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The Relationships Among Earnings Management, Independent Audit Opinion and Audit Firm Switch: A Research on Manufacturing Industry at Borsa İstanbul

Posted on Wednesday September 14th, 2016Friday September 16th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Relationships Among Earnings Management, Independent Audit Opinion and Audit Firm Switch: A Research on Manufacturing Industry at Borsa İstanbul
Author(s):	Murat Ocak
Volume:	7
Number:	3
Year:	2016
Page:	89-110
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016321810

Abstract

In this paper, firstly the relationship between accruals/real transactions based earnings management and audit opinion is investigated. Secondly, the effect of prior modified audit opinion on audit firm switch is investigated. 1121 firm’year observations on Borsa Istanbul Manufacturing Industry are used. The results show that there is positive and significant relationship between the signed/absolute value of discretionary accruals and modified audit opinion. There is no relationship between the total amount of the abnormal production cost/abnormal operating expenses and modified audit opinion. A positive and significant relationship between prior modified auditor opinion and audit firm switch is determined. Audit rotation regulation has an effect on the audit firm switch in 2013 and companies change their audit firms.

Keywords:

Independent Audit Opinion, Accruals Based Earnings Management, Real Activities Based Earnings Management, Audit Firm Switch, Borsa İstanbul

JEL Classification:

M40, M41, M42

Full Text ( ↓ 2326)

The Effects of Corruption and Democracy on FDI in Developing Countries: An Empirical Investigation

Posted on Wednesday September 14th, 2016Friday September 16th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of Corruption and Democracy on FDI in Developing Countries: An Empirical Investigation
Author(s):	Ahmet Ay, Oktay Kızılkaya, Tuba Akar
Volume:	7
Number:	3
Year:	2016
Page:	73-88
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016321809

Abstract

In this paper, the effects of corruption and democracy on foreign direct investments are examined empirically for 10 developing countries over the period 1995-2013. Panel unit root tests, panel cointegration test, panel FMOLS estimator, and panel vector error correction causality methods are employed in the paper. According to the findings, there is a cointegration relationship among corruption, democracy, and foreign direct investments. Decrease of corruption and increase of democracy level, affect foreign direct investments positively in 10 developing countries which constitute panel, in accordance with evaluating estimate results of cointegration coefficients. According to the findings obtained from the causality analysis, there is unidirectional causality from corruption to foreign direct investments in the short run while there is unidirectional causality from corruption and democracy to foreign direct investments in the long run. These findings support the hypothesis which argue that democracy and corruption have significant effects on foreign direct investments. Today, it can be seen that foreign investors test the trustworthiness of political regime in host country. Reviewing policies towards foreign investors appears as a substantial factor for host countries.

Keywords:

Corruption, Democracy, Foreign Direct Investments, Developing Countries, Panel Data Analysis

JEL Classification:

D73, C33, D72, F23

Full Text ( ↓ 2314)

Economic Determinants of Consumer Inflation in Turkey: ARDL Analysis

Posted on Wednesday September 14th, 2016Friday September 16th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Economic Determinants of Consumer Inflation in Turkey: ARDL Analysis
Author(s):	Dilek Surekci Yamacli, Mustafa Saatci
Volume:	7
Number:	3
Year:	2016
Page:	53-71
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016321808

Abstract

In this study economic factors that affect consumer prices are examined using the ARDL analysis utilizing monthly data in the period of 2004:01-2015:07 in Turkey. In order to contribute to the literature, CPI, HCPI and ICPI based inflation models are developed, credit card spending is added to the domestic credit volume, weighted average cost of funding is used as an indicator to the interest rate and the effects of the capacity utilization rate and producer prices’ on the inflation are investigated. According to the results of the study, it is found out that lagged values of inflation, capacity utilization rate and producer prices are the main determinants of the consumer price inflation. The impact of the capacity utilization on consumer inflation was found to be higher than the effects of the output gap. The relationship between consumer price inflation and the interest rate in the short and long term are shown to be weak. The increment of inflation in recent years despite the continued increase in interest rates can be explained using this result. In this point of view, effective measures of the reducing of production costs and economic policies restricting the total demand may have a decreasing effect on inflation.

Keywords:

CPI, ICPI, HCPI, ARDL Analysis

JEL Classification:

E31, C32

Full Text ( ↓ 2573)

The Relationship Between Financial Development and Economic Growth: An Analysis On Troubled Ten Countries 1990 -2014

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Relationship Between Financial Development and Economic Growth: An Analysis On Troubled Ten Countries 1990 -2014
Author(s):	Sumeyra Gazel
Volume:	7
Number:	3
Year:	2016
Page:	39-52
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016321807

Abstract

This study aims to investigate relationship between financial developments and economic growth for troubled ten countries (Brazil, Colombia, Chile, South Africa, South Korea , Peru, Russia, Thailand, Singapore and Taiwan). In this context, troubled ten countries have been examined with dynamic fixed effects estimator and Common Correlated Effects Mean Group for the years 1990-2014. Gross Domestic Product per Capita was used as a proxy for economic growth in the study. On the other hand, Broad Money, Gross Capital Formation and Domestic Credit to Private Sector (% of GDP) are used as proxies for financial development. The results point to different for the long and short term. The results demonstrate that there isn’t a relationship between financial development and economic growth in the context of analyzed long-term. However, it is possible to say that there is a weak positive relationship between financial development and economic growth in short term.

Keywords:

Financial Development, Economic Growth, Troubled Ten Countries, Panel Data Analysis

JEL Classification:

C33, E44, O11

Full Text ( ↓ 2306)

Financial Performance Evaluation of Turkish Energy Companies with Fuzzy AHP and Fuzzy TOPSIS Methods

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Financial Performance Evaluation of Turkish Energy Companies with Fuzzy AHP and Fuzzy TOPSIS Methods
Author(s):	Kemal Eyuboglu, Pelin Celik
Volume:	7
Number:	3
Year:	2016
Page:	21-37
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016321806

Abstract

Turkey’s economy has expanded in recent years with the increase in energy consumption. Energy is a key input in production and plays a crucial role in the development of an economy. Energy sector interacts with other sectors hence the performances of energy firms are inevitable to follow-up. In the study thirteen energy firms are evaluated with 5 main and 15 sub-criteria for the period of 2008-2013. The 15 sub-criteria are classified in the following main criteria: liquidity, activity, financial leverage, profitability and growth ratios. The weights of the ratios are determined by Fuzzy AHP and then Fuzzy TOPSIS method is used for the rankings of the energy firms. Traditional multi-criteria decision making methods are not used in this study, due to the fact that they are insufficient under uncertainty. After 2008 global financial crisis, the uncertainty has increased all over the world hence the usage of fuzzy methods can provide better results under these conditions. Findings show that Avrasya Oil, Turcas and Aksu have the highest ranking.

Keywords:

Performance Evaluation, Fuzzy AHP, Fuzzy TOPSIS, Energy Sector, Multi-Criteria Decision Making

JEL Classification:

L61, G11, Q40

Full Text ( ↓ 2554)

Impact of Financial Literacy on the Behavioral Biases of Individual Stock Investors: Evidence from Borsa Istanbul

Posted on Wednesday September 14th, 2016Friday September 16th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Impact of Financial Literacy on the Behavioral Biases of Individual Stock Investors: Evidence from Borsa Istanbul
Author(s):	Sinem Ateş, Ali Coşkun, M. Abdullah Şahin, M. Levent Demircan
Volume:	7
Number:	3
Year:	2016
Page:	1-19
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016321805

Abstract

Financial literacy and behavioral biases are critical factors affecting the financial decisions and behaviors of investors. We survey 596 individual stock investors to measure their financial literacy, to examine their behavioral biases and to investigate the relationship between financial literacy and behavioral biases. Results suggest that around half of the investors have a low financial literacy level, their main source of financial information is advice from parents or friends, and they have a high level of behavioral biases. While some of these behavioral biases are independent of the level of financial literacy, there is a significant relationship between a number of other biases and the level of financial literacy.

Keywords:

Behavioral Finance, Financial Literacy, Behavioral Bias, Financial Decision, Stock Investors

JEL Classification:

G02, G11

Full Text ( ↓ 7049)

The Technical Efficiency of Hospital Inpatient Care Services: an Application for Turkish Public Hospitals

Posted on Tuesday April 19th, 2016Tuesday April 19th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Technical Efficiency of Hospital Inpatient Care Services: An Application for Turkish Public Hospitals
Author(s):	Emre Atilgan
Volume:	7
Number:	2
Year:	2016
Page:	203-214
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016217537

Abstract

In this study, the efficiency analysis of Turkish Ministry of Health (MoH) hospitals’ inpatient care services is done by using the Stochastic Frontier Analysis (SFA) method. In the analysis, cross-sectional data on 459 acute-care hospitals in 2013 were used and the sample was consisted of only MoH general and teaching hospitals. A cross sectional version of SFA inefficiency effects model specification is used to estimate the inpatient care service production efficiency. The results of this paper suggest that, the technical inefficiency of inpatient care services of MoH hospitals is closely related with the hospital size. As the hospital capacity decreases or/and the role group of the hospital lowers down, the hospital efficiency scores reduces significantly. The other important finding of this paper is that the efficiency scores are inversely related with the socio-economic development level of the region or province where the hospital is located. The mean efficiency scores decreases in the western part of the Turkey which has the regions that are socio-economically more developed and more populated compared to the others.

Keywords:

Stochastic Frontier Analysis; Technical Efficiency; Hospital Efficiency; Inpatient Care Services; Inefficiency Effects

JEL Classification:

D24, I11

Full Text ( ↓ 2310)

Application of Fuzzy Multi-Criteria Decision Making Methods on Six Sigma Projects Selection

Posted on Tuesday April 19th, 2016Tuesday April 19th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Application of Fuzzy Multi-Criteria Decision Making Methods on Six Sigma Projects Selection
Author(s):	Engin Cakir, Muhsin Ozdemir
Volume:	7
Number:	2
Year:	2016
Page:	167-201
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016217536

Abstract

Six sigma method widely applied in production and service businesses is known as a project-oriented method. In six sigma method, selection of the prior project among others can be considered as a multi-criteria decision-making problem. The conducted literature review has revealed that there is a large number of methods to select six sigma projects. It is more appropriate to use fuzzy multi-criteria decision making methods in project selection since evaluation criteria of six sigma projects include uncertainties. The aim of this study is to select the most appropriate project as a result of evaluating the projects by Fuzzy VIKOR, Fuzzy TOPSIS and Fuzzy COPRAS as methods of fuzzy multi-criteria decision-making and integrating the ranking scores obtained from each method by Copeland method. The proposed method has been implemented in a large scale production company, operating in Aydın ASTİM Organized Industrial Zone.

Keywords:

Six Sigma Projects, Fuzzy VIKOR, Fuzzy TOPSIS, Fuzzy COPRAS, Fuzzy AHP, Copeland Method

JEL Classification:

M11, C44, L20, C02, D70, O22

Full Text ( ↓ 2995)

The Moderating Effect of Price Conscious Purchasing Style on the Relationship of Quality Conscious Purchasing Style and Consumers Confusion

Posted on Tuesday April 19th, 2016Tuesday April 19th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Moderating Effect of Price Conscious Purchasing Style on the Relationship of Quality Conscious Purchasing Style and Consumers Confusion
Author(s):	Aydın Kayabasi, H. Feyyaz Ebeoglugil, Omur Ozkuk
Volume:	7
Number:	2
Year:	2016
Page:	149-166
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016217535

Abstract

The shortening of product life cycle, heavy message traffic along with the products placed in the market with innovative strategies to meet the needs of different market segments, similar perceived characteristics and uncertainty can confuse the consumers. Businesses can reach the consumers through many different channels and consumers can obtain different consumers experiences, these made it possible that a lot of information can be assessed during the purchasing process. In addition to that, purchasing styles of consumers can be influenced by very different purchasing styles. This study aims to investigate the moderating effect of price-conscious purchasing style on the relationship of quality-conscious purchasing style and consumer confusion. Research is based on descriptive and relational model. Data were collected through structured questionnaires. Convenience sampling method was used as the sampling method. Factor analysis and hierarchical multiple regression were used during the data analysis. According to the research results, it is determined that price conciousness purchasing style has a moderating effect on the relationship of quality consciousness purchasing style and consumer confusion.

Keywords:

Cunsomers Confusion, Purchasing Style, Price-Conscious Purchasing Style, Quality-Conscious Purchasing Style

JEL Classification:

M31, D11

Full Text ( ↓ 2637)

The Effect of Perceived Quality of Meal Service Provided by Organization on Organizational Commitment and Job Satisfaction

Posted on Tuesday April 19th, 2016Tuesday April 19th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effect of Perceived Quality of Meal Service Provided by Organization on Organizational Commitment and Job Satisfaction
Author(s):	Haluk Erdem, Meral Calis Duman
Volume:	7
Number:	2
Year:	2016
Page:	135-149
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016217500

Abstract

This study aims to determine the effects of perceived quality of meal service provided by organization on organizational commitment and job satisfaction. In order to analyse these relationships, data is gathered from public employees (n=204) whose lunch is organizationally provided in Bitlis Province. The results of the analysis (exploratory and confirmatory factor analyses, correlation and regression analysis) demonstrate that taste and management factors of perceived quality of organizationally provided meal service affect employees’ emotional commitment positively and significantly. Besides, the dimensions of the perceived quality of meal service namely taste, hygiene and managerial are observed to have no relationship with continual and normative commitment. In addition, management factors related to the way meal is served affect employees’ job satisfaction positively and significantly. It is also found that the demographic variables such as gender age and education have no significant effects on examined variables. The results are discussed through comparing with the studies in the literature.

Keywords:

Quality of Meal Service Provided by Organization, Taste Perception, Organizational Commitment, Job Satisfaction

JEL Classification:

L20, M54, M12, C31, C12

Full Text ( ↓ 2444)