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Considering Education for Opportunity versus Necessity-based Entrepreneurs: Does Income Lead to Greater Entrepreneurial Well-Being?

Posted on Wednesday November 8th, 2017Saturday November 11th, 2017 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Considering Education for Opportunity versus Necessity-based Entrepreneurs: Does Income Lead to Greater Entrepreneurial Well-Being?
Author(s):	Gokcen Arkali Olcay, Ozlem Kunday
Volume:	8
Number:	4
Year:	2017
Page:	759-772
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.81

Abstract

This study is motivated through the paradox on the well-being of self-employed that self-employment is associated with greater satisfaction across various domains despite the lower income levels of such entrepreneurs. Since not all self-employed gain higher returns to income, there is a need to question to what extent income contributes to well-being as well as the most critical factors such as education or the reason that the entrepreneur starts a new business could play a role in this relationship between income and well-being. Using GEM’s data on entrepreneurs from a wide set of countries all over the world, the effect of income on entrepreneurial well-being is tested treating education as the moderator across necessity and opportunity entrepreneurs. While necessity entrepreneurs with relatively lower education levels gain higher returns to income, opportunity entrepreneurs gain higher returns to income when their education levels are higher. The results shed light on how the effect of income on entrepreneurial well-being changes adversely with the increasing education levels for different entrepreneurial motivations.

Keywords:

Necessity Entrepreneurship, Opportunity Entrepreneurship, Well-Being, Income, Education, GEM

JEL Classification:

L26, M13, M10

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Confirmatory Factor Analysis on Tax Compliance Intentions, General Fairness, Procedural Fairness and Social Norms

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Confirmatory Factor Analysis on Tax Compliance Intentions, General Fairness, Procedural Fairness and Social Norms
Author(s):	Nuran Bayram, Mine Aydemir, Zuhal Yildirim, Reyhan Leba Tansoker
Volume:	8
Number:	4
Year:	2017
Page:	749-758
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.80

Abstract

The share of small and medium-sized enterprises in the economy has increased in recent times. Nevertheless, it is seen among the most risky groups when evaluated in terms of tax compliance. The aim of the present study is to investigate the reliability and structural validity. Because of this aim we used the Turkish version of the tax compliance intention, general fairness, procedural fairness and social norms scale. The study group consists of 320 participants. We used AMOS program for the data analysis. As a result, the best fit indices are obtained. All factor loadings were found statistically significant after confirmatory factor analysis. Cronbach Alpha reliability coefficient is calculated to determine the reliability of the scale in this study. Cronbach’s alpha values of the all dimensions were found within the range between 0.73 and 0.90. The Turkish form of tax compliance intention, general fairness, procedural fairness and social norms scale was found to be adequate and reliable. These instruments can be used by the researchers in research in Turkey.

Keywords:

Confirmatory Factor Analysis, Tax Compliance Intention, General Fairness, Procedural Fairness, Social Norms

JEL Classification:

C00, H20

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Expected Maximum Drawdown Approach on Portfolio Selection: An Examination on BIST100 – S&P500

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Expected Maximum Drawdown Approach on Portfolio Selection: An Examination on BIST100 – S&P500
Author(s):	Umut Uyar, Habib Kucuksahin
Volume:	8
Number:	4
Year:	2017
Page:	727-748
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.79

Abstract

In the study, the maximum drawdown criterion frequently used by investment specialists and fund managers in the practice of risk factor measurement was carried out. Within the scope of the study, Risky, Non-Risky and Equally Weighted portfolios have been established with the stocks listed on BIST100 and S&P500 indexes. The weight of each stock in the portfolios whose performance was measured for the year 2016 was arranged according to the expected maximum drawdown. With the aim of determining the highest expected drop points, daily returns of associated stocks between January 1, 2010, and December 31, 2015, were utilized. As a result of the study, it was confirmed that for the BIST100 index, the non-risky portfolio provides the highest return as opposed to expectations, while for the S&P500 index, risky portfolios provide the highest return in parallel with the expectation. When we look at 2016 as a year when sharp declines were experienced for the BIST100 index, it is possible to say that the non-risky portfolios yield higher returns correspond with the expectations. Finally, it has been determined that non-risky portfolios created from stocks in related indices performed better than other portfolios according to Sharpe (1966) and Treynor (1965) performance indexes. When examining the performance outputs of portfolios formed by both indexes for 2016, it is possible to say that the predictions of investors who prefer low risk have been realized.

Keywords:

Portfolio Selection, Expected Maximum Drawdown, BIST100, S&P500

JEL Classification:

G10, G11

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Modeling of Volatility in the Stock Markets Returns: Classic and Bayesian GARCH Approaches for ISE -100

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Modeling of Volatility in the Stock Markets Returns: Classic and Bayesian GARCH Approaches for ISE -100
Author(s):	Muhammet Burak Kilic, Ismail Celik, Murat Kaya
Volume:	8
Number:	4
Year:	2017
Page:	715-726
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.78

Abstract

The accuracy of estimate in the investment risk is important for the potential investors as well as the expected return from the investment characteristics. One of the most fundamental issues on risk and return is to have the heavy tailed behavior of the residuals that makes it difficult to obtain an appropriate risk prediction model for index returns in financial studies. In this study, Istanbul stock exchange (ISE-100) daily index data between February 2007 and February 2017 is analyzed with the classic and Bayesian GARCH (1,1) models and it is aimed to compare the effects of them on return volatility with Student-t residuals. As a result of this study, no significant differences are found between the classical and Bayesian GARCH (1,1)-Student-t models both effects of shock on volatility and volatility persistence for stock return. This can be interpreted as both models not well differentiated from each other. In conclusion, classical and Bayesian GARCH (1,1)-Student-t estimation methods provide reliable results both in modeling volatility of returns and in estimating investment risk for investors and market regulators.

Keywords:

ISE-100, Stock Returns; Volatility, Student-t Distribution, Bayesian Approaches

JEL Classification:

C46, C58 G11, G12

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Investigating Cash Flow Sensitivity of Investments in Firms Quoted on Borsa Istanbul

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Investigating Cash Flow Sensitivity of Investments in Firms Quoted on Borsa Istanbul
Author(s):	Serdar Benligiray, Nurhan Aydin
Volume:	8
Number:	4
Year:	2017
Page:	699-714
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.77

Abstract

Costly external financing forces firms to rely more on cash flows generated by their resources and leads to underinvestment. A useful approach to determine the wedge between the cost of internal and external financing is to observe cash flow sensitivity of investments. Firms with a significant investment–cash flow sensitivity are deemed to be financially constrained. Following this approach, this study examines the investment-cash flow sensitivities of non-financial firms that are quoted on Borsa İstanbul for the period of 2002-2014. The results from panel data analysis suggest that smaller and younger firms exhibit investment–cash flow sensitivity while evidence for both industrial categorization and the classification by an index for financial constraints –KZ Index– are inconclusive. Low-dividend firms have the most significant investment–cash flow sensitivity. Without any classification, firms show moderate investment–cash flow sensitivity for the period of 2002–2014. In the crisis period, investments are the most sensitive to cash flows. On the other hand, investment–cash flow sensitivity is not significant for macro-economic growth periods. These findings are in line with the argument that investment–cash flow sensitivity is related to financial constraints.

Keywords:

Investments, Cash Flow, Financial Constraint, Pecking Order, Financial Crisis

JEL Classification:

G14, G31, G01

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Determinants of Profitability: Evidence from Real Sector Firms Listed in Borsa Istanbul

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Determinants of Profitability: Evidence from Real Sector Firms Listed in Borsa Istanbul
Author(s):	Ozcan Isik
Volume:	8
Number:	4
Year:	2017
Page:	689-698
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.76

Abstract

The purpose of this study is to examine empirically the influence of firm-specific factors on the profitability for 153 listed real sector firms in Turkey for a period of eight years from 2005 to 2012. In our study, it is also analyzed if there are differences in firm profitability according to firm size and firm age. Estimation results obtained from the panel data models seem to imply that, on the whole, profitability measured by return on assets (ROA) of publicly traded real sector firms in Borsa Istanbul Stock Exchange is mostly driven by firm size, liquidity level, asset tangibility, debt structure measured by the ratio of total liabilities to total assets, stock return volatility, firm age, and financial crisis. On the other hand, the results of the conducted panel analysis reveal that growth opportunities measured by the ratio of capital expenditure to sales have no statistically significant impact on the profitability of real sector firms.

Keywords:

Profitability, Real Sector Firms, Panel Data Analysis, Borsa Istanbul, Turkey

JEL Classification:

D22, G32, L25

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Investigating The Economic Performance of Central Asian Turkic Republics in Terms of Dutch Disease

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Investigating The Economic Performance of Central Asian Turkic Republics in Terms of Dutch Disease
Author(s):	Sevgi Sezer
Volume:	8
Number:	4
Year:	2017
Page:	673-688
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.75

Abstract

The Dutch Disease, which means that beneficial developments for an economy begins to give harmful results over time, can be seen especially in the countries having rich natural resources. Will the Central Asian Turkic Republics, which have achieved high income thanks to their resources such as oil and natural gas, come to such a problem in the future? If there is such a risk, what would be the solutions and the measures to be taken? In this paper, the answers of these questions are sought. In this study, a panel data analysis applied for 1998-2015 periods. Determining cross-sectional dependence, stationarity of the series was examined by PANKPSS test with multiple structural breaks and it is found that the series are stationary at level. In regression analysis, a clear result could not be obtained about the existence of Dutch Disease. Causality relations among the series were investigated by Dumitrescu and Hurlin (2012) method and results implying the existence of Dutch Disease in these countries were obtained. In the study, risks of economic models based on natural resources export and required precautions are explained with good application examples around the world. It is expected that the attention of policymakers of related countries will be drawn on this issue in order them to impose required precautions to have a sustainable and high economic growth.

Keywords:

Central Asian Turkic Republics, Natural Resources Export, Dutch Disease

JEL Classification:

N55, O13, Q01

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Impact of Kyoto Protocol on Carbon Emissions: An Application of Panel Unit Root Tests with Structural Breaks

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Impact of Kyoto Protocol on Carbon Emissions: An Application of Panel Unit Root Tests with Structural Breaks
Author(s):	Mehmet Mert, Abdullah Emre Caglar
Volume:	8
Number:	4
Year:	2017
Page:	661-672
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.74

Abstract

Carbon emissions have contiunued to increase globally, in despite of joint efforts to implement international agreements such as Kyoto protocol since 1997. The main subject of the current study is to investigate significant or insignificant structural breaks on carbon emission series of the Kyoto countries. The data periyod of the study is between 1960 and 2013 for 26 Kyoto countries. First of all, the first generation panel unit root tests have been performed and carbon emissions have been found as nonstationary. Then, cross-sectional dependency have been tested and Kyoto panel has been stated as cross-sectional dependent. So, panel unit root tests with structural breaks under cross-sectional dependency has been performed. Unlike the results of the first generation panel unit root tests, stationary process has been revealed. Beside this, in 19 of 26 Kyoto countries, the structural breaks between 1997-2005 have been observed as Kyoto protocol affects. As a result of the study, significant structural breaks in Kyoto panel have been stated and the impact of the Kyoto protocol on carbon emission series for the Kyoto countries is significant.

Keywords:

Kyoto Protocol, Carbon Emissions, Panel Unit Root, Structural Breaks, Cross-Sectioanal Dependence

JEL Classification:

C40, C50, Q54

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Foreign Direct Investments and CO2 Emissions Relationship: The Case of Turkey

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Foreign Direct Investments and CO2 Emissions Relationship: The Case of Turkey
Author(s):	Zerrin Kilicarslan, Yasemin Dumrul
Volume:	8
Number:	4
Year:	2017
Page:	647-660
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.73

Abstract

In this study, it is aimed to analyze the environmental impact of foreign direct investment. The theoretical and applied literature on the relationship between foreign direct investment and carbon dioxide (CO2) emissions is presented. The study examines the relationship between foreign direct investment and pollution by using Johansen Cointegration test and vector error correction model in Turkey, for 1974-2013 period. The main conclusion of the study is that foreign direct investment positively affects carbon dioxide emissions in the long run. The results indicate the validity of Pollution Haven hypothesis in Turkey.

Keywords:

Foreign Direct Investment, Carbon Dioxide Emissions, Pollution Haven Hypothesis, Pollution Halo Hypothesis

JEL Classification:

Q56, F18, F21

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Ambidexterity Based Explorative and Exploitative Capability: The Examining Relationship Between Transformational Leadership, Ambidexterity and Firm Innovativeness

Posted on Saturday November 4th, 2017Wednesday February 7th, 2018 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Ambidexterity Based Explorative and Exploitative Capability: The Examining Relationship Between Transformational Leadership, Ambidexterity and Firm Innovativeness
Author(s):	Hülya Gündüz Çekmecelioğlu, Ayşe Günsel, Özgün Öztürk İlhan
Volume:	9
Number:	1
Year:	2018
Page:	137-150
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.72

Abstract

Today’s market conditions encourage organizations to gain new resources and skills in order to deliver new products and services that meet rapidly changing customer needs while at the same time compel them to use their resources and skills effectively. The organizations that successfully fulfill these two requirements are defined as “ambidextrous”. In this study, the relationship between transformational leadership – a leadership mechanism that actually supports organizational employees to use both existing resources and capabilities in a better way and pursuing innovations – and ambidexterity is empirically examined. In addition to the effect of ambidexterity on firm innovativeness and the mediating role of ambidexterity on the relationship between transformational leadeship and firm innovativeness is also examined in this study. In order to test the proposed hypotheses, the data of 304 questionnaires from 61 firms operating in the Eastern Marmara Region are analyzed using the Particial Least Squares (SmartPLS 3.0) approach based on the structural equation modeling. According to this, individualized consideration has a positive effect on explorative capability while the idealized influence has a positive effect on exploitative capability, finally intellectual stimulation has a positive effect on both explorative and exploitative capability. On the other hand, ambidexterity on the base of explorative and exploitative capabilities also has a positive effect on firm innovativeness. Finally the findings show that explorative capability full mediaties the relationship between individualized consideration and firm innovativeness while organizational ambidexterity fully mediates the relationship between intellectual stimulation and firm innovativeness. The findings are discussed and interpreted at discussion part of the study.

Keywords:

Explorative Capability, Exploitative Capability, Ambidexterity, Transformational Leadership, Firm Innovativeness

JEL Classification:

J53, O30

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