Manuscript2 – Page 36 – BUSINESS AND ECONOMICS RESEARCH JOURNAL

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Decision-Making Problems in Natural Disaster Insurance: Public Intervention

Posted on Saturday April 21st, 2018Sunday April 22nd, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Decision-Making Problems in Natural Disaster Insurance: Public Intervention
Author(s):	Tulin Altun
Volume:	9
Number:	2
Year:	2018
Page:	349-361
ISSN:	2619-9491
DOI Number:	10.20409/berj.2018.109

Abstract

In this study, decisions about natural disaster insurance is examined through the behavioral literature and public interventions are suggested. Natural disasters are low probability but high consequence events. In natural disaster insurance, the risk and uncertainty are higher than in other markets, leading to more frequent decision-making problems. Intuitive thinking, systematic bias, learning mistakes, social norms and social comparisons, public aids and political interests cause non-rational decisions to be made. Non-rational behavior of insurance consumers, suppliers and public sector, which operates as a regulatory institution causes inadequate insurance coverage. Inadequate insurance coverage leads to loss of individual and social welfare and increases the government’s implicit fiscal liabilities. Asymmetric paternalist political instruments, such as mandatory insurance, framing, multi-year insurance contracts can reduce decision-making problems. Regulations on insurance contracts and public-private partnerships can resolve market failures.

Keywords:

Natural Disasters, Disaster Insurance, Behavioral Theory, Decision-Making Problems Public Interventions

JEL Classification:

D81, G22, H40

Full Text ( ↓ 2111)

Measurement and Reporting of Intellectual Capital with Calculated Intangible Value Method

Posted on Saturday April 21st, 2018Sunday April 22nd, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Measurement and Reporting of Intellectual Capital with Calculated Intangible Value Method
Author(s):	Selim Yuksel Pazarceviren, H. Pinar Kaya
Volume:	9
Number:	2
Year:	2018
Page:	331-348
ISSN:	2619-9491
DOI Number:	10.20409/berj.2018.108

Abstract

The main purposes of this study are to examine the studies measuring and reporting intellectual capital, to revise these studies with accounting perspective and to determine the intellectual capital values of firms operating in Textile and Leather Products Industry in Borsa Istanbul for the years 2014-2016 via “Calculated Intangible Value Method”. The findings reveal that intellectual capital indicating firms’ fair value is to be reported. However, it is difficult to recognize intellectual capital as an intangible asset and to report it in financial tables since there is not a direct definition towards intellectual capital in International Financial Reporting Standards and Turkish Accounting Standards/Turkish Financial Reporting Standards. This study reveals that the best reporting approach is to present the information related with intellectual capital in the annual reports of firms within the frame of current regulations.

Keywords:

Intellectual Capital, Knowledge, Calculated Intangible Value Method, Intangible Asset, Financial Reporting

JEL Classification:

M40, M41

Full Text ( ↓ 2401)

Threshold Effect of the Number of Bank Relationships on the Tunisian Firm Performance

Posted on Saturday April 21st, 2018Sunday April 22nd, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Threshold Effect of the Number of Bank Relationships on the Tunisian Firm Performance
Author(s):	Abdelaziz Hakimi
Volume:	9
Number:	2
Year:	2018
Page:	317-330
ISSN:	2619-9491
DOI Number:	10.20409/berj.2018.107

Abstract

The aim of this paper is to define the optimal number of bank relations and to investigate its impact on the performance of some Tunisian firms. To achieve these goals, we used a sample of 36 Tunisian listed companies over the period 2008-2015 and we performed the Panel Smooth Transition Regression (PSTR) as econometric approach. Empirical results show that the optimal number of bank relationship for Tunisian listed companies is 3.222. Findings indicate that within this optimal number, bank-firm relationships exert a positive and significant effect on the performance of the Tunisian listed companies. For macroeconomic factors, results show that the Growth rate of Gross domestic Product (GDPG) increases significantly the firm performance; however, the effect of inflation is negative but not significant.

Keywords:

Tunisian Firms, Bank-Firm Relations, PSTR Model

JEL Classification:

G21, G32, L14

Full Text ( ↓ 2155)

Foreign Direct Investment, International Trade and Financial Development in BRICS-T Countries: A Bootstrap Panel Causality Analysis

Posted on Saturday April 21st, 2018Sunday April 22nd, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Foreign Direct Investment, International Trade and Financial Development in BRICS-T Countries: A Bootstrap Panel Causality Analysis
Author(s):	Serkan Sahin
Volume:	9
Number:	2
Year:	2018
Page:	301-316
ISSN:	2619-9491
DOI Number:	10.20409/berj.2018.106

Abstract

The aim of this paper is to investigate, within a Bootstrap panel causality approach, the interactions among foreign direct investment (FDI), international trade and financial development in BRICS-T countries (Brazil, Russia, India, China South Africa and Turkey). While the effect of foreign direct investment on economic growth is well documented, the consequences of FDI on financial development have not received as much attention. Previous studies have recognized that FDI is a crucial source of financing especially for emerging economies, though the benefit of FDI to recipient country is ambiguous. Furthermore, the number of previous studies examining the causal linkage between international trade and financial development is also limited. Besides, examining the associations among these factors, this study also investigates the joint effect of FDI and international trade on financial development in these countries. Empirical findings from a bootstrap panel causality approach indicate that FDI induce financial development in Brazil, Russia, and China. In addition, international trade promotes financial market development in Brazil, Russia and South Africa. Empirical findings also indicate that financial development stimulates international trade in Brazil, India and Turkey. Finally, it is found in this study that not only international trade stimulates FDI, but also FDI induce international trade in India and Turkey.

Keywords:

Financial Development, FDI, International Trade, Bootstrap Panel Causality, BRICS-T Countries

JEL Classification:

B17, E22, G10, E44, O16

Full Text ( ↓ 2371)

Testing Multi Bubbles for Commodity Derivative Markets: A Study on MCX

Posted on Saturday April 21st, 2018Sunday April 22nd, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Testing Multi Bubbles for Commodity Derivative Markets: A Study on MCX
Author(s):	Ayben Koy
Volume:	9
Number:	2
Year:	2018
Page:	291-299
ISSN:	2619-9491
DOI Number:	10.20409/berj.2018.105

Abstract

Due to their volatility differences, yield differences and low correlations with equity markets, metal futures are held for diversification in the international investors’ portfolios. Beginning with dot.com bubble and following global crisis, the mutual movement of equity markets caused investors to canalize alternative investment vehicles. The study aims to investigate if there are bubbles in metal futures in The Multi Commodity Exchange of India Limited (MCX) related the period beginning from January 2010 to August 2017 for copper, lead, nickel and zinc; and March 2010 to August 2017 for aluminum in a weekly data range. Using Sup Augmented Dickey Fuller (SADF) and Generalized Sup Augmented Dickey Fuller (GSADF) tests, no evidence on bubble could be found in any metal market in the used MCX sample. The precious metal markets are out of the sample because of their relatively high volatility.

Keywords:

Bubble, Commodity Market, Metal Market, SADF, GSADF

JEL Classification:

G00, G10, G15, C58

Full Text ( ↓ 2329)

The Impact of Oil Price Shocks on Sector Indices: Evidence from Borsa İstanbul

Posted on Friday April 20th, 2018Sunday April 22nd, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of Oil Price Shocks on Sector Indices: Evidence from Borsa İstanbul
Author(s):	Gulin Vardar, Guluzar Kurt-Gumus, Mehmet Erdem Delice
Volume:	9
Number:	2
Year:	2018
Page:	271-289
ISSN:	2619-9491
DOI Number:	10.20409/berj.2018.104

Abstract

We analyze the dynamic relationship between daily Brent oil prices and selected sector index returns of Borsa İstanbul. To perform an elaborate analysis, because oil price fluctuations affect sectors differently, the sectoral index returns are classified as oil-user, oil-related, oil-substitute, and financial. Employing Johansen and Juselius (1990) cointegrating technique, the long-run relationship is examined between the oil price changes and sectoral stock returns. After the investigation of the causal relationship between these two variables, Impulse Response Functions and Variance Decomposition Analysis are used to evaluate how shocks to variables rebound through a system. Given that significant changes have occurred across capital markets throughout the period, it would appear to be worthwhile to investigate whether changes in interactions among oil prices and sectoral stock returns have occurred as a result. The findings indicate that; there is cointegration between returns of half of the sectoral indices analyzed and oil prices Granger causes sectoral index returns.

Keywords:

Oil Price Shocks, Borsa İstanbul, Sub-sectors, Causality, Variance Decomposition, Impulse Response Function

JEL Classification:

E44, Q40

Full Text ( ↓ 2288)

The Regional Development Agency Experiences of Turkey and Romania

Posted on Friday April 20th, 2018Sunday April 22nd, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Regional Development Agency Experiences of Turkey and Romania
Author(s):	Yılmaz Toktas, Claudiu Botoc, Serkan Kunu, Roxana Prozan
Volume:	9
Number:	2
Year:	2018
Page:	253-270
ISSN:	2619-9491
DOI Number:	10.20409/berj.2018.103

Abstract

Economic growth and development take priority in a country’s economic and social objectives. When examining historical periods, there are central points in economic and social activities for reasons such as geopolitical status and geographic characteristics. Regional imbalances are a significant socio-economic problem that is apparent in many countries. Development agencies implemented by many developed or developing countries aim to eliminate regional imbalances. Turkey and Romania have different regional development levels. However, both countries face the problem of regional development differences. The EU Regional Policy, through the approach of a regional development agency, can help to close the gap between regions in both countries. The legislative framework of regional development was established by Regional Development Law No. 151 in 1998 after first carrying out an analysis of the regional disparities in Romania. RDAs entered the Turkish legal system with Law No. 5449 concerning the establishment, coordination, and tasks of development agencies in 2006. In this study, we explain both countries’ RDA experiences within the organizational structures and the development of agencies following a theoretical approach.

Keywords:

Regional Development, Regional Development Agencies, Turkey and Romania

JEL Classification:

F00, O10, O18

Full Text ( ↓ 2416)

Accounting for Exchange Risk Management Activities under the Scope of International Accounting Standards

Posted on Saturday February 3rd, 2018Wednesday February 7th, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Accounting for Exchange Risk Management Activities under the Scope of International Accounting Standards
Author(s):	Aysegul Ipek, Fehmi Ali Ildir
Volume:	9
Number:	1
Year:	2018
Page:	235-251
ISSN:	1309-2448
DOI Number:	10.20409/berj.2018.102

Abstract

Today, companies operating in the country’s economies, which have become the only market, especially with the influence of globalization, face serious exchange rate risk. This risk can has negative effects on the results of operations of the enterprises. Many different day-to-day exchange rate risk management techniques are emerging in order to reduce or minimize these effects. However, the implementation of these methods brings with it a number of difficulties. Within the scope of International Accounting and Financial Reporting Standards (IAS / IFRS), which is mandatory for many companies as of 2005, it is aimed to give theoretical information about the forward contracts used in the foreign exchange risk management activities and the accounting process and to examine the implementation period. In this context, the theoretical information about the emergence, management and management instruments of the foreign exchange risk was given as the priority and the different alternatives of the risk management activities in the scope of IAS / IFRS have been presented afterwards. Finally, the risk management process belonging to a company operating in Turkey and the applications of the financial transactions included in this process within the scope of financial risk protection accounting.

Keywords:

Accounting Standards, Financial Risk, Derivatives, Hedging, Foreign Exchange Risk

JEL Classification:

M40, M41, M48, G31, G32

Full Text ( ↓ 2783)

Reverse Acquisitions Within the Scope of IFRS 3 Business Combinations

Posted on Saturday February 3rd, 2018Wednesday February 7th, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Reverse Acquisitions Within the Scope of IFRS 3 Business Combinations
Author(s):	Olcay Akcin, Ilker Kiymetli Sen
Volume:	9
Number:	1
Year:	2018
Page:	213-233
ISSN:	1309-2448
DOI Number:	10.20409/berj.2018.101

Abstract

Because of tough competition conditions in global economy, technological developments, changes in consumer preferences, economic crisis, changes in law and number of other reasons, companies choose business combinations in order to reduce the business risks, increase the performance, efficiency and competitive power, expand into new markets and reduce the costs. Companies reporting in accordance with International Financial Reporting Standards apply IFRS 3 Business Combinations while accounting of business combinations. Transactions defined as “Reverse Acquisitions” in the literature are discussed in a separate chapter within the standard. As per the standard, accounting treatments for reverse acquisitions differ in many ways from regular business combinations.The purpose of this study is to explain the theoretical and practical accounting treatment differences between regular business combinations and reverse acquisitions.

Keywords:

IFRS, Business Combinations, Reverse Acquisition, Fair Value, Consolidation

JEL Classification:

M40, M41, M42

Full Text ( ↓ 2552)

The Impact of Interaction Between Enterprise Resource Planning System and Management Control System on Firm Performance in The Turkish Manufacturing Sector

Posted on Saturday February 3rd, 2018Wednesday February 7th, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of Interaction Between Enterprise Resource Planning System and Management Control System on Firm Performance in The Turkish Manufacturing Sector
Author(s):	Melek Eker, Semih Eker
Volume:	9
Number:	1
Year:	2018
Page:	195-212
ISSN:	1309-2448
DOI Number:	10.20409/berj.2018.100

Abstract

The developments of information and communication technology affect the way of data collecting and storing for firms. This has also lead to improving information processing process and management control processes. The purpose of this study is to show whether the interaction between the enterprise resource planning system and the management control system leads to an improvement in firm performance. The model of Kallunki, Laitinen, and Silvola (2011) is used to understand and analyze the relationship in Turkey. To test the relationship empirically, data is gathered from 125 manufacturing firms of the top 500 in Turkey in 2015. The results support the hypothesis that high interaction between enterprise resource planning system and management control system is associated with high financial and non-financial performance.

Keywords:

ERP, Formal Control, Informal Control, Financial performance, Non-Financial Performance

JEL Classification:

M41, M42, 033

Full Text ( ↓ 2664)