- United Kingdom
Yhlas Sovbetov
London School of Commerce (LSC), Economics, Faculty Member
This paper investigates impact of e-economic activities on female employment rates in Turkey over 1994–2016. The analysis unveils three major findings. First, 80.74% of variations in female employment are accounted by e-commerce and... more
This paper investigates impact of e-economic activities on female employment rates in Turkey over 1994–2016. The analysis unveils three major findings. First, 80.74% of variations in female employment are accounted by e-commerce and control variables. Second, Autoregressive Distributed Lag analysis documents that these series (female employment, e-commerce and control variables) are cointegrated, thus, a unit increase in per credit card e-commerce transactions leads the female employment rate to grow by 0.13 units in long-run at 1% significance level, whereas a percentage increase in internet penetration rate in Turkey augments the rates by 0.33%. Third, error-correction model analysis refers that the system quickly corrects its previous period disequilibrium converging at a speed of 75.43%, and also documents that the lags of per credit card e-commerce jointly have short-run impact on female employment rates. Thus, the study concludes that developing e-commerce incentivizing policies might help to empower women in Turkey significantly.
Research Interests:
This paper examines factors that influence prices of most common five cryptocurrencies such Bitcoin, Ethereum, Dash, Litecoin, and Monero over 2010-2018 using weekly data. The study employs ARDL technique and documents several findings.... more
This paper examines factors that influence prices of most common five cryptocurrencies such Bitcoin, Ethereum, Dash, Litecoin, and Monero over 2010-2018 using weekly data. The study employs ARDL technique and documents several findings. First, cryptomarket-related factors such as market beta, trading volume, and volatility appear to be significant determinant for all five cryptocurrencies both in short- and long-run. Second, attractiveness of cryptocurrencies also matters in terms of their price determination, but only in long-run. This indicates that formation (recognition) of the attractiveness of cryptocurrencies are subjected to time factor. In other words, it travels slowly within the market. Third, SP500 index seems to have weak positive long-run impact on Bitcoin, Ethereum, and Litcoin, while its sign turns to negative losing significance in short-run, except Bitcoin that generates an estimate of -0.20 at 10% significance level. Lastly, error-correction models for Bitcoin, Etherem, Dash, Litcoin, and Monero show that cointegrated series cannot drift too far apart, and converge to a long-run equilibrium at a speed of 23.68%, 12.76%, 10.20%, 22.91%, and 14.27% respectively.
Research Interests:
This paper investigates both short and long-run interaction between BIST-100 index and CDS prices over January 2008 to May 2015 using ARDL technique. The paper documents several findings. First, ARDL analysis shows that 1 TL increase in... more
This paper investigates both short and long-run interaction between BIST-100 index and CDS prices over January 2008 to May 2015 using ARDL technique. The paper documents several findings. First, ARDL analysis shows that 1 TL increase in CDS shrinks BIST-100 index by 22.5 TL in short-run and 85.5 TL in long-run. Second, 1000 TL increase in BIST index price causes 25 TL and 44 TL reducation in Turkey's CDS prices in short-and long-run respectively. Third, a percentage increase in interest rate shrinks BIST index by 359 TL and a percentage increase in inflation rate scales CDS prices up to 13.34 TL both in long-run. In case of short-run, these impacts are limited with 231 TL and 5.73 TL respectively. Fourth, a kurush increase in TL/USD exchange rate leads 24.5 TL (short-run) and 78 TL (long-run) reductions in BIST, while it augments CDS prices by 2.5 TL (short-run) and 3 TL (long-run) respectively. Fifth, each negative political events decreases BIST by 237 TL in short-run and 538 TL in long-run, while it increases CDS prices by 33 TL in short-run and 89 TL in long-run. These findings imply the highly dollar indebted capital structure of Turkish firms, and overly sensitivity of financial markets to the uncertainties in political sphere. Finally, the paper provides evidence for that BIST and CDS with control variables drift too far apart, and converge to a long-run equilibrium at a moderate monthly speed.
Research Interests:
This paper studies the macroeconomic impact of economic freedom on foreign direct investments inflows in both global and regional panel analyses involving 156 countries through the period of 1995-2016. Unlike to prior literature, it... more
This paper studies the macroeconomic impact of economic freedom on foreign direct investments inflows in both global and regional panel analyses involving 156 countries through the period of 1995-2016. Unlike to prior literature, it includes often neglected nations such as Fragile and Conflict-Affected states, Sub-Saharan, Oceanian, and Post-Soviet countries. The paper finds a positive impact of economic freedom on FDI under fixed-effects model in global case where a unit change in economic freedom scales FDI inflows up to 1.15 units. More specifically, all 9 regions also refer to positive and significant impact of economic freedom on FDI. The highest impact is recorded in European countries, whereas the lowest ones are documented in Fragile-Conflict affected states, Sub-Saharan zone, and Oceanian countries.
Research Interests:
This paper investigates impact of e-economic activities on female employment rates in Turkey over 1994–2016. The analysis unveils three major findings. First, 80.74% of variations in female employment are accounted by e-commerce and... more
This paper investigates impact of e-economic activities on female employment rates in Turkey over 1994–2016. The analysis unveils three major findings. First, 80.74% of variations in female employment are accounted by e-commerce and control variables. Second, Autoregressive Distributed Lag analysis documents that these series (female employment, e-commerce and control variables) are cointegrated, thus, a unit increase in per credit card e-commerce transactions leads the female employment rate to grow by 0.13 units in long-run at 1% significance level, whereas a percentage increase in internet penetration rate in Turkey augments the rates by 0.33%. Third, error-correction model analysis refers that the system quickly corrects its previous period disequilibrium converging at a speed of 75.43%, and also documents that the lags of per credit card e-commerce jointly have short-run impact on female employment rates. Thus, the study concludes that developing e-commerce incentivizing policies might help to empower women in Turkey significantly.
Research Interests:
The paper examines macroeconomic factors influencing cross-border M&A over 1990-2015 by sampling 5512 worldwide M&A transactions. Using gravity model with a negative binomial approach, the paper finds that the acquiring firms tend to... more
The paper examines macroeconomic factors influencing cross-border M&A over 1990-2015 by sampling 5512 worldwide M&A transactions. Using gravity model with a negative binomial approach, the paper finds that the acquiring firms tend to target firms from other nations where (a) per capita GDP is higher; (b) national money is weaker; (c) inflation rates are lower; (d) economic freedom index score is higher; and (e) national stock market capitalization is relatively smaller; than their own country (the acquirer's country). Besides, the paper also finds that the acquiring firms are more likely to target firms from other nations which (f) are geographically closer in terms of distance; (g) have common geographic borders; (h) have larger population; and (i) have common languages with the acquirers.
Research Interests:
This paper studies impact of employee happiness on stock prices. Using Carhart’s (1997) four-factor analysis, we document an existence of 0.3160% monthly (3.86% annualized) abnormal returns in equal-weighted portfolio of the “Best 100... more
This paper studies impact of employee happiness on stock prices. Using Carhart’s (1997) four-factor analysis, we document an existence of 0.3160% monthly (3.86% annualized) abnormal returns in equal-weighted portfolio of the “Best 100 Companies to Work For” during 2001-2015 periods. Additionally, we shows that this monthly alpha can be maximized up to 0.3385% (3.77% annualized) just by altering weights of portfolios on the basis of firms' list rankings.
Besides, the paper also sheds light on superiority/inferiority of newcomer/dropped firms in terms of earning abnormal returns. We observe that ranking-weighted newcomers' portfolio generate 0.3806% monthly (4.66% annualized) four-factor alpha, while dropped firms' portfolio gets a negative monthly alpha of 0.1755% (-2.09% annualized).
Lastly, our longevity analysis reveals inefficiency of market in valuing intangibles immediately. The findings indicate that appearing on the happiest list creates a value, but the market assimilates it only after 27 months.
Besides, the paper also sheds light on superiority/inferiority of newcomer/dropped firms in terms of earning abnormal returns. We observe that ranking-weighted newcomers' portfolio generate 0.3806% monthly (4.66% annualized) four-factor alpha, while dropped firms' portfolio gets a negative monthly alpha of 0.1755% (-2.09% annualized).
Lastly, our longevity analysis reveals inefficiency of market in valuing intangibles immediately. The findings indicate that appearing on the happiest list creates a value, but the market assimilates it only after 27 months.
Research Interests:
This paper examines a value creation of brand intangible on stock prices under existing (Carhart's Four-Factor Model) and a new asset pricing methodologies. The study produces several outcomes. First, a new model, which accounts the risks... more
This paper examines a value creation of brand intangible on stock prices under existing (Carhart's Four-Factor Model) and a new asset pricing methodologies. The study produces several outcomes. First, a new model, which accounts the risks that are attributable to intangible assets, adds a significant explanatory power to the existing model. Second, an equal-weighted portfolio of “Top 100 Global Brands” list generates positive and significant abnormal returns over the benchmark. Third, the paper documents superiority of newcomers' portfolio and a failure of dropped firms' portfolio. Fourth, the analysis finds that the list ranking does not matter in terms of higher abnormal returns, which, in turn, implies only remarkable appreciations and depreciations in brand equity create a value on stocks. Fifth, the industrial analysis finds that a value creation of brand intangibles cannot be labelled to a specific industry, but it mostly occurs in sin, automotive, luxury and apparel, and technology industries. Whereas the regional analysis reveals a lesser efficiency of American stock market vis-a-vis European and Asian ones.
Research Interests:
This paper examines influences of brand dynamics on insurance premium productions in Turkey using a dynamic GMM panel estimation technique sampling 31 insurance firms over 2005-2015. The results reveals that brands trust appears as a... more
This paper examines influences of brand dynamics on insurance premium productions in Turkey using a dynamic GMM panel estimation technique sampling 31 insurance firms over 2005-2015. The results reveals that brands trust appears as a chief driving force behind premium production where its unit increase augments premium outputs by 5.32 million Turkish Liras (TL). Moreover, the brand value of firms also appears a statistically significant determinant of premium sales, but its size impact remains limited comparing to brand trust, i.e. a million TL increase in brand value generates only 0.02 million TL increase in sales. On the other hand, the study also documents a strong momentum driven from past years premium production with trade-off magnitude of 1 to 0.85. This might imply a higher loyalty-stickiness of customers in Turkey, as well as a self-feeding "bandwagon effect".
The firms can increase their capital by 2 ways: issuing bonds or issuing shares. The relation between them determines the leverage of the firm. Till recent years, firms were considering the leverage balance while they planned to increase... more
The firms can increase their capital by 2 ways: issuing bonds or issuing shares. The relation between them determines the leverage of the firm. Till recent years, firms were considering the leverage balance while they planned to increase the capital. But in recent years, asset financing with debt has exceeded the equity one. The reasons of this, can be pointed as new innovations in the financial markets and new understanding of the capital structure theory. The main understanding was high geared companies have high risk of capital structure, so that shareholders will require risk premium for the extra risks. But the modern understanding of the capital structure by Modigliani and Miller which makes the leverage risk irrelevant was the first challenge against the distinctions between debt and equity. The theory says that financing with debt or equity won't affect the cost of capital.
This paper has two contributions to the International Financial Reporting Stands (IFRS) adoption literature. First is the scrutinizing impact of IFRS adoption on value relevance in the UK with TEST-A analysis under the H 01 hypothesis.... more
This paper has two contributions to the International Financial Reporting Stands (IFRS) adoption literature. First is the scrutinizing impact of IFRS adoption on value relevance in the UK with TEST-A analysis under the H 01 hypothesis. The second contribution is capturing the impact of IFRS adoption on key financial indicators of firms with the TEST-B analysis that hypothesizes H 02 .The statistical differences of items of two different reporting standards are examined with non-parametric tests as all input variables failed the Shapiro-Wilk and Lilliefors normality tests in TEST-A. The finding rejects the H 01 hypothesis for BvMv, and agrees that IFRS has impact on value relevance. Besides, Ohlson's (1995) model documents that the coefficient of dummy variable (MODE) is positive. Therefore, the analysis concludes that IFRS has positive impact on value relevance. The aftermath of TEST-B rejects the H 02 hypothesis for all profitability ratios (ROE, ROCE, ROA, PM) and gearing ratios (GR). It concludes that profitability and gearing ratios are affected by IFRS adoption, whereas efficiency-liquidity ratios are not. Also, in Forward Stepwise regression analysis only ROCE, ROA, and PM ratios show significant results. The analysis documents positive and significant impact of IFRS on these three ratios.