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Book part
Publication date: 25 July 2017

Elmas Yaldız Hanedar, Avni Önder Hanedar and Ferdi Çelikay

Inefficiencies in the fiscal and monetary systems of the Ottoman Empire led to a higher debt burden over time and the bankruptcy for the Ottoman state in 1875. To deal…

Abstract

Inefficiencies in the fiscal and monetary systems of the Ottoman Empire led to a higher debt burden over time and the bankruptcy for the Ottoman state in 1875. To deal with these inefficiencies, reforms were implemented: supervisory organizations were established and the gold standard was adopted. How did investors at the Istanbul Bourse view these reforms? We manually collected data on the price of Ottoman government bonds on the Bourse from 1873 to 1883. Using the generalized autoregressive conditional heteroscedasticity (GARCH) methodology, we identify short-run and permanent changes in volatility of bond returns subsequent to the reforms. Our results suggest investors responded positively, by accepting lower yield premia, to adoption of the gold standard, and foundation of the Ottoman Public Debt Administration which had European sponsors, but did not respond positively to reforms that relied on purely local institutions.

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Research in Economic History
Type: Book
ISBN: 978-1-78743-120-1

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Book part
Publication date: 25 July 2017

Abstract

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Research in Economic History
Type: Book
ISBN: 978-1-78743-120-1

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Book part
Publication date: 25 July 2017

Abstract

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Research in Economic History
Type: Book
ISBN: 978-1-78743-120-1

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Book part
Publication date: 29 December 2016

A. Can Inci

Intraday volatility characteristics throughout the trading week are examined at the emerging Borsa Istanbul (BIST) stock exchange. Using five-minute (and 15-minute…

Abstract

Intraday volatility characteristics throughout the trading week are examined at the emerging Borsa Istanbul (BIST) stock exchange. Using five-minute (and 15-minute) intervals, accentuated intraday volatility patterns at the microstructure level are examined during the stock market open and close in the morning and in the afternoon sessions. Volatility is highest when markets open in the morning. The second highest is during the afternoon open. The third highest is before the market closes for the day. Volatility before the market close has increased in recent years. These characteristics are seen every trading day. There are also differences: Monday returns are lowest, Friday returns are highest, and Monday morning volatility is highest of the entire trading week. Day-of-the-week and intraday accentuated volatility smile anomalies are jointly investigated using the longest intraday sample period in the emerging country stock exchange literature. Investment companies and professionals can utilize the results for risk management and hedging by avoiding highly volatile opening and closing periods. Arbitrageurs, speculators, and risk takers should trade during these highly volatile periods. Heightened volatility is increased difficulty in price discovery, thus inefficiency. Market participants, exchanges, and public prefer efficient markets. The research presents evidence of trading days, and periods during the trading day, when the exchange becomes more efficient. This is the first research that explores day-of-the-week effect from intraday volatility perspective in an emerging market, and provides useful recommendations in designing risk management strategies at market microstructure level.

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Article
Publication date: 5 August 2021

Zeyneb Hafsa Orhan and Murat Isiker

This paper aims to develop a ranking methodology for the companies included in the Islamic indices in Turkey. Thus, this paper simplifies the decision-making process for…

Abstract

Purpose

This paper aims to develop a ranking methodology for the companies included in the Islamic indices in Turkey. Thus, this paper simplifies the decision-making process for investors with Islamic sensitivities to stock market investment when constructing their investment portfolio.

Design/methodology/approach

This paper uses a case study of 20 companies listed on Borsa Istanbul, drawing data from their 2017, 2018 and 2019 financial reports. These companies are scored and ranked according to their compatibility with the screening criteria used by Ziraat Katilim index in Turkey. In addition, this paper uses the quantitative screening process to calculate the ranking scores of these companies.

Findings

The findings show that some companies are highly compatible with the screening criteria, with ranking scores close to 100 points. However, some companies satisfied the criteria on the margin. This may not be a desirable result for some investors.

Research limitations/implications

Only 20 companies are included in the analysis. Since the conventional accounting system is used in Turkey, it was difficult to get exact information about the companies’ Shari’ah compatibility from the financial results.

Practical implications

The findings assist investors to determine which company is ethically more responsible than others within the Islamic framework. There are also implications for the companies in question, index providers and Shari’ah scholars.

Social implications

The findings aim to simplify the decision-making process of investors who have Islamic sensitivities to stock exchange market investment when they constitute their portfolio.

Originality/value

To the best of the authors’ knowledge, it is one of the first attempts to develop a ranking methodology for Shari’ah-screened stocks in Turkey even though Shari’ah screening has been on the agenda since the late 1990s. This paper also compares 11 indices based on their screening criteria.

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ISRA International Journal of Islamic Finance, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0128-1976

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Article
Publication date: 9 June 2021

Eyup Kadioglu

This study investigates the impact of simultaneously replacing both midday single-price call auction and lunch break with multi-price continuous trading on intraday…

Abstract

Purpose

This study investigates the impact of simultaneously replacing both midday single-price call auction and lunch break with multi-price continuous trading on intraday volatility–volume patterns as well as the intraday volatility–volume nexus.

Design/methodology/approach

The analysis utilises 150 m tick-by-tick transaction data related to 333 stocks traded on Borsa Istanbul Equity Market covering a period of 2 months prior to and following the change. In addition to graphic comparisons, the study uses difference in mean tests, panel-fixed generalized least squares (GLS), panel-random GLS and random-effects linear models with AR(1) disturbance regression estimations.

Findings

The results show that intraday volatility and trading volume form an inverse J-shape and are positively correlated. It is observed that the implementation of the regulation change decreased intraday volatility and increased trading volume. Additionally, the results indicate a negative volatility–liquidity and a positive volume–liquidity relationship, supporting the mixture of distribution hypothesis.

Research limitations/implications

Enhanced market efficiency provides greater opportunity for investment and risk management. Investors can benefit from the findings on the intraday volatility–volume nexus, which is an indicator of informed trading, and regulatory authorities can use volume to oversight volatility.

Originality/value

This very rare regulation change of the simultaneous replacement of the lunch break and midday call auction with continuous trading is investigated in the context of intraday volume and volatility. This study also expands upon some important findings on the volume–volatility nexus for the Turkish Stock Market.

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International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 10 December 2018

Bahaaeddin Alareeni

This paper aims to consider data for listed companies in Bahrain Bourse to determine whether companies practice earnings management (EM). Further, the effect of a set of…

Abstract

Purpose

This paper aims to consider data for listed companies in Bahrain Bourse to determine whether companies practice earnings management (EM). Further, the effect of a set of corporate governance characteristics on EM practices is examined.

Design/methodology/approach

The EM level was measured using discretionary accruals (DA) [calculated using the Modified Jones (1995) Model]. The study sample consisted of 20 companies listed during the period 2011-2015. Panel regression model was used to test the study hypotheses and achieve the study aims.

Findings

EM is negatively correlated with board size, confirming that a larger board is associated with a lower level of EM practices. Further, board independence is positively correlated with EM, suggesting that the larger the number of independent directors, the higher the level of EM practices. In addition, internal ownership is positively related to EM, confirming that the higher level of internal ownership increases EM practices. CEO duality does not appear to have any effect on EM in Bahrain Bourse. More interestingly, the findings reveal that companies practice EM through income-increasing DA.

Research limitations/implications

Financial data and data related to other corporate governance characteristics are lacking.

Practical implications

The results of this study provide empirical support for the development of new regulations and amendments and necessary corrective decisions regarding the effectiveness of applying corporate governance code in Bahrain Bourse. More specifically, this study reveals an urgent need for new amendments to restrict EM practices in Bahrain Bourse.

Originality/value

This study enriches the EM literature by covering Bahrain as an Asian country, which has not been sufficiently examined in relation to this topic. Further, this study provides a clear picture of the level of EM practices in Bahrain Bourse to multiple parties.

Details

Journal of Asia Business Studies, vol. 12 no. 4
Type: Research Article
ISSN: 1558-7894

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Article
Publication date: 21 March 2018

Abdalmuttaleb Musleh Alsartawi

The purpose of this paper is to investigate the association between online financial disclosure (OFD) and firms’ performance in the Gulf Cooperation Council (GCC).

Abstract

Purpose

The purpose of this paper is to investigate the association between online financial disclosure (OFD) and firms’ performance in the Gulf Cooperation Council (GCC).

Design/methodology/approach

Extensive literature review was carried out and a checklist of 90 items (71 for content and 19 for presentation) was developed to measure the level of OFD by the firms that are listed in financial sectors of the GCC Bourses.

Findings

The findings show that the overall OFD in GCC is 77 percent. The results indicate a positive association between OFD and firms’ performance.

Practical implications

The study recommends that regulatory bodies should develop a guideline of disclosing information through the internet in order to enhance the corporate transparency and performance among the GCC listed companies leading to reasonable economic decision making.

Originality/value

Additionally, the study contributes to financial reporting and performance literature relating to the GCC countries.

Details

World Journal of Entrepreneurship, Management and Sustainable Development, vol. 14 no. 2
Type: Research Article
ISSN: 2042-5961

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Article
Publication date: 9 March 2020

Imtiaz Sifat and Azhar Mohamad

Despite regulatory claims of straitening volatility and preventing crashes, evidences on circuit breakers' ability to achieve so are nonconclusive. While previous scholars…

Abstract

Purpose

Despite regulatory claims of straitening volatility and preventing crashes, evidences on circuit breakers' ability to achieve so are nonconclusive. While previous scholars studies general performances of circuit breakers, the authors examine whether Malaysian price limits aggravate volatility, impede price discovery, and interfere with trading activities in both tranquil and stressful periods.

Design/methodology/approach

The study uses a combination of parametric and nonparametric techniques consistent with Kim and Rhee (1997) to examine the major ex-post hypotheses in circuit breaker research.

Findings

For calm markets, the authors find significant success of upper limits in tempering volatility with low trading interference. Lower limits show mixed results. Conversely, in crisis markets limits fare poorly in nearly all aspects, particularly for lower limits.

Practical implications

Ramifications of the paper's findings are discussed through highlighting the asymmetric nature of price limits' ex-post effects. The paper also contributes to regulatory debate surrounding the quest for an optimal price limit.

Originality/value

The paper is the first of its kind in documenting long-horizon evidence of ex-post effects of a wide-band price limit. Moreover, the paper is unique in its approach in bifurcating circuit breaker performance along the line of market stability periods.

Details

Journal of Economic Studies, vol. 47 no. 2
Type: Research Article
ISSN: 0144-3585

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Book part
Publication date: 1 December 2004

Waleed Alajlan

This paper investigates the Saudi market and the ownership structures of listed firms within the Saudi context. This paper examines the historical phases of evolution of…

Abstract

This paper investigates the Saudi market and the ownership structures of listed firms within the Saudi context. This paper examines the historical phases of evolution of the Saudi market since the first flotation of a Saudi firm in 1935 to date. The data reveals high ownership by families and the government (30%) in the total companies listed. This paper also underscores the capacity of the Saudi market to develop into one of the leading stock exchange markets in the Middle East and East Asia. The discussion concludes that the Saudi market needs greater transparency, better legal frameworks, corporate governance codes, and more regulation, so as to realise its potential.

Details

Corporate Governance
Type: Book
ISBN: 978-0-76231-133-0

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