Borsa Istanbul Review最新文献

{"title":"If Money Talks: Climate change-related regulation and firms’ cost of debt","authors":"Wenwen Jin ,&nbsp;Yu Wang","doi":"10.1016/j.bir.2025.01.002","DOIUrl":"10.1016/j.bir.2025.01.002","url":null,"abstract":"<div><div>This study uses a novel dataset from 54 countries and regions to explore how exposure to climate change regulatory shocks influences firms' debt costs. The findings reveal that such exposure generally increases the cost of debt. However, this scenario is reversed for firms that find greater opportunities within climate change regulations, suggesting that the regulatory risk premium associated with climate change may not always be positive. The results also indicate that the negative impact of regulations is more pronounced in companies with a higher beta, greater asset tangibility, and poorer environmental innovation performance. Furthermore, this increase in debt costs can be partially attributed to heightened profitability volatility and diminished growth prospects arising from reduced capital expenditures. These insights underscore the need to refine climate regulation policies to better support firms’ transition toward environmentally sustainable practices.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 275-285"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510007","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The cost of environmental inequality: Evidence from offsite investment","authors":"Mengling Zhou ,&nbsp;Kangqi Jiang","doi":"10.1016/j.bir.2025.01.014","DOIUrl":"10.1016/j.bir.2025.01.014","url":null,"abstract":"<div><div>The unequal distribution of resources and unjust utilization of the environment not only imperil the global ecological equilibrium but also undermine the sustainable development of the global economy. By delving into enterprises' offsite investment behavior amidst environmental inequality, insights into their environmental stewardship in the global arena can be gleaned. Drawing on data from Chinese non-financial enterprises spanning 2007–2020, our findings underscore that environmental inequality spurs offsite investments by enterprises, with capital flows predominantly directed towards other provinces rather than remaining localized. Mechanism analysis from economic perspectives reveals that environmental inequality adversely affects corporate income growth, and the resulting environmental governance pressure transfers to enterprises, reducing corporate competitiveness and prompting capital flight. Additionally, mechanism exploration from strategic perspectives reveals that environmental inequality leads to higher corporate financing costs, increased default risks, and a heightened risk of stock price collapse in the capital market. The financial pressure of addressing environmental inequality also transfers to enterprises within the jurisdiction, compelling them to seek sustainable development through offsite investment. Our analysis of heterogeneity indicates that the enhancing impact of environmental inequality is more pronounced among firms that receive low subsidies, are situated in the central and eastern regions of the country, contend with sluggish markets, possess non-state attributes, exhibit low technological advancement, and have high pollution intensity. Moreover, environmental inequality influences the industrial composition of the destination where capital flows. This study provides novel insights into evaluating the economic consequences of environmental equity and corporate capital management, furnishing a scholarly basis for advancing environmentally sustainable development.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 400-421"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510564","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Finance for a Greener future: Evolving the financial sector for ESG and sustainable corporate debt management","authors":"Bilal Haider Subhani ,&nbsp;Shen Zunhuan ,&nbsp;Muhammad Asif Khan","doi":"10.1016/j.bir.2025.01.011","DOIUrl":"10.1016/j.bir.2025.01.011","url":null,"abstract":"<div><div>This study investigates the impact of Environmental, Social, and Governance (ESG) investments on corporate debt financing (CDF) in the BRICS (Brazil, Russia, India, China, and South Africa) economies throughout 2010 to 2022. A central aspect of this research is the moderating role of financial sector development (FSD), which potentially influences how ESG commitments affect corporate financing strategies in these rapidly evolving markets. The findings of two-step system Generalized Method of Moment indicate a negative correlation between ESG investments and CDF, suggesting that increased ESG commitments may initially restrict access to debt financing. Nonetheless, FSD serves as an important moderating variable, converting this adverse effect into a favorable one. A strong financial sector offers substantial funds under relaxed terms. In line with Porter's win-win hypothesis, the results indicate that sustainable practices can strengthen competitive advantage and financial performance, highlighting the importance of advancing FSD and incorporating ESG factors into corporate finance.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 337-349"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510678","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Asset pricing anomalies: The case of dividends in the US for Sharia-compliant firms","authors":"Asyraf bin Abdul Halim,&nbsp;Mohd Edil bin Abd Sukor","doi":"10.1016/j.bir.2025.01.009","DOIUrl":"10.1016/j.bir.2025.01.009","url":null,"abstract":"<div><div>This paper investigates asset pricing anomalies in sharia-compliant (SC) stocks in the US market, focusing on whether dividend-oriented strategies can yield significant alphas. SC stocks adhere to Islamic principles, avoiding activities such as the production and sale of alcoholic beverages, gambling, and using interest-based financial services. Despite growing interest in ethical investments, the specific asset pricing dynamics of SC stocks in the US are underexplored. This paper investigates the research question of whether investors in SC stocks in the US can earn significant and consistent alphas by adopting dividend-oriented strategies. The objective is to study the presence of significant intercepts in 25 size-dividend portfolios using various asset pricing models, including the capital asset pricing model (CAPM), the Fama &amp; French 3-Factor Model (FF3), Fama &amp; French 5-Factor Model (FF5), and Fama &amp; French 6-Factor Model (FF6), over the period from 1993 to 2023. The data includes all stocks listed on the New York Stock Exchange (NYSE), AMEX, and NASDAQ, screened for sharia compliance. Our methodology involves sorting SC stocks into 25 portfolios based on size and dividend characteristics (dividend yield, change in dividend yield, and change in absolute dividends). Our findings indicate that whereas most portfolios do not show significant alphas, a small number do, particularly for larger firms. The CAPM is sufficient for explaining average excess returns for most portfolios, with additional factors providing marginal improvements. Our robustness checks include comparing local factors to FF factors to show that local factors have higher explanatory power but more significant intercepts and vice versa. Practically, the paper suggests that although dividend-oriented strategies may not yield significant alphas for most SC stocks, there are exceptions, especially for larger firms. This highlights the potential for earning higher returns through careful selection of dividend-paying SC stocks. At the same time, our findings simplify the process of estimating required returns and managing investment risks for SC stocks.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 253-264"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510005","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Threshold effects of institutional quality on the financial inclusion and stability nexus: International evidence","authors":"Rahmat Heru Setianto ,&nbsp;W.N.W. Azman-Saini ,&nbsp;Siong Hook Law","doi":"10.1016/j.bir.2025.01.015","DOIUrl":"10.1016/j.bir.2025.01.015","url":null,"abstract":"<div><div>This study employs the dynamic panel threshold estimation technique to examine whether the influence of financial inclusion on stability varies across countries with different levels of institutional development. This study analyzes 11,209 observations of bank-level data from 78 developed and developing countries from 2004 to 2022. The findings indicate a threshold effect in the relationship between financial inclusion and stability. Specifically, for institutional quality below the threshold, financial inclusion has an insignificant stability effect. However, after reaching a certain threshold of institutional development, the effect of financial inclusion on financial stability becomes positive and significant. These findings suggest that the impact of financial inclusion on stability is contingent on institutional quality. Enhancing institutional quality to minimize risk can enhance the stability benefits of expanding financial inclusion. These findings remain robust across alternative empirical approaches and disaggregated measures of financial inclusion and institutional quality. These findings have important implications for policymakers formulating strategies for improving financial inclusion and economic stability.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 2","pages":"Pages 388-399"},"PeriodicalIF":6.3,"publicationDate":"2025-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143510015","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Do industries lead the stock market? Evidence from an emerging stock market","authors":"Riza Demirer ,&nbsp;Aydin Yuksel","doi":"10.1016/j.bir.2024.11.005","DOIUrl":"10.1016/j.bir.2024.11.005","url":null,"abstract":"<div><div>Examining the gradual information diffusion hypothesis of Hong et al. (2007)in an emerging market context, we show that industry returns possess predictive information regarding the direction of the aggregate stock market in Borsa Istanbul, both in- and out-of-sample, and that the predictive power of industries is often magnified by crisis conditions. Several industries, including basic materials and consumer staples, have out-of-sample predictive power over the aggregate market, although out-of-sample predictability cannot be exploited to extract economic gains based on the direction of industry returns. Industry information emanating from the US stock market has significant spillover effects on Turkish industry returns, creating an opening for industry investment strategies for local investors. We show that foreign participation in the stock market facilitates the diffusion of information from US industries to Turkish industries and that the economic benefits from spillover effects can be as high as 60 percent on annual basis.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 1","pages":"Pages 21-33"},"PeriodicalIF":6.3,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143182854","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Investor attention and its impact on portfolio volatility and sectoral risk spillovers in Borsa Istanbul","authors":"Müge Özdemir,&nbsp;Oktay Taş","doi":"10.1016/j.bir.2024.12.014","DOIUrl":"10.1016/j.bir.2024.12.014","url":null,"abstract":"<div><div>This study examines the impact of investor attention on portfolio volatility and sectoral risk spillovers in Borsa Istanbul. We use advanced econometric models, including E-GARCH-X, GJR-GARCH-X, and multivariate BEKK-GARCH-X, and analyze daily data from January 2004 to June 2024. We find that abnormal investor attention, measured through the abnormal search volume index (ASVI) derived from the Google Search Volume Index (GSVI), significantly and positively predicts stock volatility. This relationship remains robust in long-short portfolios, even after controlling for risk factors in the capital asset pricing model (CAPM), Fama–French three-factor, and Carhart four-factor models. Sectoral analysis reveals that investor attention intensifies asymmetric conditional volatility in the finance, technology, banking, and mining sectors, indicating heightened sensitivity to investor attention and negative market news in these sectors. The BEKK-GARCH-X model results highlight that increased investor attention amplifies both intra-sector and inter-sector risk spillovers, particularly in the finance, industrial, and technology sectors, contributing to volatility clustering. These findings underscore the predictive power of GSVI data in capturing investor attention, challenging traditional market efficiency assumptions. The results emphasize the crucial role of behavioral factors in portfolio risk management and risk transmission dynamics within emerging markets, given their influence on investor decision-making. Furthermore, these findings suggest that monitoring investor attention levels can be valuable for predicting volatility and managing portfolio risk. Additionally, the findings suggest that policymakers must consider behavioral factors when crafting regulations to effectively mitigate volatility risks in emerging markets.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 1","pages":"Pages 107-126"},"PeriodicalIF":6.3,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143182858","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Does environmental concern drive financial assets? Evidence from China","authors":"Jianbo Huang ,&nbsp;Hengyi Su ,&nbsp;Lingyun Chen","doi":"10.1016/j.bir.2024.12.013","DOIUrl":"10.1016/j.bir.2024.12.013","url":null,"abstract":"<div><div>Public environmental concern (PEC) is an informal environmental governance mechanism, which has significantly influenced corporate decision-making. In this paper, we investigate whether (and how) PEC affects corporate financial asset holdings. Using data from listed industrial companies, between 2012 and 2019 in China, our findings reveal that companies facing higher PEC tend to hold more financial assets. The mechanism analysis suggests that managers’ return-seeking motive mainly drives the effect. Moreover, the effect is more pronounced for companies without ‘green’ background executives, those lacking efficient environmental management systems, and those in heavily polluting industries. This paper provides new insights into corporate financialization determinants and sheds light on how informal institutions shape firms’ investment decisions.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 1","pages":"Pages 127-136"},"PeriodicalIF":6.3,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143182857","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An analysis of crypto-asset trade, enforcement, and estate planning","authors":"Sirajo Aliyu ,&nbsp;Norazlina Abd Wahab ,&nbsp;Nur Syaedah Kamis","doi":"10.1016/j.bir.2024.12.008","DOIUrl":"10.1016/j.bir.2024.12.008","url":null,"abstract":"<div><div>This study examines crypto-asset trading, focusing on regulatory violations that lead to enforcement actions and the impact of estate planning after a digital asset holder's death. We review the literature on crypto-asset estate planning and explore lessons from Islamic finance regarding crypto assets. We then use quantitative analysis to compare price-volume relationships in Islamicoin and Bitcoin. To strengthen our analysis, we employ the Kaplan-Meier survival estimate, parametric survival analysis, and the Probit model. Our findings show that Islamicoin's trade volume predicts market price changes more often than Bitcoin's, which seems to be influenced by factors other than trade volume. Further investigation reveals that securities regulators are increasingly enforcing rules against crypto-trading violations. These violations typically occur when trading activity decreases while prices increase. We also find that widespread price changes tend to motivate people to violate the regulations over time. Recently, positive price changes, rather than trade volume, have been the main factor influencing regulatory violations. However, trade effects were observed later in some of our models. Given these findings, we conclude that regulators need to improve digital assets Act to address estate planning issues, in addition to protecting investors. The paper ends with policy recommendations and suggestions for future research.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 1","pages":"Pages 206-226"},"PeriodicalIF":6.3,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183096","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Financial conditions and economic activity: The case of Türkiye","authors":"Özgür Ergül ,&nbsp;Mahmut Günay","doi":"10.1016/j.bir.2024.12.016","DOIUrl":"10.1016/j.bir.2024.12.016","url":null,"abstract":"<div><div>This study conducts a comprehensive analysis of the effects of changes in financial conditions on the economy of Türkiye, for which financial conditions indices were constructed. To examine possible changes in the relationship between financial conditions and the real economy due to the unique nature of the COVID-19 pandemic, the impacts of financial conditions on the economy were analyzed separately for 2005–2019 and 2005–2023. The impulse response analyses revealed that changes in financial conditions had significant effects on macroeconomic aggregates from 2005 to 2019. However, these effects became insignificant when the analysis was extended to 2023. This change is interpreted with caution. Deepening the analysis with financial conditions indices obtained from different data groups revealed that risk perception-based variables played a relatively important role until 2019.</div></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"25 1","pages":"Pages 163-182"},"PeriodicalIF":6.3,"publicationDate":"2025-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143183106","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}