Ramazan Yildirim | INCEIF (Intern. Centre for Edu. in Islamic Finance) (original) (raw)
Books by Ramazan Yildirim
Emerald Publishing Limited, 2019
The purpose of this chapter is to analyze the possible portfolio diversification opportunities be... more The purpose of this chapter is to analyze the possible portfolio diversification opportunities between Asian Islamic market and other regions’ Islamic markets; namely USA, Europe, and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets to identify the correlations among those selected markets by employing the recent econometric methodologies such as multivariate generalized autoregressive conditional heteroscedastic–dynamic conditional correlations (MGARCH–DCC), maximum overlap discrete wavelet transform (MODWT), and the continuous wavelet transform (CWT). By utilizing the MGARCHDCC, this chapter tries to identify the strength of the time-varying correlation among the markets. However, to see the time-scale-dependent nature of these mentioned correlations, the authors utilized CWT. For robustness, the authors have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have better portfolio diversification opportunities with the US markets, followed by the European markets. BRIC markets do not offer any portfolio diversification benefits, which may be explained partly by the fact that the Asian markets cover partially the same countries of BRIC markets, namely India and China. Considering the time horizon dimension, the results narrow down the portfolio diversification opportunities only to the short-term investment horizons. The very short-run investors (up to eight days only) can benefit through portfolio diversification, especially in the US and European markets. The above-mentioned results have policy implications for the Asian Islamic investors (e.g., Portfolio Management and Strategic Investment Management).
Springer, 2021
Financial reform in the last few decades has transformed the global operations of finance watched... more Financial reform in the last few decades has transformed the global operations of finance watched over by a reactive regulatory framework, in a concerted effort to enhance the resilience of institutional structure, recapture market trust and improve the critical supporting infrastructure to the economy. Many financial institutions are struggling with ever-changing regulatory requirements and the increased burden of intricate rules. Such rules can be conflicting, and subjected to local implementation and jurisdictic interpretation. Non-compliance or the inability to meet the deadlines subject institutions to hefty penalties and multimillion-dollar fines for failures in controlling nefarious and over-the-counter trading activities. In this chapter, we map out ongoing regulatory milestones globally to understand the main supervisory priorities by territory and propose how financial institutions can successfully administer regulatory change through an AI-driven regulatory management model within their organizations. We discuss the evolution, challenges and recommendations for financial institutions (including Shariah compliance) in the change management for regulations using a structured approach that addresses regional priorities.
Papers by Ramazan Yildirim
MPRA Paper, 2018
The purpose of this chapter is to analyze the possible portfolio diversification opportunities be... more The purpose of this chapter is to analyze the possible portfolio diversification opportunities between Asian Islamic market and other regions' Islamic markets; namely USA, Europe, and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets to identify the correlations among those selected markets by employing the recent econometric methodologies such as multivariate generalized autoregressive conditional heteroscedastic-dynamic conditional correlations (MGARCH-DCC), maximum overlap discrete wavelet transform (MODWT), and the continuous wavelet transform (CWT). By utilizing the MGARCHDCC, this chapter tries to identify the strength of the time-varying correlation among the markets. However, to see the timescale dependent nature of these mentioned correlations, the authors utilized CWT. For robustness, the authors have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have better portfolio diversification opportunities with the US markets, followed by the European markets. BRIC markets do not offer any portfolio diversification benefits, which may be explained partly by the fact that the Asian markets cover partially the same countries of BRIC markets, namely India and China. Considering the time horizon dimension, the results narrow down the portfolio diversification opportunities only to the short-term investment horizons. The very short-run investors (up to eight days only) can benefit through portfolio diversification, especially in the US and European markets. The above-mentioned results have policy implications for the Asian Islamic investors (e.g., Portfolio Management and Strategic Investment Management).
Borsa Istanbul Review, Jul 1, 2023
MPRA Paper, 2014
The purpose of this paper is to analyze the possible portfolio diversification opportunities betw... more The purpose of this paper is to analyze the possible portfolio diversification opportunities between Asian Islamic Market and other regions" Islamic Markets; namely USA, Europe and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets-based on the 6 years" daily data, from 04/2008 to 03/2014-to identify the correlations among those selected markets by employing the recent econometric methodologies such as MGARCH-DCC, MODWT and the Continuous Wavelet Transform (CWT). By utilizing the MGARCH-DCC, this paper tries to identify the strength of the correlation among the markets. On the other hand, to see the time-varying nature of these mentioned correlations, we utilized CWT. For robustness, we have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have a better portfolio diversification opportunities with the US markets followed by the European markets. BRIC markets do not offer any portfolio diversification benefits, which may be explained partly by the fact that the Asian markets cover partially the same countries of BRIC markets, namely India and China. Considering the time horizon dimension, the results narrow down the portfolio diversification opportunities only to the short-term investment horizons. The very shortrun investors (up to 8 days only) can benefit through portfolio diversification, especially in the USA and European markets. The above-mentioned results have policy implications for the Asian Islamic investors (e.g. Portfolio Management, Strategic Investment Management).
Capital Structure and Shari’ah Compliance of non-Financial Firms
Financial reform in the last few decades has transformed the global operations of finance watched... more Financial reform in the last few decades has transformed the global operations of finance watched over by a reactive regulatory framework, in a concerted effort to enhance the resilience of institutional structure, recapture market trust and improve the critical supporting infrastructure to the economy. Many financial institutions are struggling with ever-changing regulatory requirements and the increased burden of intricate rules. Such rules can be conflicting, and subjected to local implementation and jurisdictic interpretation. Non-compliance or the inability to meet the deadlines subject institutions to hefty penalties and multimillion-dollar fines for failures in controlling nefarious and over-the-counter trading activities. In this chapter, we map out ongoing regulatory milestones globally to understand the main supervisory priorities by territory and propose how financial institutions can successfully administer regulatory change through an AI-driven regulatory management model within their organizations. We discuss the evolution, challenges and recommendations for financial institutions (including Shariah compliance) in the change management for regulations using a structured approach that addresses regional priorities.
International Finance Review, Nov 6, 2018
International Journal of Islamic Economics and Finance Studies
This paper investigates the relative importance of the global and regional markets affecting Asia... more This paper investigates the relative importance of the global and regional markets affecting Asian financial market, the cross-market transmission mechanism between the stock markets, and the Asian market responses to the global financial crises in 2008. It’s objective is to answer whether there is a cointegration among the selected 5 regional stock markets – Asia, USA, Europe, BRIC and Arabian; especially their Shariah Indices. In case a cointegration exist, which of the 5 financial markets are the most leader (exogenous) or most follower (endogenous) and whether specifically the Asian market is influenced by this cointegration. Lastly this paper will try to emphasize the implications to the Asian Islamic investors. (e.g. Portfolio Management, Strategic Investment Management). This paper applies the eight steps of time series techniques based on the 5 years daily data, from 04/2008 to 09/2013. Time series econometrics has been selected, since is better than regression approach, bec...
International Journal of Islamic Economics and Finance Studies, 2018
Bu çalışmanın ana amacı halihazırda çeşitli kurumlar tarafından uygulanan farklı metodolojilere d... more Bu çalışmanın ana amacı halihazırda çeşitli kurumlar tarafından uygulanan farklı metodolojilere dayanılarak elde edilmiş “fıkhi uygunluk kriterleri”ne yönelik eleştirilere dönük önerilerde bulunmaktır. Ayrıca, bu çalışma, İslamın birincil kaynaklarından (Kuran ve Sünnet) elde edilen bulgular ışığında, fıkhi uygunluk kriterlerini oluşturan metodolojilerde görülen farklılıkların standartlaştırılması için çözümler üretmeye çalışmaktadır. İslamın birincil kaynakları olan Kuran ve Sünnet’ten elde edilen güçlü çıkarımlar gösterir ki bir firmanın fıkhi uygunluk kriterlerine uygun olup olmadığı hakkındaki hakkaniyetli ve adil bir hüküm ancak o firmanın kontrolü altında olan içsel faktörlere bakılarak verilebilinir. Bu çalışma ayrıca fıkhi uygunluk kriterlerinin bir bütün halinde İslami finansin temel prensiplerini yansıtmasının önemine ve bu minvalde Bakara Suresi’nin 275’inci ayetinin ruhuna uygun olmasının elzemliğine vurgu yapmaktadır. Bu çalışmanın halihazirda var olan fıkhi uygunluk kriterlerindeki farklılıklardan harmoni/standartlaşma üretme potansiyeli ile İslami hassasiyetlere sahip yatırımcıları sağladığı bilinçlenme ve güvenilirlik sayesinde daha fazla yatırım yapmaya teşvik etmesi beklenmektedir. Bu çalışma kanıksanmış düşünme tarzlarının dışına çıkarak, fıkhi uygunluk kriterlerinin İslamın birincil kaynaklarına dayanılarak nasıl elde edilmesi gerektiği ana sorusuna kapsamlı bir şekilde cevap üretmeye çalışmaktadır.
Pacific-Basin Finance Journal, 2018
Many Muslim individual and institutional investors seek to invest only in stocks that are complia... more Many Muslim individual and institutional investors seek to invest only in stocks that are compliant with the Shari'ah (i.e. Islamic law). Among others, Dow Jones addressed this demand and has developed their proprietary screening methodologies to identify Shari'ah compliant firms (SC). One key factor that distinguishes SC firms from their non-compliant peers (SNC) is that the former is not allowed to cross the leverage threshold of 33%. Due to the restrictions imposed on them, it is expected that SC firms exhibit different capital structure compared to the SNC firms. The purpose of this initial comparative study is to analyze the most reliable debt determinants identified in the literature on both firm types. This study utilizes static panel data techniques on the sample consisting of SC and SNC firms from 7 countries and 7 industries over the years 2004–2014. Our study is inconclusive and it shows that most of the determinants do exhibit different effects among both firm types. Depending on the leverage measure, the effect of different independent variables on firms' capital structure varies. A uniform effect can be exerted for debt determinants profitability for both leverage measures, and growth opportunities, firm size and tangibility for market leverage only. Our robustness tests reveal that the impact of some debt determinants on firms leverage remains consistent. The coefficient sign and significance suggests, that the capital structure decision of both firm types, both are better explained by the Pecking Order Theory for book and by the Trade-Off Theory for market leverage, respectively.
Journal of Islamic Economics Banking and Finance
Purpose -The purpose of this paper is to address to a long-standing criticism of the various Shar... more Purpose -The purpose of this paper is to address to a long-standing criticism of the various Shari'ah screening methodologies implemented by Islamic index providers. This study aims to provide evidences derived from the Islamic sources (Qur'an & Sunnah) and offers a potential solution for the harmonization of Shari'ah screening methodologies.
The purpose of this paper is to analyze the possible portfolio diversification opportunities betw... more The purpose of this paper is to analyze the possible portfolio diversification opportunities between Asian Islamic Market and other regions" Islamic Markets; namely USA, Europe and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets -based on the 6 years" daily data, from 04/2008 to 03/2014 -to identify the correlations among those selected markets by employing the recent econometric methodologies such as MGARCH-DCC, MODWT and the Continuous Wavelet Transform (CWT). By utilizing the MGARCH-DCC, this paper tries to identify the strength of the correlation among the markets. On the other hand, to see the time-varying nature of these mentioned correlations, we utilized CWT. For robustness, we have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have a better portfolio diversification opportunities with the US markets followed by the European markets. B...
Emerald Publishing Limited, 2019
The purpose of this chapter is to analyze the possible portfolio diversification opportunities be... more The purpose of this chapter is to analyze the possible portfolio diversification opportunities between Asian Islamic market and other regions’ Islamic markets; namely USA, Europe, and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets to identify the correlations among those selected markets by employing the recent econometric methodologies such as multivariate generalized autoregressive conditional heteroscedastic–dynamic conditional correlations (MGARCH–DCC), maximum overlap discrete wavelet transform (MODWT), and the continuous wavelet transform (CWT). By utilizing the MGARCHDCC, this chapter tries to identify the strength of the time-varying correlation among the markets. However, to see the time-scale-dependent nature of these mentioned correlations, the authors utilized CWT. For robustness, the authors have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have better portfolio diversification opportunities with the US markets, followed by the European markets. BRIC markets do not offer any portfolio diversification benefits, which may be explained partly by the fact that the Asian markets cover partially the same countries of BRIC markets, namely India and China. Considering the time horizon dimension, the results narrow down the portfolio diversification opportunities only to the short-term investment horizons. The very short-run investors (up to eight days only) can benefit through portfolio diversification, especially in the US and European markets. The above-mentioned results have policy implications for the Asian Islamic investors (e.g., Portfolio Management and Strategic Investment Management).
Springer, 2021
Financial reform in the last few decades has transformed the global operations of finance watched... more Financial reform in the last few decades has transformed the global operations of finance watched over by a reactive regulatory framework, in a concerted effort to enhance the resilience of institutional structure, recapture market trust and improve the critical supporting infrastructure to the economy. Many financial institutions are struggling with ever-changing regulatory requirements and the increased burden of intricate rules. Such rules can be conflicting, and subjected to local implementation and jurisdictic interpretation. Non-compliance or the inability to meet the deadlines subject institutions to hefty penalties and multimillion-dollar fines for failures in controlling nefarious and over-the-counter trading activities. In this chapter, we map out ongoing regulatory milestones globally to understand the main supervisory priorities by territory and propose how financial institutions can successfully administer regulatory change through an AI-driven regulatory management model within their organizations. We discuss the evolution, challenges and recommendations for financial institutions (including Shariah compliance) in the change management for regulations using a structured approach that addresses regional priorities.
MPRA Paper, 2018
The purpose of this chapter is to analyze the possible portfolio diversification opportunities be... more The purpose of this chapter is to analyze the possible portfolio diversification opportunities between Asian Islamic market and other regions' Islamic markets; namely USA, Europe, and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets to identify the correlations among those selected markets by employing the recent econometric methodologies such as multivariate generalized autoregressive conditional heteroscedastic-dynamic conditional correlations (MGARCH-DCC), maximum overlap discrete wavelet transform (MODWT), and the continuous wavelet transform (CWT). By utilizing the MGARCHDCC, this chapter tries to identify the strength of the time-varying correlation among the markets. However, to see the timescale dependent nature of these mentioned correlations, the authors utilized CWT. For robustness, the authors have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have better portfolio diversification opportunities with the US markets, followed by the European markets. BRIC markets do not offer any portfolio diversification benefits, which may be explained partly by the fact that the Asian markets cover partially the same countries of BRIC markets, namely India and China. Considering the time horizon dimension, the results narrow down the portfolio diversification opportunities only to the short-term investment horizons. The very short-run investors (up to eight days only) can benefit through portfolio diversification, especially in the US and European markets. The above-mentioned results have policy implications for the Asian Islamic investors (e.g., Portfolio Management and Strategic Investment Management).
Borsa Istanbul Review, Jul 1, 2023
MPRA Paper, 2014
The purpose of this paper is to analyze the possible portfolio diversification opportunities betw... more The purpose of this paper is to analyze the possible portfolio diversification opportunities between Asian Islamic Market and other regions" Islamic Markets; namely USA, Europe and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets-based on the 6 years" daily data, from 04/2008 to 03/2014-to identify the correlations among those selected markets by employing the recent econometric methodologies such as MGARCH-DCC, MODWT and the Continuous Wavelet Transform (CWT). By utilizing the MGARCH-DCC, this paper tries to identify the strength of the correlation among the markets. On the other hand, to see the time-varying nature of these mentioned correlations, we utilized CWT. For robustness, we have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have a better portfolio diversification opportunities with the US markets followed by the European markets. BRIC markets do not offer any portfolio diversification benefits, which may be explained partly by the fact that the Asian markets cover partially the same countries of BRIC markets, namely India and China. Considering the time horizon dimension, the results narrow down the portfolio diversification opportunities only to the short-term investment horizons. The very shortrun investors (up to 8 days only) can benefit through portfolio diversification, especially in the USA and European markets. The above-mentioned results have policy implications for the Asian Islamic investors (e.g. Portfolio Management, Strategic Investment Management).
Capital Structure and Shari’ah Compliance of non-Financial Firms
Financial reform in the last few decades has transformed the global operations of finance watched... more Financial reform in the last few decades has transformed the global operations of finance watched over by a reactive regulatory framework, in a concerted effort to enhance the resilience of institutional structure, recapture market trust and improve the critical supporting infrastructure to the economy. Many financial institutions are struggling with ever-changing regulatory requirements and the increased burden of intricate rules. Such rules can be conflicting, and subjected to local implementation and jurisdictic interpretation. Non-compliance or the inability to meet the deadlines subject institutions to hefty penalties and multimillion-dollar fines for failures in controlling nefarious and over-the-counter trading activities. In this chapter, we map out ongoing regulatory milestones globally to understand the main supervisory priorities by territory and propose how financial institutions can successfully administer regulatory change through an AI-driven regulatory management model within their organizations. We discuss the evolution, challenges and recommendations for financial institutions (including Shariah compliance) in the change management for regulations using a structured approach that addresses regional priorities.
International Finance Review, Nov 6, 2018
International Journal of Islamic Economics and Finance Studies
This paper investigates the relative importance of the global and regional markets affecting Asia... more This paper investigates the relative importance of the global and regional markets affecting Asian financial market, the cross-market transmission mechanism between the stock markets, and the Asian market responses to the global financial crises in 2008. It’s objective is to answer whether there is a cointegration among the selected 5 regional stock markets – Asia, USA, Europe, BRIC and Arabian; especially their Shariah Indices. In case a cointegration exist, which of the 5 financial markets are the most leader (exogenous) or most follower (endogenous) and whether specifically the Asian market is influenced by this cointegration. Lastly this paper will try to emphasize the implications to the Asian Islamic investors. (e.g. Portfolio Management, Strategic Investment Management). This paper applies the eight steps of time series techniques based on the 5 years daily data, from 04/2008 to 09/2013. Time series econometrics has been selected, since is better than regression approach, bec...
International Journal of Islamic Economics and Finance Studies, 2018
Bu çalışmanın ana amacı halihazırda çeşitli kurumlar tarafından uygulanan farklı metodolojilere d... more Bu çalışmanın ana amacı halihazırda çeşitli kurumlar tarafından uygulanan farklı metodolojilere dayanılarak elde edilmiş “fıkhi uygunluk kriterleri”ne yönelik eleştirilere dönük önerilerde bulunmaktır. Ayrıca, bu çalışma, İslamın birincil kaynaklarından (Kuran ve Sünnet) elde edilen bulgular ışığında, fıkhi uygunluk kriterlerini oluşturan metodolojilerde görülen farklılıkların standartlaştırılması için çözümler üretmeye çalışmaktadır. İslamın birincil kaynakları olan Kuran ve Sünnet’ten elde edilen güçlü çıkarımlar gösterir ki bir firmanın fıkhi uygunluk kriterlerine uygun olup olmadığı hakkındaki hakkaniyetli ve adil bir hüküm ancak o firmanın kontrolü altında olan içsel faktörlere bakılarak verilebilinir. Bu çalışma ayrıca fıkhi uygunluk kriterlerinin bir bütün halinde İslami finansin temel prensiplerini yansıtmasının önemine ve bu minvalde Bakara Suresi’nin 275’inci ayetinin ruhuna uygun olmasının elzemliğine vurgu yapmaktadır. Bu çalışmanın halihazirda var olan fıkhi uygunluk kriterlerindeki farklılıklardan harmoni/standartlaşma üretme potansiyeli ile İslami hassasiyetlere sahip yatırımcıları sağladığı bilinçlenme ve güvenilirlik sayesinde daha fazla yatırım yapmaya teşvik etmesi beklenmektedir. Bu çalışma kanıksanmış düşünme tarzlarının dışına çıkarak, fıkhi uygunluk kriterlerinin İslamın birincil kaynaklarına dayanılarak nasıl elde edilmesi gerektiği ana sorusuna kapsamlı bir şekilde cevap üretmeye çalışmaktadır.
Pacific-Basin Finance Journal, 2018
Many Muslim individual and institutional investors seek to invest only in stocks that are complia... more Many Muslim individual and institutional investors seek to invest only in stocks that are compliant with the Shari'ah (i.e. Islamic law). Among others, Dow Jones addressed this demand and has developed their proprietary screening methodologies to identify Shari'ah compliant firms (SC). One key factor that distinguishes SC firms from their non-compliant peers (SNC) is that the former is not allowed to cross the leverage threshold of 33%. Due to the restrictions imposed on them, it is expected that SC firms exhibit different capital structure compared to the SNC firms. The purpose of this initial comparative study is to analyze the most reliable debt determinants identified in the literature on both firm types. This study utilizes static panel data techniques on the sample consisting of SC and SNC firms from 7 countries and 7 industries over the years 2004–2014. Our study is inconclusive and it shows that most of the determinants do exhibit different effects among both firm types. Depending on the leverage measure, the effect of different independent variables on firms' capital structure varies. A uniform effect can be exerted for debt determinants profitability for both leverage measures, and growth opportunities, firm size and tangibility for market leverage only. Our robustness tests reveal that the impact of some debt determinants on firms leverage remains consistent. The coefficient sign and significance suggests, that the capital structure decision of both firm types, both are better explained by the Pecking Order Theory for book and by the Trade-Off Theory for market leverage, respectively.
Journal of Islamic Economics Banking and Finance
Purpose -The purpose of this paper is to address to a long-standing criticism of the various Shar... more Purpose -The purpose of this paper is to address to a long-standing criticism of the various Shari'ah screening methodologies implemented by Islamic index providers. This study aims to provide evidences derived from the Islamic sources (Qur'an & Sunnah) and offers a potential solution for the harmonization of Shari'ah screening methodologies.
The purpose of this paper is to analyze the possible portfolio diversification opportunities betw... more The purpose of this paper is to analyze the possible portfolio diversification opportunities between Asian Islamic Market and other regions" Islamic Markets; namely USA, Europe and BRIC. This study makes the initial attempt to fill in the gaps of previous studies by focusing on the proxies of global Islamic markets -based on the 6 years" daily data, from 04/2008 to 03/2014 -to identify the correlations among those selected markets by employing the recent econometric methodologies such as MGARCH-DCC, MODWT and the Continuous Wavelet Transform (CWT). By utilizing the MGARCH-DCC, this paper tries to identify the strength of the correlation among the markets. On the other hand, to see the time-varying nature of these mentioned correlations, we utilized CWT. For robustness, we have applied MODWT methodology as well. The findings tend to indicate that the Asian investors have a better portfolio diversification opportunities with the US markets followed by the European markets. B...