ISE review

Istanbul Stock Exchange

Volume: 8 No: 29

Subjects

· Institutional Investors and Stock Market Development: A Causality Study
Güler Aras & Alövsat Müslümov

· A Risk and Profitability Approach to Bank Performance Measurement: The Case of Turkish Commercial Banks
M. Hasan Eken

· Monetary Policy Analysis for Turkey in a Game Theoretical Perspective
Cem Mehmet Baydur & Bora Süslü & Selahattin Bekmez

· Single-Price Auction System for the Istanbul Stock Exchange
Güray Küçükkocaoğlu

· Global Capital Markets

· ISE Market Indicators

· ISE Publication List

Institutional Investors And Stock Market Development: A Causality Study

Güler ARAS
Alövsat MÜSLÜMOV

Abstract
This article examines causality relationships between institutional investors and stock market development based on the panel data compiled from 23 OECD countries for the years 1982 through 2000. In order to test causality relationship, Sims’ causality test based on Granger definition of causality was used in our study. Our empirical results provide evidence that there are statistically significant positive relationship between institutional investors and stock market development. The development of institutional investors is the Granger cause of stock market capitalization, whereas there are bi-directional causality relationship between institutional investor development and stock market liquidity. Research results support the idea that a country should promote the development of institutional investors for the establishment of well-developed securities market.

A Risk And Profitability Approach To Bank Performance Measurement: The Case Of Turkish Commercial Banks

M. Hasan EKEN

Abstract
In this paper a risk-profitability approach is used to measure the performance of local and foreign commercial banks operating in Turkey over the period 1988-2000. At the first step of the two-step analysis method used, an ordinary least square model is used to estimate the efficiency differences of banks; as using profitability ratios (net interest margin, return on asset and return on equity) dependent variables and their standard deviations as independent variables. Foreign banks seem to be more efficient than local banks. At the second step several correlates are examined. The correlates are expected to be different risk measures of banks.

Monetary Policy Analysis For Turkey In A Game Theoretical Perspective

Cem Mehmet BAYDUR
Bora SÜSLÜ
Selahattin BEKMEZ

Abstract
The main goal of monetary authority is to create a stable output and price level in the economy. Policies to be used depend upon the relative weights of above goals for the monetary authority. Also, the expectations of other economic institutions are important for policy determination. Within this context, this research investigates various policies that the monetary authority should follow depending on the expectations of economic institutions in the country. In order to do that,, we constructed a game theoretical model and showed which policy results in Nash equilibrium. The last point discussed in the research is the policy applications of the Central Bank of Turkey from 1990 to 2003.

Single-Price Auction System For The Istanbul Stock Exchange

Güray KÜÇÜKKOCAOĞLU

Abstract
In the single-price auction system, for a predetermined period of time, all the buy orders are collected to form a negatively sloped demand curve and all the sell orders are collected to form a positively sloped supply curve in order to get an equilibrium price and maximum amount of quantity transaction, as a result of the interaction of these two curves again in a predetermined time instant. The aim in this work is to enlighten the reader about the different applications of this system in different stock exchange markets all around the world, to comment on the advantages and disadvantages and to investigate its suitability to the Istanbul Stock Exchange (ISE).