Bora Aktan

EuroMed Research Business Institute · Emerging Markets

This study investigates the role of foreign direct investment (FDI) and its country-of-origin in technology transfer. Using data of 95 countries from 2008 to 2019, results indicate that net inflows of the FDI are positively related to technological transfer especially in developing countries. This is consistent with the findings that show fewer res...

The main aim of the present study is to examine the possible nonlinear relations between foreign direct investments and environmental deterioration for subpanels separated according to the income levels of countries by using the classification made by the World Bank. Total energy consumption, economic growth, and renewable energy share are also con...

This paper introduces a theoretical model that relates firm dynamics to bankruptcy processes on both univariate and multivariate bases. The distinctiveness of the study lies in the estimation of default using a framework where firm dynamics are linked to the bankruptcy process itself. The structure builds on theoretical relations among the construc...

This paper provides evidence regarding the impact of soft information on foreign bank efficiency in the ASEAN-5 market in the years following the Asian crisis. The analysis presented here develops previous literature by disaggregating soft information into five difference types and examining whether institutional quality (proxied for by host-countr...

This paper attempts to test the relationship between economic growth and equity market development in GCC region which is the Cooperation Council for the Arab States of the Gulf, namely, Saudi Arabia, Bahrain, the United Arab Emirates, Oman, Kuwait and Qatar over the period of 2000 and 2017. The Generalized Linear Mixed Model (GLMM) is adopted to f...

This essential textbook provides a comprehensive introduction to the Islamic business environment, exploring core concepts and practices in business administration from an Islamic perspective. Thorough and accessible, it covers the full range of Islamic business, including entrepreneurship, ethics, organizational culture, marketing, finance and dec...

Turkey has a liberal economy, offering a combination of both the conventional and Islamic banking system. Islamic banks are referred to as participation banks in the country. The overall share of participation banking in the banking system is about 5%. Because of this composition, the general economic outlook in the evaluation of the impact of the...

Purpose The purpose of this paper is to empirically investigate the effect of real credit ratings change on capital structure decisions. Design/methodology/approach The study uses three models to examine the impact of credit rating on capital structure decisions within the framework of credit rating-capital structure hypotheses (broad rating, notc...

In this paper it is assumed that equity markets reflect the development of the overall economy of a country. Equity markets, among other factors, are considerably affected by factors such as inflation or deflation. Therefore, when inflationary or deflationary pressures appear, Central Banks try to manage those pressures in order to minimise their i...

The devastating Japan earthquake (magnitude 9.0) and tsunami (39-metre high) of 2011, also called the Great Tohoku or Sendai earthquake, was a record-breaker natural disaster causing enormous damage and a nuclear meltdown at Fukushima nuclear power plant. This paper attempts to analyse the long and short run effects of this record-breaking natural...

This paper examines the long-term relationship between BRICS and US stock markets by employing the cointegration technique and Granger causality to investigate the cointegration and causality direction in the capital markets. The impulse response function it is also employed to evaluate the persistence of the shocks. In the analysis, daily spot sto...

The aim of this paper is to explore the relationship between corporate governance and performance of the financial firms in the Kingdom of Bahrain. The study uses annual data of all listed financial firms on the Bahrain Bourse over the period of 2011-2016. The results show that board size, ownership concentration and auditor’s reputation have a pos...

The goal of this study is to determine the elements that contribute to the profitability of commercial banks in Saudi Arabia. The study is important due to the fact that Saudi vision 2030 foresees Saudi Arabia as a global investment powerhouse and fulfilling this objective requires a profitable banking sector. The method chosen for the study is mul...

This study identifies the dividend policy determinants of banks and other financial institutions listed on Qatar Stock Exchange (QSE) for a period from 2009 to 2015 through studying the impact on eight factors on banks' dividends per share. Three models were adopted to investigate the determinants of the dividend policy and the factors that affect...

Previous studies on company scores conducted at firm-level, generally concluded that there exists a positive relation between company scores and stock returns. Motivated by these studies, this study examines the relationship between company scores (Corporate Governance Score, Economic Score, Environmental Score, and Social Score) and stock returns,...

This article focuses on the asset price volatility at the stock exchange that result from the regime switching behaviour in the market. This study is devoted to the question about how the asset price volatility affects the US sovereign debt market. The efficient market hypothesis has been a base for the asset pricing. This hypothesis is discussed i...

This study investigates the impact of various resources, specifically both tangible and intangible ones, together with capabilities of Malaysian listed firms, on their performance. This empirical study attempts to enrich the understanding of the resourcesperformance relationship, which is one of a business process within the firm, as well as fillin...

This study examines the mediating roles of enterprise risk management on firm resources-firm performance relationship. Relationships among firm resources, enterprise risk management (ERM) and firm performance are yet to be comprehensively explored, particularly for the corporate sector of Malaysia. The main goal of this study is to fill this gap. C...

The aim of this paper is to develop a macroeconometric model for emerging economies as in the case of Bahrain (the most open economy in GCC region) to measure the impact of human capital investment on key macroeconomic indicators (1990 through 2016). The paper also makes an attempt to forecast the effects of changes in government spending on educat...

This paper is developed to investigate and compare the efficiency within Gulf Cooperation Council (GCC) based Islamic and conventional banks. The analysis is conducted over a sample of 49 banks for the period of 2006-2015. The paper is divided into two stages of analysis; the first stage was conducted to estimate and analyze the efficiencies of the...

This paper analyzes the performance of Islamic banks operating in Pakistan according to their financial results of the year 2015. CAMELS rating model is applied in this research. This model is based on certain financial ratios which are excerpt from values in the financial statements of banks. The authors conduct the research under the umbrella of...

This paper analyzes the performance of Islamic banks operating in Pakistan according to their financial results of the year 2015. CAMELS rating model is applied in this research. This model is based on certain financial ratios which are excerpt from values in the financial statements of banks. The authors conduct the research under the umbrella of...

This paper analyses the effects of off-balance sheet (OBS) activities and various types of risks on the cost and profit efficiencies of banks in seven East Asian countries between 2001 and 2008. Cost and profit efficiency scores are estimated using the data envelopment analysis approach. The results of this analysis are then used to identify the im...

This paper examines the long-run relationships between the REIT indices of the UK, Turkey and Israel in the Euro-Med zone with that of MSCI US REIT Index by using weekly data over the period 2003Q3 through 2009Q3, which includes the latest US subprime mortgage crisis and its effects on global stock markets. Although our EG test results do not indic...

Understanding of risk and its resultant impact on the returns and evaluation of risk-return relationship are highly important for investors. For this purpose, the fundamental relationship between risk and return is investigated within the framework of the Capital Asset Pricing Model (CAPM) that has been in use the longest and is still the standard...

This paper examines the effect of off-balance sheet (OBS) activities on performance of the banks listed on Istanbul Stock Exchange (ISE). We use four measures of performance including bank's risk exposures, profitability, leverage, and liquidity position. We find that both bank-specific risk and foreign exchange rate risk are positively related wit...

Classifying the firms listed at stock exchanges basing on their similar characteristics can be put away one of the major challenges on investors' behalf in information-rich stock markets. In this paper, we discuss and examine whether the firms listed at Bahrain Bourse (BHB) can be grouped based on the mean and standard deviations of daily returns w...

The paper analyses determinants of stock market development in thirty advanced and emerging countries within the period between 1960 and pre-financial global meltdown (2007). Our explanatory variables are foreign direct investment (FDI), remittances and bank credits to private sector. The application of SUR estimation disclosed that all variables h...

Economic growth and country's industry dependence on the assessment of energetic resources arise as comprehensive approach. The increase in global energy prices, significant dependence on imported energy and increase in energy consumption might result international competitiveness of the country and pose constrains towards sustainable development....

As a fundamental component to any country's overall economic system, People's Republic of China's (PRC) banking industry recently has seen rapid growth in line with the economic development of the country. This paper presents an empirical assessment of the market structure and the competitiveness of the Chinese banking sector particularly in the wa...

Yields, over the past few years, have been volatile due primarily to a combination of two factors; the reaction of Federal Reserve (FED) to the events by changing the interest rates and the repricing of risks by investors. These factors have a key impact on determination of bond pricing; this study uses several measurements of bond pricing estimati...

The main purpose of this paper for domestic and global investors is to examine the risk and return relationship of listed firms' common stocks at Istanbul Stock Exchange (ISE) which are largely active in major industries that are vital for economic growth and sustainable development of Turkey as an emerging market within the framework of the Capita...

This study gives the analysis of the determinants of banks' profitability in China over the period of 2003-2007 by investigating the cointegration and the causal relationship between total assets (TA) and total equity (TE) of Chinese banks. The analysis employs Augmented Dickey Fuller (ADF) test, Johansen cointegration test, and Granger causality t...

This paper seeks to analyze the financial performance of the selected Sudanese Islamic banks and highlight their growth using financial statement analysis. The procedure involves calculating numerous financial ratios and categorizing them into 5 key groups in order to examine profitability, earning potential, liquidity, credit risk, and assets acti...

In the recent economic recession, Federal Reserve (The FED) and Federal Government have preferred different methods to stimulate the economy. The key factor is the choice of financing each have following to implement their stimulus programs. The FED had opted to use quantitative easing (QE), in increasing money the FED expect to ease credit and inv...

As time‐varying volatility has found applications in roughly all time series modelling in economics, it largely draws attention in the areas of financial markets. This study also examines the characteristics of conditional volatility in the Baltic Stock Markets (Estonia, Latvia and Lithuania) by using a broad range of GARCH volatility models. Corre...

The aim of this study is to investigate whether some certain characteristics of fund managers help to explain their performance in the context of an emerging market, Turkey. We test the statistical significance between two measures of fund manager performance (number of clients and portfolio size) and fund manager characteristics such as education,...

We investigate the performance of Value at Risk (VaR) models at measuring risk for WTI oil one-month futures returns. VaR models are used to calculate commodity market risk at extreme quantiles: 0.95, 0.99, 0.995 and 0.999 for both long and short trading positions. Widespread VaR models do not provide adequate risk coverage and their performance is...

This paper examines the competitive structures of the Turkish banking industry over the period 1998–2008 and investigates the factors that can explain differences in the degree of competitiveness. The Panzar‐Rosse method is used to test for the competitive nature of the industry, which also gives the measure of competition, the H‐statistic, is rela...

This paper examines the competitive structures of the Turkish banking industry over the period 1998–2008 and investigates the factors that can explain differences in the degree of competitiveness. The Panzar‐Rosse method is used to test for the competitive nature of the industry, which also gives the measure of competition, the H‐statistic, is rela...

This paper presents an empirical assessment of the market structure and the competitive conditions of the Saudi Arabian banking sector. We applied the Panzar-Rosse H-statistic on the data collected from a panel of 12 Saudi banks for the period 1999-2007. These banks were classified as most significant by the Central Bank (SAMA). Equilibrium tests a...

The main purpose of this paper is to identify and discuss the relationship between behavioural and classical factors more clearly that have already been established and, more specifically, to determine the manner in which both behavioural and classical financial factors influence the investment decision making process by using information obtained...

In this paper we seek to examine the impact of political events on Pakistan's equity market using mathematical calculations rather than judgements. Questionnaires and interviews were used to collect data from historians, economists, politicians, government officials, bankers and stock market analysts in Pakistan. KSE100 index closing figures were e...

In this paper we have examined the use of the Sharpe diagonal model as a way to assess the risk of the textile, wearing apparel, and leather industries in Turkey within the framework of the CAPM over the period between January 2002 and June 2008 when there is no financial crises and big shocks in the market. The purposes of this paper are threefold...

The US and the world in general are inside the worst financial crisis since the Great Depression of the 1930s. Signs of significant problems in the US economy first occurred in late 2006 and the second quarter of 2007 when home prices plummeted and defaults by subprime mortgage borrowers began to affect the mortgage-lending sector entirely, as well...

The US and the world in general are inside the worst financial crisis since the Great Depression of the 1930s. Signs of significant problems in the US economy first occurred in late 2006 and the second quarter of 2007 when home prices plummeted and defaults by subprime mortgage borrowers began to affect the mortgage-lending sector entirely, as well...

This paper examines the emerging market indices of Brazil, Russia, India, China, and Argentina (BRICA) and investigates the linkages among the stock markets of the BRICA countries and their relations with the US market. We employ the vector auto regression (VAR) techniques to model the interdependencies and Granger causality test to find evidence o...

Credit scoring is a very important task for lenders to evaluate the loan applications they receive from consumers as well as for insurance companies, which use scoring systems today to evaluate new policyholders and the risks these prospective customers might present to the insurer. Credit scoring systems are used to model the potential risk of loa...

This study aims to give the analysis of the determinants of banks' profitability in the Kingdom of Saudi Arabia (KSA) over the period 1999-2007. This paper investigates the co-integration and causal relationship between return of assets (ROA) and return of equity (ROE) of Saudi banks. The analysis employs Augmented Dickey Fuller (ADF) test, Johanse...

Purpose The aim of this paper is to investigate the risk‐return relationship of REITs listed on the Istanbul Stock Exchange (ISE) in order to assess the risk and to find some empirical results for investors within the framework of modern portfolio theory (MPT) using the standard version of the capital asset‐pricing model (CAPM) and the single index...

We investigate the relative performance of a wide array of Value at Risk (VaR) models with the daily returns of Turkish (XU100) and Croatian (CROBEX) stock index prior to and during the ongoing fi nancial crisis. In addition to widely used VaR models, we also study the behaviour of conditional and unconditional extreme value theory (EVT) and hybrid...

We investigate the relative performance of a wide array of Value at Risk (VaR) models with the daily returns of Turkish (XU100) and Croatian (CROBEX) stock index prior to and during the ongoing fi nancial crisis. In addition to widely used VaR models, we also study the behaviour of conditional and unconditional extreme value theory (EVT) and hybrid...

Purpose – The purpose of this paper is to identify associations between various inputs in the investment decision process of Saudi Arabian risk managers (RMs). Design/methodology/approach – The paper reports the views of 81 RMs in Saudi Arabia regarding their approach to investment risk and uses these as inputs into conditional independence graphs...

Banking historically has been a sector based on individual or institutional client service. In today's browser-based competitive finance world, banks need to flourish this client service viewpoint with web-empowered features for keeping clients and attracting prospective ones. Internet has emerged as a key competitive field for the future of financ...

We propose an optimisation approach for determining the optimal decay factor in time weighted (BRW) simulation. The backtesting of the BRW simulation, which involves different decay factors, together with a broad range of competing VaR models, has been performed on a sample of seven stock indexes and two commodities: gold and WTI oil. The results o...

Systematic risk estimations are broadly used in investment analysis and portfolio management. The popular measure of systematic risk is the CAPM beta. The CAPM states that the expected return on an asset depends upon its level of systematic risk. The asset's systematic risk is measured relative to that of the market portfolio. The Model has been qu...

The past couple of months have seen one of the worst financial crises in history that began in the US and then spread to Europe, Asia and the rest of the world since the Great Depression. In fact, rapid technological progress and new financial products together with liberalized and deregulated financial markets have increased financial integration...

We investigate the factors that contributed to the increase in non-performing loans (NPLs) in large state-owned commercial banks over the period 1999-2001 and 1996-1998 in Turkey and Pakistan respectively. This paper uses the survey-based methodology to investigate the determinants of NPLs. An ordered probit model analysis is then applied to the or...

Ethics and ethical decision-making are not new concepts or ideas in banking and finance. Frankly speaking, in today's business world, the prominence of ethical decision-making and corporate governance has expanded beyond the realm of academic world. This is evident via the extensive media coverage of corporate ethics crises such as well-known BCCI,...

The past couple of months have seen one of the worst financial crises in history that began in the US and then spread to Europe, Asia and the rest of the world since the Great Depression. In fact, rapid technological progress and new financial products together with liberalized and deregulated financial markets have increased financial integration...

The objective of this research is to provide a brief analysis of the performance of Islamic banks in Bangladesh. The Islamic banks in Bangladesh continued to show strong growth since its inception in 1983 to June 2007, Islamic banks maintained and achieved strong position in the key areas like capital adequacy, liquidity, assets quality, management...

The analysis of their responses revealed a certain degree of satisfaction of many of the Islamic bank's facilities and products. The respondents expressed their dissatisfaction with some of the Islamic bank's services. Although the respondents indicated that they are aware of a number of specific Islamic financial products like Murabaha, Musharaka...

The aim of this study is to examine the effects of four sub-dimensions of corporate entrepreneurship (hereafter CE) on firms' financial performance in Turkey. The research of this study has been conducted from 2032 respondents of 312 firms which are largely active in Turkey as an emerging economy. Concerning research data have been gathered by the...

The growing literature on gaining competitive advantage and its sustainability entrepreneurship has been shifted its focus from individual to corporate level because of the increase of the local and global competitive intensity. Owing to the increase on both local and global competition, the prominent studies on the creation and sustainability of c...

One of the main tasks of a bank is to lend money. As a financial intermediary, one of its roles is to reduce lending risks. Bank lending is an art as well as a science. Success depends on techniques used, knowledge and on an aptitude to assess both credit-worthiness of a potential borrower and the merits of the proposition to be financed. In recent...

The main objective of this study is to discuss the features and basic ideas of the new Basel Capital Accord. Todays, the zero risk business does not exist and risk has always existed in business. As to banking it is a risky business and the banks assume various kinds of risks in the process of providing financial services. Therefore, risk managemen...

The financial crisis sparked by the US subprime is now posing a serious threat to global financial markets, with its severity intensifying as widening losses and a liquidity crunch push some financial institutions to the brink of failure. The US and the Western Europe seem to be falling victim to a debt spiral, in which market turmoil is aggravatin...