Borsa Istanbul Review最新文献

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 quantile regression, we find the following. Our results suggest that ESG components and bank stock returns have a nonlinear relationship. In other words, the link between the ESG components and stock market returns could be U-shaped, inverted U-shaped, or both. Additionally, we find that size influences the link between the ESG pillars and bank stock returns. With few exceptions, large banks strengthened the positive link between ESG components and stock returns. Our findings align with the concept of “too little of a good thing” or “too much of a good thing” effects, along with the law of diminishing marginal returns.

Extensive research has discussed digital inclusive finance’s (DIF) rapid growth in financial services and its vital economic role; however, limited research addresses its potential to mitigate micro, small- and medium-sized enterprise (MSME) financing constraints and generate environmental benefits. This study empirically investigates the effects of DIF on Chinese MSMEs’ environmental performance using a substantial manufacturer sample. The findings indicate that DIF significantly reduces the wastewater discharge intensity of MSMEs. Furthermore, DIF has a more pronounced environmental effect on non-state-owned firms, SMEs, firms in areas with more significant emission reduction pressure, and those in the eastern region. Further mechanism analysis reveals that DIF can ease the financing constraints of MSMEs. Moreover, strengthening terminal treatment, optimizing the energy consumption structure, and increasing investment in research and development are significant pathways through which DIF affects corporate environmental performance. Finally, this study proposes some policy implications to promote the green transformation of MSMEs.

The literature on working capital management (WCM) provides mixed evidence on the effect of working capital on firm profitability and performance. We use firms from developed and emerging economies to explore how working capital and its components relate to firms' performance while controlling for firm-specific and macroeconomic factors. The findings show that the cash conversion cycle (CCC) is inversely related to firm performance in developed and emerging economies—however, there are differences in the CCC's components. While firms in developed economies exhibit higher firm performance with longer days' inventory on hand, firms in emerging economies have lower firm performance with longer days' inventory on hand, extended collection periods, and longer payable periods. Company-specific factors, such as firm size, growth, profitability, and leverage, influence the efficiency of WCM. We also find that country-specific variables such as gross domestic product (GDP), interest rate, and inflation have varying impacts on a firm's WCM.

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. By using 3,020 lending transactions from Ecuador during 2016–2019, we document that the loan officer-borrower pair gender drives differences in the microcredit portfolio management. We find that female loan officers grant smaller microcredits to both male and female borrowers. However, the loan-size increases when matching the loan officer-borrower gender. We also demonstrate that female loan officers have greater loan approval rates, mainly in the segment of higher loan-sizes granted to male clients. Finally, our results show that the microcredits that have the fastest evaluation process are those that have a lower loan-size and are granted by female loan officers to female borrowers. Our findings have practical implications for the analysis of the credit availability for entrepreneurs as well as the loan portfolio management.

Managers generally possess complex social networks and occupy central positions within their networks. We investigate the influence of managers’ social network relationships on capital market pricing efficiency by specifically analysing the relationship between top management team network centrality and stock price synchronicity. Using stock price synchronicity as a proxy for information efficiency, we examine data from Chinese A-share listed companies over a period of ten years (2013–2022). Based on the social network perspective, we empirically test the relationship between top management team network centrality and stock price synchronicity. Our results reveal that top management team network centrality promotes stock price synchronicity, which is more significant for non-state-owned enterprises. Mechanism testing indicates that analyst attention plays a partial mediating role between top management team network centrality and stock price synchronicity based on herd behaviour and social network theory. Additionally, institutional investors’ shareholding ratios weaken the impact of top management team network centrality, whereas analyst herding strengthens the promotion of stock price synchronicity. After excluding the endogenous effects these main findings remain robust. Overall, the results support the idea that executive networks promote stock price synchronicity.

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 risk, and idiosyncratic volatility as relevant characteristics of lottery stocks. Using these, we construct a lottery factor representing investors’ risk-seeking behavior. This behavior is an outcome of mis-weighing probability of extreme gains or losses and leads to overreaction to attention-catching events. We augment the Fama-French five-factor model with our lottery factor. Our six-factor behavioral asset pricing framework is found to be an appropriate performance benchmark. Lottery behavior is mainly the result of retail investor actions and is linked to several behavioral biases.

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 and African countries, risking food insecurity. The specified VECM-Asymmetric BEKK-MGARCH model estimation uses data from January 2010 to May 2023. Results show that over time, short-term deviations move towards long-term equilibrium. The presence of reciprocal causality among wheat, corn, and sunflower oil prices underscores their mutual influence. The volatility pass-through between wheat, sunflower oil, and corn shows asymmetric transmission. Long-term uncertainty stemming from one market exacerbates that market's uncertainty but mitigates risks affecting other markets. The volatility can be reduced through domestic production expansion through comprehensive policies enhancing rural area development, assuring farmer access to inputs, and implementing market risk mitigating measures. Results also show that the effects of the pandemic and the Russia-Ukraine war have been amplified by exchange rate fluctuations. Market risk mitigation could involve the agricultural exchange to support an expanded number of licensed grain warehouses. In a broader scholarly context, this study stresses the interaction between global shocks, market uncertainty, and safeguarding the nation's food security.

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 banks over 17 years, from 2005 to 2021. The study provides compelling evidence of a nonlinear relationship between intellectual capital and asset quality. It pinpoints an optimal threshold for intellectual capital investments, beyond which further increases can erode asset quality. Furthermore, the study identifies specific intellectual capital components that impact the asset quality of state-owned, privately owned, and foreign deposit banks differently. The findings indicate that optimizing human capital efficiency and capital employed efficiency is critical for enhancing the asset quality of deposit banks. In contrast, the significance of structural and relational capital efficiency may vary, demanding a careful balance of investment strategies.

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 ESG scores have higher FRQ. Additionally, our mediation analysis indicates that financial distress costs serve as a crucial mechanism through which ESG influences FRQ. Our findings are robust after accounting for alternative measures of FRQ, different sampling scenarios, endogeneity issues, and simultaneity bias.

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 investments (capital investment) and environmental investments, exploring potential trade-offs and implications for corporate decision-making. The analysis was conducted by sampling nonfinancial sector enterprises from BRICS nations from 2010 to 2022. For regression analysis, system generalized method of moments (GMM) was employed to address endogeneity concerns. The findings revealed a significant positive correlation between ESG performance and earnings-driven investments (capital investment). However, a negative relationship emerged between ESG scores and environmental investments, signifying potential trade-offs between financial profitability and dedicated environmental spending within companies. Other variables, including firm size, debt ratios, cash holdings, and CO₂ emissions, significantly impacted investment patterns. The study’s outcomes provide valuable guidance for corporate managers navigating sustainable investment strategies. Emphasizing earnings-driven investments, particularly capital projects, with a high ESG focus could align financial objectives with sustainable practices, enhancing long-term viability and stakeholder trust. The study’s insights contribute to the broader discourse on responsible corporate practices and sustainability. The findings shed light on the complexities of balancing financial objectives with environmental responsibilities, emphasizing the need for a balanced approach reconciling financial goals with ESG commitments. This study contributes novel insights by dissecting the nuanced relationships between ESG performance and investment decisions. The analysis provides a novel perspective on companies' trade-offs between the investment mix and pursuing ESG performance.