International Finance

Permanent URI for this collectionhttps://hdl.handle.net/10679/314

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Browsing by Rights "Attribution 4.0 International"

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    ArticlePublicationOpen Access
    The effects of foreign acquisitions on the value of industry peers
    (Cambridge University Press, 2023-03) Yılmaz, Ümit; International Finance; YILMAZ, Ümit
    This paper studies how industry peers' stock prices respond when another firm in the industry is acquired by a foreign firm. The average stock price reactions of industry peers in horizontal foreign acquisitions around deal announcements are significantly negative. Peers' returns are more negative in growing, less specialized, and competitive industries. Moreover, the negative stock price reactions of industry peers are related to future decreases in their operating performance. Overall, these results suggest that foreign acquisitions have strong competitive effects for the industry peers of U.S. target companies.
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    ArticlePublicationOpen Access
    Foreign acquisition and credit risk: Evidence from the U.S. CDS market
    (Cambridge University Press, 2023-06-17) Yılmaz, Ümit; International Finance; YILMAZ, Ümit
    This article empirically analyzes the effect of foreign block acquisitions on U.S. target firms' credit risk as measured by their credit default swap (CDS) spreads. Foreign block purchases lead to a greater increase in the target firms' CDS premia post-acquisition compared to domestic block purchases. This effect is stronger when foreign owners are geographically and culturally more distant, and when they obtain majority control. The findings are consistent with an asymmetric information hypothesis, in which foreign owners are less effective monitors due to information barriers.
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    ArticlePublicationOpen Access
    Numerical discretization of stochastic oscillators with generalized numerical integrators
    (Vinča Institute of Nuclear Sciences, 2021) Sirma, A.; Kosker, R.; Akat, Muzaffer; International Finance; AKAT, Muzaffer
    In this study, we propose a numerical scheme for stochastic oscillators with additive noise obtained by the method of variation of constants formula using generalized numerical integrators. For both of the displacement and the velocity components, we show that the scheme has an order of 3/2 in one step convergence and a first order in overall convergence. Theoretical statements are supported by numerical experiments.
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    ArticlePublicationOpen Access
    Price of regulations: Regulatory costs and the cross-section of stock returns
    (Oxford University Press, 2024-01) Ince, B.; Özsöylev, Han Nazmi; International Finance; ÖZSÖYLEV, Han Nazmi
    Regulations introduce significant fixed costs and add to operating leverage. Fixed regulatory costs that contribute to operating leverage should generate a risk premium. To explore whether such a premium exists, we introduce a measure of "regulatory operating leverage" that reflects the importance of fixed regulatory costs in a firm's cost structure. Regulatory operating leverage predicts stock returns in the cross-section, and a zero-cost high-low regulatory operating leverage strategy generates positive and significant risk-adjusted return. Finally, the impact of regulatory operating leverage on returns is due to the (systematic) risk contribution of fixed regulatory costs.