Borsa Istanbul Review最新文献

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 Granger-causality models. Our findings show that the dynamic conditional correlations among the banks were higher during the period of the SVB crisis, implying the presence of financial contagion from the bank's bankruptcy due to uncertainty triggered by its collapse. Financial contagion emerges between SVB and the top 10 banks, and the degree of contagion rises during the crisis period. Moreover, the Fed's monetary policy plays a significant role in contagion due to bank failures. The deepening of financial contagion followed the Fed's increases in the federal funds rate to combat inflation.

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 reverse technological spillovers to the FDI source country. The hypothesis is that OGFDI and M&As have different capabilities of carrying out reverse technological spillovers, which would affect the TFP of home countries differently. We apply a two-step system generalized method of moments (GMM) to deal with possible endogeneity and find the following results. First, total OFDI has no effect on the home country's TFP. Second, disentangling OFDI by mode of investment reveals both positive and negative reverse spillovers from FDI to TFP. While OGFDI produces negative reverse spillovers on the TFP of an MNE's home country due to displacement of production and reduced competition at home, M&A purchases produce positive reverse spillovers on the TFP of an MNE's home country due to their potential to acquire high-value knowledge assets. Third, home countries' human capital development positively moderates the impact of OGFDI and M&A purchases on TFP, while trade openness positively moderates only the M&A impact on TFP. Our findings imply that policies that seek to promote OFDI can be beneficial once countries have reached a certain degree of human capital development and participation in international trade.

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 MFIs in 93 countries, spanning the period of 2010–2018, were collected from the World Bank and analyzed using various econometric methods, including Random Effects Model (REM), Fixed Effects Model (FEM), Pooled Ordinary Least Squares (POLS), Generalized Least Squares (GLS), and endogeneity-corrected techniques such as the Generalized Method of Moments (GMM). The study revealed that gender-diverse boards tend to utilize fewer debt instruments, reflecting the risk-averse nature of the female board members, as observed in the existing literature. However, the statistical significance of these outcomes varies depending on the specific debt, proxies, sub-sample, and econometric methods considered in the analysis.

This study investigates the impact of local antigambling interventions (AGIs) on corporate financialization. From the perspective of formal institutions’ influence on culture, our findings suggest that firms located in regions with more effective AGIs exhibit lower levels of financialization. Mechanism tests show that AGIs reduce local risk preferences, subsequently influencing corporate financialization. Heterogeneity tests reveal that the main results are more pronounced when government trust is stronger, cultural transmission efficiency is higher, local firm interactions are more extensive, and community attention to antigambling initiatives is greater. This study enhances the understanding of the influence of the institutional environment on corporate investment decisions.

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 a one-percentage-point increase in the foreign investors’ share in the bond market reduces the 5-year term premium by 55 basis points, which could be attributed to the impact of yield-seeking foreign investors in emerging markets.

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 environmental quality beyond the 82.5 threshold. In particular, loans and money supply exacerbate emissions, indicating that financial activities have an influence on environmental quality. Considering different financial indicators, the study underscores that women's empowerment is distinctly correlated with lowering emissions within the $3.77 million to $14.71 million range. This financial range signifies a critical zone in which women's impact is most pronounced. Environmental quality also improves above $31.59 million. This study emphasises the critical importance of integrating women into corporate environmental initiatives, showcasing the potential for advancing long-term benefits and a greener corporate image.

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 and a two-stage least squares (2SLS) regression to address endogeneity, we find robust evidence that JE has a positive and significant effect on FSE and its components, FIE and FME. Moreover, we find that JE's positive impact on FSE and its components holds across different levels of per capita income, including high-income, low-income, and emerging market economies. Our findings, which are confirmed by several robustness checks, highlight the universal importance of a well-functioning, efficient judicial system in driving FSE regardless of a country's economic context. The results show that countries should prioritize reforms to strengthen judicial institutions and enhance efficient contract enforcement. An efficient legal framework and judicial process are conducive to creating an environment in which an efficient financial system can develop, paving the way for sustainable economic growth.

Green finance is the beacon of hope in a world striving for sustainability, where financial growth and environmental responsibility go hand in hand. The BRICS, containing five emerging economies (Brazil, Russia, India, China, and South Africa), recently announced Iran, Egypt, Argentina, Ethiopia, Saudi Arabia, and the UAE as six potential new members. This expansion offers promising prospects for advancing environmental sustainability through green finance, which can be an excellent tool. In this respect, this research examines how green finance affects the carbon footprint in BRICS+6 economies. Earlier studies used panel data techniques to probe the association between these variables but overlooked that certain countries still needed to possess such a link separately. Hence, this research adopts the Quantile-on-Quantile approach, which provides a holistic universal view and customized findings for each country. The outcomes display that green finance improves environmental quality by diminishing carbon footprint at distinct quantiles of data distribution.

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 vulnerability to geopolitical risk. Domestic policies have a moderate impact on currency valuation, whereas oil prices play a pivotal role, exceeding the impact of domestic policies. Our findings offer strategic insights for hedging, identifying safe-haven assets, and diversification strategies based on Russian-foreign currency dynamics, oil, and gas prices. These considerations are especially relevant amid geopolitical tensions and uncertainty, across various time periods and quantile levels.

Under the UN sustainable development goals (SDGs), the United States (US) and China have ambitious environmental, social, and governance (ESG) investment plans. However, dichotomy is found in the literature about how rising ESG practices affect firm value (FV). This study examines the linear and nonlinear effect of ESG practices on FV and how growth-option value (GV) moderates this connection in the real-option framework. We use data on 5220 listed US and Chinese firms from 2018 to 2022 with a generalized method of moments model. The empirical results confirm that ESG practices nonlinearly affect FV, implying that ESG practices turn FV trajectory from positive to negative, and the degree of this effect varies across the sample but is more pronounced at Chinese firms than US firms. We also find that GV negatively moderates the nexus between ESG practices and FV across the sample. Our endogeneity-adjusted results pass robustness tests and have important policy implications.