The factors influencing the decision to list on Abu Dhabi securities exchange

The Abu Dhabi Securities Exchange is established to fund corporates, investments and economic growth. However, many companies operating in Abu Dhabi do not take the opportunity and list in the market. In this paper we survey a sample 145 chief executive officers and deputies of the CEO’s in order to explain why firms refrain from going public and float their equity in the market. Our findings indicate that the poor quality of the Abu Dhabi equity market in terms of its inefficiency and inadequate liquidity plays a crucial role in discouraging firms to list in the market. Moreover, management do not list in order to avoid dilution of ownership as well as to retain control of the company. Finally, we find that knowledgeable managers in big companies are more likely to list in the market particularly when they operate in a competitive industry

Economy Program in Turkey

In Turkey, many important steps have been taken towards restructuring the banking sector within the framework of "Transition to the Strong Economy Program" which was put into practice after the economic crisis at the beginning of the 2000s. The positive effects of the program have begun to be seen from the mid-2000s however, there has been a decline in bank profitability. This study takes into consideration the heterogeneity in terms of bank profitability and separate the sector into two groups as low and high profitable banks. In this context, utilizing the panel GMM estimation methods the effects of bank-specific, sector-specific and macroeconomic variables on bank profitability in Turkey were analyzed during the period 2006-2016. The findings reveal significant policy implications for the banking sector.C1 [Ciftci, Cemil] Pamukkale Univ, Dept Econ, Denizli, Turkey.[Durusu-Ciftci, Dilek] Pamukkale Univ, Dept Int Trade & Finance, Denizli, Turkey

Does Income Convergence in Turkey? an Empirical Assessment

Turkey has recorded high growth rates during last two decades that have led to a structural change in the income level of the provinces. This shift arises to the question of whether the regional disparities in Turkey converge or diverge. The growth performance of Turkey has also led to change the structure of the economy which results in the move from rural areas to urban areas. The empirical examination of the income convergence in Turkey thereby seems to be timely and important in order to provide insights for analyzing the causes and consequences of regional disparities and connecting a link between economic growth and urbanization. We collect the per capita income data of 73 provinces during the period 19922013 and estimate different econometric models by controlling for structural changes in the income. The results overall provide an evidence on the income divergence between the east and west of Turkey. We discuss why Turkish urbanization which is in tandem with economic development process is not a stand-alone for the convergence and discover that the region-specific structural characteristics (the geographical conditions, the terrorist incidents, the regional investment policies, and the horizontal imbalances) seem to be still prevailing.C1 [Durusu-Ciftci, Dilek; Nazlioglu, Saban] Pamukkale Univ, Dept Int Trade & Finance, TR-20070 Denizli, Turkey

Revisiting energy intensity convergence: new evidence from OECD countries.

In this study, we examine the energy intensity convergence in OECD countries within the context of recent developments in unit root analysis by paying attention to modeling structural shifts. We collect the total primary energy consumption/GDP data of 27 OECD countries during the period 1980-2014. The findings indicate that controlling for shifts plays a crucial role, and different approximations in modeling breaks lead to changes in inferences. In conclusion, we present some policy proposals

Financial development and economic growth: Some theory and more evidence

This study contributes to understanding the role of financial development on economic growth theoretically and empirically. In the theoretical part of the paper, by developing a Solow Swan growth model augmented with financial markets in the tradition of Wu, Hou, and Cheng (2010), we show that debt from credit markets and equity from stock markets are two long run determinants of GDP per capita. In the empirical part, the long-run relationship is estimated for a panel of 40 countries over the period 1989-2011 by means of Augmented Mean Group (AMG) and Common-Correlated Effects (CCE), both of which allow cross-sectional dependencies. While the cross-sectional findings vary across countries, the panel data analyses reveal that both channels have positive long-run effects on steady-state level of GDP per capita, and the contribution of the credit markets is substantially greater. As a policy implication, we recommend that policy makers place special emphasis on implementing policies that result in the deepening of financial markets, including institutional and legal measures to strengthen creditor and investor rights and contract enforcement. Thus, by fostering the development of a country's financial sector, economic growth will be accelerated. (C) 2016 The Society for Policy Modeling. Published by Elsevier Inc. All rights reserved

structural shifts and causal linkages

This study examines the dynamic interrelationships among financial development, energy consumption, and economic growth in emerging markets by focusing on accounting for structural changes in causal linkages. We first employ the Toda-Yamamoto causality framework and then augment it with a Fourier approximation which captures structural shifts as a gradual/smooth process. The empirical findings show that taking into account gradual structural shifts matters for the causal linkages between financial development and energy consumption. While the causality analysis which does not account for structural changes supports a causality between financial development and energy consumption only in 4 out of 21 emerging markets, the causality analysis with structural changes provides a causal linkage in half of the sample. This finding is consistent with the fact that emerging markets have experienced structural changes in either finance or energy sectors or both. We also conduct additional analyses which point out that cross-sectional dependency and the quantiles of the distribution matter for the causal linkages. Our results further shed light on the evidence that the economic activity mainly causes the financial development and energy consumption at the highest quantile of distribution in the fast-growing emerging economies. (C) 2020 Elsevier B.V. All rights reserved.C1 [Durusu-Ciftci, Dilek; Nazlioglu, Saban] Pamukkale Univ, Dept Int Trade & Finance, TR-20070 Denizli, Turkey.[Soytas, Ugur] Middle East Tech Univ, Dept Business Adm, Ankara, Turkey

insights from a panel cointegration approach

In this paper, we study the role of taxation on long-run income performance. In the theoretical part of the study, we develop a stylized model based on Barro (1990), in which income taxation has two contradictory roles in the standard Solow (1956) setup: on the one hand, taxation appropriates resources that would otherwise be used for physical capital accumulation, and on the other, it is the source of government spending, which is used to support private production. In the empirical part of the study, the impact of consumption tax, personal income tax, corporate profit tax and property tax on income is estimated using the common correlated effects (CCE) panel cointegration approach, which allows for cross-sectional dependencies and provides both panel and country-specific results. The panel findings for 30 OECD countries for the period of 1995-2016 indicate that only consumption tax has a statistically significant negative effect on long-run income. However, because the type and sign of the tax coefficients are heterogeneous for the country-specific results, we conclude that taxation has heterogeneous effects on income

Do stock markets follow a random walk? New evidence for an old question

This paper re examines whether the stock markets are efficient or not by focusing the role of cross-sectional dependency and structural breaks with newly developed panel unit root tests proposed by Lee, Wu, and Yang (2016) and Nazlioglu and Karul (2017). To do this, we used 33 countries stock price indexes for the period 1992M05 - 2018M05. Our results indicate that (i) accounting for cross-sectional dependency and structural breaks play an important role for better understanding the behavior of the stock market indices, (ii) recent testing methodologies provide a strong evidence for the weak-form efficiency of stock markets, (iii) the stationarity property of series is consistent regardless of whether capturing structural shifts as sharp or gradual process, (iv) modelling approach to cross-section dependency matters for deciding whether stock prices can be characterized as random walk or mean reversion processes.C1 [Durusu-Ciftci, Dilek] Pamukkale Univ, Dept Int Trade & Finance, TR-20070 Denizli, Turkey.[Ispir, M. Serdar] Pamukkale Univ, Dept Econ, TR-20070 Denizli, Turkey.[Kok, Dundar] Pamukkale Univ, Dept Business Adm, TR-20070 Denizli, Turkey

Financial development and energy consumption in emerging markets: Smooth structural shifts and causal linkages

This study examines the dynamic interrelationships among financial development, energy consumption, and economic growth in emerging markets by focusing on accounting for structural changes in causal linkages. We first employ the Toda-Yamamoto causality framework and then augment it with a Fourier approximation which captures structural shifts as a gradual/smooth process. The empirical findings show that taking into account gradual structural shifts matters for the causal linkages between financial development and energy consumption. While the causality analysis which does not account for structural changes supports a causality between financial development and energy consumption only in 4 out of 21 emerging markets, the causality analysis with structural changes provides a causal linkage in half of the sample. This finding is consistent with the fact that emerging markets have experienced structural changes in either finance or energy sectors or both. We also conduct additional analyses which point out that cross-sectional dependency and the quantiles of the distribution matter for the causal linkages. Our results further shed light on the evidence that the economic activity mainly causes the financial development and energy consumption at the highest quantile of distribution in the fast-growing emerging economies