Proactive Organizational Structure in Financial System

Technology alters the structure of the systems in the finance and service sectors. Nevertheless, technology has been chancing operating systems and as a source to the emergence of new business models. The boundaries of departments in enterprises are weakened and disappeared, these changes give rise to the emergence of showing less commitment in the behavior of employees. In modern business the survival of the organizations does not seem possible, which see success in reactive behavior of the strategy-structure-interaction classical triple. Critical success factor is based foresight and proactivity in all areas of operations including organizing. In this chapter, enterprise organizations' financial departments and resulting changes of structures of the financial sector entities, the effects of this structural changes in the operation system with the new business models is discussed, the tips on how financial system's agencies and departments can fulfill the requirements of proactive nature revealed is studied.

The Analysis of 2008 Global Crisis in Terms of the Sustainability of Public Debt Stock and Budget Deficits of PIIGS Countries Panel Data Analysis

In this chapter, we have focused the impacts of 2008 global crisis on the debt policies and the sustainability of debts in the PIIGS Countries. For that, the circumstances of the global crisis are examined, and the economic condition before the crisis is handled. As a main objective, the public debt indicators of PIIGS Countries are pointed out. The ratios and budget units are evaluated in terms of sustainability of debts. While making these evaluations and examinations our method was panel data analysis which can be found at the end of this chapter. In this method, public debt ratios and the sustainability conditions of the public debts in the PIIGS Countries are used as the determinants of public debts sustainability.

Investor Sentiment and Stock Returns

In this chapter, the authors investigate the relationship between investor sentiment and stock returns in an out of sample market, namely Borsa Istanbul. The authors use the Consumer Confidence Index as an investor sentiment proxy, while utilizing BIST Second National Index as a measure of small capitalized stock returns. The sample period spans from January 2004 to May 2014. By using monthly data, the authors employ cointegration test and error–correction based Granger causality models. The authors' findings suggest that there is a long-term relationship between investor sentiment and stock returns in Borsa Istanbul. Moreover, a unidirectional causal relationship from investor sentiment to stock returns is also found.

Is Technical Analysis Profitable even for an Amateur Investor?

The purpose of this chapter is to examine if even the simplest trading rules could take advantage of the market's inefficiency and lead to profitable trading decisions. For this reason, this study examined the profitability of the simplest trading rules, using only the simple moving averages (SMA) rules that even an amateur investor could apply. In order to examine the specific issue a data sample from the Greek stock market during the period 2002-12 was used. The results suggest that even if one takes into account the most expensive transaction fees, the trading rules signal profitable investment decisions; therefore, even an amateur trader and/or investor who does not have a significant amount of money to invest (which may lead to reduced transaction costs) could take advantage of the market's inefficiency. Behavioral finance theories may provide some useful and alternative explanations regarding some of the reasons that contribute to the Greek stock market's inefficient environment.

Investor Biases in Financial Decisions

Financial Decisions involve making choices between various investment alternatives, with the aim of increasing the individual's net worth. The investor today is exposed to various investment options, but does not have the knowledge and capability of evaluating all the options and making a rational decision. Due to the limitation in the information processing capacities of the individuals, their beliefs and preferences, the investment decision-making process, gets biased. This chapter highlights ten such biases and throws light on how they impact investment behaviour, both positively and negatively. This understanding of investor psychology will generate insights that will benefit the financial advisory relationship. Further for Individuals, recognizing how the biases impact their financial decisions, can help create self-awareness and an understanding that would help them in better financial management, in case these tendencies are leading them to make unsatisfactory investments.

Measuring the Poverty of Elderly People with Needs Analysis in Turkey

This study aimed to analyze the economic, social, and cultural needs of elderly people to determine the poverty thereof in Ankara (the capital city of Turkey).The economic, social, and cultural needs of individuals, which are among the indicators taken into consideration by United Nations Development Programme (UNDP) in measurement of human poverty index, were subject to research in measurement of poverty of elderly people. Face-to-face surveys were conducted with individuals over 65 years of age in the study, with 2.522 surveys qualified for evaluation. It was seen that the majority of elderly people were covered by social security. The elderly people reported their health to be good. They stated satisfaction regarding interindividual relationships with regard to social needs. However, it was concluded that the income of elderly people was not sufficient, and that they could not sufficiently afford electrical power and water invoices, medicine, food, and clothing expenses.

Financial Education for Children and Youth

Although financial education consists of individuals of all ages, education of young people in the field of finance is more important. The young generation faces more financial risks and more complicated financial products than their parents. Besides, young people are introduced to financial services at very early ages owing to cell phones, bank accounts, credit cards. Therefore, it is important that individuals are educated in finance as early as possible.

Stochastic Processes for the Risk Management

The financial markets use stochastic models to represent the seemingly random behavior of assets such as stocks, commodities, relative currency prices such as the price of one currency compared to that of another, such as the price of US Dollar compared to that of the Euro, and interest rates. These models are then used by quantitative analysts to value options on stock prices, bond prices, and on interest rates. This chapter gives an overview of the stochastic models and methods used in financial risk management. Given the random nature of future events on financial markets, the field of stochastic processes obviously plays an important role in quantitative risk management. Random walk, Brownian motion and geometric Brownian motion processes in risk management are explained. Simulations of these processes are provided with some software codes.

An Analysis of the Studies in Turkey into Consumer Behavior During Periods of Economic Crisis

The fact that those countries going through tough times like economic crises can predict the change consumers experience so that they could take the necessary precautions brings them competitive advantage and helps them provide solutions accordingly. With this in mind, the present qualitative study paints a picture of a general overview of consumer behaviors in times of crises. The studies in Turkey into consumer behavior during periods of economic crises have shown that buying behavior of consumers change, that consumers resort to cheap good and services, and that they limit their spending on food the least. The Turkish consumers have started to cut back on their spending and postpone their needs in times of economic crisis. It could be stated that Turkish consumers now avoid hasty decisions when buying.

A General View of Poverty in Turkey as an Issue for Social Work in the Light of Behavioral Finance and Game Theory

In this chapter, the authors define poverty in general terms before including statistics for a detailed, Turkey-specific discussion. Once the authors elaborate on the causes of poverty, they introduce behavioural economics and game theory, the fundamental aim of the chapter being to examine how these two theories affect perceptions of poverty and the struggle against poverty. Another issue that enters into the scope of this chapter is to what extent the poor themselves are responsible for their own poverty. On this question, game theory and behavioural economics can potentially be marshalled against the poor. However, we also argue that, by using a different approach, both theories can be interpreted in the poor's favour. We examine the double-sided nature of these two theories in detail and stress how important it is in the study of poverty to consider the disadvantageous position in which the poor find themselves.