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The Impact of Tangible Asset Sales on Stock Returns: A Research on Manufacturing Companies Listed in Borsa Istanbul

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of Tangible Asset Sales on Stock Returns: A Research on Manufacturing Companies Listed in Borsa Istanbul
Author(s):	Neilan Soylu
Volume:	11
Number:	1
Year:	2020
Page:	131-146
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.240

Abstract

Nowadays, due to economic fluctuations, increasing competition and technological development companies need to continuously and rapidly adapt to changing business environment. Furthermore, internal conditions like financial distress or strategy changing make the restructuring inevitable for companies. Within this frame, tangible assets sales might have an effect on firm value both by generating a source of financing and allowing companies to optimize their asset structure. In this study, the impact of tangible assets sales on stock returns of manufacturing companies listed on Borsa Istanbul was examined for the period of January, 2016-December, 2017 using event study method. The empirical results show significant positive average abnormal returns associated with the asset sales on announcement day.

Keywords:

Tangible Asset Sales, Event Study, Restructuring, Abnormal Return, BIST Manufacturing Industry

JEL Classification:

G14, G34, L60

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Volatility Spillover between Uncertainty in Financial and Commodity Markets and Turkish Stock Market

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Volatility Spillover between Uncertainty in Financial and Commodity Markets and Turkish Stock Market
Author(s):	Baris Kocaarslan
Volume:	11
Number:	1
Year:	2020
Page:	119-129
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.239

Abstract

The aim of this study is to investigate risk spillovers between uncertainty about financial and commodity markets and Turkish stock market by using a causality-in-variance test. To this end, we use implied volatility indexes (the implied volatility of the gold, oil, stock, and currency prices from options markets) and Morgan Stanley Capital International (MSCI) Turkish stock market index. The volatility model estimates demonstrate that implied volatilities and Turkish stock market index are strongly influenced by long-run volatility. The causality-in-variance test results provide evidence of a significant one-way volatility spillover effect from uncertainty in financial and commodity markets to the Turkish stock market. The results suggest that Turkish stock market returns are highly sensitive to uncertainty shocks in global markets, and hence this high-sensitivity reduces the attractiveness of investments in the Turkish market. Our findings present important implications for the implementation of sound economic policies and for the formation of optimal portfolios.

Keywords:

Implied Volatility, Uncertainty, Causality-in-Variance, Volatility Spillover, Turkish Stock Market

JEL Classification:

C58, G15

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On the Relationship between Operational Risk and Tunisian Banks Performance: Does the Interaction between the Other Risks Matter?

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	On the Relationship between Operational Risk and Tunisian Banks Performance: Does the Interaction between the Other Risks Matter?
Author(s):	Abdelaziz Hakimi, Sid’Ahmed Boukaira
Volume:	11
Number:	1
Year:	2020
Page:	107-118
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.238

Abstract

The main purpose of this paper is to investigate the interactional relationship between operational risk, credit risk, liquidity risks and the Tunisian bank performance. We used a sample of Tunisian banks over the period 1990-2017. Results of the panel data analysis show that an increase in required capital charge to hedge operational risk significantly increases the level of bank performance. Findings also indicate that the interaction between operational risk and loan activities exerts a positive and significant effect on the level of bank performance. However, no significant effect of the interaction between operational and liquidity risk was found. These results could bring some important policy recommendations to policymakers toward the reinforcement of the capital charge and for improving the analysis and the management process of bank risks.

Keywords:

Operational Risk, Loans Activity, Liquidity Risk, Tunisian Banks, Panel Data Analysis

JEL Classification:

F30, G21, O16, L25

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Skill Shortages in Turkey: Evidence Firm-Level Data

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Skill Shortages in Turkey: Evidence Firm-Level Data
Author(s):	Z. Bilgen Susanli
Volume:	11
Number:	1
Year:	2020
Page:	95-106
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.237

Abstract

The term skill shortage refers to a situation in which the demand for skilled labor exceeds the supply of it in the labor market. By drawing on firm level data from Enterprise Surveys conducted by the World Bank, this study explores the incidence and likelihood of skill shortages in Turkey in 2008 and 2013. The responses given by the firms as to whether an inadequately educated workforce is an obstacle to their operations serves as an indication of skill shortages. Probit model estimations indicate that there is a positive and statistically significant association between firm size and the likelihood of skill shortages. The activities of informal competitors are also found to increase skill shortages. The determinants of skill shortages vary across 2008 and 2013.

Keywords:

Skill shortages, Firm-level data, Turkey

JEL Classification:

J23, J63

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Monetary Union Experiences and Lessons for European Monetary Integration

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Monetary Union Experiences and Lessons for European Monetary Integration
Author(s):	Derya Yilmaz
Volume:	11
Number:	1
Year:	2020
Page:	77-93
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.236

Abstract

In monetary unions, economically integrated countries pegged their exchange rates and abandon their monetary independency by adopting a union wide currency and central bank. In this vein, the theory of monetary union specifies criteria to overcome the loss of monetary policy autonomy. The mostly cited monetary union today is European Economic and Monetary Union (EMU). EMU was constituted with Maastricht Treaty. This treaty envisaged the monetary union by 1999. However, EMU is not the first monetary union experience. There have been plenty of other monetary union experiences. We observe some monetary union experiences parallel to forming nation states or as a consequence of economic integration. Some of these unions have prospered, but some come to an end. In these circumstances, the prosperity of EMU has always been discussed. This study is aiming to contribute this debate by analyzing the other monetary union experiences. According to the findings; politic will, fiscal integration and the institutional dependency of the nations in the monetary union is vital for the survival of the monetary union.

Keywords:

Monetary Union Theory, Optimum Currency Areas, National Monetary Unions, Fiscal Integration, Economic and Monetary Union (EMU)

JEL Classification:

E42, F15, F44, F42, F59

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Dynamic Analysis of Jobless Growth in Turkey

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Dynamic Analysis of Jobless Growth in Turkey
Author(s):	Ezgi Demiral, Abreg S. Celem
Volume:	11
Number:	1
Year:	2020
Page:	63-76
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.235

Abstract

The indicators of Turkey’s economy show that the long-term growth seems not to have provided the desired reduction in the unemployment rate. This indicates that economic growth cannot create sufficient growth in employment, that is known as the jobless growth phenomenon in economics literature. In this study, we examine the dynamic effects of the national income on the unemployment rates in Turkey for the 2005-2015 period. For this purpose, primarily, Perron unit root test was applied to examine the structural breaks in the variables caused by the global crisis in 2008. Subsequently, impulse-response analysis and variance decomposition analysis based on VAR model were applied. As a result of the empirical analysis, it was concluded that the unemployment reduction effect of the growth in national income was only valid in the short term in Turkey.

Keywords:

Jobless Growth, Unemployment, Growth, 2008 Global Crisis, VAR Model Analysis

JEL Classification:

E24, C32, J21

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Exchange Rate Private Sector Debt Nexus: Lessons from Turkish Experience

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Exchange Rate Private Sector Debt Nexus: Lessons from Turkish Experience
Author(s):	Melek Kidemli, Dilek Surekci Yamacli
Volume:	11
Number:	1
Year:	2020
Page:	51-62
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.234

Abstract

External debt stock of the private sector is increased from 2002 to 2018 in Turkey. In this period, Turkish Lira depreciated against foreign currencies. This study is investigated the relationship between real exchange rate and private sector external debt during the period 2002-2018 in Turkey. Auxiliary variables included in the model are LIBOR, domestic interest rates and real GDP. Application methods of the study are Delayed Distributed Autoregressive Model (ARDL) and Error Correction Model (ECM). Results of the study shows that, respectively domestic interest rate, LIBOR and exchange rate effective variables on the private sector external borrowing in the long term. Beside, exchange rate’s effects on the private sector external debt is higher in the short term than long term. Other hand, there is no relationship between private sector external borrowing and domestic production in the short and long term.

Keywords:

Private Sector External Borrowing, Real Exchange Rate, Borrowing, ARDL, ECM

JEL Classification:

F34, F31, F30

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Revisit Exports-Growth Nexus in Turkey

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Revisit Exports-Growth Nexus in Turkey
Author(s):	Alper Yilmaz
Volume:	11
Number:	1
Year:	2020
Page:	33-50
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.233

Abstract

The aim of this paper is to investigate exports and economic growth causality in Turkish economies. In this sense, we employed seasonally adjusted quarterly data of economic growth (real GDP) rate and exports that cover 1987Q1-2018Q4 periods. We analyze the relationship between variables by taking into account standard bootstrap Granger non-causality test and fixed-size rolling-window estimation approach. Standard Granger causality test indicates one direction causality that running from exports to real GDP. But according to test of parameters constancy, conducted VAR model points to parameters instability both in the short and long-run periods. Parameters constancy test indicate that empirical results are not uniform for different sample periods and vary due to structural changes. Consideringly, under parameters inconstancy, results of rolling window estimation method indicate that there is positive two way Granger causality (predictive power) between variables from the early 1990s to end of 2018 periods.

Keywords:

Export-led Growth (ELG), Output-driven Export, Time-Varying Causality

JEL Classification:

F43, O10, Q48

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Generating Economic Growth in Countries with Migration and Fractionalization

Posted on Wednesday January 22nd, 2020Friday January 24th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Generating Economic Growth in Countries with Migration and Fractionalization
Author(s):	David L. Ortmeyer, Michael A. Quinn
Volume:	11
Number:	1
Year:	2020
Page:	1-14
ISSN:	2619-9491
DOI Number:	10.20409/berj.2020.232

Abstract

Poverty and instability continue to plague many developing countries. Previous research has modelled economic growth and political instability simultaneously accounting for exogenous factors such as ethnic fractionalization. This study builds on that literature by using a three equation system which deals with the endogeneity of fractionalization. Another contribution is the incorporation of migration into the model. Results from a cross-country, panel data set over the years 1996-2014 find that linguistic fractionalization and migration work to lower growth indirectly via increased political instability. Endogeneity is found to be important as religious fractionalization becomes insignificant after accounting for its endogeneity. Results vary by region, with the impact of fractionalization and instability being most important in Sub-Saharan Africa. These results suggest that linguistic and religious diversity are not having the same effects on stability and growth across countries. While some policy makers in the West have expressed concern about migration and fractionalization, they do not seem related to either long-run political stability or economic growth in their countries. Migration and ethnic fractionalization should be a larger concern to policy makers in countries with weak institutions and records of political instability. International organizations and donors need to increase support to developing countries which have received large inflows of migrants and refugees, with this aid being directed towards bolstering the quality of institutions.

Keywords:

Fractionalization, Growth, Migration, Instability, Aid, Institutions, Africa

JEL Classification:

O11, O43

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Is There a Relationship Between CO2 Emissions and Health Expenditures? Evidence from BRICS-T Countries

Posted on Saturday December 14th, 2019Saturday April 4th, 2020 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Is There a Relationship between CO2 Emissions and Health Expenditures? Evidence from BRICS-T Countries
Author(s):	Seyfettin Erdogan, Mustafa Kirca, Ayfer Gedikli
Volume:	11
Number:	2
Year:	2020
Page:	293-305
ISSN:	2619-9491
DOI Number:	10.20409/berj.2019.231

Abstract

One of the most important indicators of deterioration in environmental quality is the increase in carbon dioxide emissions. Increasing carbon dioxide emissions negatively affect the health of individuals and lead to the emergence of a number of chronic diseases. The most significant cost of chronic diseases which reduces employee productivity is the impact on health expenditures. The purpose of this study is to investigate the relationship between carbon dioxide emissions and health expenditures for BRICS-T countries (Brazil, Russia, India, China, South Africa, and Turkey) over the period 2000-2016. The panel causality test developed by Kónya (2006) was used as the method. Based on the empirical results, it was found that there is a unidirectional positive causal relationship running from carbon dioxide emissions to health expenditures in China. In the other selected countries, no such relationship has been identified.

Keywords:

CO2 Emissions, Health Expenditures, BRICS-T Countries, Panel Causality Test, Environmental Pollution

JEL Classification:

H51, N50

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