The Capital Markets Board of Turkey in cooperation with Bilkent University jointly present
the Financial Seminar Series
Assistant Prof Işıl Erel, Ohio State University
Speaking on
"Macroeconomic Conditions and Capital Raising"

Assistant Prof. Işıl Erel

Isil Erel, assistant professor of finance at the OSU Fisher College of Business, holds a PhD in financial economics from MIT Sloan School of Management. She received her Bachelor of Arts in economics and business administration from Koc University, Turkey. Her research spans a variety of areas within corporate finance, with particular emphasis on mergers and acquisitions, corporate governance, and banking. This research has been published in the Journal of Finance, Journal of Financial Economics, and Review of Financial Studies. Erel teaches Financial Institutions in both MBA and undergraduate programs at Fisher.


Do macroeconomic conditions affect firms abilities to raise capital? If so, how do they affect the manner in which the capital is raised?  These questions are addressed by using a large sample of publicly-traded debt issues, seasoned equity offers, bank loans and private placements of equity and debt. Results suggest that a borrower's credit quality significantly affects its ability to raise capital during macroeconomic downturns. For noninvestment-grade borrowers, capital raising tends to be procyclical while for investment-grade borrowers, it is countercyclical. Moreover, proceeds raised by investment grade firms are more likely to be held in cash in recessions than in expansions. Poor market conditions also affect the structure of securities offered, shifting them towards shorter maturities and more security. Overall,  results suggest that macroeconomic conditions influence the securities that firms issue to raise capital, the way in which these securities are structured and indeed firms ability to raise capital at all.


 Venue :

 Capital Markets Board of Turkey - Kare Oda - Makam katı

 Date :

 August 22nd 2011

 Time :

14:00 - 15:00   Seminar

15:00 - 15:30  Questions  & Answers  Session

15:30 - 16:00  Reception

The seminar shall be conducted in English.