ISE review

Istanbul Stock Exchange

Volume 10 No:37

Subjects

Symmetrical and Asymmetrical Relationship Between Exchange Rate and Stock Exchange Index Return Volatilities in Turkey
Ömer Özçiçek

Effect of Openness on Economic Growth in High Income OECD Countries: 1953-2004
Sefer Şener & Ercan Sarıdoğan

The Design of a Regulatory Regime to Achieve High Quality Regulation: An Evaluation of Turkey’s Regulatory System
Ali Alp & Saim Kılıç

Determination of Effect of Intellectual Capital on Firm Value Via Value Added Intellectual Coefficient Methodology: An Empirical Study on ISE-Listed Manufacturing Firms
M. Başaran Öztürk & Kartal Demirgüneş

Global Capital Markets

ISE Market Indicators

ISE Publication List

SYMMETRICAL AND ASYMMETRICAL RELATIONSHIP BETWEEN EXCHANGE RATE AND STOCK EXCHANGE INDEX RETURN VOLATILITIES IN TURKEY

Ömer ÖZÇİÇEK

Abstract

The recent increase in financial market liberalizations has increased the foreign capital flow to stock markets. As a consequence, the relationship between the exchange rate and the stock price is being taken more seriously. Theoretically, the change in exchange rate could affect stock prices or developments in stock market could affect the exchange rate. A different approach to this subject is to investigate the relationship between volatilities. This study shows that in Turkey this relationship is both ways and is not affected by foreign capital flow. Furthermore, the relationship is asymmetric. The effect shows itself usually under unfavorable circumstances, when stock prices drop or exchange rate increases.

EFFECT OF OPENNESS ON ECONOMIC GROWTH IN HIGH INCOME OECD COUNTRIES: 1953-2004

Sefer ŞENER
Ercan SARIDOĞAN

Abstract
In a globalizing world, economic growth of the countries is deeply affected by international economic relationships. Therefore, openness has become the one of the most important factor affecting economic growth of the nations. On the other hand, it is very important to determine the optimal time and level of openness for obtaining benefit from international trade. The terms of trade among the countries depend on their power of the competitiveness. In this study, It is analyzed the effect of openness on economic growth for highincome OECD countries according to the World Bank classification for the period 1953-2004 by using panel time series econometric techniques. It is observed that openness affect economic growth positively in these countries and in the given period.

THE DESIGN OF A REGULATORY REGIME TO ACHIEVE HIGH QUALITY REGULATION: AN EVALUATION OF TURKEY’S REGULATORY SYSTEM

Ali Alp
Saim Kılıç

Abstract
Regulation is one of the most important tools for government to achieve its social and economic policy objectives. Since it has a great impact on social and economic life of a country, regulation has been an area of political debate and economic research in every country. In the literature, three general theories exist on the origin of and the rationale for government regulation: the public interest theory, the Chicago theory of regulation and the public choice theory. Once the rationales for government intervention have been identified, then the question of how desired regulatory outcomes can be achieved at lower cost arises. The answer to the question is heavily concerned with the regulatory design, no matter which theory is considered. This paper focuses on the regulatory design and ways of better regulation making processes. It is possible to identify a general framework that provides a rigorous and systematic approach to improve quality of both new and existing regulations. This framework includes the use of regulatory impact assessment along with a comprehensive public consultation process and a systematic consideration of alternatives to regulation as well as administrative burden reduction and simplification plans. Countries’ experiences seem to indicate that, if appropriately designed, this framework would be valuable to achieve good regulation. The paper also aims to elaborate on the Turkey’s regulatory system and evaluate its effectiveness. Even though Turkey’s regulatory environment has significantly changed mainly due to the pressures of external forces (namely IMF, World Bank, OECD and the European Union), it still has some weaknesses.

DETERMINATION OF EFFECT OF INTELLECTUAL CAPITAL ON FIRM VALUE VIA VALUE ADDED INTELLECTUAL COEFFICIENT METHODOLOGY: AN EMPIRICAL STUDY ON ISE-LISTED MANUFACTURING FIRMS

M. Başaran ÖZTÜRK
Kartal DEMİRGÜNEŞ

Abstract
This study aims to determine the effect of intellectual capital on firm value. The relationships among profitability, productivity and market-to-book value ratio that are considered to be the main performance indicators are analyzed via Value Added Intellectual Capital (VAIC) methodology developed by Ante Pulic within a multiple regression model. The data consists of 30 Istanbul Stock Exchange (ISE) listed manufacturing firms during the period of 2000-2002. In spite of some limitations, the findings of the study shed light on the relationship between intellectual capital and firm value. According to the results, capital employed efficiency (CEE) and structural capital efficiency (SCE) are significantly related to profitability, productivity and market value. However, human capital efficiency (HCE) is significantly related to only market-to-book value ratio.