Business and Economics Research Journal

Number 3, 2023

303-319
Anonymous and Separable Hedonic Coalition Formation Games: Nash Stability Under Different Membership Rights

Authors: Mehmet Karakaya , Seçkin Özbilen

Abstract

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We consider hedonic coalition formation games. A hedonic coalition formation game is a pair which consists of a finite set of agents and a list of agents’ preferences such that each agent has preferences over all coalitions containing her. We study the existence of a Nash stable partition under different membership rights for anonymous and separable hedonic coalition formation games. We prove that for anonymous and separable hedonic games, the existence of a Nash stable partition is always guaranteed when the membership rights are Free Exit-Approved Entry or Approved Exit-Free Entry, but the existence of a Nash stable partition is not guaranteed when the membership rights are Free Exit-Free Entry. We also analyze the relation of the anonymity and separability with the other sufficient conditions which guarantee the existence of a Nash stable partition under different membership rights.

321-335
Oil Price Pass-Through on Sector-Level Prices: Evidence from Turkey

Authors: Mehmet Fatih Ekinci, Hülya Saygılı

Abstract

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Number of views: 29

As energy dependency is one of the main drivers of rising global inflation, understanding the sectoral outlook for the effects of oil prices on inflation is crucial. This paper investigates oil price pass-through to consumer prices in Turkey utilizing a Phillips Curve estimation approach. Extending the results in the literature, we estimate Brent crude petroleum price pass-through coefficients for the 2-digit sectoral components of the consumer price index. Then, we compare the sector-level pass-through rates to the ones obtained from the headline and core inflation. We also apply a recursive estimation modeling to track pass-through behavior over time for each inflation series. The paper has several conclusions. First, the long-run oil price pass-through to headline inflation is around 7%. Second, pass-through to the core and sectoral inflation rates exhibit a significant amount of variation from headline inflation. Results with core inflation rates depend on whether energy prices are included or excluded from the consumer basket. Third, the sectoral pass-through rate depends on the weight of the energy-related items in that sector. Our findings suggest that the transport sector has the highest degree of pass-through. Fourth, the rate of pass-through to all prices increases following the hikes in inflation rates in September 2018 and October 2021.

351-368
The Cultural Diversity of the Board of Directors and Capital Structure

Authors: Bahadır Karakoç, Uğur Arcagök

Abstract

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Cultural characteristics and personal values can play a significant role in financial decision-making process, alongside economic factors. This study contributes to the existing literature by investigating the impact of cross-cultural board members on capital structure decisions in publicly traded firms in Turkey. Using panel data methodology to analyze the capital structures of these firms between 2011 and 2020, we found that firms with at least 30% cross-cultural representation on their boards tend to borrow more than firms with less diverse boards. Similarly, firms with at least one cross-cultural board member borrow more than firms managed entirely by locals. These findings are significant in contributing to the understanding of the role of cultural diversity in financial decision-making and offer practical implications for firms aiming to optimize their capital structures. The results remain robust even after alternative regression specifications and other corporate financing decisions have been considered.

369-387
Examination of the Existence of Month of the Year, Day Effect of the Week, and Seasonal Anomalies in Gold Futures Contracts: The Case of Turkey

Authors: Yasemin Karataş Elçiçek

Abstract

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Number of views: 21

This study aims to examine the existence of the month of the year effect, the day of the week effect, and seasonal anomalies in the return of gold futures contracts traded in the Borsa Istanbul Derivatives Market (BIST-VIOP) in the period of 02.09.2013 – 30.11.2022 through the Autoregressive Moving Average Models (ARMA)(2,2) and Generalized Autoregressive Conditional Heteroskedastic (GARCH)(1,1) model. According to the results, positive returns were found on other days except Thursday from the model examining the relationship between the gold futures contract and the day of the week effect, positive returns were found in January and March from the model results examining the relationship between the gold futures contract and the month of the year effect, and positive as well as statistically significant returns were found in other seasons except for summer from the model examining the relationship between the gold futures contract and seasonal anomalies.