Cryptocurrency is a relatively new phenomenon that is attracting a lot of interest. On the one ha... more Cryptocurrency is a relatively new phenomenon that is attracting a lot of interest. On the one hand, it is built on a brand-new technology whose full potential has yet to be realised. On the other hand, it performs similar services to other, more traditional assets, at least in its current form. The development of theoretical models of cryptocurrencies has received a lot of academic attention. Many elements have been mentioned in the theoretical literature on cryptocurrencies as potentially important in cryptocurrencies' pricing. The cryptocurrencies with a market value of over $100m between 01/01/2018 and 12/05/2021 have been selected for this research. Time series analysis has been done to investigate the price relationship between cryptocurrencies. The results pointed out as major cryptocurrencies' prices are linked to Bitcoin prices.
Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric in... more Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric information among market participants via credit ratings. The credit ratings determined by the credit rating agencies reflect the opinion of whether a country can fulfil the liability or its credit reliability at a particular time. Therefore, credit ratings are a very valuable tool, especially for investors. In addition, the issue that credit rating agencies are generally criticised is that they are unsuccessful in times of financial crisis. Credit rating methodologies of credit rating agencies have been subject to intense criticism, especially after the 2007/08 Global Financial Crisis. Some of the criticised issues are that credit rating agencies’ methodologies are not transparent; they are unable to make ratings on time, and they make incorrect ratings. In order to create a more reliable credit rating methodology, the credit rating industry and the ratings determined by rating agencies n...
According to traditional finance theories, individuals behave rationally and take financial decis... more According to traditional finance theories, individuals behave rationally and take financial decisions under this rationality. Contrary to traditional finance theories, behavioural finance states that individuals do not always act rationally because they are affected by emotions and feelings. Thus, behavioural finance can be defined as systematic errors that keep individuals away from rationality. The biases might cause unhelpful or even hurtful decisions. Therefore, a high level of behavioural biases might negatively affect the financial well-being of individuals. It is vital to investigate young adults’ financial behaviours as the future of the economies are influenced by their decisions. In this research, behavioural biases among young adults in Bristol, UK and Istanbul, Turkey, was examined to prevent young adults from making irrational financial decisions by identifying the most common behavioural biases. Thus, economies might be robust than today. According to result of this re...
The popularity of the blockchain has significantly increased thanks to Bitcoin. In addition to th... more The popularity of the blockchain has significantly increased thanks to Bitcoin. In addition to this, many cryptocurrencies that use blockchain technologies are derived after discovering Bitcoin. The merger of the two information areas in which cryptocurrency lies, technology and economics, helps policy makers to glimpse models that can solve problems facing society, such as inflation, economic cycles, unreliable financial institutions and the lack of universal financial services. On the one hand, it is built on a brand-new technology whose full potential has yet to be realised. On the other hand, it performs similar services to other, more traditional assets, at least in its current form. The development of theoretical models of cryptocurrencies has received a lot of academic attention. Many elements that have a potential impact on cryptocurrencies' pricing are discussed in the theoretical literature. This study aimed to investigate the price relationship between Bitcoin and maj...
Financial Markets, Institutions and Risks (FMIR), 2021
Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric in... more Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric information among market participants via credit ratings. The credit ratings determined by the credit rating agencies reflect the opinion of whether a country can fulfil the liability or its credit reliability at a particular time. Therefore, credit ratings are a very valuable tool, especially for investors. In addition, the issue that credit rating agencies are generally criticised is that they are unsuccessful in times of financial crisis. Credit rating methodologies of credit rating agencies have been subject to intense criticism, especially after the 2007/08 Global Financial Crisis. Some of the criticised issues are that credit rating agencies' methodologies are not transparent; they are unable to make ratings on time, and they make incorrect ratings. In order to create a more reliable credit rating methodology, the credit rating industry and the ratings determined by rating agencies need to be critically examined and further investigated in this area. For this reason, in this study credit rating model has been developed for countries. Supervisory and regulatory variables, political indicators and macroeconomic factors were used as independent variables for the sovereign credit rating model. As a result of the study, the new sovereign credit rating calculates exactly the same credit rating with Fitch Rating Agency for developed countries, but there are 1 or 2 points differences for developing countries. In order to better understand the reason for these differences, credit rating agencies need to make their methodologies more transparent and disclose them to the public.
After the banking crisis, more effective and stricter corporate governance framework is establish... more After the banking crisis, more effective and stricter corporate governance framework is established by reviewing the Combined Code on corporate governance (UK's principal regulation on corporate governance) by UK authorities. Financial Reporting Council which is UK's independent regulator of corporate governance made changes in parallel with the Walker review. There is an extremely controversial debate about whether failures in the corporate governance of banks were a major cause of the financial crisis. The most of time the truth is in the middle. Actually deficiencies in board practices and profile, compensation practices as well as risk management and internal control failures are inspired by false incentives. Complex and opaque bank structures aggravated this situation. During the time that the contributory role played by these deficiencies, also there were many other and more important causes that led to the financial crisis.
Cryptocurrency is a relatively new phenomenon that is attracting a lot of interest. On the one ha... more Cryptocurrency is a relatively new phenomenon that is attracting a lot of interest. On the one hand, it is built on a brand-new technology whose full potential has yet to be realised. On the other hand, it performs similar services to other, more traditional assets, at least in its current form. The development of theoretical models of cryptocurrencies has received a lot of academic attention. Many elements have been mentioned in the theoretical literature on cryptocurrencies as potentially important in cryptocurrencies' pricing. The cryptocurrencies with a market value of over $100m between 01/01/2018 and 12/05/2021 have been selected for this research. Time series analysis has been done to investigate the price relationship between cryptocurrencies. The results pointed out as major cryptocurrencies' prices are linked to Bitcoin prices.
Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric in... more Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric information among market participants via credit ratings. The credit ratings determined by the credit rating agencies reflect the opinion of whether a country can fulfil the liability or its credit reliability at a particular time. Therefore, credit ratings are a very valuable tool, especially for investors. In addition, the issue that credit rating agencies are generally criticised is that they are unsuccessful in times of financial crisis. Credit rating methodologies of credit rating agencies have been subject to intense criticism, especially after the 2007/08 Global Financial Crisis. Some of the criticised issues are that credit rating agencies’ methodologies are not transparent; they are unable to make ratings on time, and they make incorrect ratings. In order to create a more reliable credit rating methodology, the credit rating industry and the ratings determined by rating agencies n...
According to traditional finance theories, individuals behave rationally and take financial decis... more According to traditional finance theories, individuals behave rationally and take financial decisions under this rationality. Contrary to traditional finance theories, behavioural finance states that individuals do not always act rationally because they are affected by emotions and feelings. Thus, behavioural finance can be defined as systematic errors that keep individuals away from rationality. The biases might cause unhelpful or even hurtful decisions. Therefore, a high level of behavioural biases might negatively affect the financial well-being of individuals. It is vital to investigate young adults’ financial behaviours as the future of the economies are influenced by their decisions. In this research, behavioural biases among young adults in Bristol, UK and Istanbul, Turkey, was examined to prevent young adults from making irrational financial decisions by identifying the most common behavioural biases. Thus, economies might be robust than today. According to result of this re...
The popularity of the blockchain has significantly increased thanks to Bitcoin. In addition to th... more The popularity of the blockchain has significantly increased thanks to Bitcoin. In addition to this, many cryptocurrencies that use blockchain technologies are derived after discovering Bitcoin. The merger of the two information areas in which cryptocurrency lies, technology and economics, helps policy makers to glimpse models that can solve problems facing society, such as inflation, economic cycles, unreliable financial institutions and the lack of universal financial services. On the one hand, it is built on a brand-new technology whose full potential has yet to be realised. On the other hand, it performs similar services to other, more traditional assets, at least in its current form. The development of theoretical models of cryptocurrencies has received a lot of academic attention. Many elements that have a potential impact on cryptocurrencies' pricing are discussed in the theoretical literature. This study aimed to investigate the price relationship between Bitcoin and maj...
Financial Markets, Institutions and Risks (FMIR), 2021
Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric in... more Credit rating agencies play a key role in financial markets, as they help to reduce asymmetric information among market participants via credit ratings. The credit ratings determined by the credit rating agencies reflect the opinion of whether a country can fulfil the liability or its credit reliability at a particular time. Therefore, credit ratings are a very valuable tool, especially for investors. In addition, the issue that credit rating agencies are generally criticised is that they are unsuccessful in times of financial crisis. Credit rating methodologies of credit rating agencies have been subject to intense criticism, especially after the 2007/08 Global Financial Crisis. Some of the criticised issues are that credit rating agencies' methodologies are not transparent; they are unable to make ratings on time, and they make incorrect ratings. In order to create a more reliable credit rating methodology, the credit rating industry and the ratings determined by rating agencies need to be critically examined and further investigated in this area. For this reason, in this study credit rating model has been developed for countries. Supervisory and regulatory variables, political indicators and macroeconomic factors were used as independent variables for the sovereign credit rating model. As a result of the study, the new sovereign credit rating calculates exactly the same credit rating with Fitch Rating Agency for developed countries, but there are 1 or 2 points differences for developing countries. In order to better understand the reason for these differences, credit rating agencies need to make their methodologies more transparent and disclose them to the public.
After the banking crisis, more effective and stricter corporate governance framework is establish... more After the banking crisis, more effective and stricter corporate governance framework is established by reviewing the Combined Code on corporate governance (UK's principal regulation on corporate governance) by UK authorities. Financial Reporting Council which is UK's independent regulator of corporate governance made changes in parallel with the Walker review. There is an extremely controversial debate about whether failures in the corporate governance of banks were a major cause of the financial crisis. The most of time the truth is in the middle. Actually deficiencies in board practices and profile, compensation practices as well as risk management and internal control failures are inspired by false incentives. Complex and opaque bank structures aggravated this situation. During the time that the contributory role played by these deficiencies, also there were many other and more important causes that led to the financial crisis.
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Papers by Dr Isik Akin