Essays on Risk Creation in the Banking Sector

This thesis consists of four essays exploring risk creation in the banking sector. The essays examine how conflicting interests can compromise the objectivity, judgment, and decision making of economic agents. Consequently, they may prioritize their personal or institutional interests over the best interests of others or the entire financial system. Chapter 2 delves into the conflict of interest that arises when a bank serves as an investor in the stock market. Chapter 3 revisits the discussion of the potential misalignment between sovereign incentives and the collective interests of the currency union, particularly in the bond market. Chapter 4 draws attention to a situation where regulations in the banking sector may be advantageous for a government in the sovereign bond market. Finally, Chapter 5 looks at the flip side of the coin, examining how banks may be susceptible to moral hazard concerns in their FX lending decisions, given that they do not fully bear the consequences of their actions

Türkiye’de kurumlar vergisi değişikliğinin varlık fiyatları üzerine etkisi.

The aim of this paper is to analyze impacts of the announcement of the corporate income tax change on asset prices in Turkey in 2005. Prime Minister of Turkey in his speech in his political party group meeting in Turkish Grand National Assembly announced the decline in corporate income tax rate on November 29, 2005. He indicated that the corporate tax rate would be decreased from 30% to 20% starting from the next year. In line with the market efficiency hypothesis, we use event study methodology to measure the effects of this announcement on asset prices. To the best of our knowledge, we are the first to analyze impacts of the announcement of the corporate income tax change in Turkey in 2005 on asset prices using substantially large data sets. Kandır and Yakar (2012) investigates the same announcement with quite small sample set which contains only five companies among highest corporate income tax payers in Istanbul Stock Exchange Market and they conclude that reaction of stock returns are significant. We obtain that there is no significant change in asset prices in the event period using two different large sample sets and three different methodologies. This result is parallel to the fact that asset prices in semi-efficient stock markets reflect publicly available information.M.S. - Master of Scienc

Türkiye’de kurumlar vergisi değişikliğinin hisse senedi fiyatları üzerine kısa dönemli etkisi

The aim of this paper is to analyze the short-term effects of the official announcement of the corporate income tax change on stock prices in Turkey in 2005. Prime Minister of Turkey announced the decline in corporate income tax rate on November 29, 2005. He indicated that the corporate tax rate would be decreased from 30% to 20% starting from the next year. In line with the market efficiency hypothesis, we use event study methodology to measure the effects of this announcement on asset prices. To the best of our knowledge, we are the first to analyze impacts of the announcement of the corporate income tax change in Turkey in 2005 on asset prices using substantially large data sets. Kandır and Yakar (2012) investigate the effects of the same announcement with five companies among highest corporate income tax payers in Istanbul Stock Exchange Market and they conclude that reactions in the stock returns were significant. We obtain that there is no significant change in asset prices in the event period using two different large sample sets. This result is parallel to the fact that stock prices in semi-efficient stock markets reflect publicly available information and expectation.Türkiye’de kurumlar vergisi oranı en son 2006 yılında değiştirilmiştir. Bu çalışmanın amacı 2005 yılında yapılan kurumlar vergisi değişikliği açıklamasının hisse senedi fiyatları üzerine kısa dönemli etkisinin incelenmesidir. Türkiye Cumhuriyeti Başbakanı, 29 Kasım 2005 tarihinde kurumlar vergisi oranında indirime gidileceğini açıklamış, kurumlar vergisi oranının gelecek yılın başından itibaren % 30’dan % 20’ye düşürüleceğini belirtmiştir. Etkin Piyasa Hipotezi doğrultusunda, açıklamanın hisse senedi fiyatları üzerindeki etkisini ölçmek için olay çalışması yöntemi kullanılmıştır. Bildiğimiz kadarıyla, bu çalışma 2005 yılında Türkiye’deki kurumlar vergisi değişikliği açıklamasının varlık fiyatları üzerine etkisini bu büyüklükte bir veri seti kullanarak inceleyen ilk çalışmadır. Kandır ve Yakar (2012) aynı açıklamayı İstanbul Menkul Kıymetler Borsasında yer alan en çok vergi ödeyen beş şirket için incelemiş ve hisse senedi getirilerinin istatistiksel olarak anlamlı düzeyde tepki verdiği sonucuna ulaşmıştır. Bu çalışmada iki büyük örneklem kullanılarak olay penceresinde hisse senedi fiyatlarında istatistiksel olarak anlamlı değişmelerin olmadığı sonucuna ulaşılmıştır. Elde edilen bu sonuç yarı etkin piyasalarda varlık fiyatlarının kamuya mal olmuş bilgileri ve beklentileri fiyatlandırdığı savını desteklemektedir