Borsa Istanbul Review最新文献

{"title":"The moderating role of audit quality in the relationship between ESG practices and the cost of capital: Evidence from the United Kingdom","authors":"Saddam A. Hazaea ,&nbsp;Chun Cai ,&nbsp;Saleh F.A. Khatib ,&nbsp;Mohammed Hael","doi":"10.1016/j.bir.2025.06.007","DOIUrl":"10.1016/j.bir.2025.06.007","url":null,"abstract":"<div><div>This study investigates the impact of environmental, social, and governance (ESG) performance on the cost of capital, using a sample of 406 non-financial companies in the United Kingdom from 2014 to 2023. We examined how ESG performance and audit quality influence the cost of equity (CoE), cost of debt (CoD), and weighted average cost of capital (WACC). The findings reveal a significant negative relationship between ESG performance and all three measures, indicating that strong ESG practices can reduce financing costs. Additionally, higher audit fees are positively associated with WACC and CoE, with a particularly pronounced effect on CoD. Engagement with Big 4 auditors moderates these relationships. Overall, the results demonstrate that ESG performance not only enhances corporate reputation and sustainability but also delivers financial advantages by lowering the cost of capital. These insights have significant implications for corporate financing decisions and provide guidance for managers, investors, policymakers, regulators, and government entities.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 1085-1099"},"PeriodicalIF":7.1,"publicationDate":"2025-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144895731","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}

{"title":"Impact of FinTech on capital allocation: Empirical evidence from Jordan and Palestine","authors":"Aladeen Hmoud ,&nbsp;Fu'ad Magableh ,&nbsp;Nemer Badwan ,&nbsp;Mohammad Almashaqbeh","doi":"10.1016/j.bir.2025.06.004","DOIUrl":"10.1016/j.bir.2025.06.004","url":null,"abstract":"<div><div>The explosive growth of financial technology (Fintech) has transformed the credit and equity markets, providing small businesses with unprecedented access to capital and driving financial inclusion. However, how this financial inclusion affects the effectiveness of capital allocation remains unclear. Addressing this question, this study examines the impact of Fintech on capital allocation efficiency using data on Fintech firms from Jordan and Palestine between 2010 and 2020. Our central hypothesis is that while Fintech promotes financial inclusion, it may simultaneously lead to capital allocation inefficiencies. To measure the presence of Fintech, we use the number of Fintech firms in Jordan and Palestine. We find a striking pattern: the expansion of Fintech firms is associated reduce resource allocation to more efficient firms, suggesting systemic inefficiencies. Both the industry and corporate levels exhibit this trend. Mechanisms analysis reveals that this effect is driven by increased competition in the lending market and efficient stock swaps. Overall, we highlight how changes induced by Fintech in debt financing are the main cause of these inefficiencies. Our findings offer implications and insights for policymakers and Fintech companies by stressing the dual impacts of Fintech on financial markets in Jordan and Palestine. This underlines the necessity for a balanced approach to integrating Fintech innovations to ensure that the benefits of enhanced financial inclusion do not compromise financial efficiency and capital allocation. This study significantly contributes to the literature by delivering a comprehensive analysis of the intricate dynamics between Fintech, financial inclusion, and capital allocation efficiency in Jordan and Palestine.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 1068-1084"},"PeriodicalIF":7.1,"publicationDate":"2025-06-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144895730","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}

{"title":"Weekdays vs. weekends: How reporting timing influences the sentiment of annual reports","authors":"Levent Çinko ,&nbsp;Abdullah Kürşat Merter ,&nbsp;Yavuz Selim Balcıoğlu ,&nbsp;Sedat Çerez ,&nbsp;Gökhan Alataş","doi":"10.1016/j.bir.2025.06.003","DOIUrl":"10.1016/j.bir.2025.06.003","url":null,"abstract":"<div><div>This study examines the impact of financial disclosure timing on the sentiment of corporate reports within an emerging market context. Leveraging a comprehensive dataset covering quarterly reports from all firms listed on Borsa Istanbul between 2018 and 2023, we categorized firms into three groups: firms transitioning disclosures from weekdays to weekends, from weekends to weekdays, and firms maintaining consistent disclosure timing. Utilizing XLNet sentiment analysis on this extensive dataset, we uncovered robust sentiment patterns linked to disclosure timing. Our findings align with investor inattention and strategic disclosure theories, showing that managers prefer weekdays for positive announcements to maximize attention, while relegating negative news to weekends. Moreover, a comparative analysis across pre-pandemic, pandemic, and post-pandemic periods indicated that these disclosure timing effects intensified during the COVID-19 crisis. The study highlights strategic managerial behavior in disclosure timing, providing insights that are likely to be of significance for investors, stakeholders and regulators in emerging markets.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 5","pages":"Pages 1052-1067"},"PeriodicalIF":7.1,"publicationDate":"2025-06-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"144895717","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}

{"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}

{"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}

{"title":"Do firms defer or accelerate green investment under carbon price uncertainty?","authors":"Chengxing Xie ,&nbsp;Liang Wu ,&nbsp;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}

{"title":"The impact of margin trading and regulatory policy on IPO underpricing: Evidence from Türkiye","authors":"Ahmet Gökhan Arslan ,&nbsp;Gonul Colak ,&nbsp;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}

{"title":"Network readiness, financial inclusion, and sustainable development goals: Insights from a clustering approach","authors":"Mirjana Jemović ,&nbsp;Ivana Marković ,&nbsp;Adela Ljajić ,&nbsp;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}

{"title":"Return spillovers between Islamic and conventional banking rates: Evidence from emerging Islamic countries","authors":"Remzi Gök ,&nbsp;Shawkat Hammoudeh ,&nbsp;Ahdi Noomen Ajmi ,&nbsp;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}

{"title":"Decoding digital signals: AI sentiment and financial performance at İslamic banks","authors":"Hassnian Ali ,&nbsp;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}