The Relationship of BIST Sector Indices with Exchange Rate Volatility

Through globalization, the increased integration in financial markets has made the relationship between exchange rate and stocks important. The study aims to model the exchange rate volatility using daily data for the period 04.01.2010-15.10.2020 and investigate the causality relationship between sector returns and exchange rate return volatility. In order to model the volatility of the exchange rate return series, the GARCH model was used to reveal the possible asymmetry feature in the series. As a result of the model applications, GARCH (2,2) was determined as the most suitable model to measure volatility modelling. Then, the Granger causality test was used to see whether there is a relationship between BIST sector return indices and exchange rate return volatility. As a result of the study, one notes that there is a uni-directional causality from the exchange rate return volatility series to the service, technology, and industrial sector indices. There is a bi-directional causality relationship between the financial sector index and the exchange rate return volatility series. It is noteworthy that the causality relationship between the BIST100 index and the exchange rate is towards the volatility of the exchange rate return series from the BIST 100 index, unlike the sector indices. According to this result, it is seen that the changes in the dollar exchange rate affect the decisions of the investors who will invest in the relevant index. The results show that in the case of Turkey, mostly traditional theories are valid.

The Determinants of Profitability Large-Scale and Small Scale Turkish Deposit Banks

This paper aims to explore the bank-specific and macroeconomic determinants of the banks’ profitability by dividing the Turkish deposit banks into large-scale and small-scale entities. For this purpose, panel data analysis was applied using a fixed effects model, based on quarterly data for the period from March 2009 to September 2020 for 24 deposit banks. Return on assets and return on equity are used as a measure of the banks’ profitability. According to the results, the determinants of profitability differ between large-scale banks and small-scale banks. With respect to the bank-specific determinants, the findings show that the equity/assets, deposits/assets and liquidity ratio have a significant impact on the profitability of large-scale banks, whereas they have no relationship with the profitability of small-scale banks. The profitability of large-scale banks is negatively affected by their asset quality ratios. On the other hand, while the ratio of loans to total assets has no impact on the profitability of small-scale banks, the non-performing loan ratio has a positive impact. While the asset size and income-expense ratios have positive and significant impacts on the profitability of small-scale banks, they exhibit no relationship with the profitability of large-scale banks. With regard to macroeconomic indicators, small-scale banks’ profitability is negatively affected by economic growth, whilst large-scale banks are not. This study is aimed to contribute to the literature by analysing the determinants of Turkish deposit banks’ profitability under the classification of large-scale and small-scale banks.

Evaluation of financial statements of sports clubs for 2019 and 2020 operational periods in terms of the covid-19 pandemic and research in terms of financial risk

The Covid-19 pandemic and the accompanying uncertainties deeply affected the activities and financial structures of businesses and caused negative effects on their financial statements in many respects. Sports clubs are at the top of the list of businesses that suffer the most from the negativities of the pandemic process and experience a lot of loss in their financial and operational activities. Considering the developments both in Europe and in the World, the temporary postponement of sports matches, the start of competitions without spectators, the restructuring of club debts have seriously affected sports clubs, which are currently experiencing economic difficulties, deteriorate their liquidity, cash flows and increase uncertainty by making debt payments difficult. In addition, as the impact of risks on future performance increases, risk management practices have gained importance. In this context, information on the current ratio, cash ratio, financial leverage ratio, financing ratio, debt/equity ratio, and financial risk ratio obtained from the financial statement data for the period of 2019 and 2020 were used to evaluate the financial risk levels of 12 sports clubs. The deterioration in the financial structures of the sports clubs most affected by the pandemic process was examined and the risks encountered were discussed. In addition, the comparative financial analysis results were evaluated by analysing the effect of the financial structure and financial reporting of the clubs.

Behavioural evolution of consumers of banking services in the COVID-19 pandemic situation

Managing customer relations is one of the main contemporary challenges facing banks, especially in terms of new social changes and major changes in human behaviour, generated by the COVID-19 crisis. The currently drifting economic climate affects all of the existing and potential customers and consumer behaviour, being much more demanding on the products and services purchased, their particularities, the conditions proposed by banks, prices and the bank-customer relationship. The new segmentation generated by the pandemic puts additional pressure on banks, which have a difficult task: to better understand these new behaviours and to meet consumer requirements with relevant products and convenient services. Whatever the options, banks must be receptive to the current needs of consumers of financial products and services and to the behaviour they must adopt in order to remain relevant on the market. The general objective of this study is to provide a practical perspective on the impact of the pandemic crisis on consumer behaviour of banking products and services.

The Effect of Global Risk Indicators on Developing Country Stock Exchanges

Global risk factors have great impacts on the economies and financial markets. It is observed that the stock markets of countries are affected by globalization especially in times of global crisis. To this end, CDS, VIX and Credit Ratings have started to be examined recently in order to decrease global risk factors. CDS, VIX, and Credit Ratings were determined as global risk indicators and these variables used as independent variables to detect the effect on BRICS-T (Brazil, Russia, India, China, South Africa and Turkey) stock market returns. Daily data set of these variables from 2008 to 2020 were gathered for each country. After preliminary analysis, ARDL model was determined as the best-fitted model for each data set. According to ARDL Bound test approach, except for China, it was detected long-term relationship between variables for the all-remaining (Brazil, Russia, India, South Africa, and Turkey) countries. It means that global risk indicators affect the returns of stock markets in emerging markets.

Environmental Sustainability and Sports

The United Nations Sustainable Development Goals are grouped under three main titles; economic development, environmental sustainability, and improvement of social well-being. Environmental sustainability is one of the most important components of sustainable development goals because it is obvious that without a sustainable environment, economic and social development goals will be abandoned. While the unplanned use of the environment and natural resources threatens environmental sustainability, it can be said that one of the most important actors in this process is sports. Mass production and consumption, facility establishment, and increase in organizations in sports accelerate environmental and natural destruction. The sustainability of sports is directly proportional to environmental sustainability. Therefore, reduction of the sports-induced negative environmental impacts will make great contributions to environmental sustainability. In this way, it will be possible to transfer both the natural environment and sports to future generations. This study was limited to environmental sustainability, which is one of the three main titles set for sustainable development goals and the effects of sports on environmental sustainability were evaluated in the light of available literature. Again, regarding the existing literature, suggestions were developed to reduce the negative environmental impacts of sports.

Impact on Inclusive Development of Information and Communication Technologies in Turkey

In this study, the impact on inclusive development of information and communication technologies in Turkey’s economy is analyzed. Information and communication technologies are represented by mobile phone penetration measured by mobile cellular subscriptions, and inclusive development is measured by the human development index (IHDI) adapted to inequality. The annual data used in this study covers the period 1990-2019. After examining the stationarity of the series of variables, the cointegration between variables was investigated using the ARDL approach. As a result of the ARDL test, a cointegration between inclusive development and information and communication technologies has been determined. Toda-Yamamoto causality test was conducted to find the direction of the relationship between variables. The findings obtained from the analysis of causality determined that it has an impact on inclusive development of information and communication technologies in Turkey.

Tourism Insurance Market, Risks and Prospects

According to the global pandemic conditions, tourism and therefore, the travel insurance market faces new challenges. This study is aimed to determine appropriate approaches that will contribute to tourism development during and post-pandemic period. Tourism insurance is one of the most important contents of travel planning, which protects tourists from certain financial risks and wastage that can occur during travelling. This wastage can be minor, such as delayed luggage, or significant – a medical emergency overseas. Within pandemic conditions, emergency medical care, which will cover Covid -19 has become an inevitability part of an offered insurance packages. The design of the article includes secondary data review, theoretical explanations and empirical evidence (survey) regarding insurance updates in the travel planning, development of proposals for the future tourism development in Georgia’s without significant wastage or outcomes from the pandemic conditions. There are proposed some ideas and examples about to enhance knowledge in insurance adapting accordance with the requirements of the modern situation, with an aim for the future tourism unceasing development. It has been identified several approaches in terms of enhancement quality and gullibility of supplied tourism services, which is most important in the last pandemic period. This is a first attempt describing and identifying issues related to the Georgian tourism sector in terms of travel insurance adaptation to the Covid-19 conditions. It is a valuable piece of information for tourism product makers to adopt the article’s proposals for the improvement of future tourism development.

Corporate Governance Guideline Relevance To Maltese Family Public Interest Companies A Small State Perspective

The objectives of this paper are to investigate the relevance of guidelines on good corporate governance (CG) to family public interest companies (PICs) within the small state of Malta and to recommend how existing guidelines may be improved and tailored for such companies. An explanatory mixed-methods empirical approach is adopted with a structured questionnaire being first administered to 17 respondents in 12 PICs owned by different families. This was then followed by semi-structured interviews with the representatives of 11 of these PICs. Findings indicate that there is a need for the existing guidelines to be improved for them to become more in line with the needs of PICs which are characterised by dominant family interests. In this respect, this paper recommends possible principles and guidelines that may be used by the relevant authorities either to improve the existing PIC guidelines or to issue a new set of guidelines aimed specifically for family PICs. Given the peculiarities of such companies, it is clear that the guidelines have to contain elements that address the CG structure, such as the need to formally document a family governance plan. Clearer guidance is needed on the appointment and composition of the Board of Directors, on the employment, conduct, compensation and performance evaluation of managers, as well as on the composition of the ownership of family PICs. Additionally, the paper concludes that a relevant factor for family PICs in carrying out improvements to their CG is that they continue to place more importance than other PICs to their continued existence.

Characteristics of the hidden economy in Hungary before and after the regime change

Lately, economists and policymakers have been paying even closer attention to the hidden economy. Indeed, it makes a difference to the economy how much money goes into the state coffers. To uncover the hidden economy, however, it is necessary to be familiar with its nature and manifestations. In this paper, with the aid of previous research and literature, we attempt to illustrate the characteristics of the hidden economy in Hungary before and after the regime change and to map out the steps that have been taken to uncover it. This publication was preceded by a systematic literature review on the definition, causes, and effects of the hidden economy, consisting of the collection of both data and literature related to the domestic hidden economy. The following summarizes the results from the synthesis of literature: The Hungarian hidden economy existed even before the regime change and took a variety of different forms. These include tips, bribes, informal payments, unauthorized work and patchwork, moonlighting, unauthorized rental of real estate, use of the social property for personal gain, gains from the infringement of customs and exchange law, tax fraud by craftsmen and retailers, theft of public property, and corruption. Since 1990, not only have the dynamics of the hidden economy strengthened, but its types of activities have changed significantly as well. These include, but are not limited to: omitting a portion of revenue from the register; recognizing non-incurred material production costs among expenditures; including an excessive portion of personal household maintenance costs among production costs; organizing business and study trips abroad; finder’s fee; end-of-year depreciation or ‘transfer’ of inventories; wages of registered employees paid out of pocket; employment of unreported employees; parallel company formation; the economic activity of unincorporated individuals and the income generated thereby. The following are among the concrete steps taken in recent years to uncover the Hungarian hidden economy: the temporary employment booklet; the simplified entrepreneurial tax; the Electronic Trade and Transport Control System; online cash registers; the connection of vending machines to the tax office.