzes asymmetric green finance-ecological footprint nexus in ten leading European nations with substantial investments in green finance. Previous investigations
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What determines the success of equity derivatives markets? A global perspective Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-07 S.M.R.K. Samarakoon, Rudra P. Pradhan, Rana P. Maradana, Premjit Sahoo
This study investigated the factors driving derivatives market growth across three regions: the Asia-Pacific region, America, Europe, Africa, and the Middle East. It found that underlying market size, volatility, and liquidity are the main factors that affect the growth of derivatives markets. The results confirm the crucial role played by regulation and politics in fostering the development of derivatives
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Geopolitical risks and the energy-stock market nexus: Evidence from Turkiye Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-06 R. Demirer, A. Böyükaslan, E. Erguney, S. Gursoy
The goal of this study is to examine the role of geopolitical risks as a driver of stock market returns in the context of the energy-stock market nexus with a particular emphasis on the intermediary role of energy supply for Turkiye. Our findings confirm the role of GPRs as a net transmitter of shocks to the stock market. However, while electricity supply is a net receiver of GPR induced shocks during
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Fintech adoption, the regulatory environment and bank stability: An empirical investigation from GCC economies Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-04 Habib Hussain Khan, Shoaib Khan, Abdul Ghafoor
The study analyzes the impact of fintech adoption on the banking sector's stability in GCC countries from 2010 to 2022. The study also considers the role of fintech regulations in this framework. We construct an index of fintech adoption by banks by considering several factors such as banks' digital presence, mobile banking capabilities, support for open APIs, fintech partnerships, digital payment
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Reexamining the relationship between ESG and firm performance: Evidence from the role of Buddhism Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-03 Panpan Fu, Yi-Shuai Ren, Yonggang Tian, Seema Wati Narayan, Olaf Weber
This study examines the relationship between environmental, social, and corporate governance (ESG) and firm performance, with a focus on the impact of Buddhism. Our findings suggest the following: (1) The local Buddhism environment weakens the positive relationship between ESG and firm performance, indicating that ESG practices motivated by internal altruism may not contribute to firm performance.
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Empowering mobile money users: The role of financial literacy and trust in Vietnam Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-02 Dao Ha, Ahmet Şensoy, An Phung
While other countries have implemented mobile money very early with promising results, Vietnam, a bank-based country, only started the pilot implementation in November 2021. By the end of the pilot period, the percentage of people with mobile money accounts still needs to reach expectations. In this respect, our study focuses on financial literacy and perceived trust by analyzing consumers' intention
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Innovating for a greener future: The role of green bonds in advancing energy innovation Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-11-02 Tailong Wei, Marvin White, Xu Wen
The rise of climate change concerns and the need to transition to a low-carbon economy has led to a surge in the issuance of green bonds and the development of energy innovation. This study explores the asymmetric green bonds-energy innovation nexus in the top ten nations that issue green bonds. Previously, panel data methods were used to obtain consistent outcomes regarding these variables despite
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Price Prediction of The Borsa Istanbul Banks Index with Traditional Methods and Artificial Neural Networks Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-10-18 İlknur Ülkü Armağan
In terms of asset size, the banking system constitutes 83% of the financial markets in Turkiye. Given the importance of the banking system in the Turkish capital market, this study offers a price forecasting analysis of the Borsa Istanbul Banks Index, which represents the domestic banking system, between December 27, 1996, to August 31, 2023, using the traditional Autoregressive Integrated Moving Average
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Asset securitization and bank stock price performance: Bubble increase or risk transfer? Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-10-20 Qinghan Liu, Rumiao Li, Mahmood Ahmad, Zongqiang Ren
In this study, we analyzed 40 commercial bank annual reports from 2014 to 2021 to clarify the influence of tangible and intangible asset securitization on bank stock price bubbles, based on the banks’ preference for issuing asset securitization. The empirical findings show that tangible asset securitization suppresses the emergence of bank stock price bubbles by improving internal control quality.
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From finance to sustainability: Understanding the financial development-environment nexus with the environmental Kuznets curve in East-Asia and Pacific economies Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-10-13 Huaqing Zhang, Tingting Chen, Yan Yu
This study examines the effect of financial development on environmental quality in East Asia and the Pacific (EP) countries from 1995 to 2020. A unique technique, Dynamic Common Correlated Effects, is utilized to resolve cross-sectional dependence and heterogeneity. The Pooled Mean Group technique is also applied to verify the robustness of the results. The long-run analysis confirms financial development's
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The role of institutional quality in the relationship between financial development and economic growth: Emerging markets and middle-income economies Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-10-12 Yuksel Bayraktar, Ayfer Ozyilmaz, Metin Toprak, Mehmet Firat Olgun, Esme Isik
In this study, the relationship between economic growth and financial development was analyzed for emerging markets and middle-income economies. The effect of financial development on growth, whether there is institutional quality or not, has also been investigated. In addition, which financial development indicator is more effective for growth has been examined. Six institutional quality indicators
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Does Climate Change Affect Sovereign Credit Risk? International Evidence Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-10-10 Nader Naifar
This paper fills a crucial research gap by investigating the connection between climate change and sovereign credit risk. While the economic implications of climate risk have long been acknowledged, limited attention has been given to understanding its impact on sovereign credit risk. To address this gap, we provide novel empirical evidence on the influence of climate change readiness and vulnerability
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Digital currency and blockchain security in accelerating financial stability: A mediating role of credit supply Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-10-07 Misbah Sadiq, Ahmet Faruk Aysan, Umar Nawaz Kayani
This study examines how blockchain and digital currency have affected the supply of credit and financial stability. It pays particular attention to industry-based analyses and options presented by cryptocurrencies, stablecoins, and digital currencies for the credit supply and financial stability. A positivistic or quantitative research design is employed. The method of data collection is a survey-based
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“Trust but verify” financial inclusion in the MENA region Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-10-04 Yousef Damra, Sara Yasin, Mohamed Albaity
Using data from the World Value and Financial Access Surveys from 2010 to 2021 in 13 countries in the Middle East and North African (MENA) region, this study investigates the nonlinear impact of general trust (GT) and confidence in banks (CIB) on financial inclusion (FI). In addition, it investigates whether bank risk-taking reinforces the negative effect between trust and financial inclusion. We also
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A model validation of robo-advisers for stock investment Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-09-28 Atul Shiva, Bijay Prasad Kushwaha, Bikramjit Rishi
The study examines the intention of stock investors to adopt robo-advisers (also known as automated investing services) in financial investment decisions. Using an adapted questionnaire, we analyze data from 637 useable surveys. The study uses variance-based partial least squares structural equation modeling to test our hypotheses. The study reveals that the critical drivers in determining the attitude
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Convergence in Islamic financial development: Evidence from Islamic countries using the Fourier panel KPSS stationarity test Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-09-27 M. Kabir Hassan, Hasan Kazak, Uğur Adıgüzel, Mehmet Akif Gunduz, Ahmet Tayfur Akcan
This study investigates whether there is convergence among Islamic countries with respect to the relationship between growth in Islamic financial markets and economic growth in those countries as measured by Gross Domestic Product. We use data from 2013 to 2021 for the nine Islamic countries with the highest levels of activity in Islamic finance. We employ the Fourier Panel KPSS Stationarity Test to
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The Impacts of Conventional and Islamic Banking Sectors on Real Sector Growth: Evidence from Time-Varying Causality Analysis for Turkiye Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-09-20 Hasan Kazak, Burhan ULUYOL, Ahmet Tayfur Akcan, Mustafa İyibildiren
Advocates of Islamic finance claim that it contributes to the development of the real economy, rather than focusing on growth in financial assets by selling money to earn money, but no empirical evidence has been produced to support that view. Therefore, this study investigates the effects of conventional banking activities and Islamic banking activities, in particular in terms of their contribution
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In the pursuit of financial innovation-Led financial inclusion: A proposed construct for financial trust Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-09-16 Roshan Ali, Muhammad Meraj, Muhammad Shujaat Mubarik
The study develops a comprehensive scale of trust in the financial system, to account for its various dimensions. A multistage approach is adopted in the study for this purpose. After reviewing relevant literature and conducting focused group discussions, we collected data from investors through a questionnaire. Finally, we use principal component analysis (PCA) to perform exploratory factor analysis
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The varying impact of financial development on the environmental footprint due to geopolitical risk: The difference between high- and middle-income countries Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-09-07 Lan Khanh Chu, Huong Hoang Diep Truong, Dung Phuong Hoang
The global debate among policy makers and environmentalists concerns how environmental degradation can be minimized without impeding economic growth. Because of intensification of geopolitical uncertainty, achieving this balance has become difficult. To contribute to breaking this “deadlock”, our research explores the interlinkage among financial development, geopolitical risk, and the environmental
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Big data–enabled sign prediction for Borsa Istanbul intraday equity prices Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-08-21 Abdurrahman Kılıç, Bülent Güloğlu, Atakan Yalçın, Alp Üstündağ
This paper employs a big data source, the Borsa Istanbul’s “data analytics” information, to predict 5-minute up, down, and steady signs drawn from closing price changes. Seven machine learning algorithms are compared with 2018 data for the entire year. Success levels for each method are reported for 26 liquid stocks in terms of macro-averaged F-measures. For the 5-minute lagged data, nine equities
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Air Pollution, Bid Price Bias, and IPO Underpricing Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-08-19 Qi Wang, Zhong Ma, Haoyang Li, Lidong Zheng
We examine the impact of air pollution on underpricing of initial public offerings (IPOs) and its underlying mechanisms. Our findings suggest that IPO underpricing increases when air pollution is more severe in cities where bidding investors are located. Mechanism tests show that air pollution influences investors’ mood and cognition, leading them to make pessimistic bids and rely more on anchors.
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House Price Connectedness and Consumer Sentiment in an Era of Destabilizing Macroeconomic Conditions: Empirical Evidence from Türkiye Borsa Istanb. Rev. (IF 4.288) Pub Date : 2023-08-18 Mehmet Balcılar, Ojonugwa Usman, Murat Yülek, Büşra Ağan, Bahar Erdal
This study analyzes changes in the connectedness of 26 regional house prices in Türkiye and determines how consumer sentiments affect connectedness in the era of destabilizing macroeconomic conditions over the period from January 2010 to April 2022. To this end, we estimate network connectedness using a Lasso VAR model and time-varying analyses using a rolling linear VAR model for the pre-crisis and