{"title":"The crowding-out effect of government debt: A loan financing-based perspective","authors":"","doi":"10.1016/j.bir.2024.06.002","DOIUrl":"10.1016/j.bir.2024.06.002","url":null,"abstract":"<div><p>In recent years, economic research has increasingly focused on the increase in local government debt, attracting the attention of government regulators. Using data from 2006 to 2022, this study empirically examines how local government debt affects financing activities. The results reveal local government debt’ s crowding-out effect on financing, particularly for non-state-owned enterprises. Further analysis reveals that this negative impact is driven by ‘passive crowding-out’ rather than ‘active choice’ for enterprises. Local governments can directly influence commercial banks, and commercial banks prefer holding local government debt. Moreover, while new local government debt initially boosts economic growth, the continuous accumulation of debt stock exacerbates the crowding-out effect, impacting overall output. These findings provide insights into the micro-level implications of local government fiscal policies and offer guidance for advancing debt system reforms.</p></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"24 5","pages":"Pages 1059-1066"},"PeriodicalIF":6.3,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214845024000930/pdfft?md5=38c22c9e146ac52f8af5029275835542&pid=1-s2.0-S2214845024000930-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141413402","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":"From bytes to sustainability: Asymmetric nexus between industrial artificial intelligence and green finance in advanced industrial AI nations","authors":"","doi":"10.1016/j.bir.2024.03.010","DOIUrl":"10.1016/j.bir.2024.03.010","url":null,"abstract":"<div><p>The integration of artificial intelligence in industry and the adoption of green finance emphasizing environmental sustainability through technology has become increasingly prominent. This article scrutinizes the asymmetric nexus between industrial artificial intelligence and green finance in the top ten countries leading in industrial artificial intelligence (China, USA, South Korea, Germany, Japan, Canada, UK, Australia, France, and Italy). Preceding studies applied panel data approaches to examine the industrial artificial intelligence-green finance nexus without considering that not all countries had established such a connection autonomously. Conversely, this paper implements a distinctive approach, ‘Quantile-on-Quantile’, which offers both worldwide and nation-specific foresight into the correlation of the variables. The results demonstrate that industrial artificial intelligence increases green finance at specific segments of the data distribution across diverse economies. These outcomes underscore policymakers’ need to approach the development and enactment of policies regarding industrial artificial intelligence and green finance with careful attention and thoughtful deliberation.</p></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"24 5","pages":"Pages 886-897"},"PeriodicalIF":6.3,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214845024000516/pdfft?md5=048b2b7bc04a0f6d418cad2b374d1565&pid=1-s2.0-S2214845024000516-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140271347","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":"Exploring the moderating effect of regulatory quality on the relationship between financial development and economic growth/economic volatility for developed and developing countries","authors":"","doi":"10.1016/j.bir.2024.04.015","DOIUrl":"10.1016/j.bir.2024.04.015","url":null,"abstract":"<div><p>This study examines the moderating effect of regulatory quality on the relationship between financial development and economic growth/economic volatility. We employ the Panel Corrected Standard Error estimation method, supplemented by a robustness check using the Generalized Method of Moments. Our findings offer interesting insights into the relationship between financial development and outcomes for the economy. In developed countries, regulatory quality positively moderates the relationship between banking-based financial development and economic growth. Hence, policymakers should prioritize the maintenance of a high-quality institutional and regulatory environment conducive to both banking-based and market-based growth. Continual efforts to enhance regulatory quality and adopt robust approaches are imperative. Conversely, this study does not detect a significant moderating effect of regulatory quality on the relationship between financial development and economic growth in developing countries. Policymakers in these contexts must accelerate efforts to bolster institutional and regulatory frameworks, emphasizing the enhancement of regulatory quality. Care should be taken to avoid overly stringent regulations, particularly at lower levels of financialization, to prevent potential counter-productivity. Instead, a gradual approach to improving regulatory quality is advisable. Furthermore, policymakers should recognize that regulatory quality mitigates the contribution of banking-based financial development to economic volatility, a phenomenon observed in both developed and developing countries.</p></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"24 5","pages":"Pages 934-944"},"PeriodicalIF":6.3,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214845024000784/pdfft?md5=734b8220c58ae353a9c2a8228a9c5bb5&pid=1-s2.0-S2214845024000784-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141045689","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 influence of foreign direct investment on banking stability in a dual banking system during the COVID-19 pandemic and the global financial crisis","authors":"","doi":"10.1016/j.bir.2024.06.001","DOIUrl":"10.1016/j.bir.2024.06.001","url":null,"abstract":"<div><p>This study investigates the impact of foreign direct investment (FDI) on bank stability in the Gulf Cooperation Council (GCC) region, differentiating between Islamic and conventional banks. The results reveal a negative relationship between FDI and bank stability, and Islamic banks can mitigate this impact, enhancing overall stability. Notably, during recent crises (the global financial crisis (GFC) and the COVID-19 pandemic (COVID-19)), FDI's effect on bank stability intensified, and the GFC had a stronger influence than COVID-19. Islamic banks were more resilient to FDI during these crises, highlighting their pivotal role in strengthening the banking system across the member countries in the GCC. The study offers critical insights for regulators, policy makers, and risk managers, advising cautious supervision over FDI in order to preserve monetary and financial stability.</p></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"24 5","pages":"Pages 1046-1058"},"PeriodicalIF":6.3,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214845024000929/pdfft?md5=27909295217d3b4c6b70e95014040cb4&pid=1-s2.0-S2214845024000929-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141393731","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 relationship between employee experience and employee engagement with the moderating role of positive affect in finance sector","authors":"","doi":"10.1016/j.bir.2024.05.002","DOIUrl":"10.1016/j.bir.2024.05.002","url":null,"abstract":"<div><p>Employee experience refers to the entire journey of an employee within an organization, encompassing interactions from pre-employment to post-employment. In order to gain and maintain a sustainable competitive edge, organizations should incorporate human-centered design and prioritize employee experience in their organizational reforms, taking into account employees' emotions, ambitions, and expectations. This study aims to provide a clearer and operationalized understanding of the employee experience concept and empirically examines its relationship with employee engagement, considering the moderating role of positive affect - a state of pleasant feelings and moods that people often experience in business life-. Data was collected from 1347 employees in the finance sector of Türkiye, revealing that employee experience consists of dimensions such as manager support and collaboration, organizational identification and development, and career-focused human resource (HR) practices. These dimensions are positively associated with employee engagement. The study also examines the moderating role of the employees'positive affect on the relationship between these constructs. Policy implications of the findings are discussed.</p></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"24 5","pages":"Pages 908-915"},"PeriodicalIF":6.3,"publicationDate":"2024-09-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214845024000814/pdfft?md5=2deb6a677c78543515432815fc274189&pid=1-s2.0-S2214845024000814-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141049450","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":"Digital technology development and systemic financial risks: Evidence from 22 countries","authors":"Xu Haoran, Miao Wenlong, Zhang Siyu","doi":"10.1016/j.bir.2024.08.002","DOIUrl":"https://doi.org/10.1016/j.bir.2024.08.002","url":null,"abstract":"This study evaluates how digital technology development affects systemic financial risks in various countries. We employ cross-country sample data from over 5000 financial institutions in 22 countries from 2013 to 2021. The results reveal that the rapid growth of digital technology increases the systemic financial risks of various countries; this increase is related to disparities in the digital technology development stages and financial system structures. Furthermore, this study investigates the emotional contagion, complex financial linkage, and valuation inhibition effects on digital technology development's impact on systemic financial risks. Heterogeneity analysis shows that in countries with high levels of digital technology development and market-oriented financial systems, digital technology's effect on intensifying systemic financial risks is more significant.","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"41 1","pages":""},"PeriodicalIF":5.2,"publicationDate":"2024-08-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142196055","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 ESG controversies on the financial performance of firms: An analysis of industry and country clusters","authors":"Michele Nascimento Jucá, Polona Domadenik Muren, Aljoša Valentinčič, Riste Ichev","doi":"10.1016/j.bir.2024.08.001","DOIUrl":"https://doi.org/10.1016/j.bir.2024.08.001","url":null,"abstract":"Stakeholders have become increasingly interested in sustainable practices, leading to intense investigation in the literature of their effects on companies' returns. However, not much information is available about the effect of environmental, social, and governance (ESG) controversy on companies' financial performance. Inappropriate social behavior and environmental scandals attract attention in the media and, consequently, among investors. Therefore, this study analyzes the impact of ESG controversy on companies' return on equity, identifying differences between companies that operate in different clusters such as environmentally sensitive industries (ESI) or non–environmentally sensitive industries and emerging/developed countries. To this end, we investigate 625 publicly owned companies for the period 2011 to 2022, using a four-dimensional hierarchical linear regression model, comprising time, firms, industries, and countries. ESG controversies negatively impact the financial performance of companies operating in ESI and developed countries.","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"3 1","pages":""},"PeriodicalIF":5.2,"publicationDate":"2024-08-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141945628","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":"Connected but fragile: Fund-to-fund holdings and redemptions","authors":"Milan Szabo","doi":"10.1016/j.bir.2024.07.011","DOIUrl":"https://doi.org/10.1016/j.bir.2024.07.011","url":null,"abstract":"","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"81 1","pages":""},"PeriodicalIF":5.2,"publicationDate":"2024-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141945629","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":"Socially responsible engagement and firm performance in emerging markets: Testing the mediating effect of intellectual capital","authors":"Gizem Arı, Merve Karacaer, Semra Karacaer","doi":"10.1016/j.bir.2024.07.012","DOIUrl":"https://doi.org/10.1016/j.bir.2024.07.012","url":null,"abstract":"This study investigates the interaction between firm performance (FP) and corporate social responsibility (CSR) in emerging markets, with a focus on how intellectual capital (IC) mediates this interaction. The analysis covers 380 companies from 24 emerging countries between 2015 and 2021. The findings reveal that increased CSR results in lower FP. Furthermore, a significant association between IC and FP is observed. The study further determines that IC mediates the relation between the aggregate CSR and FP, as well as between some CSR sub-dimensions and FP. These results suggest that market reactions to CSRare not always positive and support the view that ICgives firms an advantage in FP to create added value. This research addresses a gap in the literature regarding the role of IC in the CSR–FP relationship in emerging markets.","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"81 1","pages":""},"PeriodicalIF":5.2,"publicationDate":"2024-08-02","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"141945627","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":"Modeling sovereign credit default swaps volatility at different tenures: An application for Latin American countries","authors":"Fredy Gamboa-Estrada , José Vicente Romero","doi":"10.1016/j.bir.2024.04.008","DOIUrl":"10.1016/j.bir.2024.04.008","url":null,"abstract":"<div><p>Assessing the dynamics of risk premium measures and their relationship with macroeconomic fundamentals is essential for macroeconomic policymakers and market practitioners. This study analyzes the main determinants of sovereign credit default swaps (SCDS) in Latin America at different tenures, focusing on their volatility. Using a component generalized autoregressive conditional heteroskedasticity model, it decomposes volatility into permanent and transitory components. It finds that the permanent component of SCDS volatility in all tenures was higher and more persistent during the Global Financial Crisis than during the recent coronavirus shock.</p></div>","PeriodicalId":46690,"journal":{"name":"Borsa Istanbul Review","volume":"24 4","pages":"Pages 772-786"},"PeriodicalIF":6.3,"publicationDate":"2024-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S2214845024000619/pdfft?md5=45623d4c54ed492a7b96d654325890f6&pid=1-s2.0-S2214845024000619-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"140779056","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}