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ANALYZING THE EFFECTS OF BRAND EQUITY ON INVESTOR BEHAVIOR AND COMPOSITION OF FINANCIAL PORTFOLIO

Year 2020, Volume: 19 Issue: Temmuz 2020(Özel Ek) - Prof. Dr. Sabri ORMAN Özel Sayısı, 458 - 477, 31.07.2020

Abstract

Numerous studies had been conducted to contribute to the literature on the marketing and finance fields. However, there is a huge deficit of literature on this interdisciplinary area. This research tries to reduce this gap by undertaking an investigation into investor’s behavior and brand equity in the finance and marketing interface along with few studies. The research specifically seeks to unravel the effects of brand equity dimension on portfolio management. The study is conducted via an online survey among educated adults who currently hold, have once held, and or intend to hold an investment instrument of any kind in Istanbul, Turkey. The Structural Equation Modeling (SEM) technique was used to test the structural relationship between the measured variable (portfolio management) and dominant variable (brand awareness). The results show that brand equity dimensions of financial assets are vital construct that significantly impact investors' behavior and shapes the construction of portfolio of financial assets.

References

  • Aaker, D. A. (1992). The Value of Brand Equity. Journal of Business Strategy, 13(4), 27–32.
  • Alba, J. W., & Hutchinson, J. W. (1987). Dimensions of Consumer Expertise. Journal of Consumer Research, 13(4), 411–454.
  • Ang, J., Chua, A., & Jiang, D. (2010). Is A Better than B? How Affect Influences the Marketing and Pricing of Financial Securities. Financial Analysts Journal, 66(6), 40–54.
  • Asgarnezhad N. B., Motamedi, S., & Soltani, M. (2017). Empirical Analysis of the Financial Behavior of Investors with Brand Approach (Case Study: Tehran Stock Exchange). Scientific Annals of Economics and Business, 64(1), 97–121.
  • Aspara, J., & Tikkanen, H. (2010). Consumers’ stock preferences beyond expected financial returns. International Journal of Bank Marketing.
  • Azwadi, A., (2011) The Mediating Role of Attitudes in Trading Companies' Shares. Journal of Global Business and Economics, 3(1), 57-73.
  • Barasinska, N., Schäfer, D., & Stephan, A. (2012). Individual risk attitudes and the composition of financial portfolios: Evidence from German household portfolios. The Quarterly Review of Economics and Finance, 52(1), 1–14.
  • Barber, B. M., & Odean, T. (2008). All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors. The Review of Financial Studies, 21(2), 785–818.
  • Barberis, N., & Thaler, R. (2003). A Survey of Behavioral Finance
  • Barwise, P. (1993). Brand equity: Snark or boojum? International Journal of Research in Marketing, 10(1), 93–104.
  • Bennet, E., & Selvam, M. (2013). The Influence of Stock Specific Factors on the Sentiment of Equity Investors: Evidence from Indian Stock Market (SSRN Scholarly Paper ID 2251220). Social Science Research Network.
  • Billett, M. T., Jiang, Z., & Rego, L. L. (2014a). Glamour brands and glamour stocks. Journal of Economic Behavior & Organization, 107, 744–759.
  • Billett, M. T., Jiang, Z., & Rego, L. L. (2014b). Glamour brands and glamour stocks. Journal of Economic Behavior & Organization, 107, 744–759.
  • Borges, B., Goldstein, D. G., Ortmann, A., & Gigerenzer, G. (1999). Can ignorance beat the stock market? In Simple heuristics that make us smart (pp. 59–72). Oxford University Press.
  • Bilkey, W. J., & Nes, E. (1982). Country-of-Origin Effects on Product Evaluations. Journal of International Business Studies, 13(1), 89–100.
  • Çal, B., & Lambkin, M. (2017). Stock exchange brands as an influence on investor behavior. International Journal of Bank Marketing.
  • Byrne, B. M. (2010). Structural Equation Modeling with AMOS Basic Concepts, Applications, and Programming (2nd ed.). New York: Taylor and Francis Group, LLC.
  • Clark, G., Thrift, N., & Tickell, A. (2004). Performing finance: The industry, the media and its image. Review of International Political Economy, 11(2), 289–310.
  • Clark-Murphy,M., & Soutar, G. (2005). Individual Investor Preferences: A Segmentation Analysis. Journal of Behavioral Finance, 6(1), 6–14.
  • Clarkson, G. P., & Meltzer, A. H. (1960). Portfolio Selection: A Heuristic Approach. The Journal of Finance, 17.
  • Chandra, P. (2017). Investment Analysis and Portfolio Management. McGraw-Hill Education.
  • Chang, C.-H., & Chen, Y.-S. (2014). Managing green brand equity: The perspective of perceived risk theory. Quality & Quantity, 48(3), 1753–1768.
  • Cochran, W. G., 1963. Sampling Techniques (2nd ed. ed.). New York: John Wiley and Sons, Inc.
  • De Bondt, W. F. M., & Thaler, R. H. (1995). Chapter 13 Financial decision-making in markets and firms: A behavioral perspective. In Handbooks in Operations Research and Management Science (Vol. 9, pp. 385–410).
  • Engelberg, J., & Parsons, C. A. (2011). The Causal Impact of Media in Financial Markets. 44.
  • Fama, E. F., & French, K. R. (2007). Disagreement, tastes, and asset prices. Journal of Financial Economics, 83(3), 667–689.
  • Frieder, L., & Subrahmanyam, A. (2005a). Brand Perceptions and the Market for Common Stock. Journal of Financial and Quantitative Analysis, 40(1), 57–85.
  • Frieder, L., & Subrahmanyam, A. (2005b). Brand Perceptions and the Market for Common Stock. Journal of Financial and Quantitative Analysis, 40(1), 57–85.
  • Gabaix, X., Gopikrishnan, P., Plerou, V., & Stanley, H. E. (2006). Institutional Investors and Stock Market Volatility. The Quarterly Journal of Economics, 121(2), 461–504.
  • Ghaleb, M., & Kaplan, B. (2019). Brand Characteristics’ Effects on Yemeni Companies’ Willingness to Pay (WTP) A Price Premium For Audit Services. International E-Journal of Advances in Social Sciences, 5(14), 878-889.
  • Ghaleb, M. and Kaplan, B. (2020). Branding and Yemeni Organizations’ Willingness to Pay a Price Premium for Audit Services. Istanbul Management Journal, (88), pp.127-143.
  • Gigerenzer, G., & Gaissmaier, W. (2011). Heuristic Decision Making. Annual Review of Psychology, 62(1), 451–482.
  • Goetzmann, W. N., Lingfeng L., & Rouwenhorst K. G. (2005). Long-term global market correlations. Journal of Business 78, 1–38.
  • Gompers, P. A., & Metrick, A. (2001). Institutional Investors and Equity Prices. The Quarterly Journal of Economics, 116(1), 229–259.
  • Graboves, R. F. (2005) Selling Short: Fruit 'n' Finance, Public Affairs, Federal Reserve Bank of Richmond, May 18.
  • Grullon, G., Kanatas, G., & Weston, J. P. (2004). Advertising, Breadth of Ownership, and Liquidity. 35.
  • Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). England: Pearson Education Limited.
  • Han, C. M. (1989). Country Image: Halo or Summary Construct? Journal of Marketing Research, 26(2), 222–229.
  • Hillert, A., Jacobs, H., & Müller, S. (2014). Media Makes Momentum. The Review of Financial Studies, 27(12), 3467–3501.
  • Homburg, C., Klarmann, M. and Schmitt, J. (2010), “Brand awareness in business markets: when is it related to firm performance?”, International Journal of Research in Marketing, Vol. 27 No. 3, pp. 201-212.
  • Hong, S.T., & Wyer, Jr., R. S. (1989). Effects of Country-of-Origin and Product-Attribute Information on Product Evaluation: An Information Processing Perspective. Journal of Consumer Research, 16(2), 175.
  • Huberman, G., & Jiang, W. (2006). Offering versus Choice in 401(k) Plans: Equity Exposure and Number of Funds. The Journal of Finance, 61(2), 763–801.
  • Iris Chang. (1997). The Rape of Nanking: The Forgotten Holocaust of World War II
  • Jacobsen, B. P. (2009). Investor‐based place brand equity: A theoretical framework. Journal of Place Management and Development, 2(1), 70–84.
  • Johansson, J. K. (1989). Determinants and Effects of the Use of ″Made in″ Labels. International Marketing Review, 6(1).
  • Kahneman, D., & Tversky, A. (2012). Prospect Theory: An Analysis of Decision Under Risk. In Handbook of the Fundamentals of Financial Decision Making: Vol. Volume 4 (pp. 99– 127). World Scientific.
  • Kapareliotis, I., & Panopoulos, A. (2010). The determinants of brand equity: The case of Greek quoted firms. Managerial Finance, 36(3), 225–233.
  • Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1), 1.
  • Keloharju, M., Knüpfer, S., & Linnainmaa, J. (2012). Do Investors Buy What They Know? Product Market Choices and Investment Decisions. The Review of Financial Studies, 25(10), 2921–2958.
  • Klein, J. G. (2002). Us Versus Them, or Us Versus Everyone? Delineating Consumer Aversion to Foreign Goods. Journal of International Business Studies, 33(2), 345–363.
  • Kim, H., Gon, K. W., & An, J. A. (2003). The effect of consumer‐based brand equity on firms’ financial performance. Journal of Consumer Marketing, 20(4), 335–351.
  • Kumar, S., & Goyal, N. (2015). Behavioral biases in investment decision making – a systematic literature review. Qualitative Research in Financial Markets.
  • Kurz-Milcke, E., & Gigerenzer, G. (2007). Heuristic Decision Making.
  • MacGregor, D. G., Slovic, P., Dreman, D., & Berry, M. (2000). Imagery, Affect, and Financial Judgment. Journal of Psychology and Financial Markets, 1(2), 104–110.
  • Merton, R. C. (1987a). A Simple Model of Capital Market Equilibrium with Incomplete Information. The Journal of Finance, 42(3), 483–510.
  • Merton, R. C. (1987b). A Simple Model of Capital Market Equilibrium with Incomplete Information. The Journal of Finance, 42(3), 483–510.
  • Olohan, M. (2007). The Status of Scientific Translation. Journal of Translation Studies, 10(1), 131–144.
  • Papadopoulos, N. G., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing.
  • Statman, M. (2004). What Do Investors Want? The Journal of Portfolio Management, 30(5), 153–161.
  • Stone, Robert N, & Kjell Gronhaug. (1993). Perceived risk: Further considerations for the marketing discipline.
  • Sweeney, J. C., Soutar, G. N., & Johnson, L. W. (1999). The role of perceived risk in the quality-value relationship: A study in a retail environment. Journal of Retailing, 75(1), 77–105.
  • Tetlock, P. C. (2007). Giving Content to Investor Sentiment: The Role of Media in the Stock. Market. 51.
  • Tversky, A., & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases. Science, 185(4157), 1124–1131.
  • Waweru, N. M., Munyoki, E., & Uliana, E. (2008). The effects of behavioral factors in investment decision-making: A survey of institutional investors operating at the Nairobi Stock Exchange. International Journal of Business and Emerging Markets, 1(1), 24.
  • Zhang, B., & Wang, Y. (2015). Limited attention of individual investors and stock performance: Evidence from the Chi Next market. Economic Modelling, 50, 94–104.

MARKA DEĞERİNİN YATIRIMCI DAVRANIŞI VE FİNANSAL PORTFÖY BİLEŞİMİ ÜZERİNDEKİ ETKİLERİNİN ANALİZİ

Year 2020, Volume: 19 Issue: Temmuz 2020(Özel Ek) - Prof. Dr. Sabri ORMAN Özel Sayısı, 458 - 477, 31.07.2020

Abstract

Pazarlama ve finans alanlarındaki literatüre katkıda bulunmak için çok sayıda çalışma yapılmıştır. Bununla birlikte, bu disiplinlerarası alanda büyük bir literatür açığı vardır. Bu araştırma, finans ve pazarlama arayüzünde yatırımcının davranışı ve marka değeri hakkında bir araştırma yaparak bu boşluğu, diğer az sayıda çalışma ile birlikte azaltmaya çalışmaktadır. Araştırma özellikle marka değeri boyutunun portföy yönetimi üzerindeki etkilerini incelemektedir.. Çalışma, Türkiye’de İstanbul'da bulunan, geçmişte ve/veya şimdi herhangi bir yatırım aracı değerlendiren/değerlendirmeyi planlayan eğitimli yetişkinler arasında çevrimiçi bir anket yoluyla yürütülmüştür. Temel değişkenler, portföy yönetimi ile baskın değişken- marka bilinirliği arasındaki yapısal ilişkiyi test etmek için Yapısal Eşitlik Modeli (YEM) kullanılmıştır. Sonuçlar, finansal varlıkların marka değeri boyutlarının yatırımcıların davranışını önemli ölçüde etkileyen ve ideal varlık portföyünün yapısını şekillendiren hayati bir yapı olduğunu göstermektedir.

References

  • Aaker, D. A. (1992). The Value of Brand Equity. Journal of Business Strategy, 13(4), 27–32.
  • Alba, J. W., & Hutchinson, J. W. (1987). Dimensions of Consumer Expertise. Journal of Consumer Research, 13(4), 411–454.
  • Ang, J., Chua, A., & Jiang, D. (2010). Is A Better than B? How Affect Influences the Marketing and Pricing of Financial Securities. Financial Analysts Journal, 66(6), 40–54.
  • Asgarnezhad N. B., Motamedi, S., & Soltani, M. (2017). Empirical Analysis of the Financial Behavior of Investors with Brand Approach (Case Study: Tehran Stock Exchange). Scientific Annals of Economics and Business, 64(1), 97–121.
  • Aspara, J., & Tikkanen, H. (2010). Consumers’ stock preferences beyond expected financial returns. International Journal of Bank Marketing.
  • Azwadi, A., (2011) The Mediating Role of Attitudes in Trading Companies' Shares. Journal of Global Business and Economics, 3(1), 57-73.
  • Barasinska, N., Schäfer, D., & Stephan, A. (2012). Individual risk attitudes and the composition of financial portfolios: Evidence from German household portfolios. The Quarterly Review of Economics and Finance, 52(1), 1–14.
  • Barber, B. M., & Odean, T. (2008). All That Glitters: The Effect of Attention and News on the Buying Behavior of Individual and Institutional Investors. The Review of Financial Studies, 21(2), 785–818.
  • Barberis, N., & Thaler, R. (2003). A Survey of Behavioral Finance
  • Barwise, P. (1993). Brand equity: Snark or boojum? International Journal of Research in Marketing, 10(1), 93–104.
  • Bennet, E., & Selvam, M. (2013). The Influence of Stock Specific Factors on the Sentiment of Equity Investors: Evidence from Indian Stock Market (SSRN Scholarly Paper ID 2251220). Social Science Research Network.
  • Billett, M. T., Jiang, Z., & Rego, L. L. (2014a). Glamour brands and glamour stocks. Journal of Economic Behavior & Organization, 107, 744–759.
  • Billett, M. T., Jiang, Z., & Rego, L. L. (2014b). Glamour brands and glamour stocks. Journal of Economic Behavior & Organization, 107, 744–759.
  • Borges, B., Goldstein, D. G., Ortmann, A., & Gigerenzer, G. (1999). Can ignorance beat the stock market? In Simple heuristics that make us smart (pp. 59–72). Oxford University Press.
  • Bilkey, W. J., & Nes, E. (1982). Country-of-Origin Effects on Product Evaluations. Journal of International Business Studies, 13(1), 89–100.
  • Çal, B., & Lambkin, M. (2017). Stock exchange brands as an influence on investor behavior. International Journal of Bank Marketing.
  • Byrne, B. M. (2010). Structural Equation Modeling with AMOS Basic Concepts, Applications, and Programming (2nd ed.). New York: Taylor and Francis Group, LLC.
  • Clark, G., Thrift, N., & Tickell, A. (2004). Performing finance: The industry, the media and its image. Review of International Political Economy, 11(2), 289–310.
  • Clark-Murphy,M., & Soutar, G. (2005). Individual Investor Preferences: A Segmentation Analysis. Journal of Behavioral Finance, 6(1), 6–14.
  • Clarkson, G. P., & Meltzer, A. H. (1960). Portfolio Selection: A Heuristic Approach. The Journal of Finance, 17.
  • Chandra, P. (2017). Investment Analysis and Portfolio Management. McGraw-Hill Education.
  • Chang, C.-H., & Chen, Y.-S. (2014). Managing green brand equity: The perspective of perceived risk theory. Quality & Quantity, 48(3), 1753–1768.
  • Cochran, W. G., 1963. Sampling Techniques (2nd ed. ed.). New York: John Wiley and Sons, Inc.
  • De Bondt, W. F. M., & Thaler, R. H. (1995). Chapter 13 Financial decision-making in markets and firms: A behavioral perspective. In Handbooks in Operations Research and Management Science (Vol. 9, pp. 385–410).
  • Engelberg, J., & Parsons, C. A. (2011). The Causal Impact of Media in Financial Markets. 44.
  • Fama, E. F., & French, K. R. (2007). Disagreement, tastes, and asset prices. Journal of Financial Economics, 83(3), 667–689.
  • Frieder, L., & Subrahmanyam, A. (2005a). Brand Perceptions and the Market for Common Stock. Journal of Financial and Quantitative Analysis, 40(1), 57–85.
  • Frieder, L., & Subrahmanyam, A. (2005b). Brand Perceptions and the Market for Common Stock. Journal of Financial and Quantitative Analysis, 40(1), 57–85.
  • Gabaix, X., Gopikrishnan, P., Plerou, V., & Stanley, H. E. (2006). Institutional Investors and Stock Market Volatility. The Quarterly Journal of Economics, 121(2), 461–504.
  • Ghaleb, M., & Kaplan, B. (2019). Brand Characteristics’ Effects on Yemeni Companies’ Willingness to Pay (WTP) A Price Premium For Audit Services. International E-Journal of Advances in Social Sciences, 5(14), 878-889.
  • Ghaleb, M. and Kaplan, B. (2020). Branding and Yemeni Organizations’ Willingness to Pay a Price Premium for Audit Services. Istanbul Management Journal, (88), pp.127-143.
  • Gigerenzer, G., & Gaissmaier, W. (2011). Heuristic Decision Making. Annual Review of Psychology, 62(1), 451–482.
  • Goetzmann, W. N., Lingfeng L., & Rouwenhorst K. G. (2005). Long-term global market correlations. Journal of Business 78, 1–38.
  • Gompers, P. A., & Metrick, A. (2001). Institutional Investors and Equity Prices. The Quarterly Journal of Economics, 116(1), 229–259.
  • Graboves, R. F. (2005) Selling Short: Fruit 'n' Finance, Public Affairs, Federal Reserve Bank of Richmond, May 18.
  • Grullon, G., Kanatas, G., & Weston, J. P. (2004). Advertising, Breadth of Ownership, and Liquidity. 35.
  • Hair Jr, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2014). Multivariate Data Analysis (7th ed.). England: Pearson Education Limited.
  • Han, C. M. (1989). Country Image: Halo or Summary Construct? Journal of Marketing Research, 26(2), 222–229.
  • Hillert, A., Jacobs, H., & Müller, S. (2014). Media Makes Momentum. The Review of Financial Studies, 27(12), 3467–3501.
  • Homburg, C., Klarmann, M. and Schmitt, J. (2010), “Brand awareness in business markets: when is it related to firm performance?”, International Journal of Research in Marketing, Vol. 27 No. 3, pp. 201-212.
  • Hong, S.T., & Wyer, Jr., R. S. (1989). Effects of Country-of-Origin and Product-Attribute Information on Product Evaluation: An Information Processing Perspective. Journal of Consumer Research, 16(2), 175.
  • Huberman, G., & Jiang, W. (2006). Offering versus Choice in 401(k) Plans: Equity Exposure and Number of Funds. The Journal of Finance, 61(2), 763–801.
  • Iris Chang. (1997). The Rape of Nanking: The Forgotten Holocaust of World War II
  • Jacobsen, B. P. (2009). Investor‐based place brand equity: A theoretical framework. Journal of Place Management and Development, 2(1), 70–84.
  • Johansson, J. K. (1989). Determinants and Effects of the Use of ″Made in″ Labels. International Marketing Review, 6(1).
  • Kahneman, D., & Tversky, A. (2012). Prospect Theory: An Analysis of Decision Under Risk. In Handbook of the Fundamentals of Financial Decision Making: Vol. Volume 4 (pp. 99– 127). World Scientific.
  • Kapareliotis, I., & Panopoulos, A. (2010). The determinants of brand equity: The case of Greek quoted firms. Managerial Finance, 36(3), 225–233.
  • Keller, K. L. (1993). Conceptualizing, Measuring, and Managing Customer-Based Brand Equity. Journal of Marketing, 57(1), 1.
  • Keloharju, M., Knüpfer, S., & Linnainmaa, J. (2012). Do Investors Buy What They Know? Product Market Choices and Investment Decisions. The Review of Financial Studies, 25(10), 2921–2958.
  • Klein, J. G. (2002). Us Versus Them, or Us Versus Everyone? Delineating Consumer Aversion to Foreign Goods. Journal of International Business Studies, 33(2), 345–363.
  • Kim, H., Gon, K. W., & An, J. A. (2003). The effect of consumer‐based brand equity on firms’ financial performance. Journal of Consumer Marketing, 20(4), 335–351.
  • Kumar, S., & Goyal, N. (2015). Behavioral biases in investment decision making – a systematic literature review. Qualitative Research in Financial Markets.
  • Kurz-Milcke, E., & Gigerenzer, G. (2007). Heuristic Decision Making.
  • MacGregor, D. G., Slovic, P., Dreman, D., & Berry, M. (2000). Imagery, Affect, and Financial Judgment. Journal of Psychology and Financial Markets, 1(2), 104–110.
  • Merton, R. C. (1987a). A Simple Model of Capital Market Equilibrium with Incomplete Information. The Journal of Finance, 42(3), 483–510.
  • Merton, R. C. (1987b). A Simple Model of Capital Market Equilibrium with Incomplete Information. The Journal of Finance, 42(3), 483–510.
  • Olohan, M. (2007). The Status of Scientific Translation. Journal of Translation Studies, 10(1), 131–144.
  • Papadopoulos, N. G., & Heslop, L. A. (2014). Product-country images: Impact and role in international marketing.
  • Statman, M. (2004). What Do Investors Want? The Journal of Portfolio Management, 30(5), 153–161.
  • Stone, Robert N, & Kjell Gronhaug. (1993). Perceived risk: Further considerations for the marketing discipline.
  • Sweeney, J. C., Soutar, G. N., & Johnson, L. W. (1999). The role of perceived risk in the quality-value relationship: A study in a retail environment. Journal of Retailing, 75(1), 77–105.
  • Tetlock, P. C. (2007). Giving Content to Investor Sentiment: The Role of Media in the Stock. Market. 51.
  • Tversky, A., & Kahneman, D. (1974). Judgment under Uncertainty: Heuristics and Biases. Science, 185(4157), 1124–1131.
  • Waweru, N. M., Munyoki, E., & Uliana, E. (2008). The effects of behavioral factors in investment decision-making: A survey of institutional investors operating at the Nairobi Stock Exchange. International Journal of Business and Emerging Markets, 1(1), 24.
  • Zhang, B., & Wang, Y. (2015). Limited attention of individual investors and stock performance: Evidence from the Chi Next market. Economic Modelling, 50, 94–104.
There are 65 citations in total.

Details

Primary Language English
Journal Section Research Articles
Authors

Solomon Gyeabour This is me 0000-0002-9597-8786

Burçin Kaplan 0000-0003-4967-8405

Publication Date July 31, 2020
Submission Date July 13, 2020
Acceptance Date August 3, 2020
Published in Issue Year 2020 Volume: 19 Issue: Temmuz 2020(Özel Ek) - Prof. Dr. Sabri ORMAN Özel Sayısı

Cite

APA Gyeabour, S., & Kaplan, B. (2020). ANALYZING THE EFFECTS OF BRAND EQUITY ON INVESTOR BEHAVIOR AND COMPOSITION OF FINANCIAL PORTFOLIO. İstanbul Ticaret Üniversitesi Sosyal Bilimler Dergisi, 19(Temmuz 2020(Özel Ek), 458-477.