New publication

Authors
Mehmet Fatih Acar, Aziz Bakay, Taptuk Emre Erkoç
Publication date
2017
Book
Global Business Strategies in Crisis
Pages
335-351
Publisher
Springer International Publishing
Description
Abstract Studies measuring the efficiency levels of financial institutions including the banks
and insurance companies have dramatically boosted in the efficiency and productivity
analysis literature especially during the last two decades. The undesirable output sets that
are under the control of managerial bodies in the financial institutions stimulate researchers
to explain the potential relationship between the managerial control and inefficient usage of
resources in this particular industry. Besides, the risks occurred throughout the decision-
Scholar articles
MF Acar, A Bakay, TE Erkoç – Global Business Strategies in Crisis, 2017

Google Scholar – Aziz Bakay

Title1–20 Cited by Year
Are US Academics and Professionals Ready for IFRS?

M Moqbel, A Bakay
Working paper – Available at SSRN 1662162
9 2010
Are US academics and professionals ready for IFRS? An explanation using technology acceptance model and theory of planned behavior

M Moqbel, P Charoensukmongkol, A Bakay
Journal of International Business Research 12 (2), 47
5 2013
Factors explaining ICT diffusion: case study of selected Latin American countries

A Bakay, C Okafor, N Ujah
International Journal on Advances in ICT for Emerging Regions (ICTer) 3 (2)
5 2011
Resource Allocation, Level of International Diversification and Firm Performance

A Bakay, A Elkassabgi, M Moqbel
International Journal of Business and Management
5 2011
Trust in Peers, Supervisor, and Top Management: A Two Country Study

A BAKAY
Texas A&M International University
3 2012
Group decision-making processes and group decision quality: moderation of mutual interest

A Bakay, J Huang, Y Huang
International Journal of Management and Decision Making 13 (4), 335-355
2 2014
Impact of Agricultural Subsidies on US Exports to Mexico and Canada: Case Study of Selected Agricultural Products

A Bakay
Research Journal of International Studies
2 2010
A conceptual model of motivational antecedents of job outcomes and how organizational culture moderates

A Bakay, J Huang
2 2010
Does Interpersonal Trust Influence Organizational Behavior?

A Bakay
Eurasian Journal of Business and Economics 8 (15), 219
1 2015
Granger Causality between Financial Deepening and International Trade: Evidence from Regional Panel Data

A BAKAY
Eurasian Journal of Business and Economics
1 2014
Explaining the accounting disclosure index of stock exchanges by foreign exchange market activity

A Bakay, M Moqbel
Advances in Accounting 28 (2), 293-297
1 2012
Common Themes and Topics in International Business Textbooks

T Sagafi-Nejad, A Bakay, AR Limaye, M Moqbel
1 2011
Efficiency and Managerial Control in Financial Institutions

MF Acar, A Bakay, TE Erkoç
Global Business Strategies in Crisis, 335-351
  2017
BANKA MÜDÜRLERİNİN ETİK DAVRANIŞLARI ÇALIŞANLARININ İŞ TATMİNİ VE ÖRGÜTSEL BAĞLILIKLARINI GÜÇLENDİRİR Mİ?

B EVİRGEN, A BAKAY, MD DEMİRTAŞ
CİLT: 17 SAYI: 1 YIL: 2016, 1
  2016
Interpersonal Trust in Organisations: An Empirical Investigation of Workplace Outcomes in Two Countries

A Bakay, B Akyüz, A Ateş
  2016
KARŞILIKLI FAYDA BAĞLAMINDA GRUP KARAR SÜREÇLERİ VE SÜREÇ ÇIKTILARININ ÖNGÖRÜLMESİ

A BAKAY, S Esra, Y KAHRAMAN
Celal Bayar Üniversitesi Sosyal Bilimler Dergisi 14 (2)
  2016
How Organizational Culture Affects the Motivational Antecedents of Job Outcomes: a Conceptual Model

A Bakay, J Huang
International Conference on Economic and Social Studies, 10-11 May, 2013 …
  2013
Impact of Ethnic Affiliation and Consumer Ethnocentrism on Consumer Behavior: Case of Turkish Americans

A Bakay
  2010
Cultural Foundation of Leadership Expectations

B EVİRGEN, A BAKAY
 
KURUM YAPISININ CAM TAVANA ETKİSİ: TÜRKİYE’NİN EGE BÖLGESİ KURUMLARI THE IMPACT OF ORGANIZATIONAL STRUCTURE ON GLASS CEILING: AEGEAN REGION AGENCIES IN TURKEY

M İNEL, V GARAYEV, A BAKAY
 

Interest Rate Risk and Coupon Rates

We know that bonds with different coupon rates are traded in financial markets. The change in interest rate is mechanically related to the price of the bond. This entails that bonds may have varying interest rate risks based on their coupon rate. In this post, we will demonstrate the relationship between Coupon Rate and Interest Rate Risk.

The literature tells us that there is an inverse relationship. As the periodic coupon payments increase – ceteris paribus- the interest rate risk shoud be lower. What we can observe using a graphical depiction is indeed hard to interpret at all. As a matter of fact, the following graph -derived from the table below to it – virtually says that association is vague. That is a tough job for naked eye.

To recap, Higher the COUPON rate, lower the Interest Rate Risk. This states that price of bonds with higher coupon rates -considering that par and maturity stay the same-, will be affected LESS compared to bonds with lower coupon rates. To observe this association, we better look to the PERCENTAGE CHANGES in the price of Bonds as the interest rate changes. On the following table, we see the percentage changes in the price of the bond as the interest rate increases. So we expect that the price of the bond to drop. Thus, the percentage change in the price of the bonds would be negative.

As you see on the second table, the percentage change in the price of Bond decreases (compare % changes on a single row) as we see bonds with higher coupon rates.  The identical change in interest rate affects bonds with lower coupon rates more than the bonds with higher coupon rates. This proves the initial principle.

“Higher the coupon rate, lower the interest rate risk”.

Sole Important Parameter in Today’s Financial Systems: Interest Rates

The use of financial management relies heavily on the prevailing interest rates. De facto norms in today’s financial system poses that the valuation of virtually everything from real estate to commodities, from investment instruments to cash flows is a function of the prevalent rate of return. Rate of return with a certain period underlies and determines the worth of, say, a future investment project. Because a rational investor makes decisions based on considerations of the current (present) value of an estimated future cash flow, the computation of such numbers are of great motivation and insight for decision mechanisms in businesses and other organizations as well.

Research Survey

Thank you for your time and interest in my survey. I shut down the operations for data collection. For the time being, the number of responses has reached to a reasonable level and I am no longer accepting responses.

Araştırma anketim için veri toplama operasyonlarını kapatmış bulunuyorum. İlginiz için teşekkürler.