War-related risks and the İstanbul bourse on the eve of the First World War
The lack of well-documented information in the historical literature on the relationship between war-related expectations and their effects on the bond market in the Ottoman Empire motivates this paper's three contributions. First, this paper is the first empirical study to investigate the brea...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2015-09-01
|
| Series: | Borsa Istanbul Review |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2214845015000253 |
| _version_ | 1797998194610667520 |
|---|---|
| author | Avni Önder Hanedar Erdost Torun Elmas Yaldız Hanedar |
| author_facet | Avni Önder Hanedar Erdost Torun Elmas Yaldız Hanedar |
| author_sort | Avni Önder Hanedar |
| collection | DOAJ |
| description | The lack of well-documented information in the historical literature on the relationship between war-related expectations and their effects on the bond market in the Ottoman Empire motivates this paper's three contributions. First, this paper is the first empirical study to investigate the break points in the volatility of Ottoman bond prices from a historical point of view. Second, we use the econometric technique developed by Inclan and Tiao (1994) to identify the structural breaks. Last, we use a manually collected dataset from the daily newspapers of the time on daily Ottoman bond prices from 1910 to 1914. Subsequently, we identify five structural break dates, each of them corresponding to important war-related events. When we investigate the commentaries in the Ottoman newspapers, we see that the outbreak of several wars might not have been a surprise for investors in the Ottoman Empire, as reflected by government bond prices. |
| first_indexed | 2024-04-11T10:43:41Z |
| format | Article |
| id | doaj.art-b206f38dec724554804ee1bc2fb4fb20 |
| institution | Directory Open Access Journal |
| issn | 2214-8450 |
| language | English |
| last_indexed | 2024-04-11T10:43:41Z |
| publishDate | 2015-09-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Borsa Istanbul Review |
| spelling | doaj.art-b206f38dec724554804ee1bc2fb4fb202022-12-22T04:29:06ZengElsevierBorsa Istanbul Review2214-84502015-09-0115320521210.1016/j.bir.2015.05.001War-related risks and the İstanbul bourse on the eve of the First World WarAvni Önder Hanedar0Erdost Torun1Elmas Yaldız Hanedar2Dokuz Eylül University, Faculty of Business, İzmir, TurkeyDokuz Eylül University, Faculty of Business, İzmir, TurkeyYeditepe University, Faculty of Economics and Administrative Sciences, İstanbul, TurkeyThe lack of well-documented information in the historical literature on the relationship between war-related expectations and their effects on the bond market in the Ottoman Empire motivates this paper's three contributions. First, this paper is the first empirical study to investigate the break points in the volatility of Ottoman bond prices from a historical point of view. Second, we use the econometric technique developed by Inclan and Tiao (1994) to identify the structural breaks. Last, we use a manually collected dataset from the daily newspapers of the time on daily Ottoman bond prices from 1910 to 1914. Subsequently, we identify five structural break dates, each of them corresponding to important war-related events. When we investigate the commentaries in the Ottoman newspapers, we see that the outbreak of several wars might not have been a surprise for investors in the Ottoman Empire, as reflected by government bond prices.http://www.sciencedirect.com/science/article/pii/S2214845015000253The Turco-Italian warOttoman government bondsInclan-Tiao test |
| spellingShingle | Avni Önder Hanedar Erdost Torun Elmas Yaldız Hanedar War-related risks and the İstanbul bourse on the eve of the First World War Borsa Istanbul Review The Turco-Italian war Ottoman government bonds Inclan-Tiao test |
| title | War-related risks and the İstanbul bourse on the eve of the First World War |
| title_full | War-related risks and the İstanbul bourse on the eve of the First World War |
| title_fullStr | War-related risks and the İstanbul bourse on the eve of the First World War |
| title_full_unstemmed | War-related risks and the İstanbul bourse on the eve of the First World War |
| title_short | War-related risks and the İstanbul bourse on the eve of the First World War |
| title_sort | war related risks and the istanbul bourse on the eve of the first world war |
| topic | The Turco-Italian war Ottoman government bonds Inclan-Tiao test |
| url | http://www.sciencedirect.com/science/article/pii/S2214845015000253 |
| work_keys_str_mv | AT avnionderhanedar warrelatedrisksandtheistanbulbourseontheeveofthefirstworldwar AT erdosttorun warrelatedrisksandtheistanbulbourseontheeveofthefirstworldwar AT elmasyaldızhanedar warrelatedrisksandtheistanbulbourseontheeveofthefirstworldwar |