Research articles for the 2020-08-15

Bank Customers’ Annotations Regarding Banking Services
Singhal, Parmod Kumar
SSRN
The banking services play an important role in the development of the country as increase in the banking services led overall growth of the economy. Generally customers have different opinion about the banking services offered by their banks. In this study the T-test, Mean, Standard deviation and ANOVA are used to know about the impact of the demographic factors on the banking services offered to customers by the banks. The study also reveals that mostly customers are agree that bank offered them all financial inclusion schemes and employees motivate them to use the banking services.

CLO Performance
Cordell, Larry,Roberts, Michael R.,Schwert, Michael
SSRN
We present evidence on the performance of collateralized loan obligations (CLOs). CLO debt tranches have consistently outperformed their benchmarks over the last twenty years, though by a small amount. CLO equity tranches issued before the 2008 crisis outperformed their benchmarks by a wide margin -- a consequence of the ``term leverage'' in CLO structures that amplified the effects of the post-crisis economic recovery. Equity has under-performed its benchmarks since the crisis. Cross-sectional variation in CLO equity performance is driven to a large extent by persistent differences across CLO managers. Top-performing managers select loans with higher coupon rates and generate more value by trading in the secondary market.

Determinants of Capital Structure: An Analysis on the Largest 1000 Industrial Firms in Turkey / Sermaye Yapisinin Beli̇rleyi̇ci̇leri̇: Türki̇ye’deki̇ En Büyük 1000 Sanayi̇ İşletmesi̇nde Bi̇r Uygulama
Okuyan, H. Aydin,Tasci, H. Mehmet
SSRN
Turkish Abstract: Bu çalışmanın amacı Türkiye’deki sanayi iÅŸletmelerinde sermaye yapısının belirleyicilerini ve iÅŸletmelerin borçlanma davranışlarının açıklanmasında finansal hiyerarÅŸi veya dengeleme kuramlarından hangisinin daha baÅŸarılı olduÄŸunu ortaya koyabilmektir. Bu amaçla Ä°stanbul Sanayi Odası tarafından her yıl belirlenen 500 büyük ve ikinci 500 büyük sanayi iÅŸletmesi veri seti olarak seçilmiÅŸtir. 1000 iÅŸletmeye ait 1993 â€" 2007 arasındaki yıllık veriler panel modeller kullanılarak analize tabi tutulmuÅŸtur. Sonuçta borç kullanan iÅŸletmelerin daha fazla katma deÄŸer yaratmasına raÄŸmen iÅŸletmelerin kaynak ihtiyaçlarını öncelikle iç fonlardan karşıladıkları ancak bu fonlar yetmediÄŸi zaman borçlanma yoluna gittikleri ortaya konulmuÅŸtur. Bu bulgu, Türkiye’de sanayi iÅŸletmelerinin borçlanma davranışının açıklanmasında finansal hiyerarÅŸi kuramının daha baÅŸarılı olduÄŸunu göstermektedir. English Abstract: This study aims to explain the determinants of capital structure and find out if static trade-off or pecking order is more successful in explaining the debt behaviour of industrial firms in Turkey. For this purpose, the data set of largest 500 and following largest 500 industrial firms determined by ‹stanbul Chamber of Industry have been used. The data set on these firms cover the period of 1993 and 2007. Our findings show that, even though firms that use debt to create more added value, prefer to use internal funds primarily. This finding indicates that pecking order theory is more succesful to explain the debt behaviour of industrial firms in Turkey.

İmkb’de İşlem Gören Reel Sektör İşletmeleri̇nde Sermaye Yapisinin Beli̇rleyi̇ci̇leri̇ (Determinants of Capital Structure: Evidence From Real Sector Firms Listed in Istanbul Stock Exchange)
Okuyan, H. Aydin,Tasci, H. Mehmet
SSRN
Turkish Abstract: Bu çalışmada, Ä°MKB’de iÅŸlem gören reel sektör iÅŸletmelerinin sermaye yapılarını etkileyen deÄŸiÅŸkenlerin neler olduÄŸu ortaya konulmaya çalışılmıştır. Ä°MKB’de iÅŸlem gören 196 reel sektör iÅŸletmesine ait veriler, 2001q2 â€" 2008q2 yılları arasındaki 3’er aylık bilançolardan elde edilmiÅŸtir. 196 iÅŸletmeye ait 29 dönemi kapsayan 5684 gözlem Beck ve Katz (1995) tarafından geliÅŸtirilen Standart Hataları DüzeltilmiÅŸ Panel yöntemi ile analiz edilmiÅŸtir. Elde edilen sonuçlar iÅŸletmelerin sermaye yapılarının açıklanmasında tek bir kuramın geçerli olmadığını, kısa vadeli borçların finansal hiyerarÅŸi kuramına, uzun vadeli borçların ise dengeleme kuramına uygun ÅŸekilde hareket ettiÄŸini ortaya koymuÅŸtur.English Abstract: This paper investigates the determinants of capital structure of production firms listed in ISE. The data of 196 firms are obtained from the quarterly financial statements between 2001q2 â€" 2008q2. We used the method of Panel Corrected Standard Errors developed by Beck and Katz (1995) to examine the data set in which, in total, we have 5684 observations. The findings can be interpreted as the relevance of pecking order theory for the short term debts whereas the relevance of static tradeoff theory for the long term debts, of firms listed in ISE.

İmkb’de Spekülati̇f Şi̇şki̇nleri̇n Test Edi̇lmesi̇ (Testing for Speculative Bubbles on Ise)
Tasci, H. Mehmet,Okuyan, H. Aydin
SSRN
Turkish Abstract: Bu çalışmanın amacı İMKB’de spekülatif şişkinliklerin varlığının süre verisi (duration) modeli ile test edilmesidir. Bu amaçla İMKB’deki hisse senedi fiyatlarında süre bağımlılığı olup olmadığı McQueen ve Thorley (1994)’nin yaklaşımı kullanılarak farklı sektörler bazında araştırılmaktadır. Verilerin başlangıç tarihi IMKB 100 endeksi için 3/7/1987, mali endeks ve sınai endeksi için 28/12/1990, hizmetler için 2/1/1997 ve teknoloji endeksi için 3/7/2000’dir. Seriler başlangıç tarihlerinden 20/02/2008 tarihine kadar olan süreyi günlük verileri kapsamaktadır. Yapılan hem parametrik hem de parametrik olmayan süre bağımlılığı testlerine göre incelenen tüm sektörlerde spekülatif şişkinliklerin var olmadığı gözlemlenmiştir. English Abstract: The main aim of this study is to examine the existence of speculative bubbles in Turkey using the daily data on ISE-100 and different sectors. For this purpose, the approach developed by McQueen and Thorley (1994), which utilizes duration models, is used. The beginning date of the daily indexes is 3/7/1987 for ISE-100 index, 28/12/1990 for financial and industry indexes, and 2/1/1997 for services index and 3/7/2000 for technology index. The end of the observation period for all of the indexes is 20/02/2008. Both parametric and non-parametric duration test results do not support the expectations that there are speculative bubbles in all cases, that is, for the full data (ISE-100) and the data by considering sector differences as well.

Product Market Competition and the Relocation of Economic Activity: Evidence from the Supply Chain
Chen, Chen,Dasgupta, Sudipto,Huynh, Thanh,Xia, Ying
SSRN
We show that increasing competition changes the location of economic activity and, in turn, affects supply chain relationships. Using establishment-level data, we find that when upstream product markets become more competitive, suppliers are more likely to relocate their establishments closer to customers. Following the supplier’s relocation, its sales to the customer increase, its relationship with the customer is less likely to be terminated, and its innovation is more aligned with the customer’s innovation. However, the improved relationship, by causing the supplier to engage more in innovation dedicated to the customer, adversely affects creative innovation, which is known to drive growth.

The Relationship Between Foreign Investments and Stock Returns on Istanbul Stock Exchange / İmkb’de Yabanci İşlemleri̇ Ve Hi̇sse Senedi̇ Geti̇ri̇leri̇ İli̇şki̇si̇
Okuyan, H. Aydin,Erbaykal, Erman
SSRN
Turkish Abstract: Bu çalışmada Ä°MKB hisse senedi piyasasında yabancı iÅŸlemlerin hisse senedi getirileri üzerinde etkili olup olmadığı, tabanın geniÅŸlemesi (base broadening) hipotezinden yola çıkılarak ortaya konulmaya çalışmıştır. 1997:01 â€" 2008:09 tarihleri arasındaki aylık veriler kullanılarak, iki deÄŸiÅŸken arasındaki eÅŸbütünleÅŸme iliÅŸkisi Pesaran vd. (2001) tarafından geliÅŸtirilen Sınır Testi ve ARDL modelleri yardımıyla analiz edilmiÅŸtir. Sonuçta yabancı iÅŸlem hacmi ile hisse senedi getirileri arasında uzun dönemde pozitif bir iliÅŸki tespit edilmiÅŸ ancak bu iliÅŸkinin kısa dönemde anlamlı olmadığı görülmüştür. English Abstract: This paper, emerging from base broadening hypothesis, investigates whether the foreign transactions have an affect on the security returns in ISE. The co-integration relationship between two variables has been analyzed by the bounds testing approach developed by Pesaran et. al.(2001) and ARDL models using the monthly data of 1997:01- 2009:12. As a result, a positive relationship has been detected between the foreign transactions and returns of shares in the long run. However, the same relationship is insignificant in the short run. This finding can be interpreted as the validity of base broadening hypothesis in long term in ISE.

The Strategic Ambiguity of the General Welfare Clause
Schwartz, David S.
SSRN
Article I, section 8, Clause 1 enumerates a power "to provide for the common defense and general welfare." Conventional constitutional doctrine interprets this language"called the General Welfare Clause in this article"as conferring "The Spending Power," a power to spend, but not to regulate, for any and all national purposes. Yet on its face, the General Welfare Clause seems to grant a general power to legislate on all matters of national concern. This article argues that the historical rejection of this "general welfare interpretation" in favor of the spending power interpretation is dictated neither by the text nor drafting history of the General Welfare Clause. The General Welfare Clause first appeared during the Philadelphia Constitutional Convention as a proposal, overlooked by scholars, in a second report presented by the Committee of Detail on August 22, 1787 (two weeks after submitting its well-known first draft of the Constitution). The Committee proposed to add an unambiguous legislative authorization to legislate for "the general interests and welfare of the United States" at the end of the Necessary and Proper Clause. Over the next two weeks, that language was ambiguated and relocated to its final placement, at the end of Article I, section 8, Clause 1. The final version of Clause 1 is best understood as a prominent example of "strategic ambiguity," a deliberate choice by the Framers to employ ambiguous language to accommodate differences of opinion without resolving them. Here, the Framers held competing views on three related issues: whether the enumeration of powers was exhaustive or illustrative; whether the taxing power should be limited to identified purposes; and whether the new national government should assume the Revolutionary War debts of the states. The ambiguity of the General Welfare Clause was intended to leave interpretive space for the general welfare interpretation, among others.

Türki̇ye’de Sosyal Sorumlu Yatirimlarin Performanslari: Bi̇st Sürdürülebi̇li̇rli̇k Endeksi̇ Uygulamasi (Performance of Social Responsible Investments in Turkey: Evidence From Bist Sustainability Index)
Okuyan, H. Aydin,Deniz, Devran
SSRN
Turkish abstract: Bu çalışmada Türkiye’de sosyal sorumlu yatırımlar ile geleneksel hisse senedi yatırımlarının performansları karşılaştırılmıştır. Geleneksel hisse senedi yatırımlarının temsilcisi olarak BİST100 pazar endeksi, sosyal sorumlu yatırımların temsilcisi olarak BİST sürdürülebilirlik endeksi kullanılmıştır. Veri dönemi olarak BİST sürdürülebilirlik endeksinin başlangıç tarihi olan 04.11.2014 ile 10.10.2019 arası yaklaşık 5 yıllık dönem seçilmiş ve günlük veri kullanılmıştır. Yapılan analizler sonucunda, sürdürülebilirlik endeksinin Sharpe ve Treynor rasyoları pazar endeksinden daha yüksek hesaplanmış ancak aradaki farklar %95güven seviyesinde sıfırdan farklı bulunmamıştır. Benzer şekilde sürdürülebilirlik endeksinin Jensen alfası pozitif ancak %95güven seviyesinde sıfırdan farklı değildir. Dolayısıyla elde edilen bulgular Türkiye’de risk ayarlı getiri perspektifinde sosyal sorumlu ve geleneksel yatırımların performansları arasında bir farklılık olmadığını göstermiştir. Bu sonuç BİST üzerinde daha kısa veri dönemi ile yapılan çalışmalarla uyumlu olup Türkiye’de sosyal sorumluluk kavramının varlık seçimini/fiyatlandırmasını belirgin şekilde etkilemediğini göstermiştir. Ayrıca sosyal sorumlu yatırım yapmayı düşünen yatırımcıların portföyün finansal performansında kötüleşme olmaksızın sosyal sorumlu yatırımları tercih edebileceği anlaşılmaktadır.English extended abstract:1. MOTIVATIONFor both generic(traditional) investor and socially responsible investors who are actors of the capital market, it is important to compare the performance of socially responsible investments with traditional investments. Although various studies have been conducted in this area, the number of research conducted in Turkey is limited. Therefore, in this study, the performance of socially responsible investments and traditional investments was compared for Turkey.2. METHODOLOGYIstanbul Stock Exchange Sustainability index was used as the representative of socially responsible investments and market index (BIST100) was used as representative of traditional investments. Daily data were used for the period between 2014-2019. For the period in question, the return, risk and risk adjusted return of both indices are compared. Sharpe ratio, Treynor ratio and Jensen alpha are used for risk adjusted return.T tests were used to compare the differences.3. FINDINGS AND DISCUSSION The systematic risk (beta) of the sustainability index is higher than 1 for all years in the data period and the fact that the beta is higher than 1 is significant at the 95% confidence level. Also, the return of the sustainability index is higher than the market index for 4 of the 6 years and for whole period but the differences were not statistically significant. The risk-adjusted returns of the sustainability index were higher than the market index for 4 of the 6 years and the whole period but the differences weren’t statistically significant.For the whole period, the Sharpe and Treynor ratio of the sustainability index is 0.001 and 0.002 respectively, and the same ratios of the market index are -0.001 and -0.001, respectively. Also, the Jensen alpha of sustainability index is positive (0.002). However, as stated above, the differences between risk-adjusted returns are not statistically significant at 95% confidence level.4. CONCLUSION, RECOMMENDATION AND LIMITATIONS The risk and return of the BIST sustainability index for the whole period is higher than the market index, but only high risk is statistically significant. In terms of risk-adjusted returns, the performance of the sustainability index is higher than the market index, but the difference isn't statistically significant. Therefore, these results showed that the concept of sustainability (social responsibility) isn’t yet widespread enough to affect asset pricing/choosing in Turkey. These results also indicate that socially responsible investors have the opportunity to make socially responsible investments without sacrificing financial performance. These findings are consistent with research in the literature. As a matter of fact, the fact that the sustainability index is riskier is a finding obtained in almost every research. However, as it has been interpreted in other studies, this seems to be the result of the companies in the sustainability index being larger companies than others and being more sensitive to macroeconomic developments.Finally, the first constraint of the research is that some companies are in both the sustainability index and the market index. This situation creates the possibility of bias in the results of the performance comparison between the two indices. The second constraint of the research is that the companies in the sustainability index are larger than the companies in the market index. Clearing the results from the effect of the company size will make the findings obtained more neutral. Also, comparison of socially responsible investments with traditional investments in bear and bull markets will contribute to the literature.

Türki̇ye’deki̇ En Büyük 1000 Sanayi̇ İşletmesi̇ni̇n Karlilik Anali̇zi̇ (the Profitability Analysis of the Largest 1000 Industrial Firms in Turkey)
Okuyan, H. Aydin
SSRN
Turkish Abstract: Bu çalışmanın amacı Türkiye’deki sanayi iÅŸletmelerinde karlılığı etkileyen unsurların ortaya konulmasıdır. Karı etkileyen unsurların belirlenmesi ÅŸirketlerin daha verimli çalışarak karlarını daha kolay kontrol etmelerini saÄŸlayabilmektedir. Bu amaçla Ä°stanbul Sanayi Odası tarafından her yıl belirlenen 500 büyük ve ikinci 500 büyük sanayi iÅŸletmesi veri seti olarak seçilmiÅŸtir. 1000 iÅŸletmeye ait 1993 â€" 2010 arasındaki yıllık panel veriler analize tabi tutulmuÅŸtur. Sonuç olarak karlılık oranı ile borçlanma ve büyüklük arasında negatif, iÅŸgücü verimliliÄŸi ve ihracat düzeyi arasında pozitif bir iliÅŸki olduÄŸu ortaya konulmuÅŸtur. Ayrıca yabancı ortaklı ÅŸirketlerin yerli ÅŸirketlere oranla, özel ÅŸirketlerin ise kamu ÅŸirketlerine oranla daha karlı olduÄŸu tespit edilmiÅŸtir.English Abstract: This study aims to explain the factors affecting the profitability among Turkish industrial firms. The determination of the factors which may influence profitability enables firms to work more effectively and to control their profits much easily. For this reason, the top 500 and the second batch of 500 largest firms, determined each year by Istanbul Chamber of Industry, have been taken as the data set. Panel data pertaining, to the top 1000 firms have been analyzed. It has been found that there is an inverse relationship between profitability rate and level of debt. The relationship between profitability and size has also been found as inverse. On the other hand, a positive relationship has been found between workforce efficiency and the level of exports of a firm. The findings also suggest that foreign partnership firms are more profitable than domestic businesses and private firms are more profitable than state-owned firms enterprises.