Pub Date : 2025-06-12DOI: 10.1016/j.bir.2025.06.005
Abdullah Alsaadi
This study investigates the interplay between corporate social responsibility (CSR) and firm leverage as determinants of earnings management in Saudi Arabia, a context shaped by Islamic principles and evolving corporate governance norms. Using a dataset for Saudi listed firms between 2017 and 2022, this study finds that although CSR engagement is associated with higher earnings management, suggesting strategic, rather than purely ethical motivations, low leverage is linked to lower earnings manipulation, highlighting the mitigating role of financial pressure. The interaction between CSR and leverage is negatively correlated with earnings management, indicating that these factors jointly strengthen ethical and religious imperatives in shaping financial behavior. The findings contribute to the literature by providing empirical evidence on the dual impact of CSR and leverage on earnings management. It reveals that cultural frameworks can function as informal regulatory mechanisms, reducing earnings manipulation. This research has implications for policy makers and investors seeking to align corporate governance with ethical and religious principles, emphasizing the need to consider the interplay of CSR and leverage in promoting financial reporting quality.
{"title":"Corporate social responsibility, financial leverage, and earnings management: Evidence from an emerging market","authors":"Abdullah Alsaadi","doi":"10.1016/j.bir.2025.06.005","DOIUrl":"10.1016/j.bir.2025.06.005","url":null,"abstract":"<div><div>This study investigates the interplay between corporate social responsibility (CSR) and firm leverage as determinants of earnings management in Saudi Arabia, a context shaped by Islamic principles and evolving corporate governance norms. Using a dataset for Saudi listed firms between 2017 and 2022, this study finds that although CSR engagement is associated with higher earnings management, suggesting strategic, rather than purely ethical motivations, low leverage is linked to lower earnings manipulation, highlighting the mitigating role of financial pressure. The interaction between CSR and leverage is negatively correlated with earnings management, indicating that these factors jointly strengthen ethical and religious imperatives in shaping financial behavior. The findings contribute to the literature by providing empirical evidence on the dual impact of CSR and leverage on earnings management. It reveals that cultural frameworks can function as informal regulatory mechanisms, reducing earnings manipulation. This research has implications for policy makers and investors seeking to align corporate governance with ethical and religious principles, emphasizing the need to consider the interplay of CSR and leverage in promoting financial reporting quality.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 1038-1051"},"PeriodicalIF":7.1,"publicationDate":"2025-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144895716","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-06DOI: 10.1016/j.bir.2025.06.002
Burak Dogan
This study evaluates how the current Israel boycotts affect Borsa Istanbul. An event study in a 45-day window around October 7, 2023 tests abnormal returns for a value-weighted portfolio of 22 boycotted firms using four models (Market, Market-Return, Constant-Mean, CAPM). All detect a clear one-day price hit, though magnitudes vary. For longer horizons we re-create the BIST 30, BIST 100 and Participation 30 indices without the boycotted stocks and follow them to December 31, 2024. Sharpe, Sortino, Treynor and Jensen metrics drift modestly higher, and the revised indices edge ahead in cumulative return, but significance tests give mixed signals. Overall, boycott targets suffer a short-run valuation loss, while indices that exclude them record slightly better risk-adjusted performance over the next year.
{"title":"Examining the financial effects of boycotting Israel: Event-study and modern portfolio theory approaches with data from Borsa Istanbul","authors":"Burak Dogan","doi":"10.1016/j.bir.2025.06.002","DOIUrl":"10.1016/j.bir.2025.06.002","url":null,"abstract":"<div><div>This study evaluates how the current Israel boycotts affect Borsa Istanbul. An event study in a 45-day window around October 7, 2023 tests abnormal returns for a value-weighted portfolio of 22 boycotted firms using four models (Market, Market-Return, Constant-Mean, CAPM). All detect a clear one-day price hit, though magnitudes vary. For longer horizons we re-create the BIST 30, BIST 100 and Participation 30 indices without the boycotted stocks and follow them to December 31, 2024. Sharpe, Sortino, Treynor and Jensen metrics drift modestly higher, and the revised indices edge ahead in cumulative return, but significance tests give mixed signals. Overall, boycott targets suffer a short-run valuation loss, while indices that exclude them record slightly better risk-adjusted performance over the next year.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 1026-1037"},"PeriodicalIF":7.1,"publicationDate":"2025-06-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144895714","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-06-03DOI: 10.1016/j.bir.2025.06.001
Chengxing Xie , Liang Wu , Zhijie Tong
This study examines how carbon price uncertainty (CPU) in China's regional carbon markets shapes firms' green investment (GI) decisions, addressing a critical gap in empirical and regional research. Using granular data from eight Chinese regional carbon markets and listed firms' green expenditure records, we demonstrate that rising CPU accelerates GI commitments. It indicates that, contrary to the traditional ‘wait-and-see’ approach posited by real options theory, firms actively hedge against market-induced climate risks rather than deferring investments. This effect is amplified for firms facing lower financing constraints, operating in low-carbon industries, or located in regions with advanced green financial infrastructure. Robustness checks and instrumental variable analysis validate these results. Our analysis further establishes that internal active carbon management and external green investor participation constitute dual transmission channels through which CPU stimulates firms' commitment to financing green initiatives.
{"title":"Do firms defer or accelerate green investment under carbon price uncertainty?","authors":"Chengxing Xie , Liang Wu , Zhijie Tong","doi":"10.1016/j.bir.2025.06.001","DOIUrl":"10.1016/j.bir.2025.06.001","url":null,"abstract":"<div><div>This study examines how carbon price uncertainty (CPU) in China's regional carbon markets shapes firms' green investment (GI) decisions, addressing a critical gap in empirical and regional research. Using granular data from eight Chinese regional carbon markets and listed firms' green expenditure records, we demonstrate that rising CPU accelerates GI commitments. It indicates that, contrary to the traditional ‘wait-and-see’ approach posited by real options theory, firms actively hedge against market-induced climate risks rather than deferring investments. This effect is amplified for firms facing lower financing constraints, operating in low-carbon industries, or located in regions with advanced green financial infrastructure. Robustness checks and instrumental variable analysis validate these results. Our analysis further establishes that internal active carbon management and external green investor participation constitute dual transmission channels through which CPU stimulates firms' commitment to financing green initiatives.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 4","pages":"Pages 824-837"},"PeriodicalIF":6.3,"publicationDate":"2025-06-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144480237","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-05-29DOI: 10.1016/j.bir.2025.05.014
Ahmet Gökhan Arslan , Gonul Colak , Burak Pirgaip
This study examines the impact of margin loans and accompanying regulatory changes on the underpricing of initial public offerings (IPOs) in Türkiye, with a focus on the wave of IPOs from 2020 to 2023—a period during which the number of IPOs and proceeds from them reached record highs. Analyzing data from 154 IPOs, we find an average initial return of 35 percent, which shows significant underpricing, with an estimated $1.93 billion left on the table. Using multivariate regression models, we identify an inverse relationship between margin loans and abnormal initial returns, which indicates that higher margin trading is correlated with lower initial returns. Moreover, we find that restrictive margin loan policies positively affect initial returns, likely due to asymmetric information, such that underwriters adjust underpricing to attract retail investors with limited market experience. In addition, our results show that changes in policy that favor retail investor allocations positively impact on initial returns, as underwriters, who are limited with regard to accessing informed bidders, adjust prices to attract investors. This study offers new insights into the IPO and margin trading literature and has implications for policymakers and emerging markets.
{"title":"The impact of margin trading and regulatory policy on IPO underpricing: Evidence from Türkiye","authors":"Ahmet Gökhan Arslan , Gonul Colak , Burak Pirgaip","doi":"10.1016/j.bir.2025.05.014","DOIUrl":"10.1016/j.bir.2025.05.014","url":null,"abstract":"<div><div>This study examines the impact of margin loans and accompanying regulatory changes on the underpricing of initial public offerings (IPOs) in Türkiye, with a focus on the wave of IPOs from 2020 to 2023—a period during which the number of IPOs and proceeds from them reached record highs. Analyzing data from 154 IPOs, we find an average initial return of 35 percent, which shows significant underpricing, with an estimated $1.93 billion left on the table. Using multivariate regression models, we identify an inverse relationship between margin loans and abnormal initial returns, which indicates that higher margin trading is correlated with lower initial returns. Moreover, we find that restrictive margin loan policies positively affect initial returns, likely due to asymmetric information, such that underwriters adjust underpricing to attract retail investors with limited market experience. In addition, our results show that changes in policy that favor retail investor allocations positively impact on initial returns, as underwriters, who are limited with regard to accessing informed bidders, adjust prices to attract investors. This study offers new insights into the IPO and margin trading literature and has implications for policymakers and emerging markets.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 1012-1025"},"PeriodicalIF":7.1,"publicationDate":"2025-05-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144895713","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This research examines the role of the financial sector in advancing the Sustainable Development Goals (SDGs) by promoting access to financial services and leveraging Information and Communication Technologies (ICTs). Utilizing the k-means++ algorithm, we clustered 41 European countries based on the values of the Network Readiness Index (NRI) pillars—serving as a measure of ICT—and by the achieved values for SDG indicator 8.10, which reflects access to financial services. The results confirmed that cluster differences based on NRI components are significant, particularly with respect to: ownership of accounts with banks, other financial institutions, and mobile-money-service providers; sociodemographic characteristics of financial service users; and contributions to 13 out of the 17 SDGs. Notably, in terms of the impact of financial service access on SDG performance, significant differences between clusters were found in eight out of the 17 SDGs.
{"title":"Network readiness, financial inclusion, and sustainable development goals: Insights from a clustering approach","authors":"Mirjana Jemović , Ivana Marković , Adela Ljajić , Srđan Marinković","doi":"10.1016/j.bir.2025.05.013","DOIUrl":"10.1016/j.bir.2025.05.013","url":null,"abstract":"<div><div>This research examines the role of the financial sector in advancing the Sustainable Development Goals (SDGs) by promoting access to financial services and leveraging Information and Communication Technologies (ICTs). Utilizing the k-means++ algorithm, we clustered 41 European countries based on the values of the Network Readiness Index (NRI) pillars—serving as a measure of ICT—and by the achieved values for SDG indicator 8.10, which reflects access to financial services. The results confirmed that cluster differences based on NRI components are significant, particularly with respect to: ownership of accounts with banks, other financial institutions, and mobile-money-service providers; sociodemographic characteristics of financial service users; and contributions to 13 out of the 17 SDGs. Notably, in terms of the impact of financial service access on SDG performance, significant differences between clusters were found in eight out of the 17 SDGs.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 999-1011"},"PeriodicalIF":7.1,"publicationDate":"2025-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144895712","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-05-26DOI: 10.1016/j.bir.2025.05.012
Remzi Gök , Shawkat Hammoudeh , Ahdi Noomen Ajmi , Mehmet Balcilar
This study examines return connectedness and spillover shock effects between Islamic profit-sharing rates (PSR) and conventional deposit rates (DPR) of banking sectors across various maturities in Türkiye and Malaysia. Overall, financing rates with various maturities in Türkiye act as transmitters of shocks in both banking sectors. Specifically, short-term rates serve as net spillover transmitters, while long-term rates of DPR and PSR emerge as primary transmitters and receivers, respectively. Total directional connectedness analysis reveals that the degree of integration between sectors fluctuates over time, with political instability and monetary policy actions being key drivers. Although conventional deposit rates dominate their Islamic counterparts in the early part of the study period, a significant policy rate hike in 2014 shifts this balance in favour of profit-sharing rates, suggesting that the conventional banking sector has become increasingly susceptible to shocks originating from the Islamic banking sector in recent years. Moreover, Türkiye's adoption of unconventional monetary policies has reduced integration within the banking system, thereby altering the dynamics of return spillovers, with deposit rates acting as main transmitters. We observe a relatively stable connectivity mechanism over time in Malaysia, where market risk becomes stronger as of 2020. Both short-term rates are net transmitters during most of the sample period, and medium- and longer-term tenors of the Islamic (conventional) banking sector function as net receivers (transmitters). DPR is shown to exert a substantial influence over PSR, with spillover shock effects being more pronounced for shorter tenors. While global factors strongly influence overall connectivity in Türkiye, local factors such as exchange rates, interest rates, and credit default swaps (CDS) play a critical role in net shock transmission. DPRs are shown to be dominant factors in predicting PSRs in Türkiye and both sectors exhibit stronger interactions at higher intervals of time.
{"title":"Return spillovers between Islamic and conventional banking rates: Evidence from emerging Islamic countries","authors":"Remzi Gök , Shawkat Hammoudeh , Ahdi Noomen Ajmi , Mehmet Balcilar","doi":"10.1016/j.bir.2025.05.012","DOIUrl":"10.1016/j.bir.2025.05.012","url":null,"abstract":"<div><div>This study examines return connectedness and spillover shock effects between Islamic profit-sharing rates (PSR) and conventional deposit rates (DPR) of banking sectors across various maturities in Türkiye and Malaysia. Overall, financing rates with various maturities in Türkiye act as transmitters of shocks in both banking sectors. Specifically, short-term rates serve as net spillover transmitters, while long-term rates of DPR and PSR emerge as primary transmitters and receivers, respectively. Total directional connectedness analysis reveals that the degree of integration between sectors fluctuates over time, with political instability and monetary policy actions being key drivers. Although conventional deposit rates dominate their Islamic counterparts in the early part of the study period, a significant policy rate hike in 2014 shifts this balance in favour of profit-sharing rates, suggesting that the conventional banking sector has become increasingly susceptible to shocks originating from the Islamic banking sector in recent years. Moreover, Türkiye's adoption of unconventional monetary policies has reduced integration within the banking system, thereby altering the dynamics of return spillovers, with deposit rates acting as main transmitters. We observe a relatively stable connectivity mechanism over time in Malaysia, where market risk becomes stronger as of 2020. Both short-term rates are net transmitters during most of the sample period, and medium- and longer-term tenors of the Islamic (conventional) banking sector function as net receivers (transmitters). DPR is shown to exert a substantial influence over PSR, with spillover shock effects being more pronounced for shorter tenors. While global factors strongly influence overall connectivity in Türkiye, local factors such as exchange rates, interest rates, and credit default swaps (CDS) play a critical role in net shock transmission. DPRs are shown to be dominant factors in predicting PSRs in Türkiye and both sectors exhibit stronger interactions at higher intervals of time.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 972-998"},"PeriodicalIF":7.1,"publicationDate":"2025-05-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144895715","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-05-21DOI: 10.1016/j.bir.2025.05.011
Hassnian Ali , Ahmet Faruk Aysan
This study provides empirical evidence on the role of artificial intelligence (AI) and machine learning (ML) sentiment in influencing financial performance by Islamic banks. Using advanced textual analysis methods, including long short-term memory (LSTM) networks, AI and ML sentiment is derived from annual reports. The study employs fixed-effects regression using the return on equity (ROE) as the primary measure and robustness checks using random forest models and spline regressions to examine their impact on ROE and the return on assets (ROA). It also investigates the mediating role of the development of information communication technologies (ICT) and the moderating effect of growth in the gross domestic product (GDP). Our findings reveal that positive sentiment about AI and ML significantly enhances profitability, and combined sentiment has the strongest predictive power. The mediating role of ICT development highlights the importance of digital infrastructure, and GDP growth emphasizes the contextual dependence of AI-driven innovation.
{"title":"Decoding digital signals: AI sentiment and financial performance at İslamic banks","authors":"Hassnian Ali , Ahmet Faruk Aysan","doi":"10.1016/j.bir.2025.05.011","DOIUrl":"10.1016/j.bir.2025.05.011","url":null,"abstract":"<div><div>This study provides empirical evidence on the role of artificial intelligence (AI) and machine learning (ML) sentiment in influencing financial performance by Islamic banks. Using advanced textual analysis methods, including long short-term memory (LSTM) networks, AI and ML sentiment is derived from annual reports. The study employs fixed-effects regression using the return on equity (ROE) as the primary measure and robustness checks using random forest models and spline regressions to examine their impact on ROE and the return on assets (ROA). It also investigates the mediating role of the development of information communication technologies (ICT) and the moderating effect of growth in the gross domestic product (GDP). Our findings reveal that positive sentiment about AI and ML significantly enhances profitability, and combined sentiment has the strongest predictive power. The mediating role of ICT development highlights the importance of digital infrastructure, and GDP growth emphasizes the contextual dependence of AI-driven innovation.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 953-971"},"PeriodicalIF":7.1,"publicationDate":"2025-05-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144894949","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-05-17DOI: 10.1016/j.bir.2025.05.010
Cengizhan Karaca , Walid Mensi , Eray Gemici
This study investigates the nonlinear relationship between capital structure and firm value using data from manufacturing firms listed on Borsa Istanbul over the period 2005 to 2023. We use a novel methodology, the Method of Moments Quantile Regression (MMQR), and perform several robustness checks using the novel JKS half-panel jackknife estimation method, and the lag augmented VAR (LA-VAR) panel causality test. Our results show the presence of an inverted U-shaped nonlinear relation between the capital structure and firm value. Specifically, higher borrowing increases firm value in the lower quantiles, while excessive borrowing beyond a threshold adversely decreases it. Causality test results indicate a unidirectional causality from capital structure to firm value. The results have implications for management in manufacturing industries and policymakers, and enhance our understanding of how firms should restrict their borrowing to optimize firm value, maintain financial stability, and foster sustainable growth.
{"title":"Inverted U-shaped dynamics of capital structure and firm value: Evidence from an emerging market","authors":"Cengizhan Karaca , Walid Mensi , Eray Gemici","doi":"10.1016/j.bir.2025.05.010","DOIUrl":"10.1016/j.bir.2025.05.010","url":null,"abstract":"<div><div>This study investigates the nonlinear relationship between capital structure and firm value using data from manufacturing firms listed on Borsa Istanbul over the period 2005 to 2023. We use a novel methodology, the Method of Moments Quantile Regression (MMQR), and perform several robustness checks using the novel JKS half-panel jackknife estimation method, and the lag augmented VAR (LA-VAR) panel causality test. Our results show the presence of an inverted U-shaped nonlinear relation between the capital structure and firm value. Specifically, higher borrowing increases firm value in the lower quantiles, while excessive borrowing beyond a threshold adversely decreases it. Causality test results indicate a unidirectional causality from capital structure to firm value. The results have implications for management in manufacturing industries and policymakers, and enhance our understanding of how firms should restrict their borrowing to optimize firm value, maintain financial stability, and foster sustainable growth.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 939-952"},"PeriodicalIF":7.1,"publicationDate":"2025-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144894948","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This study examines the performance of trading strategies based on beta, idiosyncratic volatility (IVOL), MAX (lottery behavior), skewness, and tail risk in five major Asian markets, using data from 1999 to 2021. The most important determinant of cross-sectional differences in strategy premiums is financial market development, followed by market sentiment and coskewness. The study highlights the time-varying performance of risk-based strategies. “Betting against risk” strategies, except for skewness, work only during downturns, whereas “betting for risk” strategies work during upturns. Hence, a disposition effect is observed over time; investors are risk seekers in downturns and risk-averse in upturns. With respect to skewness, investors prefer positively skewed stocks during downturns. However, the findings for the sample markets are mixed during upturns. The Fama-French five-factor model performs reasonably well, except for three trading strategies. Various behavioral biases explain the premiums on different risk-based strategies.
{"title":"Time-varying performance of betting against beta (BAB) and other risk-based anomalies: Evidence from Asia","authors":"Sarika Rakhyani , Sanjay Sehgal , Florent Deisting","doi":"10.1016/j.bir.2025.05.009","DOIUrl":"10.1016/j.bir.2025.05.009","url":null,"abstract":"<div><div>This study examines the performance of trading strategies based on beta, idiosyncratic volatility (IVOL), MAX (lottery behavior), skewness, and tail risk in five major Asian markets, using data from 1999 to 2021. The most important determinant of cross-sectional differences in strategy premiums is financial market development, followed by market sentiment and coskewness. The study highlights the time-varying performance of risk-based strategies. “Betting against risk” strategies, except for skewness, work only during downturns, whereas “betting for risk” strategies work during upturns. Hence, a disposition effect is observed over time; investors are risk seekers in downturns and risk-averse in upturns. With respect to skewness, investors prefer positively skewed stocks during downturns. However, the findings for the sample markets are mixed during upturns. The Fama-French five-factor model performs reasonably well, except for three trading strategies. Various behavioral biases explain the premiums on different risk-based strategies.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 908-929"},"PeriodicalIF":7.1,"publicationDate":"2025-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144894946","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2025-05-16DOI: 10.1016/j.bir.2025.05.008
Zeliha Tekin
Given the expanding role of green finance in developing economies, this study investigates green banking strategies utilized by Turkish banks as a case study. Data constitutes banks included in Borsa İstanbul's BIST 100 Index as of 2023. Content analysis and purposive sampling methods are utilized to analyze the data. Results indicate that Turkish banks utilize various green banking strategies to realize carbon neutral or net zero targets. Provision of green financing products is the most common strategy, followed by disclosure and reporting. Measuring, monitoring and reducing greenhouse gas emissions, and reducing energy consumption in bank buildings are other popular strategies. The results have important policy implications. Banks can establish long-term goals for climate change while laying out a clear plan for supporting transition away from fossil fuels in the short-term through loans and other financial products and include Environment, Social, and Governance (ESG) into the core of their strategies and reporting by providing incentives for CEOs and staff to implement ESG-related policies. Increased government climate action and research and development support may pave the way for private funding to commercialize and mainstream decarbonization technologies.
{"title":"Green banking strategies: Evidence from Turkish banks","authors":"Zeliha Tekin","doi":"10.1016/j.bir.2025.05.008","DOIUrl":"10.1016/j.bir.2025.05.008","url":null,"abstract":"<div><div>Given the expanding role of green finance in developing economies, this study investigates green banking strategies utilized by Turkish banks as a case study. Data constitutes banks included in Borsa İstanbul's BIST 100 Index as of 2023. Content analysis and purposive sampling methods are utilized to analyze the data. Results indicate that Turkish banks utilize various green banking strategies to realize carbon neutral or net zero targets. Provision of green financing products is the most common strategy, followed by disclosure and reporting. Measuring, monitoring and reducing greenhouse gas emissions, and reducing energy consumption in bank buildings are other popular strategies. The results have important policy implications. Banks can establish long-term goals for climate change while laying out a clear plan for supporting transition away from fossil fuels in the short-term through loans and other financial products and include Environment, Social, and Governance (ESG) into the core of their strategies and reporting by providing incentives for CEOs and staff to implement ESG-related policies. Increased government climate action and research and development support may pave the way for private funding to commercialize and mainstream decarbonization technologies.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 930-938"},"PeriodicalIF":7.1,"publicationDate":"2025-05-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144894947","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
扫码关注我们
求助内容：
应助结果提醒方式：
京公网安备 11010802042870号