Stock exchange brands as an influence on investor behavior

WOS: 000402635500004Purpose - The purpose of this paper is to investigate the effect of stock exchange-related brand equity on intention to invest and the mediating role of perceived risk (PR) in this relationship in a comparative analysis between a developed and a developing market. Design/methodology/approach - The study is carried out through an online survey among financially literate adults in two countries, Turkey and Ireland. Structural equation modeling is used to empirically test the relationships between brand equity dimensions and intention to invest, with a mediating role of PR. Findings - The results indicate that the brand equity of a stock exchange is a relevant construct that significantly influences intention to invest. Also, the mediating role of PR is found to be strong in a developing market such as Turkey, but weak in a developed market like Ireland. Research limitations/implications - One limitation of this paper is its inclusion of individual investors as the unit of analysis while leaving out institutional ones. The second limitation is the difficulty in generalizing the results to overall country populations. Practical implications - This paper offers managerial implications regarding the need for emphasizing "stock exchange brand,"besides corporate brands traded, and customizing the management of brand-related influencers in investment decisions according to country context. Originality/value - The impact of corporate brands in investment choices has been demonstrated before, but the influence of intermediaries - stock exchanges - through which investments are transacted, has not yet been investigated. This study addresses this gap, and further shows the differing extent of PR in this relationship between a developed and a developing country setting.Scientific and Technological Research Council of Turkey (TUBITAK), within the Graduate Scholarship Program for PhD Students [2214-A]This study was funded by the Scientific and Technological Research Council of Turkey (TUBITAK), within the Graduate Scholarship Program for PhD Students (2214-A), as a part of the doctoral dissertation

The introduction of International Accounting Standards in Europe: Implications for international convergence

This paper describes several implementation effects associated with the mandated adoption of international financial reporting standards promulgated by the International Accounting Standards Board in the European Union, including a possible increased demand for detailed implementation guidance and for a single European securities regulator. The paper also discusses the mandated adoption as a research setting for considering the relative influences of standards versus incentives as determinants of financial reporting outcomes, and describes two standard setting challenges that may become more pronounced as a result of the mandated adoption.

Do mutual fund managers exploit the Ramadan anomaly? Evidence from Turkey

Recent literature shows that the holy month of Ramadan exerts a positive influence on investor sentiment in predominantly Muslim countries. This anomaly has been found to be particularly pronounced in Turkey. We therefore examine whether mutual fund managers investing in Turkish stocks are able to benefit from the Ramadan effect. We find that risk-adjusted performance of domestic institutional funds, hybrid funds and foreign Turkish equity funds is substantially higher during Ramadan compared to the rest of the year. By contrast, domestic index funds fail to deliver higher abnormal returns as they are adversely affected by increased money inflows during Ramadan