Search

Capital markets are special financial platforms where a wide variety of economic agreements are made on a national and international scale, commercial and economic relations are established, the interests, gains and losses of all individual and institutional investors are directly changed, and therefore the national economic security, development and stability of a country can be affected. The fact that capital markets are very important and yet so sensitive reveals the need to fully and completely understand the activities that may harm these markets. There is no doubt that the leading of such harmful activities is the crime of market fraud that is regulated in Article 107/1 of the Capital Market Law. Knowing all the structural features of this special genre of crime, especially the material and moral elements, and recognizing the strengths and weaknesses in the current regulation are of great importance both in fighting this crime and in revising the existing regulations appropriately. In this way, the crime of market fraud, which is one of the biggest obstacles to the development of our country, will be prevented and the damages suffered by the victims will be eliminated. [ABSTRACT FROM AUTHOR]

Financial markets tend to be affected by political developments. As analysts' forecasts, market announcements, political and corporate news shape the expectations of investors, affect the stock markets. Reports prepared by international organizations are reviewed by investors and taken into account in investment decisions. The European Union, evaluates positive and negative developments in social and individual issues by presenting various progress reports on countries where the membership process. In today's communication age, it is expected that the positive and negative developments in the reports will affect the financial markets and investment decisions. Türkiye is in the category of developing countries and makes reforms to continue the process. Throughout the EU negotiation process, the European Commission publishes reports evaluating the performance of the candidate countries in the autumn months within the scope of the Copenhagen criteria. Are European Union progress reports taken into account by capital markets like financial reports? In study, the answer to the question mentioned was sought. The purposes of the study are to investigate whether the European Union progress (country) reports are priced in the Turkish capital markets. By using the daily MSCITürkiye stock index data, the reaction of the investors to the reports in the 2005-2022 periods was determined by the event analysis method. According to the findings of the paper, while 8 reports did not have a significant effect on the stock market index, statistically significant abnormal returns were observed in 9 reports. Therefore, the result of the study shows that progress (country) reports are taken into account while making investment decisions and priced in Turkish capital markets. [ABSTRACT FROM AUTHOR]

Research in the field of Islamic finance has increased significantly in the last 6 years. Between 1982 and 2021, 1055 research papers were published in high-quality journals while 30% of them have at least three citations per year on average and 84% of them have been published in the last six years. This study examines 262 research articles that have been identified as effective and current publications in the field of Islamic finance in journals belonging to the SSCI index. It also reveals the institutions and researchers that direct the studies in the field of Islamic finance. Finally, this study identifies the problems and gaps in the literature and offers suggestions for future studies. [ABSTRACT FROM AUTHOR]

In recent years, sukuk has been the fastest-growing Islamic financial instrument in the Islamic Capital Market. The development of sukuk, an asset-backed, asset-based securitization, and the analysis of its obstacles have been the subject of many international academic studies. This article aims to determine the effects on the sukuk markets of participation banks in Türkiye. In this context, the variables of the sukuk issued by participation banks in 2015Q1–2021Q4 were analyzed by the panel data method. Data on variables such as Gross Domestic Product (GDP), interest rate, inflation, foreign direct investments, exports, participation banks' dividend rates, participation bank assets, stock market, public expenditures, and banking sector size used in the analysis were obtained from the Participation Banks Association of Turkey (TKBB), the Turkish Statistical Institute (TUIK), investing.com, and the Electronic Data Distribution System of the Central Bank of the Republic of Turkey (EVDS). According to the analysis results, it was concluded that the relevant parameters positively and negatively affected the development of sukuk markets. [ABSTRACT FROM AUTHOR]

The study aims to determine the effects of audit reports, which are one of the foundations of assurance between firms and firm interest groups, on the market value of firms and present empirical evidence in Turkey. In this context, unqualified, adverse, and disclaimer of opinion audit reports of 77 non-financial companies in BIST 100 for the period 2010/Q1-2021/Q3 were analyzed with the Driscoll-Kraay Estimation method within the framework of panel data methodology. As a result of the analysis, it has been concluded that the unqualified opinion affected positively the market value of the firm, and the disclaimer of opinion had a negative effect. On the other hand, no significant relationship was found between Adverse opinion and firm value. It is expected that the results, which are obtained from the study, will contribute to the limited literature on audit opinion and firm value relationship, as well as create a perspective for investors in the investment process. [ABSTRACT FROM AUTHOR]

In this study, it is aimed to determine the relationships and interactions between the Dollar Index and the Major World Indices (BIST 100, DAX, Dow Jones, S&P 500, Nikkei 225, FTSE 100, Euro Stoxx 50) and whether the Dollar Index can be an international financial indicator. Relationships between seven major world indices and dollar indices examined in the study were examined by granger causality test; While there is no causality relationship between the BIST 100, Dow Jones, and S&P 500 indices towards the Dollar Index, a one-way causality relation has been determined from the Dollar Index to these indices. A bidirectional and reciprocal causality relationship was determined between the DAX, Euro Stoxx 50, FTSE 100 and Nikkei 225 indices with the Dollar Index. It is considered that the findings obtained are mostly compatible with the literature. The Dollar Index, which was created in 1973 and has been used for about 50 years and covers a proportional composition of other important currencies, mainly the US Dollar, is considered to be an important financial and economic indicator today due to the close causality relations and strong correlations between them and the Major World Indices. [ABSTRACT FROM AUTHOR]

Capital Market Boad of Turkey (CMB) has to authority to give audit firms to be engaged in independent audit activity in capital market in Turkey, based on the regulation "Principles Regarding Independent Auditing Standards in the Capital Markets- (Serial: X, No:22)". Then, it is very likely that these firms engaged operate in a more demanding and competitive environment than the other audit firms' since these firms have a crucial communication with capital markets' investors, and stakeholders, through their final, vital decision, audit opinion. Although requirements specified by the regulation, however, prior research do not demonstrate the differences between the audit firms operating in capital markets and the others registered by the Public Oversight Accounting and Auditing Standards Authority (POA). This study aims to examine the firm relevant attributes having an influence on the likelihood of undertaking audits in capital market in Turkey. Through a sample of 349 audit firms registered in POA, logistic regression model results showed that the number of years after registration, city's population density of audit firm's head office, and audit team size increases the audit firm's likelihood to undertake audits in Turkish capital market. The results refer to the effectiveness of auditing standards in Turkish capital markets and likely to be beneficial both to regulatory authorities and also to independent audit firms. [ABSTRACT FROM AUTHOR]

After the amendment made in the Capital Markets Law, an assembly was formed under the name of the debt security holders' assembly and a special communique containing detailed provisions was published by the Capital Markets Board. This amendment Communique aims to remedy the incompetence in Turkish law due to the fact that the debt security holders' assembly, which is subject to detailed regulations in international law, was not previously regulated. However, it is observed that the regulations introduced by both the Law and the Communique include some flaws and shortcomings, especially when compared with foreign country laws. In this context, it is particularly important to analyze the provisions regarding the decisionmaking of the debt security holders' assembly, which is a more problematic area. It can be said that the current regulations are intended to serve the interests of the issuing companies rather than protecting the interests of debt security holders. In addition, in the evaluation of the regulations pertaining to the debt security holders' assembly, it would be beneficial to make comparative use of the provisions pertaining to the privileged shareholders' assembly, as the latter is similar in certain respects. [ABSTRACT FROM AUTHOR]

The acceleration of technological developments, effective promotional and advertising campaigns and great promises to achieve higher profits increase the popularity of cryptocurrencies. Therefore, more real and legal persons are preferring to acquire cryptocurrencies day by day in the world and in Turkey. However, the lack of sufficient, concrete and clear regulations on cryptocurrencies on a national and international scales, the inability of national regulatory institutions and legislators to create clear and unified regulations bring along some legal and financial uncertainties and risks. This situation also poses a problem even in largest economies in the world like the United States of America, and the legal statuses of cryptocurrencies are being discussed even in cases that attract worldwide attention. Since the legal statuses of cryptocurrencies are not defined in Turkish legislation and their places are not known in terms of contracts, Turkish companies and citizens that possess cryptocurrencies are more vulnerable to such risks. Until now, some opinions in the Turkish legal and financial doctrine and jurisprudence have been purported that cryptocurrencies are capital market instruments, goods, financial services products or investment instruments. However, such definitions and opinions could not terminate legal uncertainties and reveal the need for legal regulations to be made as soon as possible. [ABSTRACT FROM AUTHOR]

Investor relations are also the subject of research in the academic field with the increasing importance of corporate governance, corporate social responsibility, publicly traded companies and information sharing in capital markets. Sharing information of companies with all stakeholders, not just one associated party; it has become easier, faster and more functional in the digitalized world. Together with financial reports, activity reports and other important statements, the integrated use of the possibilities offered by digitalization can also be characterized as financial public relations. These prominent developments in business activities attract attention in the academic field and become the subject of research. In this context, the study seeks to answers to the questions of the extent to which the concept of investor relations is considered in the academic field and in what aspects it is studied. Bibliometric analysis was conducted in the context of various criteria determined in the Scopus database (covering the years 1980-2020) and the results were presented. According to the results, academic studies have shown an increase trend over the years and the most published type of writing in academic studies is the article. The highest share of the fields in which the studies are related belongs to the field of business, management and accounting. In addition to these results, academic studies belong to which countries, which institutions and which authors, etc. results are also included. [ABSTRACT FROM AUTHOR]

Enlightening the consumer is the basic condition of protecting the consumer. This condition is valid in capital markets as well as in real markets. In derivative transactions that may contain more than one complex-multiple transaction, the information asymmetry between the investor subject to the general customer class and the investment institution is eliminated with the obligation of clarification. Therefore, the obligation to inform plays a key role in the safe and stable functioning of the capital market. It is of great importance to reveal the rules and principles within which the general investor should be enlightened and to explain the legal consequences that will occur in the case of violation. [ABSTRACT FROM AUTHOR]

The aim of this study is to determine the fraud risk of the independently audited financial statements of companies whose stocks are traded in the Borsa Istanbul Textile, Clothing and Leather sector between 2015-2019 using data mining-based methods, through financial ratios, and accordingly, to reveal the success of these methods in detecting fraud. For this purpose, independent audit reports and weekly Capital Market Boards of Turkey (CMB) Bulletins were examined within the scope of the study, and cases of applying to fraudulent financial reporting practices were determined. In this context, 127 financial statements and independent audit reports of relevant periods were examined. In the study, 12 financial ratios used in literature to explain fraudulent financial reporting and 10 methods based on data mining were used. According to research findings, all models based on data mining used within the scope of the study were more than 70% successful in correctly classifying financial statements that are considered to have fraud risk and financial statements that are considered to have no fraud risk, and the most successful methods are models established with J48 and Deep Learning methods. [ABSTRACT FROM AUTHOR]

Article 31/A has been added into the Capital Market Law no. 6362 after an amendment in 2020. In this article, noteholders' committee consisting of every holder of debt instruments in circulation is regulated and the authority to regulate important issues like the operation of this committee has been granted to the Capital Market Authority of Turkey. While the Capital Market Board of Turkey has issued the Communiqué on Noteholders' Committee no. II-31/A.1, stating some procedures and principles, many other matters have been left to issuers' discretion to be determined in prospectuses and certificate of issue. Holders of debt instruments as corporate creditors in Turkish law come together to discuss material issues in relation to themselves, which is an important step to protect this particular stakeholder class. Material changes regarding fundamental terms and conditions of obligations or debt instruments are not valid unless approved by the noteholders' committee, which especially requires a detailed examination into operation of this committee. [ABSTRACT FROM AUTHOR]

In this study, the relationship between financialization and price stability in the Turkish economy has been investigated. The relationship between financialization indicators and price index is analyzed with the ARDL boundary test. Variables have been determined based on theoretical information and literature The analysis includes data on price index, capital market capitalization, total securities in bank assets, foreign direct investments, portfolio investments, loans, and deposits for the period 2003-2019. According to the findings, in the long run, the price index negatively affects the sum of securities in bank assets, foreign direct investments, and portfolio investments. There is a positive relationship between deposits and loans. In the short term analysis, there is a negative and significant relationship between capital market capitalization and the price index. Accordingly, financialization affects price stability in the Turkish economy. [ABSTRACT FROM AUTHOR]

The uncertainty caused by price volatility in the capital market poses risk for investors. There are several methods to manage this risk. The aim of this study is to measure the risk of a portfolio consisting of agricultural sector stock via Monte Carlo simulation, which is one of the value at risk methods. The daily closing stock prices of IZTAR, TACTR, and YAPRK that are traded in BIST were used in the study. The value at risk ratios of the equally weighted hypothetical portfolio were determined as 24.36% and 34.61% at 95% and 99% confidence levels on a ten-day holding period, respectively. Compared with previous studies, it has been determined that the risk of a portfolio consisting of agricultural sector stock is higher than the risk of portfolios consisting of foreign exchange, banking stock and government debt securities. It is recommended to conduct searches that examine the causes of this situation in the framework of investor decisions. [ABSTRACT FROM AUTHOR]

Information is the most critical factor affecting the market value of securities, and constitutes the basis of the capital market activities. Making right decisions in conducting such activities depends on the realisation of the public disclosure and transparency principles as well as the equal access to information. One of the reasons which prevent the functioning of the capital markets based on trust, honesty, transparency and equality, and cause unfair benefits for investors is the crime of information abuse. The crime of information abuse is regulated in Article 106 of the Capital Market Law. Information abuse is a term of art that refers to unlawful trading in securities by a person who possesses non-publicly available information about a company whose shares are traded or the market, which may affect the value of securities. The subject of the information abuse prohibition can be analysed under four categories, namely a) the managers of the issuers and their controlling parents and subsidiaries as well as the persons who possess information due to their shareholding in such companies; b) persons who possess information due to the performance of a job, profession or duty; c) persons who acquire information by committing a crime; d) persons who know (or must know, if proven) that the information in their possession is in the nature described in the relevant provision. The Capital Market Law's regulation on this matter, which is generally in line with the EU acquis, extended the categories of persons who can commit the crime of information abuse. [ABSTRACT FROM AUTHOR]

Article 462 of the Turkish Commercial Code numbered 6102 (TCC) regulates the capital increase through internal resources for the first time in Turkish legal system. However, the article has contradictory provisions in its two paragraphs regarding the sources of capital increase through internal resources. Moreover, rather than applying nullity sanction to the resolution of general assembly as stated in the preamble of Article 462, the possibility of applying annullability sanction regulated in TCC should be discussed in this concept. In addition, provisions of the Capital Markets Code and the Circular issued by the Ministry of Trade should be examined whether they are in accordance with the Article 462 of the TCC or not. In this study, possible challenges of the capital increase through internal sources will be presented and the subject of capital increase through internal sources will be assessed in the light of opinions in doctrine. [ABSTRACT FROM AUTHOR]

The reinsurance monopoly which is founded in 1929 has a critical importance for Turkey in terms of Turkish insurance history and the development of capital markets. The strong effects of the reinsurance monopoly on the Turkish insurance sector, makes this subject academically valuable. In this study, the establishment process and the first activity period of the monopoly corporation is analyzed in terms of legal infrastructure, partnership structure and company policies. The findings show that the monopoly company was established in line with the self-interests of a particular group and especially in the first activity period, company policies are formed in accordance with the interests of this certain group. As of the first monopoly period, instead of operating in accordance with the main purposes and contributing to the sector, the reinsurance monopoly limited the development of the Turkish insurance sector. [ABSTRACT FROM AUTHOR]

Private pension system is a system that is based on making regular savings in order to maintain the current standards in active work life, is voluntarily participated in, and is supported by the state. In this study, it is aimed to measure the performances of 18 private pension firms which are under supervision and surveillance of Pension Surveillance Center, Capital Markets Board, and Undersecretary of Treasury. The performances of these firms are examined considering five criteria, which are the number of participants, participants' sum of funds, state-supported sum of funds, contribution margin sum of funds, and the number of retired participants. Because the Grey Relational Analysis is easily used in all fields and produces good results even with very few data, it is preferred for the practical application of the study. The analyses are carried out by using the data from Pension Surveillance Center dated 24.11.2017. At the end of evaluations, Anadolu Hayat ve Emeklilik Company was found to be the one with the highest performance and Aegon Emeklilik ve Hayat Company the one with the lowest performance. [ABSTRACT FROM AUTHOR]

Crowdfunding is the practice of funding a project or venture by raising small amounts of money from a large number of people via the internet. Capital Markets Board has regulated equity-based crowdfunding in Communique III-35/A.1. Equity-based crowdfunding offers investors a share of the profits or return of the business they are helping to fund. Equity-based crowdfunding allows contributors to become shareholder of the company and equity owners receive a share of the profits in the form of a dividend. The new regulation regarding crowdfunding provides an exemption from the preparation of prospectus or an issuance certificate. Collecting money from the public through crowdfunding shall be carried out by the crowdfunding platforms that are authorized by the Capital Markets Board. Communique III-35/A.1 regulates the principles and procedures applicable to crowdfunding platforms, new shares which can be created by means of a capital increase, share transfers, maximum funding limits of each funder or the limits of the money to be collected to the fund by project owners etc. This article offers information and observations about this regulation. [ABSTRACT FROM AUTHOR]

In terms of corporate governance responsibility, transparency is important for ensuring quality in capital markets, increasing confidence in financial statements and preventing management inadequacies. In this study, transparency reports published by four major audit firms in different countries were examined in terms of cultural differences based on the Hofstede-Gray model. Unique aspects of the work culture with varying characteristics in terms of countries (Turkey, Nigeria, Latvia and the UK) is compared to the global transparency report. In the research, the MAXQDA program was used in line with the qualitative research design. As a result of the research, it has been found that local cultural characteristics make a difference in transparency reports. [ABSTRACT FROM AUTHOR]

In this study, the emergence and use of crypto currencies are examined in terms of whether these currencies can be defined as illicit money. Then, electronic payment systems are evaluated and the place of crypto money in the electronic payment systems is explained. It is discussed whether the crypto currencies occur as a smart contract. Finally, these moneys are evaluated in terms of capital market law. [ABSTRACT FROM AUTHOR]

In developed and emerging economies, capital markets play a major role in tranforming savings into investment. The high profit expectation of the investors in the capital markets of the emerging economies increase the curiosity about predicting future prices. The aim of this study is to test weak-form efficiency of 20 stock markets in G-20 members countries. For this purpose, with the help of random walk model, daily index values of the stock markets of G-20 members countries for the period of 01.01.2002-12.31.2018 are applied by analysis of variance and unit root tests including ADF, PP, KPSS tests and breakpoint unit root tests. As a result of study according to variance ratio test, it is concluded that NASDAQ (USA), SESN (India), TASI (Saudi Arabia) and SSEN (China) do not show a random walk and are not effective at the weak-form in the degrees of 1%, 5%, and 10%, respectively. Other stock markets in the study are found in weak-form efficient. In addition, according to the unit root test results, 18 stock markets are found in weak-form efficient during the analysis period. [ABSTRACT FROM AUTHOR]

Along with globalization, developments that in financial markets have brought some recency in recent years. The most important of these recency is the securitization of financial assets and sale to investors in capital markets. Nonliquid asset items are converted into liquid with securitization so additional funding is provided to finance markets. Securitization, which has an important financial aspect, has emerged as a preferred phenomenon in place of traditional banking in the 1970s due to the changes taking place in the international financial markets. Initial securitization practices began with the securitization of mortgage loans in the United States. The first mortgage-backed securities application was the securitization of receivables arising from financial lease agreements in 1985. Today, automobile loans, credit card receivables, equipment leases in financial leasing, student loans, commercial receivables, other assets assets securitized receivables arising from export transactions are among the products. The aim of this study is analyzing securitization which a new funding technique and analyzing the applications of liquidity-based securitization which are one of the securitization transactions in Turkey and in the world. In this context; information are given about structuring of capital markets which securitization transactions, and in generally information are given about securitization traded in these market. Followed by definition and development of the securitization. In the last part of the study, the definition of asset-backed securities transactions which is one of the securitization types has been examined and the literature on Turkey and world applications of asset-backed securities has been examined and the related review and suggestion have been evaluated. [ABSTRACT FROM AUTHOR]

Today, capital markets are showing improvement rapidly, and portfolio management and portfolio selection for international investments have become one of the most sought-after topics. For this purpose, optimal portfolio selection for all businesses traded in Stock Exchange Istanbul is based on multi-criteria decision making methods by using Analytic Hierarchy Process. With this study, it is aimed to determine the optimal portfolios by determining the weights of the stocks according to the importance levels within the expert opinions. Findings in this framework are important for investors to create successful portfolios and improve their average returns without spending too much time with less data [ABSTRACT FROM AUTHOR]

The aim of this study is to assess the impact of oil price changes on stock prices. We believe that the possible relationship between oil prices and capital markets might be used as a guide in terms of valuing capital market instruments. Hence, the study analyzes the impact of change in crude oil prices and stock market returns on petrochemical industry index returns using a two-factor model. Accordingly, industry (ISE Oil, Chemical and Plastic Index) risk premium, crude oil price changes and stock market index (ISE 100) data were used in the regression analysis for the years between 2003 and 2012. The study attempts to explain industry risk premium via aforementioned explanatory variables both in a six-month sub-period daily setting and in a consecutive monthly setting. The regression results yield significant results when monthly analysis performed while results yield significant results for three distinct sub-periods when six-months sub-periods analysis performed. [ABSTRACT FROM AUTHOR]

The configuration of developed countries has become today diverse and multiethnic, due to international migration. A single, coherent theoretical explanation for international migration is lacking. The aim of this discussion was the generation and integration of current theories that clarify basic assumptions and hypotheses of the various models. Theories were differentiated as explaining the initiation of migration and the perpetuation of international movement. Initiation theories discussed were 1) macro theories of neoclassical economics; 2) micro theories of neoclassical economics; 3) the new economics, with examples for crop insurance markets, futures markets, unemployment insurance, and capital markets; 4) dual labor market theory and structural inflation, motivational problems, economic dualism, and the demography of labor supply; and 5) world systems theory and the impacts of land, raw materials, labor, material links, ideological links, and global cities. Perpetuation theories were indicated as network theories of declining risks and costs; institutional theory, cumulative causation through distribution of income and land, organization of agrarian production, culture of migration regional distribution of human capital, and social labeling factors; and migration systems theory. The assumptions and propositions of these theories, although divergent, were not inherently contradictory, but had very different implications for policy formulation. The policy decisions over the next decades will be very important and carry with them the potential for misunderstanding and conflict. Policy options based on the explicated models range from regulation by changing wages and employment conditions in destination countries or promoting development in countries of origin to changing structural market economic relations. [ABSTRACT FROM AUTHOR]

In this study, the types and the reasons of fraud in the balance sheets of brokerage houses has been summarized, generic information about Benford's law and χ² goodness of fit test has been given and the application of Bendford's law for financial auditing has been explained. Then Bendford's law has been applied on the consolidated balance sheets of the brokerage sector which is published at 31 March 2012 on their web site and checked if they contain fraudulent decleration or not. In this paper, findings have showned that H0 hypothesis is acceptable with 5% error margin. [ABSTRACT FROM AUTHOR]

Small and Medium sized enterprises are the most important key determinants to achieve the high sustainable economic growth and employment and a rising standard of living for Turkish economy while maintaining financial stability and thus to contribute to the development of the world economy. One of the major problems which creates the poor business environment for SME's is an acces to financing. This study is thought to make contribution to literature by analyzing the alternative methods available to SME's financing and the benefits of capital markets for SME's in Turkey. [ABSTRACT FROM AUTHOR]

In Turkey, in recent years, capital market is constantly continued to develop in the Turkish stock exchange, representing the market index has reached very high levels. Market index, it changes in all the sectors of the same sensitivity reaction. The purpose of this study, Borsa İstanbul (BIST), the sector of the indices, the market index of the susceptibility of the measure, and in this way the stock market, investors are more informed about investing in the direction in order to provide important findings is to expose. For this purpose, using monthly data for previous years, beta coefficients of the sector indices representing sectors in Borsa İstanbul were calculated and evaluated and the findings are presented. [ABSTRACT FROM AUTHOR]

As a result of globalization process, in Turkey, companies that are subject to Capital Markets Board and companies that are quoted in Istanbul Stock Exchange have been obligated to apply International Accounting Standards/ International Financial Reporting Standards (IAS/IFRS) since 2005. The objective of this obligation is to provide more true and fair information to the users of financial statements. This obligation whose objective is to provide true and fair information to the users of financial statements, leads important changes in our accounting applications. However, in order to achieve this objective, the contents of these standards must be assimilated and standards must be applied accurately. The objective of our study is to investigate the application of goodwill impairment in terms of companies quoted in ISE 50 within the framework of IAS 36- Impairment of Assets and have knowledge about the application level of the requirements of this Standard. [ABSTRACT FROM AUTHOR]

Within the borders of the European Union, the regulations regarding the integration of the capital market is a process that started at the beginning of the 1970s and continues in the present. It is very important to enable Turkey's integration smoothly to this process both for Turkey's and the EU's economy. Within this context, in the first part of the study, international political economy theories and current theoretical studies regarding the EU integration have been examined. In the subsequent section, definition of the financial integration and both the benefits and damages of the integration to the countries have been covered. In the last section, the financial market in Turkey has been explained and the regulations that were made in the process of integrating with the EU markets have been covered briefly. [ABSTRACT FROM AUTHOR]

As long as financial markets exist risk component is also going to exist in the system. What is important for firms and investors acting in financial markets is foreseeing the probable risks and to act in new positions in parallel with these foresights, besides minimizing the risks. In this paper, recently --relating to risk management- most preferred VaR value analysis methods have been examined, and VaRs have been measured in hypotetical portfolios developed by variance -- covariance method. Since it has become into effect, pension mutual funds in private pension system developing and emerging in Turkey are one of the factors that transmit long term investments to capital markets. In economical researchs, it is found that revenue backed public borrowing tools correspond to low-risk funds of pension mutual funds. The results achieved from the calculations made in this paper are in parallel with those economic interpretations. [ABSTRACT FROM AUTHOR]

The aim of this study is to explain the financial structure, aims and the advantages of the system that is called XBRL (Extensible Business Reporting Language) and to evaluate the qualitative characteristics of its financial reports. Because of the rapid technological developments companies' reporting systems are mainly affected. XBRL, which was developed to meet companies' daily needs aims to standardize business reports.It is getting spread around the world and at the same time helps companies to prepare their financial reports in accordance with their qualitative characteristics. [ABSTRACT FROM AUTHOR]

The main purpose of this study is to examine factors determining corporate board size and the relationship between corporate board size and firm performance. To achieve this objective data from 98 companies registered in the Istanbul Stock Exchange during the period of 2006-2007 were used. Regression and correlation analyses were used for empirical analysis. As a result of the analyses, firm size was found to be the most important factor in determining corporate board size. Moreover, there is statistically significant negative correlation between corporate board size and firm debt ratio. [ABSTRACT FROM AUTHOR]

The investors at the process of making investment decisions direct their investment to different sectors through different securities. Although the sectoral choices may be differentiated, the main objective is to optimize the risk. At that point the investors direct their investments by considering the efficiency borders. At the point where efficiency borders end, the Capital Asset Pricing Model (CAPM) appears. The Capital Asset Pricing Model shows the relationship between expected return of any security and its risk. This model is a guide for investors especially at the process of measuring systematic risk. In this study a hypothetical portfolio was created at the Istanbul Stock Exchange and the risk of that portfolio was measured by using Capital Asset Pricing Model. After that risk decomposition was made by purifying the risk of the stocks from total market risk and by this way the systematic risk level of market was measured. [ABSTRACT FROM AUTHOR]

In today's world that world market indexed to USA, after the bankruptcy of firms one by one in USA, trust erosion had been realized both in national and international markets., It would be impossible for financial markets that are based on trust basis to continue their operations in case of the lost of this trust. It's obvious that this situation will cause economic disorder and social explosions. These egregious experiences have provided new opportunities for bringing into safety to capital markets and protecting this safety. Nowadays, responsibility against corporation is accepted instead of the responsibility of enterprises, which are static assets, against public. However, it's impossible to mention that this concept is valid for Turkish Capital Market and "Institutional Management Principles" which is developed by Capital Market Board (CMB). [ABSTRACT FROM AUTHOR]

The study examines the day-of-the-week effect for Turkish Stock market using four sectoral indices (ISE National Financials, ISE National Industrials, ISE National Services, and ISE National Technology) for the sample period 2000 to 2007. We employ OLS model to estimate the day of the week effect for all of the sectoral indices using daily logarithmic data on four sector indices. For the period 2000-2007, the highest average return, significant at 5%, is on Friday for all of the sectoral indices. Wednesday has the lowest average return for ISE National Financials, ISE National Industrials; Thursday is the second day for which average returns of ISE National Services and ISE National Technology are all negative for the same period consistently. However, it is in a different form than the one observed in the other developed capital markets since the negative returns occur on Wednesdays and Thursdays instead of Mondays. We also find that the day of the week effect is strongly observed in the Turkish Stock market during the 2000-2002 sub periods. Furthermore, significant differences in the persistence of the day-of-the-week effect are found between sectoral indices during the 2003-2007 sub periods. [ABSTRACT FROM AUTHOR]

Fair value, according to Turkey Accounting Standards, is the amount that has to be arisen during an asset is exchanged or a liability settled between knowledgeable and willing parties in an arm's length transaction. Beginning from the year 2005, the quoted companies in ISE have to prepare their financial statements compatible with IFRS. As a result of the financial tables prepared coherent with IFRS, fair value have to be measured and a problem of auditing occurs. The aim of the study is to betray how the independent audit corporations that are active in capital market calculate the fair value and the problems that they face during the auditing. [ABSTRACT FROM AUTHOR]

Since the 1990s, the increase of connections between global markets is accelerating financial globalization. The liberalization of finance and capital markets with developments in information and communication technologies increases the importance of capital flows. Although the most part of capital flows concentrate in developed countries, many developing countries have started to become the important centers for capital flows. Since the collapse of the communist system, there has been seen an increase in capital flows in transition countries. In this study, the effect of financial globalization on the development of financial sector in South East Europe Countries (Albania, Bulgaria, Croatia, Macedonia and Romania) will be analyzed. It is found that financial globalizatian has positive effects on the development of South East Europe in terms of the depth, structure and efficiency of the financial sector. [ABSTRACT FROM AUTHOR]

In recent years, it has been observed that capital markets of countries have been integrated due to regional integration and high trade among countries. For this purpose, the long-run cointegration relationship is investigated between Turkish equity market, the equity markets of 17 European Union member countries and the equity markets of Turkey's 10 largest treading partners. The long-run cointegration relationship are tested using Zivot-Andrews structural break test, Johansen and Gregory-Hansen cointegration tests by using monthly index values for the periods January 1995 to December 2007. The results show that Turkish equity market has a cointegration relationship with the equity markets of 11 European Union countries and the equity markets of 7 counties with which Turkey has a high trade volume. The findings also suggest that Turkey has a high level integration with the countries which have a high trade volume with Turkey. [ABSTRACT FROM AUTHOR]

In Turkey, the companies quoted to İstanbul Stock Exchange (IMKB) have to prepare two different financial statments; the first which is offered to shareholders for disclosure purposes is prepared according to Direction Serial XI No.25 of "Capital Market Board of Turkey" whereas the second which is offered to Ministry of Finance for tax purposes, has its basis on current laws and regulations. The purpose of this study is to find out the sources of the differences (if exists any) between the financial statements specially income statements presented to shareholders and to Ministery of Finance for the period between 2005-2007. The study is composed of two parts; in the first part, all the manufacturing companies both those that make consolidation and those that do not, are examined whereas in the second part only the companies that do not have consolidation requirement are studied. It is found in both parts that significant differences exist between the financial statement presented to shareholders and those presented to Ministry of Finance for all three years. The sources of the differences are found to be the variations in accounting applications and policies of 5 items which are depreciation of intangible assets, allowance for bad debts, accounting of employee benefits, accounting of borrowing costs of capital investments and discounting of financial assets and debts. [ABSTRACT FROM AUTHOR]

24th January 1980 economic stability precautions and regulations such as Foreign Capital Legal Framework have encouraged the entrance of foreign capital into Turkey and helped foreign investors to invest in stocks listed on Istanbul Stock Exchange. As a result foreign investors have increased theri portion gradually in Turkish Capital Markets. In this study the effect of foreign investors trading over Istanbul Stock Exchange (ISE) is investigated by using the monthly data between the January 1997 and September 2007 also and causality relation between the variables are olso taken into account. Our results suggest that there is a long term relation between the foreign investors trading and ISE Trading volume and ISE National 100 index. Besides the variation in foreign investors buying have on effect over ISE Trading Volume and ISE National 100 index. [ABSTRACT FROM AUTHOR]

Hofstede mentioned the culture as "mental programs" or "software of the mind". He also declares the culture is made up of thoughts, feelings and acts (roles). Culture is being learned and individual feels the effects of culture which are being shaped of him in every area of his life. It may not anticipated that the auditor is not carrying his cultural identity onto auditing process who should use his own subjective judgment during the each step of auditing process. So, we assumed that 95 auditing companies which are certified by CMB (Capital Markets Board of Turkey) is our universe in our study. [ABSTRACT FROM AUTHOR]

The first application of International Accounting Standards (IAS) is realized for listed companies. Capital Market Board of Turkey (CMB) issued the regulation which includes Turkish translation of IAS and a communiqué containing financial statement and disclosures formats in consequent of IAS. Doing so, CMB aimed to simplify the first application of standards and provide comparability of financial statements. The first applications consequences are arisen by issued financial statements and audit reports of listed companies. In this article, the harmonization degree of income statements of listed companies in Istanbul Stock Exchange (İES) is analyzed and the reasons of disharmony are stated by examining the issued income statements and audit reports. The observed reporting differences for income statement are examined according to the auditing firms and reports. [ABSTRACT FROM AUTHOR]

An increase in the frequency and severity of natural catastrophes such as earthquake, flood, storm and hurricane has been observed in recent years. Therefore, the amount of economic losses and the amount of insured losses of catastrophes has increased. For this reason, the needs of catastrophe risk financing and catastrophe risks mitigation of insurance and reinsurance firms have appeared clearer and several financial instruments have been developed to meet the needs. One of these instruments is catastrophe bonds. Insurance and reinsurance firms finance their catastrophe risks and also they transfer their catastrophe risks to capital market investors through catastrophe bonds issuing. [ABSTRACT FROM AUTHOR]