A Comparative Analysis of Drivers of Secondary Market Liquidity in Financial Markets for Investment Analysis

The purpose of this chapter is to examine the drivers of secondary bond market and stock market liquidity for investment analysis after global financial crisis in Turkey. The literature in Turkey mainly focuses only on the volatility of return for driving liquidity in both bond and stock markets. However, it is argued that other types of volatilities including domestic and international volatilities have also a deteriorating impact on secondary market liquidity in Turkey. In this context, it is empirically tested whether the volatility and/or uncertainty that stem from the FED and ECB policies within the last 10 years had a negative impact on liquidity both in government bond and stock markets. Moreover, the impact of non-residents in bond and stock markets on secondary market liquidity is examined by including their holdings in stock and bond market.

The Use of Quantitative Methods in Investment Decisions

Quantitative methods are mainly preferred in the literature. The main purpose of this chapter is to evaluate the usage of quantitative methods in the subject of the investment decision. Within this framework, the studies related to the investment decision in which quantitative methods are taken into consideration. As for the quantitative methods, probit, logit, decision tree algorithms, artificial neural networks methods, Monte Carlo simulation, and MARS approaches are taken into consideration. The findings show that MARS methodology provides a more accurate results in comparison with other techniques. In addition to this situation, it is also concluded that probit and logit methodologies were less preferred in comparison with decision tree algorithms, artificial neural networks methods, and Monte Carlo simulation analysis, especially in the last studies. Therefore, it is recommended that a new evaluation for investment analysis can be performed with MARS method because it is understood that this approach provides better results.

The Role of Financial Communication Under the Chaos Environment

As globalization becomes a necessity for organizations to continue their sustainability and existence in the world, naturally their interdependencies to other economies also emerge. After the 2008 economic crisis, TEMSA, a Turkish family-owned company operating in the transportation industry, decided to expand its products and manufacturing plants to different regions. Egypt, for the time being, was geographically a well strategic location for TEMSA's long-term manufacturing plans. In 2011, when the Arab Spring broke out, TEMSA found itself in the middle of chaos, challenged by external political and economic decisions. This chapter focuses on the case study of TEMSA Global as they entered the Egyptian market with a foreign direct investment and managing chaos between the years 2011-2012. An interview was conducted with the management team on duty at the time to collect data. As a result, it was observed that TEMSA potentially had a chance to continue its operations in the Egyptian market if the Arabian Spring had not happened. Chaos is a potential enemy for FDIs as they seek stability.

The Role of Effective Communication on Economic Development

The process of financial liberalization draws attention as a process that took place after the 1980s and led by the strong countries, in order to overcome the narrowing in the economies of the world countries which have become polarized because of the Second World War and the Cold War period immediately following the Second World War. In this chapter, firstly, the definition of the financial liberalization period and the effects according to the countries are examined, while the risk and crisis issues are also evaluated. Economic and political crises that have occurred in Turkey after the financial liberalization process in ongoing part of the study also were assessed by considering the effects on the economy. In this context, the economic and political crisis in Turkey are analyzed as to their effects on the country's economic performance. Accordingly, every 10 years, an economic and political crisis in Turkey took place. The country's economy is affected negatively in the macro-frame.

A Review of the Literature on IFRS Adoption From the Perspective of the Value Relevance

International Financial Reporting Standards (IFRS)-based financial reporting has become widespread all around the world especially after its mandatory adoption in the European Union in 2005. There are several objectives of IFRS-based financial reporting, all of which depends on the idea of a single set of high-quality standards as frequently highlighted by promoters of IFRS. This literature review depicts a comprehensive picture of the archival research on the impact of IFRS-based reporting on capital markets from the perspective of the value relevance (VR) concept. First, the VR concept, as well as models employed to measure the VR, are described. Afterwards, selected studies of the archival research are grouped, summarized, and discussed. Finally, archival research is methodologically analyzed by considering different dimensions. All in all, this literature review provides information on IFRS adoption from the perspective of the VR.

Corporate Scandals and Systemic Risk

Corporate scandals are unpredictable misbehaviors of person/people that have engagement within corporate ended by bankruptcy of corporate. In the global world, companies are related with each other, and one bankruptcy triggers another company; moreover, it may cause a systemic risk depends on size of company as occurred in 2008 economic crisis. Corporate scandals are unpredictable; however, experience from history may guide regulators to avoid in the future by effective regulations. In this chapter, corporate scandals will be studied carefully to classify subjects of scandals and their impact.

The Role and Importance of Independent Audit and Annual Integrated Reports as Corporate Tools in Communication With Stakeholders From the Investor Relations Perspectives

Although there are globalization and digitalization trends affecting all companies, some things can never be changed. Similarly, when speaking about investor relations, although there are new tools, annual reports are the main communication tools with the stakeholders. One of the most important issues with them is independent assurance and timely sharing with stakeholders. Also, there is a new trend named as integrated report regarding annual reports. So, in this study, it is aimed at evaluating the role and importance of independent audit and annual integrated reports as corporate communication tools from the point of view of investor relations. It is concluded that annual reports are still main corporate communication tools with the stakeholders for companies although there are other instruments like web site, social media and investor presentations. Integrated report trend is intensifying this role. Therefore, independent audit has a substantially important role in providing assurance to stakeholders regarding integrity of information in annual (integrated) reports.

The Importance of Customer Loyalty With Corporate Governance in the Telecommunication Sector

The telecommunication sector is a sector which is open for development. It is important to analyze the strengths and weaknesses of organizations by using different strategic management techniques. The purpose of this chapter is to emphasize the importance of customer loyalty and to bring forth the key factors to create customer loyalty in communication sector and to understand the corporate actions of organizations apply when creating loyalty. At the same time to test the factors that create loyalty from the customers' perspective, investigation of the strategies applied for loyalty and the effects of customer loyalty programs. Therefore, the questionnaire study was made with 200 participants. T-test, anova, correlation, and regression analyses were applied to the data. This survey has the purpose of determining and investigating the dynamics and the factors that create customer loyalty in corporate governance. The results show that customer protection is crucial for companies. The most important factor of customer protection, which is loyalty, is shown to be linked with corporate actions.

Strategic Management to Prevent Money Laundering

In this chapter, the SWIFT, which is the financial communication system used by all financial institutions, will be explained. Today, most of the countries and financial institutions take precautions to avoid money-laundering and financial crimes. The SWIFT system will be examined in relation with financial communication, compliance, money laundering, know your customer, and sanctions. Public became aware of the sanctions when HSBC has agreed to pay $1.92 billion dollars to state authorities in 2012 for transfering dollars illegally into US. Banks apply “Know Your Customer” procedures to avoid such risks. In relation with sanctions, precautions of SWIFT system will be defined. SWIFT has started a new application namely KYC Registry which enables to have necessary information about the customers in international trade, through cross borders. The reasons why this applicatiıon must be used, how risk will be mitigated, by sharing information with maximum transparency and SWIFT's new KYC application will be defined.

Corporate Scandals Involving Social Media

The importance of public relations and crisis communication is undeniable for companies. In a corporate scandal or crisis situation, the right messages have to be conveyed to the relevant audiences including shareholders at the right time and in the right way. Today, social media is one of the most popular tools of crisis communication. Including Turkey, the number of social media users all over the world is quite high and continues to increase every day. In recent years, we observe that companies use social media as an effective communication tool during their crisis periods. The aim of this chapter is to make an in-depth review of the literature on crisis management and the use of social media and to reveal the position of social media in communication efforts carried out during the company crises through various cases that took place in Turkey.