Preliminary communication

Evaluation of conflict hazard and financial risk in the E7 economies’ capital markets

Ümit Hacıoğlu ; Beykent University, School of Applied Sciences, Istambul, Turska
Hasan Dinçer ; Beykent University, School of Applied Sciences, Istambul, Turska

Abstract

The purpose of this research is to examine the interaction between financial stress and conflict risk having impacts on fi nancial instruments in capital markets within an interdisciplinary frame. The Fuzzy TOPSIS method is applied in order to analyse effects of conflict hazard on capital markets and fi nancial instruments in the E7 economies and to demonstrate the best possible ranks of the E7 economies based on performance evaluation criteria. In order to obtain the dynamics of data as to develop a suffi cient reference bases for expert opinions, conflict hazard index and fi nancial stress index have been structured. The empirical results confirm that there is strong relation between fi nancial stress index and confl ict hazard index for the E7 economies. The fundamental conclusion demonstrates the effects of the financial and conflict risks for the stock selection in the E7 economies by the criteria derived from the Financial Stress Index and Confl ict Risk Index.

Keywords

Financial risk; conflict; financial stress; Fuzzy; TOPSIS

Hrčak ID:

104194

URI

https://hrcak.srce.hr/104194

Publication date:

21.6.2013.

Article data in other languages: croatian

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