scholarly journals The Role of Monetary Policy Announcements on Turkish Banks' Stock Returns

2016 ◽  
Vol 6 (1) ◽  
pp. 63-69
Author(s):  
Nida Abdioğlu ◽  
Sinan Aytekin
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Stock Returns ◽  
Abnormal Returns ◽  
Cumulative Abnormal Returns ◽  
Monetary Policy Committee ◽  
The Republic ◽  
The Impact ◽  
Republic Of Turkey

This paper investigates the impact of monetary policy committee decisions of the Central Bank of the Republic of Turkey on the stock returns of the deposit banks listed in Borsa Istanbul Banks Index (XBANK). The cumulative abnormal returns of the banks are calculated for 2008 and 2012. We report that the monetary policy announcements affect cumulative abnormal returns of the deposits banks both in 2008 and 2012. Since the announcement of the monetary policy decisions created abnormal returns, we conclude that the market does not have semi-strong form efficiency.

scholarly journals THE ROLE OF THE CENTRAL BANK IN THE FUNCTION OF IMPROVEMENT OF LIQUIDITY OF BANKING SECTOR IN BOSNIA AND HERZEGOVINA

2019 ◽  
Vol 12 (24) ◽  
Author(s):  
Goran Mitrović ◽  
Živko Erceg
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Bosnia And Herzegovina ◽  
Banking Sector ◽  
Banking System ◽  
Policy Instruments ◽  
Foreign Banks ◽  
Dayton Agreement ◽  
The Impact

The monetary policy of Bosnia andHerzegovina is rather limited because it is basedon the principles of a currency boardcharacterized by the impossibility of implementingthe basic monetary policy instruments incomparison with the monetary policy of theEuropean Union. However, the constant presenceof European integrations should point the need fora more drastic change in the monetary policy ofBosnia and Herzegovina. By entering theEuropean Monetary Union (EMU), the monetaryterritory of Bosnia and Herzegovina will becomeone of the branches of the European Central Bank(ECB). In addition, it is not difficult to concludewhy the Law about the Central Bank of Bosnia andHerzegovina has been adopted with the first lawsof the Dayton Agreement, if it is known that thelargest part of the banking system, and thereforethe financial market, is owned by foreign banks.This work will point out the significance of theCentral Bank of Bosnia and Herzegovina, as oneof the most important factors for maintaining thepermanent liquidity of the banking sector inBosnia and Herzegovina. The possibilities andlimitations of the Central Bank of Bosnia andHerzegovina will be determined, with theassumption of macroeconomic sustainability overa longer period of time. The need of reforming thebanking system in Bosnia and Herzegovina will beanalyzed through the constant implementation ofthe Basel standards with the increasingparticipation of foreign banks in the Bosnia andHerzegovina. It will be determined the impact ofthe implementation of the Basel III in the bankingindustry in Bosnia and Herzegovina and itsconsequences on the banking and economicsystem.models, on the ways of financing theelimination of adverse consequences of naturaldisasters.

ՀՀ դրամավարկային քաղաքականության արդյունքների վերլուծությունն ու արդյունավետության գնահատումը

2021 ◽  
pp. 171-180
Author(s):  
Hayk Bejanyan ◽  
Lusine Khachikyan
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Statistical Methods ◽  
Quantitative Assessment ◽  
Factor Model ◽  
Graphic Analysis ◽  
The Republic ◽  
The Impact ◽  
Goals And Objectives

The impact of monetary policy on the country's economy is revealed by assessing the effectiveness, which is carried out by analyzing the goals and objectives of the policy. The purpose of the article is to assess the effectiveness of the monetary policy for the RA economy and the compliance of the strategy adopted by the Central Bank with the economic goals of the RA. To achieve this goal, the following issues are resolved in the article: to study the mechanism of the transfer monetary policy of the Republic of Armenia, to analyze the levels of macroeconomic targets registered in the period under review, to compare them to determine the effectiveness of the monetary policy of the Central Bank. The article uses scientific abstraction, historical and logical combination, graphic analysis, economic, mathematical and statistical methods. To complete the analysis, the task was set to develop a consolidated indicator that would allow obtaining a clear quantitative assessment of the effectiveness of MP. The article also proposes a new factor model for assessment of monetary policy in order to provide a quantitative assessment of the effectiveness.

scholarly journals Have Financial Stability Concerns Changed the Priority of the Central Bank of the Republic of Turkey?

2017 ◽  
Vol 12 (2) ◽  
pp. 35-45 ◽  
Author(s):  
Ekrem Erdem ◽  
Umit Bulut ◽  
Emrah Kocak
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Financial Stability ◽  
Nominal Exchange Rate ◽  
Policy Framework ◽  
Price Stability ◽  
Cointegration Tests ◽  
The Republic ◽  
Republic Of Turkey ◽  
Monetary Policy Framework

Abstract This paper aims at analysing whether the Central Bank of the Republic of Turkey (CBRT), designing a new monetary policy framework to achieve financial stability in the last quarter of 2010, tries to pursue financial stability by putting price stability on the back burner. To this end, a forward-looking reaction function that is extended with nominal exchange rate gap and nominal domestic credits gap is estimated for the CBRT. The paper first performs unit root and cointegration tests and finds that the variables become stationary at first differences and that there is a cointegration relationship among variables. Then, the paper conducts the Kalman filter to obtain time varying parameters. The findings show that the coefficients of all explanatory variables did not change too much after the new monetary policy framework of the CBRT in the last quarter of 2010. Therefore, this paper asserts that the CBRT continues to pursue price stability as its primary goal and tries to achieve financial stability by using macroprudential tools. Thus this paper concludes that financial stability concerns have not changed the priority of the CBRT.

scholarly journals The Impact of Scandalous News in the Automobile Manufacture on Companies from the Same Industry: A Comparative Study on the Chinese and European Markets

2021 ◽  
Vol 17 (23) ◽  
pp. 67
Author(s):  
Anastasia Mews
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Abnormal Returns ◽  
Spillover Effects ◽  
Control Group ◽  
Sales Growth ◽  
Chinese Market ◽  
Cumulative Abnormal Returns ◽  
Before And After ◽  
The Impact

This paper examines the effect of scandalous news on corporate reputation of rival firms from the same industry and investigates the effects’ differences in China and in Europe, providing evidence that scandalous news influences not only the target company itself, but also other companies from the industry. For this purpose, the paper uses the 2015 Volkswagen emissions scandal as a natural experiment. Volkswagen, BMW, Mercedes-Benz, Audi and Porsche were selected as sample companies. To measure reputational spillover effects, cumulative abnormal stock returns and sales growth of the sample companies are calculated and compared before and after the announcement of the scandal. The methodology adopted for estimating stock returns is the event study method, which measures the impact of a specific event on the value of a firm. Stock price data is collected from Bloomberg and used to calculate cumulative abnormal returns of the sample companies. Furthermore, difference-in-differences estimation is used to compare the sample companies’ sales growth before and after the scandal. Volkswagen, Audi, BMW and Mercedes-Benz are included in the treatment group, whereas 29 non-German car manufacturers were selected as the control group. The results show that overall rival companies were affected by the scandal, cumulative abnormal returns declined by 6% and 10% for BMW and Mercedes-Benz respectively, showing the contagion effect. However, the sales growths of these two manufacturers greatly increased, specifically on the Chinese market for Mercedes-Benz and on the European market for BMW, proving dominance of the competitive effect and differences of the reputational spillover effects across countries.

Differences of Opinion and Price Reversals: Evidence from the Taiwan Stock Exchange

2015 ◽  
Vol 18 (03) ◽  
pp. 1550015 ◽  
Author(s):  
Chu-Chun Cheng ◽  
Yen-Sheng Huang
Keyword(s):  
Stock Returns ◽  
Stock Exchange ◽  
Abnormal Returns ◽  
Taiwan Stock Exchange ◽  
Holding Period ◽  
Cumulative Abnormal Returns ◽  
Common Stocks ◽  
Differences Of Opinion ◽  
One Year ◽  
The Impact

This paper examines the impact of differences of opinion (DIFOPN) on long-term price reversals using all of the common stocks listed on the Taiwan Stock Exchange over the period of 1990–2008. We choose winners and losers ranked by their cumulative abnormal returns (CARs) over the three-year formation period. The performance of the winners and losers is evaluated over the subsequent one-year holding periods. The empirical results indicate that DIFOPN are generally positively related to price reversals in the holding period for both winners and losers. When DIFOPN are measured by the financial analysts' forecasts of earnings per share and by the standard deviation of stock returns, the association between DIFOPN and price reversals is significantly different from zero. This relationship is robust when such control variables as market-to-book ratios, size, and beta are included.

scholarly journals The Impact of COVID-19 on Stock Returns of the Indian Healthcare and Pharmaceutical Sector

2021 ◽  
Vol 15 (1) ◽  
pp. 5-21
Author(s):  
Shivam Mittal ◽  
Dipasha Sharma
Keyword(s):  
Stock Returns ◽  
Event Study ◽  
Abnormal Returns ◽  
Pharmaceutical Sector ◽  
Event Window ◽  
Study Approach ◽  
Cumulative Abnormal Returns ◽  
Study Methodology ◽  
The Impact ◽  
Event Study Methodology

Increasing COVID-19 cases has not only impacted health and day-to-day lives of people, but it has also had a material effect on India’s economic growth. Stock returns of various sectors are evidence of a country’s stagnated growth but the healthcare and pharmaceutical sector might be affected in a different manner. The purpose of this paper is to find out how has this pandemic has impacted the healthcare and pharma stocks. Daily closing prices of sector specific indexes for 233 days ranging from 15 May 2019 to 24 April 2020 have been taken to compare different sectors with our test sector, on the basis of different criteria. This study has applied the widely used event study methodology on our test sector; calculated abnormal returns, cumulative abnormal returns and also tested their significance. Event study approach suggests that there have been significant abnormal returns and cumulative abnormal returns in our test sector (healthcare and pharmaceutical sector) over the event window, though while comparing it with other sectors through another econometric model, the returns are not statistically significant and do not explicitly indicate the same.

scholarly journals How Far Ahead Does the Central Bank of the Republic of Turkey Look?

2016 ◽  
Vol 5 (1) ◽  
pp. 99-111 ◽  
Author(s):  
Umit Bulut
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Interest Rates ◽  
Monetary Economics ◽  
Inflation Expectations ◽  
Reaction Functions ◽  
Expected Inflation ◽  
The Republic ◽  
Monetary Policy Reaction Functions ◽  
Republic Of Turkey

Abstract In monetary economics literature, there is an agreement that monetary policy has a lagged effect on inflation. As a result of this agreement, monetary policy reaction functions that include expected inflation, instead of current or lagged inflation, are established. On the other hand, there is uncertainty about how much time monetary policy needs to affect inflation. The purpose of this paper is to estimate empirically how far ahead the Central Bank of the Republic of Turkey looks. In other words, the paper examines whether the CBRT takes into consideration 12-month ahead inflation expectations or 24-month ahead inflation expectations while steering interest rates. According to the results of the paper, the CBRT considers 12-month ahead inflation expectations while steering interest rates.

Republic of Moldova in the Context of Regional Security Challenges in Eastern Europe

2018 ◽  
pp. 299-304
Author(s):  
Stefan Tibuleac
Keyword(s):  
Eastern Europe ◽  
Security Policy ◽  
Security System ◽  
Regional Security ◽  
Strategic Uncertainty ◽  
European Security ◽  
Republic Of Moldova ◽  
The Republic ◽  
The Impact

This article analyzes the most current security issues for the Republic of Moldova that are part of the regional security context of Eastern Europe –the region that can be considered the epicenter of international tensions through which the„geopolitical line of fracture”passes. The geographical position of the Republic of Moldova makes this state particularly sensitive to any negative trends in theregion. Growing of international tensions creates security threats and complicates economic development. From a historical point of view, Moldova has repeatedly fallen victim by the confrontation of the great powers. Therefore, the Republic of Moldova has a vital interest in preventing a new conflict in Eastern Europe. This article is based on a number of assumptions made by changes in the European security environment, such as the „shift of weight” to the East, strategic uncertainty, increasing the role of non-state actors, the situation in eastern Ukraine, etc. Based on these assumptions, this article makes an attempt to outline the potential role of the Republic of Moldova in the Eastern European security system, taking into account the desideratum for integration of the republic into the European Union. Other relevant factors will be taken into account for shaping the role of the Republic of Moldova in the European security system, namely: the security deficit; the impact of NATO and EU security policy; the rebirth of the project to create a regional defense alliance, etc. This article will largely take into account the military aspects of security. Keywords: Republic of Moldova, national security, Eastern Europe, NATO, Intermarium, defence, threats, risks, challenges

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