In this study, we test empirically whether the slope of the yield curve—yield spread—is a good predictor of recessions. Although the convention in the literature is to use time series, we adopt an unbalanced panel data framework for thirty-two countries in the Organization for Economic...

This study attempts to provide one of the first comprehensive analyses on the misratings in sovereign credit ratings. The analyses are performed using partial frontier methods which should be considered innovative in this literature. By combining a robust variant of the Free Disposal Hull (FDH)...

In this study, we empirically investigate the relationship between credit default swap (CDS) spreads and financial market indicators belonging to bond, equity, and foreign exchange markets for the selected emerging market countries. This study has several findings. The empirical results suggest...

We look at market discipline in the Islamic deposit market of Turkey for the period after the 2000 crisis. We find support for quantity based disciplining of Islamic banks through the capital ratio. The evidence for price disciplining is, however, less convincing. In addition, we also look at...