Browsing by Subject "Emerging market"

Now showing 1 - 6 of 6

Open Access
The "Dominos" that need to fall into place for a reunification of Korea: making sense of a United Korea
(Routledge, 2013) Harvey, M.; Kiessling, T.; Moeller, M.
With the death of North Korea leader Kim Jong-il, the level of uncertainty will dramatically escalate in an already highly uncertain market. The question becomes, is there a market opportunity for Western organizations, and when should Western organizations attempt to enter North Korea? In addition, there is a large question looming over the potential changes in the country, that being, if and when reunification with South Korea will occur. This article examines the potential of a unified market on the Korean peninsula.
Open Access
Is there a long run relationship between stock returns and monetary variables: evidence from an emerging market
(Routledge, 2001) Muradoğlu, G.; Metin, K.; Argaç, R.
Literature that provides empirical evidence about the long-term relationship between stock returns and monetary variables in emerging markets is limited. In those markets, unlike in mature ones, market participants and the availability of information as well as its quality, change rapidly through time. The purpose of this study is to examine the long-term relationship between stock returns and monetary variables in an emerging market through time by using the cointegration technique. The database is set up at daily frequency of variables that are customarily used by the financial media as determinants of stock investments and the cointegration technique enables us to consider changes in long-run steady-state properties of the equilibrium relationship between the non-stationary stock prices and monetary variables. The findings of this study indicate that, overall results should not be used in formulating investment strategies because they can be misleading in the sense that the variables that explain stock prices might change through time. In the case of ISE, as the market became more mature, the influence of monetary expansion and interest rates disappeared and foreign currency prices regained their expected significance.
Open Access
Measuring the impact of monetary policy on asset prices in Turkey
(2012) Duran, M.; Özcan G.; Özlü P.; Ünalmiş, D.
Little is known about the impact of monetary policy on asset prices in emerging markets. This study applies the heteroscedasticity-based GMM for financial markets in Turkey. The results suggest that event study estimates are biased for some asset returns. © 2011 Elsevier B.V.
Open Access
A note on price-volume dynamics in an emerging stock market
(Elsevier BV, 1996) Başcı, E.; Özyıldırım, S.; Aydoǧan, K.
We present a continuum economy with risk neutral agents having heterogeneous expectations and restricted short sales. A stochastic version of the model is also formulated and the resulting time series behavior of the price and volume series under a specific money supply process derived. The implications of the model are tested in the emerging Turkish stock market where institutional arrangements comply with the restrictions of the model. The results indicate that, as predicted by the model, price levels and trading volume are cointegrated. The error correction models are also estimated and found to be significant in most cases.
Open Access
Sentimental herding in Borsa Istanbul: informed versus uninformed
(Routledge, 2014) Solakoglu, M. N.; Demir, N.
This study searches for sentimental herding in Borsa Istanbul (BIST) using a state-space model for two distinct groups of investors/traders. We expect to find no sentimental herding in BIST30 as the investors are closely following the market, given their access to maximum amount of information and high quality of guidance from the world-known intermediaries that reduce information asymmetries. However, as the SNM investors are mostly local investors with smaller assets and with higher level of information asymmetry, we expect to find evidence of sentimental herding. As expected, we find no evidence of herding by the BIST30 investors from 2000 to 2013. In contrast, our findings provide evidence that the SNM investors demonstrate sentimental herding persistently and independently from market fundamentals in three stages: evidence of herding in the first stage (2000-2004), a 4-year (2005-2008) no-herding calm period and finally a volatile adverse herding pattern (2009-2013) where fundamentals about the firm values became more important.
Open Access
The stock market channel of monetary policy in emerging markets: evidence from the Istanbul Stock Exchange
(2007) Berument, Hakan; Kutan, A. M.
Studies on the existence of the stock market channel of monetary policy in emerging markets are scant. We examine the impact of monetary policy on stock returns in Turkey's emerging economy during the post-1980 liberalization period. Evidence indicates that monetary policy affects returns with the strongest influence on the Financial and Services sectors. However, the impact is short lived, ranging between 9 and 24 months, depending upon the index used, suggesting that monetary policy is neutral. Overall, the results indicate that asset prices may provide an additional channel through which monetary policy affects short-run economic activity and hence business cycles. Given the increasing role of the stock market in emerging economies and the greater globalization of financial markets in general, central banks in these countries are well advised to pay close attention to the impact of stock market developments on economic activity, besides their traditional focus on the bond and foreign exchange markets.