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Publication Metadata only Bank lending standards and access to lines of credit(Wiley, 2012) James, Christopher; Kizilaslan, Atay; Department of Business Administration; Demiroğlu, Cem; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 18073This paper examines how changes in bank lending standards are related to the availability of bank lines of credit for private and comparable public firms. Overall, we find that access to lines of credit is more contingent on bank lending standards for private than for public firms. The impact of bank lending standards is however asymmetric: while private firms are less likely than public firms to gain access to new lines when credit market conditions are tight, we find no difference between public and private firms in terms of their use or retention of pre-existing lines. We also find that private firms without lines of credit use more trade credit when bank lending standards are tight, which is suggestive of a supply effect. Overall, the evidence suggests that credit crunches are likely to have a disproportionate impact on private firms. However, pre-existing banking relationships appear to mitigate the impact of these contractions on private firms.Publication Metadata only Bank loans and troubled debt restructurings(Elsevier Science Sa, 2015) James, Christopher; Department of Business Administration; Demiroğlu, Cem; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 18073This paper examines the relation between the number and type of lenders that participate in corporate loan facilities and the nature of troubled debt restructurings. We find that loans from traditional bank lenders are significantly easier to restructure out of court than loans from institutional lenders. We also find that the existence of a past banking relationship between the borrower and the lead arranger of a syndicated loan adversely affects the ease of restructuring. Finally, we find that reliance on loans that are held in part by collateralized loan obligations (CLOs) is positively related to the likelihood of a prepackaged bankruptcy, consistent with greater holdout problems when loans are held by CLOs. Overall, our findings suggest that the role of banks in the restructuring process is quite different when bank loans are diffusely held or securitized. (C) 2015 Elsevier B.V. All rights reserved.Publication Metadata only Benchmark replication portfolio strategies(Palgrave Macmillan Ltd, 2013) Zolotoy, Leon; Department of Business Administration; Glabadanidis, Paskalis; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; N/AWe propose a novel approach to the benchmark replication problem that uses a minimum tracking error variance as an objective subject to a target expected outperformance. When no budget constraint is imposed on the replicating portfolio, the solution is a two-fund portfolio involving the standard hedge portfolio and the tangent portfolio constructed using the replicating securities. In the presence of a budget constraint, the solution is a three-fund portfolio, which includes, in addition, the minimum variance portfolio constructed using the replicating securities. We implement our theoretical results using recent data for three widely followed US stock indices with very good out-of-sample performance.Publication Metadata only Bondholder governance, takeover likelihood, and division of gains(Elsevier, 2023) Akdogu, Evrim; Paukowits, Aysun Alp; Department of Business Administration; Çelikyurt, Uğur; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 47082We investigate the effect of creditor rights on the probability of becoming a takeover target by constructing firm-level bond covenant indices. Our primary result is that the more restrictive covenants a firm has, the more likely it is to become the target of an acquisition. This finding is robust to the exclusion of merger-related event-risk covenants which have the opposite impact and appear to reduce takeover likelihood. Furthermore, this effect is not driven by financially distressed firms and rather contained in small, profitable, financially healthy firms with high growth opportunities and low cash holdings. We also find that a higher target covenant index leads to a significant decrease (increase) in target (acquirer) abnormal returns around acquisition announcements and tilts merger gains towards the acquirer, suggesting the presence of a 'cove-nant discount' for potential target firms. Overall, our results are consistent with covenants creating key frictions, and in turn, making firms viable targets for acquirers with possibly deep pockets.Publication Metadata only Creating a functioning European Union(Palgrave, 2011) Department of Business Administration; Akdeniz, Özlem Olgu; Teaching Faculty; Department of Business Administration; College of Administrative Sciences and Economics; 113156Publication Metadata only Derivatives and stock market volatility: is additional government regulation necessary?(Kluwer Academic Publ, 1995) Department of Business Administration; Tiniç, Mehmet Seha; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; N/AN/APublication Metadata only Do market prices improve the accuracy of court valuations in chapter 11?(Wiley, 2022) Franks, Julian; Lewis, Ryan; Department of Business Administration; Demiroğlu, Cem; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 18073The average difference between the court value and postemergence market value of newly issued stocks in Chapter 11 reorganizations exceeds 50%. We show that public dissemination of transactions in defaulted bonds reduces this difference by 23% and largely eliminates interclaimant wealth transfers. The effects of dissemination are only significant when the bonds are sufficiently traded around the court valuation date and when they receive significant amounts of postemergence equity, indicating that the bond's value is sensitive to the size and allocation of the pie. These findings imply that security prices have real effects: they improve the valuations of bankruptcy participants.Publication Open Access Do physiological and spiritual factors affect economic decisions?(Wiley, 2021) Özbaş, Oğuzhan; Silva, Rui C.; Department of Business Administration; Demiroğlu, Cem; Ulu, Mehmet Fatih; Faculty Member; Faculty Member; Department of Business Administration; College of Administrative Sciences and Economics; 18073; N/AWe examine the effects of physiology and spiritual sentiment on economic decision-making in the context of Ramadan, an entire lunar month of daily fasting and increased spiritual reflection in the Muslim faith. Using an administrative data set of bank loans originated in Turkey during 2003 to 2013, we find that small business loans originated during Ramadan are 15% more likely to default within two years of origination. Loans originated in hot Ramadans, when adverse physiological effects of fasting are greatest, and those approved by the busiest bank branches perform worse. Despite their worse performance, Ramadan loans have lower credit spreads.Publication Metadata only Economic development and its impact on Turkish banking sector(IGI Global, 2015) Department of Business Administration; Akdeniz, Özlem Olgu; İpek, Hatice; Teaching Faculty; Master Student; Department of Business Administration; College of Administrative Sciences and Economics; Graduate School of Social Sciences and Humanities; 113156; N/AThis chapter aims to understand the impact of major macroeconomic and regulatory changes on the Turkish banking sector. The authors specifically focus on the financial liberalization program of 1980s, inherent banking problems of 1990s, the 1994 currency crisis, the IMF stabilization program, the 2000-2001 financial crises, and the banking sector restructuring program of May 2001. © 2015, IGI Global.Publication Metadata only European banking enlargement, structural changes and recent developments concluding remarks(Palgrave, 2011) Department of Business Administration; Akdeniz, Özlem Olgu; Teaching Faculty; Department of Business Administration; College of Administrative Sciences and Economics; 113156