Halil Kiymaz

• Professor at Rollins College

Growth in large private business enterprises in the 20 th century established an environment that enabled a competitive relationship through Public-Private Partnerships (PPP) with the public sector, which historically suffered from inefficiencies and an over-reliance on projects and services, especially in emerging economies. PPPs can positively im...

Growth in large private business enterprises in the 20th century established an environment that enabled a competitive relationship through Public-Private Partnerships (PPP) with the public sector, which historically suffered from inefficiencies and an over-reliance on projects and services, especially in emerging economies. PPPs can positively imp...

The Palgrave Handbook of Sovereign Wealth Funds aims to provide a comprehensive analysis of SWFs from a multidimensional perspective. It spans the gamut from theoretical to practical while offering the right balance of detailed and user-friendly coverage. Discussion of relevant research permeates the handbook. This volume helps fill the gap by show...

The Palgrave Handbook of Sovereign Wealth Funds aims to provide a comprehensive analysis of SWFs from a multidimensional perspective. It spans the gamut from theoretical to practical while offering the right balance of detailed and user-friendly coverage. Discussion of relevant research permeates the handbook. This volume helps fill the gap by show...

The literature on working capital management (WCM) provides mixed evidence on the effect of working capital on firm profitability and performance. Using firms from the Kazakhstan Stock Exchange (KASE), we examine the relationship between WCM and firms’ performance. Particularly, we look at how working capital components relate to firms’ performance...

We show two methods for measuring non-random observations using statistical control software, specifically SigmaXL, across diverse time series. First, we use an error counting method based on eight non-random rules of statistical control charts, and subsequently we assign a dollar value to each of those non-random observations to evaluate non-rando...

Most financial and accounting tasks and analytics, whether associated with the past or future, assume knowledge of process, variation, and statistics. Yet, finance and accounting personnel averaging 13 years of experience could not distinguish non-random from random time-series strings in an assessment using statistical process control charts. Resp...

Purpose This paper investigates the puzzle of mergers and acquisitions’ (M&A) long-term performance through the strategic management perspective. The authors measure the M&A capability construct and test its relationship with the long-term performance of the firms. Design/methodology/approach The study employs a natural language processing (NLP) m...

Purpose The impact of founder CEOs on firm value continues to be debated in the finance literature. While earlier studies suggest that founding family ownership and founding CEO structure create less value than public ownership, later studies provide contradicting evidence. This study examines how founder CEOs affect firm value in the business grou...

We examine why Korean firms issue hybrid securities, including convertible bonds and bonds with warrants. In particular, we investigate whether there exist any differences between companies issuing convertible bonds and those issuing bonds with warrants. Our findings show that younger firms with more growth opportunities, larger size, high leverage...

We explore how the effects of the change in insider ownership concentration on the dividend policy in different legal, corporate governance, and cultural environments in Asian countries. The severity of agency problems of controlling insiders and outside investors in Asian countries provides a unique circumstance for exploring this issue. Unlike pr...

After the Great Recession of 2008-2009, some analysts offered refreshed views of capital asset planning strategies across business cycle phases. Although seeking to increase free cash flow during a market contraction represents a common strategy, it has been criticized for encouraging managerial inefficiency and reduced firm performance. We empiric...

This study investigates perceived financial needs and subjective financial well-being using data from a national survey of 2,567 households in Turkey. Financial needs are measured by consumer perceived ability to meet current living expenses in the short-term as well as their assessment for the retirement security in the long-term. We also investig...

Interest rate derivatives markets have enjoyed substantial growth since the late 1990s. This chapter discusses the development of these markets since 2000 and introduces the most popular interest rate derivative instruments. Although forward rate agreements and interest rate swaps are important examples of over-the-counter (OTC) products, futures o...

This chapter provides an overview of the academic literature involving bond mutual funds, closed-end bond funds (CEFs), and exchange-traded funds (ETFs). Since the turn of the century, the net assets under management (AUM) of investment firms have increased steadily. The composition of the net AUM has also changed in favor of ETFs. As more money fl...

Derivatives valuation is based on the key principle of no-arbitrage pricing. This chapter presents valuation models for various types of fixed income derivatives, including forward rate agreements (FRAs), interest rate swaps, Eurodollar and Treasury bond futures, bond options, caps and floors, swaptions, and options on interest rate futures. Follow...

Purpose The purpose of this paper is to examine socially responsible investment (SRI) fund performance and investigate the factors influencing fund performance. Design/methodology/approach The study uses return data from the Morningstar database for 152 SRI funds from January 1995 to May 2015. The initial analysis includes the use of various risk-...

Socially responsible investing (SRI) continues to get the attention of both practitioners and academicians as the demands for these funds increased sharply during the last decade. This study provides additional evidence on performances of SRI in mutual funds. The empirical findings show that although SRI funds experience lower average returns relat...

Purpose The purpose of this paper is to examine the performance of US mutual funds that invest primarily in emerging market equities and bonds. Design/methodology/approach The study adopts the Morningstar classification of mutual funds and uses the Lipper US Mutual Fund Database through FactSet to obtain monthly returns and various metrics for e...

This study focuses on the relationship between firm performance and corporate social responsibility (CSR) of firms listed on Borsa Istanbul during the period of 2009-2011. We use content analysis of annual reports/websites of Turkish firms for any socially responsible activities. We find a negative relationship between CSR and financial performance...

This study extends the existing literature on the determinants of behavioral biases of Turkish finance sector professionals. It examines the impact of various personal and objective attributes of finance sector professionals on their risk choices derived from their portfolio allocation, and personal wealth data. Utilizing survey data from 206 profe...

Purpose – The purpose of this paper is to examine the performance of Chinese mutual funds during the period of January 2000 to July 2013. Emerging market funds provide investors with alternative risk exposure for their portfolios. The Chinese market has developed rapidly and differs from developed markets regarding wide range of market and economic...

This study focuses on the environmental dimension of sustainability and examines the impact of sustainability on capital investment decisions. In particular, the study aims to reveal whether the extent to which an investment is considered to be in sustainable technologies affects capital investment decisions. Based on our analysis of responses to a...

Market microstructure is a branch of financial economics concerned with the details of how exchange occurs in markets. Although the theory of market microstructure applies to the exchange of real or financial assets, this book focuses on the microstructure of financial markets and thus involves trading a financial asset: a stock, bond, or other fin...

Introduction Theoretical Discussion Relevant Cash Flows Forecast of Net Cash Flows Summary and Conclusions Discussion Questions References About the Authors

This chapter provides a review of the literature on socially responsible investing (SRI) with particular emphasis on empirical evidence of mutual fund and index performance. SRI is no longer a negligible segment of international capital markets. During the last two decades, SRI has increased sharply, reflecting the changes in investor sensitivities...

IntroductionTheoretical Issues for Mergers, Acquisitions, and DivestituresTheoretical Issues Motivating Corporate DivestituresSummary and Conclusions Discussion QuestionsAbout the Author

IntroductionM&As as a Managerial Disciplinary DeviceCorporate Governance and Acquirer Wealth EffectsThe Market for Corporate ControlProduct Market CompetitionBoard CharacteristicsManagerial Equity IncentivesInstitutional OwnershipMonitoring by Individual BlockholdersLeverage and Creditor ControlCorporate Governance and Target Wealth EffectsCorporat...

IntroductionCross-Border M&A Deals: An OverviewCross-Border M&A Deals in Developed and Emerging MarketsThe Future of Cross-Border M&A MarketSummary and Conclusions Discussion QuestionsAbout the Author

IntroductionDefinition of Control Premium/Minority DiscountDelaware Law, Delaware Courts, Values, and DiscountsSources of the Economic Benefits of ControlEvidence on the Value of ControlCan Practice Be Reconciled with Finance Theory and Evidence?Summary and Conclusions Discussion QuestionsAbout the Author

IntroductionMerger MotivesMerger WavesDiscussion and New DirectionsSummary and Conclusions Discussion QuestionsAbout the Author

IntroductionNeoclassical Explanations for M&AsBehavioral Explanations for M&AsCorporate Governance and Behavioral Effects in M&AsSummary and Conclusions Discussion QuestionsAbout the Author

IntroductionPurpose of the BookDistinguishing Features of the BookIntended Audience for the BookStructure of the BookSummary and Conclusions About the Authors

IntroductionOverview of Dividend Policy and Firm ValueStock SplitsStock DividendsDividend Reinvestment PlansConclusions About the Author

The Art of Capital Restructuring provides a fresh look at the current state of mergers, acquisitions, and corporate restructuring around the world. The dynamic nature of M and As requires an evolving understanding of the field, and this book considers several different forms of physical restructuring such as divestitures as well as financial restru...

Do US firms gain value by buying Chinese firms? This study investigates the wealth impact of mergers and acquisitions' announcements on US firms involved in cross-border acquisitions of 204 Chinese firms from 1999 to 2007. The empirical findings show that US firms experienced statistically significant wealth gains on the announcement day, though th...

This study investigates the impact of country risk ratings on the wealth gains to large U.S. bidders involved in cross-border acquisitions. The findings indicate that U.S. bidders experience positive wealth gains during the merger announcements, though this is concentrated in transactions involving European targets. There are also differences in we...

The purpose of this article is to explain the returns of American Depository Receipts (ADRs), comparing the results across emerging and developed markets. Using a sample of 167 ADRs from 14 emerging and 17 developed markets (31 markets in total) for the period 2000–2004, we found variations in the impacts of specific variables and in the explanator...

This paper identifies the risks associated with investing in the Turkish stock market. We find that Turkish firms are more volatile than firms in countries that have recently joined the EU (our control group) and that the excess volatility is significantly associated with higher financial and economic risks rather than fundamentals. Additionally, f...

This study provides evidence from an early direct test of the Financial Accounting Standards Board (FASB) 142 policy statement regarding investor market reaction to corporate goodwill impairment announcements. Under new rules, the amortization of goodwill is replaced with a two-step procedure to determine if goodwill is impaired. We draw a sample o...

This study examines the long-run relationship among the per capita private, public, and total health care expenditure and per capita gross domestic product and population growth of Turkey. We find some evidence of multivariate cointegrating relationships among the health care expenditure and gross domestic product, and population growth. We further...

This study investigates the impact of sell-off announcements on both divesting and acquiring firms. The findings indicate that both divesting and acquiring firms experience statistically significant wealth gains during sell-off announcements. For the matched sample, only divesting firms continue to have statistically significant wealth gains. Furth...

This study provides insights about the motives for mergers and acquisitions (M&As) as well as divestitures and the practices used to value targets during 1990-2001. The survey evidence shows that the primary motivation for M&As is to achieve operating synergies while the top-ranked reason for divestitures is to increase focus. The results also show...

This study investigates the impact of mergers and acquisitions on US bidders and targets involved in cross-border mergers of financial institutions. The findings indicate that while US targets experience positive significant wealth gains, US bidders encounter insignificant wealth gains during the merger announcements. There are also differences in...

This paper empirically investigates international mergers and acquisitions (M&As) of foreign targets and bidders by analyzing the stock price behavior of the firms involved. The jump diffusion model is employed to study the effects of the M&A announcements on stock prices. The results indicate that acquisition announcements are perceived as a surpr...

This study investigates the day of the week effect on return and volatility for Istanbul Stock Exchange (ISE) throught the period 1986 and 2003. Using generalized autoregressive conditional heteroskedasticity (GARCH) model, we find statistically significant evidence to report that there is the day of the week effect. Friday has the highest effect o...

This study investigates the day of the week effect on the volatility of major stock market indexes for the period of 1988 through 2002. Using a conditional variance framework, we find that the day of the week effect is present in both return and volatility equations. The highest volatility occurs on Mondays for Germany and Japan, on Fridays for Can...

The purpose of this paper is to investigate the foreign exchange exposure of firms in a highly inflationary environment. The sample includes 109 firms traded on the Istanbul Stock Exchange during the period of 1991–1998. The findings show that Turkish firms are highly exposed to foreign exchange risks, and the degree of exposure is more pronounced...

We review degree of operating leverage (DOL) discussions from nine current elementary finance textbooks and note incomplete treatments. We argue that textual discussions on DOL could aid the beginning student's understanding by noting, in addition to fixed costs, the impact of other variables (unit variable costs, unit price, short-run output level...

The purpose of this study is to investigate the effects of stock market rumours/gossips on the prices of stocks traded at the Istanbul Stock Exchange with respect to price pressure and size effect. While positive significant abnormal returns are observed in days prior to the publication date, negative insignificant abnormal returns are detected in...

This paper focuses on the switching behaviour of enrolees in the Swiss basic health insurance system. Even though the new Federal Law on Social Health Insurance (LAMal) was implemented in 1996 to promote competition among health insurers in basic insurance, there is limited evidence of premium convergence within cantons. This indicates that competi...

The most critical assumption in applying the market model in event studies is that estimated parameters are unaffected by the event. This assumption may not necessarily hold for mergers and acquisitions as they may alter the operating and/or financial risks and, therefore, the β's of acquiring firms. The potential for β reduction may be even higher...

The purpose of this study is to investigate the effects of stock market rumors on the prices of stocks traded at the Istanbul Stock Exchange. The sample consists of 355 favorable rumors mentioned in the HOTS column of ‘Ekonomik Trend’. While positive significant abnormal returns are observed in each of the 4 days prior to the publication date, nega...

This study tests the presence of the day of the week effect on stock market volatility by using the S&P 500 market index during the period of January 1973 and October 1997. The findings shown that the day of the week effect is present in both volatility and return equations. While the highest and lowest returns are observed on Wednesday and Monday,...

This paper empirically analyzes the initial and after-market returns for the Turkish initial public offerings (IPOs) to provide an emerging market case of international evidence on performances of IPOs. The sample consists of 163 firms listed and traded on the Istanbul Stock Exchange during the period of 1990–1996. The results show that the Turkish...

We posit that country diversification via cross-border mergers creates wealth by providing benefits for firms that are not available to their shareholders. We hypothesize that these benefits are inversely related to the extent of co-movement in the economies of the bidder's and target's countries. We examine the wealth effects of U.S. targets and b...

Bu çalışma Satın Alma Gücü Paritesi (SAGP) kuramını Türkiye ile en yüksek dış ticaret hacmine sahip beş ülke (ABD, Almanya, Fransa, Italya ve Ingiltere) için 1969-1996 dönemi için test etmek amacındadır. Yöntem olarak birim kök (unit root) ve birlikte bütünleşme (cointegration) kullanılmıştır. Uygulama sonuçları 1969-1996 döneminde, SAGP kuramının...

Bu çalışmanın amacı 1992-1996 yılları arasında aktif olarak yönetilen 84 B tipi yatırım fonunun performanslar ını uygulamalı olarak değerlendirmektir. Yöntem olarak portföy değerlendirmelerinde yaygın olarak kullanılan Sharp, Treynor and Jensen performans ölçütleri kullanılmıştır. Sonuçlar genel olarak kamu bankaları tarafından yönetilen B tipi fon...

This paper aims to investigate the effect of the acquisition of Columbia Picture Entertainment Inc. by Sony Corp. on stock prices of participants by employing the jump diffusion model. The jump diffusion model can separate the impact of informed trading from unanticipated public announcements. Our results indicate that jump process is the dominant...

This study reports how country risk and macroeconomic conditions influence the wealth gains of U.S. financial firms involved in international mergers and takeovers. The findings suggest that U.S. financials experience weakly significant wealth gains around announcement date. The wealth gains are significant for takeovers in Latin America. There are...

This paper examines the linkages and dynamic interaction among Turkey and eleven original European Union (EU) countries during the full membership journey of Turkey to EU. The study period ranges from January 1986 to December 2007 and consists of pre-candidacy, candidacy, and accession negotiation sub-periods. The results suggest the starting acces...

This study investigates the wealth effects of foreign direct investments on U.S.firms during the period of 1989-2000. Overall findings indicate that U.S.acquirers experience statistically significant wealth gains of 0.57 percent aroundthe announcement of acquisitions. The wealth effects do vary with location oftarget firms and acquirers' industry a...