Scholarly Publications - Management
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Item Open Access Implementation of fuzzy aggregation operators in group decision making for investment analysis(2024-11-15) Aliyeva, Aida; Aliyeva, Kamala; Aliyev, Rashad; Özdeşer, MustafaIn many cases, experts involved in a group run out of comprehensive knowledge about a complex problem to make a reasonable collective decision. Since its inception, the experts’ preferences in decision making process were to represent their opinions mostly in qualitative and quantitative forms of information, but in case the representation of experts’ views will be unable for quantitative decision analysis, the linguistic terms can be successfully used instead. In a lot of group decision making problems, especially in the last two decades, the significance of criteria is determined in fuzzy environment to evaluate the alternatives performance. The application of classical group decision making techniques indisputably demonstrates the ineffectiveness of solving a complex human-centric problems to properly represent the aggregation of experts’ opinions which are mostly evaluated subjectively, to reach the consensus in selection the best group result in the presence of imprecise and ambiguous data, and to rank the alternatives from most favorable to least favorable or inversely in accordance with their priority. For this purpose, the fuzzy group decision making techniques have gained immense popularity and have been successfully applied in such fields of science as engineering, business, sociology, education etc. Gathering fuzzy information from a group of decision makers to develop a combined opinion or judgment is an important problem in expert system theory to get a more complete and rational solution to decision making problem. The present study investigates the fuzzy aggregation operators applied in group decision making for investment analysis. The systematic sorting and ranking of approaches that deal with fuzzy aggregation is represented. The effectiveness of aggregation operators is demonstrated through a provided numerical example.Item Embargo Investor attention and environmental information disclosure quality: Evidence from heavy pollution industries in China(Wiley, 2024-07) Yao, Shouyu; Li, Tong; Şensoy, Ahmet; Fang, Zhenming; Cheng, FeiyangUsing listed firms from 16 heavy pollution industries in China, we show that investor attention can significantly improve the quality of corporate environmental information disclosure. By examining the heterogeneity effects of investor attention under different firm characteristics, locations, and external supervision, we reveal that this improvement effect is more pronounced for smaller firms, state-owned enterprises, firms with weaker corporate governance, and firms located in China's western regions (regions with poor economic development). We further find that public's attention to environmental issues promotes the investor attention level on firms in heavy pollution industries, thus improving firms' environmental information disclosure quality. Overall, our results emphasize the role of external investor attention on corporate environmental issues. © 2023 John Wiley & Sons, Ltd.Item Embargo Unveiling financial inclusion dynamics: Fintech's resonance in Association of Southeast Asian Nations (ASEAN)(John Wiley & Sons Ltd., 2024-03-27) Ha, Dao; Nguyen, Mai; Nguyen, Kim; Şensoy, AhmetThis article examines the determinants of financial inclusion in the Association of Southeast Asian Nations (ASEANs), with a particular focus on the role of financial technology (fintech). We constructed an extensive and up-to-date Global Financial Inclusion database (2011, 2014, 2017, and 2021) to generate 26,185 observations for seven ASEAN countries over a decade, and conducted a separate case study for Singapore, the region's most financially developed member. The results reveal that financial inclusion and financial technology have experienced robust growth in ASEAN but to varying degrees amongst the member countries. Fintech has a significant impact on financial inclusion over the specified period. The relationship between age and financial inclusion follows an inverted U-shaped pattern, with the turning point occurring between the ages of 29 and 45. Surprisingly, gender does not appear to be a determining factor. These results align with the aspirations of ASEAN policymakers to promote financial inclusion in line with the sustainable development goals.Item Embargo Process choice under asymmetric competition with exogenous and endogenous product success probabilities(Elsevier BV, 2024-07-02) Limon, Yasemin; Tang, Christopher S.; Tanrısever, FehmiTo develop novel products in a competitive market, firms are under pressure to reduce their time-to-market by adopting a "concurrent process"that involves an upfront investment to speed up the process by conducting the final stage of development and production simultaneously. While the concurrent approach provides a time advantage, it involves a financial risk because, unlike the "sequential process"under which the production process will begin only after the new product passes the requisite tests, the firm cannot recoup the upfront production-related investment should the product fail the qualification or market test. Given this trade-off and the uncertain success of the product, should a firm adopt the concurrent process in a competitive market with asymmetric market shares and impatient consumers? Also, how would a firm's development strategy change if the probability of product success can be controlled through research investments? We provide a 2-stage (or 3-stage) duopoly game for the case when the product success probabilities are exogenously given (or endogenously determined). For both settings, in equilibrium, the concurrent process may be adopted by either one, both, or neither of the firms. Also, even when firms are symmetric, asymmetrical equilibria can emerge that have exactly one firm adopting the concurrent process. When the market-laggard firm has a higher exogenous success probability, a "catch-up"strategy can emerge that has the laggard firm adopt the concurrent process and the market-leading firm adopt the sequential process. This catch-up strategy cannot be sustained as a unique equilibrium when the success probabilities are endogenously determined.Item Open Access Conceptual model generation of the relationship between digital marketing capability and business performance: evidence from Turkey(Emerald Publishing Limited, 2025-01-23) Acayip, Esma; Kırselioğlu, Dilşad; Akel, GökhanPurposeThe study develops a model that associates digital marketing capabilities with customer relations orientation, technology orientation and social customer relationship management (CRM) competence with business performance, considering market environment factors. It also aims to contribute to the literature with dynamic capability theory by testing this model.Design/methodology/approachThe model suggested is tested by data obtained online from a sample of 178 Turkish companies that use digital marketing tools. The data obtained were analyzed using the structural equation model (SEM).FindingsIn this study, it has been determined that digital marketing capabilities affect business performance. Also, a positive moderating effect of dynamism is seen in the relationship of digital marketing capabilities with business performance. Also, technology orientation, social CRM competence and customer relations orientation affect and explain digital marketing capabilities as antecedents.Research limitations/implicationsThe study only focuses on Turkish companies, and no distinction has been made in terms of business type/size. Also, since this research was carried out during the COVID-19 pandemic, the data may have been affected by this period.Originality/valueContextual and methodological research gaps still exist in digital marketing capabilities literature. This study is evaluating Turkish companies' digital marketing capabilities with business performance, and in the context of Turkey, it is important for other developing countries with a similar market environment. Also, it contributes to the dynamic capabilities theory literature by constructing a novel conceptual model examining the relationship among dynamic digital marketing capabilities, their antecedents and business performance.Item Open Access "I crossed my own line, but here is what i do": the moral transgressions of sustainable fashion consumers and their use of alternating moral practices as a cognitive-dissonance-reducing strategy(Springer Dordrecht, 2025-02) Çelik, Hafize; Ekici, AhmetDrawing on the notion of ethical subjectivity (Foucault, in Fruchaud, Lorenzini (eds) Discourse and truth and parr & emacr;sia. The University of Chicago Press, 1983; Foucault, in Rabinow (ed) Essential works of Foucault 1954-84, The New Press, 1997), cognitive dissonance theory (Festinger, A theory of cognitive dissonance, Stanford University Press, 1957) and transgressive behaviours (Jenks, Transgression, Routledge, 2003), this research addresses the empirical question of how regular consumers of sustainable fashion overcome cognitive dissonance when they transgress their own code of conduct in sustainable fashion consumptionscapes. We utilize a top-down thematic analysis (Braun and Clarke, Qual Res Psychol 3:77-101, 2006) of 20 semi-structured existential-phenomenological interviews (Cherrier, Harrison, Newholm, Shaw (eds) The ethical consumer, SAGE Publications, 2005) and depict a novel, behavioural-level, practice-based cognitive-dissonance-reducing strategy that we term the strategy of alternating moral practices. We demonstrate this dissonance-reducing strategy to be more than just a withdrawal from the value systems attributed to sustainable fashion consumption, either temporary or permanent. Rather, regular consumers of sustainable fashion demonstrate hands-on efforts to find ways of doing that manifest an alternative ethical behaviour. This strategic action is, in turn, held to be enhancing the ethical subjectivities of the consumers. Theoretical discussions of the relationship between these expanded ethical subjectivities and their host consumptionscapes are provided. Using this new approach to understanding transgressive behaviours in the market for sustainable fashion, a range of directions for future research are suggested.Item Embargo Anatomy of sovereign yield behaviour using textual news(Elsevier Inc., 2024-08) Banerjee, Ameet Kumar; Pradhan, H. K.; Akhtaruzzaman, Md; Şensoy, Ahmet; Dann, SusanWhile the relationship between the information content of macroeconomic news and the behavior of asset prices has been studied extensively in the finance literature, this study provides a new perspective by examining the impact of textual news on sovereign bond yield spreads in an emerging country. This study used bond market news published in newspapers to develop the sentiment scores using a modified word dictionary to unravel news characteristics. A nonlinear regime-shifting regression model of Markov Regime Shifting (MRS) is used to understand the impact of news on sovereign bond yield spreads. The paper results show that textual news sentiment may explain both steepening and flattening of the yield curve, with monetary and fiscal policy news having the most significant impact on yield spread behaviour. The results hold key implications for policymakers, debt fund managers and other market participants.Item Embargo Risk sharing framework and systemic tolerance in Indian banks: Double layer network approach(Elsevier Inc., 2025-01) Banerjee, Ameet Kumar; Rahman, Molla Ramizur; Misra, Arun Kumar; Şensoy, AhmetInterconnectedness spreads systemic risk and is critical in enhancing banks' systemic tolerance through interbank liquidity and lines of credit. Literature on systemic risk has not considered the importance of interconnectedness in providing liquidity to improve banks' systemic tolerance. As a bank's resistivity towards systemic disruption depends on its tolerance, the current article develops a model to measure the systemic tolerance of individual banks in a two-layer interbank network using Delta CoVaR. It estimates systemic tolerance distance through a risk-sharing framework and analyzes the significance of macroeconomic and bank-specific factors in explaining systemic tolerance. The results support that systemic tolerance values are higher during the downcycle than the up-cycle, signaling the importance of interconnectedness in protecting against systemic crises. The empirics further substantiate that risk-sharing distance is lower, and structure is complex with clusters during economic down-cycle. This highlights that banks couple with each other during stressful environments and empirically validate the importance of interbank and lines of credit in enhancing systemic tolerance and, therefore, possess the regulator to develop a robust interbank market through regulatory guidelines.Item Embargo Bank ownership, credit supply volatility, and macroeconomic volatility(Elsevier BV, 2024-07) Önder, Zeynep; Özyıldırım, SüheylaWe examine the real effects of credit supply volatility in emerging economies. In countries with highly effective governments, government-owned banks play a significant role in reducing the effect of credit supply volatility on macroeconomic volatility. Conversely, foreign banks do not significantly change this effect. Furthermore, the presence of government-owned banks as development banks plays a positive role in stabilizing the economy during a sovereign or currency crisis. In countries where foreign banks dominate the banking sector, these banks amplify the adverse effect of a volatile credit supply on the volatilities in output, consumption, and investment growth rates, especially during a banking crisis.Item Open Access Furloughing employees with uncertain return? Management of labor frictions and inventory under demand shock(Sage Publications, Inc., 2024-11) Tanrısever, Fehmi; Joglekar, NitindraWe assess how a retailer can manage inventories and labor under an extreme condition such as a temporary negative demand shock due to a pandemic or an economic turmoil. This analysis incorporates labor market frictions whereby firms incur deadweight costs associated with hiring and firing employees, as well as the option to furlough labor. We examine the impact of these frictions on a retail firm's optimal operating policies around inventory level, furlough, and layoffs. We find that labor market frictions condition the inventory and the level of employment in two ways. First, they lead to underinvestment in inventories, which limits recovery and employment in the postshock period. Second, high labor market frictions motivate the firm to conservatively downsize workforce during the negative demand period leading to higher employment, when compared to downsizing without friction. A significant contribution of our study lies in delineating the optimal furlough decisions and quantifying the impact of the furlough option on inventory and labor decisions. We demonstrate the conditions under which it is optimal for the retailer to either (i) fully downsize labor and leverage the furlough option in the labor market, or (ii) maintain excess labor while also opting to furlough a portion of the workforce. During an extreme event such as a temporary negative demand shock, our results highlight the need for a coordinated effort when implementing governmental subsidy policies on alleviating labor and inventory reductions by accounting for labor market frictions and furlough support.Item Embargo Climate change exposure and cost of equity(Elsevier, 2024-02) Çepni, Oğuzhan; Şensoy, Ahmet; Yilmaz, Muhammed HasanIn this study, we investigate the association between climate change exposure and the cost of equity financing. Using a novel dataset of US firm-level exposure to climate change risks, we find that higher exposure to climate risks co-exists with higher financing costs for the period 2010 through 2021. While the effect of physical and regulatory risks is rather muted, the main mechanism shaping financing costs stems from climate transition risk driven by uncertainty about new business opportunities. Our results are not compromised by endogeneity concerns as shown by alternative methods such as entropy balancing, instrumental variable regression, dynamic panel estimation and a difference-in-differences setting. We also document that the link between climate change exposure and the cost of equity financing is more prominent for firms facing higher attention to climate topics, a stronger realization of climate change and more problematic financing constraints.Item Embargo Extant linkages between Shanghai crude oil and US energy futures: Insights from spillovers of higher-order moments(Elsevier, 2024-08) Banerjee, Ameet Kumar; Dionisio, Andreia; Şensoy, Ahmet; Goodell, John W.This study is epicentral to analyzing the impact of futures volatility on portfolio and risk management, as extant literature indicates the challenges of using economic variables that fall short of forecasting volatility beyond lagged values. Further, higher moments may be better adaptive to signaling distress during market upheavals. This paper sources data from Bloomberg from March 26, 2018–April 28, 2023, to examine the dynamic spillovers of higher moments among Shanghai International Energy Exchange and US energy futures contracts by constructing realized skewness and kurtosis. Using nonlinear techniques of mutual information and time-varying vector autoregression (TVP-VAR), we show that realized skewness and kurtosis offer significant information on spillover transmission between the two futures markets, primarily through the crises of COVID-19 and the Russia and Ukraine war. Further, we identify that the risks embedded in these future contracts have increased significantly. Our results have important implications for policymakers, investors, and risk managers.Item Open Access Robust portfolio optimization with fuzzy TODIM, genetic algorithm and multi-criteria constraints(Springer New York LLC, 2024-03-27) Banerjee, A. K.; Pradhan, H. K.; Şensoy, Ahmet; Fabozzi, F.; Mahapatra, B.This paper adopts the multi-criterion decision-making model of fuzzy-TODIM and geneticalgorithm (GA) for optimal portfolio allocation. We applied Markowitz’s portfolio parame-ters as inputs for the fuzzy TODIM model to rank stocks that are constituents of each indexfrom three different markets. Portfolios are then generated dynamically using three weightingtechniques and subject to multi-objective criteria and additional constraints. The results indi-cate a significant variation in performance metrics between the model-generated portfoliosand the market indices. Replication of the procedure produces a similar outcome. Moreover,the out-of-sample tests conducted over 3 years validate the results’ robustness, indicating thatfuzzy TODIM, combined with GA, can achieve superior performance in dynamic portfolioallocation.Item Open Access How did credit guarantee fund supports affect the bank-loan network in Türkiye?(Elsevier BV, 2024-12-10) Topaloğlu Bozkurt, Ayça; Özyıldırım, SüheylaUsing granular data from the Turkish banking system, we investigate the effect of credit guarantee schemes (CGSs) in 2017 and early 2018 on bank connectedness originating from common borrower firms. Our empirical findings show that the CGSs affect the connectedness of banks differently. While CGSs significantly increases the connectedness of large and small banks, they do not have a significant effect on medium-sized banks. In addition, the connectedness of state-owned banks and private domestic banks are significantly increased with the CGSs. Moreover, the CGSs increase the centrality of the strongly connected banks, while they do not have a significant effect on the centrality of the moderately or weakly connected banks. Finally, we find that the negative relation between the connectedness of the banks and the bank loan portfolio riskiness strengthens with the CGSs.Item Open Access Newsvendor decisions under incomplete information: behavioural experiments on information uncertainty(Oxford University Press, 2024-04-25) Kocabıyıkoğlu, Ayşe; Önkal, D.; Göğüş, Celile Itır; Gönül, M. SinanAccepted by: Aris Syntetos Exploring the effects of information uncertainty presents an extensive challenge to decision makers. This study presents a set of behavioural experiments that examine the impact of incomplete information on newsvendor decisions. Findings show that orders deviate from normative benchmarks when decision makers have incomplete information and this tendency is stronger when the demand distribution is not known. Comparison of decisions under incomplete information against behavioural benchmarks with full and no information reveal that the availability of price and cost information brings decisions significantly closer to normative levels when the underlying demand distribution is unknown. On the opposite spectrum, when demand information is available, not knowing price or cost does not lead to worse decisions. Analysing newsvendor profits under various information conditions, we find participants capture at most 84% of earnings they could have generated if they ordered the normative quantity in high-profit margin settings; the corresponding percentage is 51% in low-profit margin settings. Our results suggest decreasing uncertainty on the demand distribution has a consistently positive impact on profits, while uncertainty about cost or price does not have a significant effect. Implications of our findings on the differential impact of incomplete information are discussed via the backdrop of the prevalence of newsvendor framework across a wide range of operational decisions.Item Open Access Neocoloniality of marketing communications in the global south(Springer Nature, 2024-04-21) Ger, GülizMarketing communications, like other cultural products and popular culture, shape and are shaped by the society that produces them. They mirror the predominant values, worries, aspirations, and ideals of a society.Item Embargo Unknown unknowns: knightian uncertainty and corporate opportunistic earnings management(Wiley, 2024-01-01) Yao, Shouyu; Xie, Xiaochen; Boubaker, Sabri; Şensoy, Ahmet; Cheng, FeiyangUncertainty is inherent in the real world. Faced with Knightian uncertainty caused by many extreme events, this paper focuses on the analysis of corporate opportunistic earnings management behaviour under the unknown unknowns framework. This paper finds that with an increase in market Knightian uncertainty, corporations will significantly adopt both accrual earnings management and real earnings management. More importantly, when compared with upward earnings management, the results indicate that Knightian uncertainty will lead corporations to implement more downward earnings management. Our results are consistent with the big bath theory, which is also verified through the adjustment of non-recurring profit and loss accounts. To understand the real process of earnings management, we also discuss the strategic choice behaviour of earnings management under different heterogeneous situations.Item Open Access Economic policy uncertainty and options market participation: hedge or speculation?(Elsevier, 2024-04-16) Wang, Chunfeng; Li, Tong; Şensoy, Ahmet; Cheng, Feiyang; Fang, ZhenmingUsing data from the Shanghai Stock Exchange 50 exchange-traded fund (SSE 50 ETF) options, we examine the impact of economic policy uncertainty (EPU) on options market participation. We find that increased EPU significantly induces investor participation in the options market, and this positive effect remains significant over the following three months. Further investigation shows that EPU significantly increases the ratio of trading volume to open interest in SSE 50 ETF options but has no significant impact on the demand for bearish hedging. Moreover, EPU's stimulatory effect on investor participation is stronger during periods of higher investor sentiment. These findings suggest that increased investor participation in the options market during periods of high economic uncertainty is due to speculative trading rather than hedging.Item Open Access Option-based variables and future stock returns in normal times and recessions(Elsevier, 2024-10) Açıkalın, Özgür Şafak; Önder, ZeynepWe examine the prediction of future returns of optionable stocks trading in the US exchanges by several option-based variables for the period between 1996 and 2015. It is found that option-based variables are significant factors in estimating future stock returns in normal periods and during recessions. The spread between weighted averages of implied volatilities calculated with all call and put options of underlying stocks is found to have the highest effect on future stock returns. Although the mean squared errors of the option models are significantly higher during recessions than the expansion periods, the model with option-based variables outperforms the market model and the Fama-French Three Factor Model in both recessions and the whole sample period. The findings suggest that option-based models incorporate information about extreme events more than the traditional models.Item Embargo Volatility spillovers and hedging strategies between impact investing and agricultural commodities(Elsevier BV, 2024-07) Banerjee, Ameet Kumar; Akhtaruzzaman, Md; Şensoy, Ahmet; Goodell, John W.We examine spillover and hedging among impact investing and agricultural commodities. Results demonstrate that impact investing is a prominent spillover transmitter during both calm conditions and crises, while agricultural commodities are typically receivers. Analysis indicates that hedging effectiveness is enhanced by portfolios containing impact investing and agricultural products, with this more so during crises. Additionally, analysis reveals that irrespective of position on the risk aversion spectrum, investors gain utility substantially by including impact investing and agricultural assets, even considering transaction costs. These findings add to the extant literature and offer practical implications for investors, fund managers, and policymakers regarding risk management perspectives and portfolio diversification.