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Impact of “Aircraft Crisis” Between Turkey and Russia on Borsa Istanbul Food, Beverage and Tourism Indexes

Posted on Saturday August 5th, 2017Thursday August 10th, 2017 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Impact of “Aircraft Crisis” Between Turkey and Russia on Borsa Istanbul Food, Beverage and Tourism Indexes
Author(s):	Emrah Sahin, Fatih Konak, S. Serdar Karaca
Volume:	8
Number:	3
Year:	2017
Page:	473-485
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.61

Abstract

On November 24, 2015 at the Syrian border, boundary violations of Russian combat aircraft was shot down by Turkish warplanes that has caused serious problems in terms of bilateral relations. After the incident, Russia unilaterally froze all its military and economic cooperation and has decided to apply economic sanctions to Turkey. Many of the sectors, especially tourism and food sector, were directly affected by these sanctions decisions. In this context, the purpose of the study is to reveal how the companies of BIST Food, Beverage and BIST Tourism Indexes react to this circumstance by employing the event study methodology. According to the findings, it is observed that the companies that are listed in the BIST Food, Beverage Index generally are affected negatively. Also, it has been determined that companies in the BIST Tourism Index exhibit positive AR values in the post-event period. On the other hand, it was noted that the majority of CAAR values were negative. Moreover, although there are no obvious predictable trends, the presence of statistically significant results in the event window on some days has shown that the market is not efficient in a semi-strong form.

Keywords:

Aircraft Crisis, Event Study, Borsa Istanbul, Food, Beverage Index, Tourısm Index

JEL Classification:

G14, G19

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The Effect of Global Financial Crisis on Accounting and Value-Based Business Performances

Posted on Saturday August 5th, 2017Thursday August 10th, 2017 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effect of Global Financial Crisis on Accounting and Value-Based Business Performances
Author(s):	Ali Ihsan Akgun, Famil Samiloglu
Volume:	8
Number:	3
Year:	2017
Page:	453-471
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.60

Abstract

There are numerous studies analyzing the relationship between global financial crisis and financial performance of business. Although, recent surveys reflect the upper hand to a generally negative relationship, this question still gives rise to debate. To approach the issue from different perspective the question that whether accounting based on financial performance and value based on Economic Value-Added (EVA) play a role during periods of uncertainty? In this study, it is purposed to test this hypothesis of financial performance acting as an sample of BİST 100 listed companies, over pre and post crisis reference periods around the current financial crisis. Furthermore, this study examines the impact of cash ratio, liqudity ratio and cash conversion cycle of the recent 2008 global financial crisis on the relation between a firm’s performance and Economic Value-Added (EVA) using a sample of BİST 100 firms covering the period from 2003 to 2012. According to research findings that explanatory power of independent variables to explain dependent variables is higher in the post-financial crisis period. Moreover, EVA, which is known as a measure of modern performance in the post-crisis period, has higher explanatory power for these variables.

Keywords:

Firm Performance, Financial Crisis, EVA

JEL Classification:

G35, G32, M40, M41

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Impact of Working Capital Requirement on Profitability: A Sectoral Analysis

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Impact of Working Capital Requirement on Profitability: A Sectoral Analysis
Author(s):	Yuksel Iltas, Selma Erdogan
Volume:	8
Number:	3
Year:	2017
Page:	433-452
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.59

Abstract

In this study, we aimed to be detected the long term co-integration relationship between , cash conversion cycle, leverage and asset turnover as the determinant of working capital requirements, Gross Domestic Product (GDP) and Consumer Price Index (CPI) as directly affecting factors of these determinants and return on assets for the 2003-2013 period of Borsa Istanbul ‘s selected four main sectors (metal, food, chemical, and textile). In the study, econometric techniques such as second-generation panel unit root, panel cointegration, long and short term coefficient estimation are used under cross-sectional dependence. The analysis results have proved that the effect of variables on profitability is different in short and long term. According to the Pooled Average Group Estimator results, the coefficients of the long-term cash conversion period, leverage ratio and gross domestic product are statistically significant. According to these results, the prolongation of cash conversion period has a negative effect on profitability; using leverage and increased gross domestic product have a positive impact on profitability. In addition, the Common Correlated Effects Mean Group applied to focus on the long-term relationship and it’s results show that the cash conversion period, leverage ratio and asset turnover rate coefficients are statistically significant.

Keywords:

Working Capital, Profitability, Panel Cointegration

JEL Classification:

C33, G30, L25

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Effect of the Political Risk on Capital Asset Valuation in Financial Markets: The Case of Turkey

Posted on Friday August 4th, 2017Thursday August 10th, 2017 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Effect of the Political Risk on Capital Asset Valuation in Financial Markets: The Case of Turkey
Author(s):	Cengiz Toraman, Merve Tuncay
Volume:	8
Number:	3
Year:	2017
Page:	413-432
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.58

Abstract

Recent political events and the subsequent movements in financial markets both in the developing and the developed countries raise the instincts regarding the interaction of political risks and financial markets and increase the importance of understanding the behavior of financial markets against political risks. Therefore the purpose of this study is to explain the impact of political risks on the returns of securities traded on capital markets in Turkey in the framework of Capital Asset Pricing Model (CAPM). The relation between the monthly returns of 47 companies’ assets being traded on Borsa Istanbul and the political risks in Turkey between the years of 1997 and 2013 is examined in the study. Results of the analysis held by two-step regression method represent that there exists a positive and linear relation between beta and expected return. On the other hand, it is found that 4 out of 12 political risk factors, in other words internal conflict, external conflict, government stability and military in politics have a significant impact on expected return. Contrary to the other three risk factors, only the risk of government stability is found to be positively affecting asset returns.

Keywords:

Political Risk, Borsa Istanbul, Capital Asset Pricing Model, Financial Markets, E-views

JEL Classification:

C31, C32, E44, G11, G12, P48

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Foreign Trade Relations between Turkey and BRICS Countries: An Analysis with Input-Output Method

Posted on Friday August 4th, 2017Thursday August 10th, 2017 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Foreign Trade Relations between Turkey and BRICS Countries: An Analysis with Input-Output Method
Author(s):	S. Mustafa Ersungur, Fusun Celebi Boz, Omer Cinar
Volume:	8
Number:	3
Year:	2017
Page:	395-412
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.57

Abstract

Increase of the production volume of the economies are necessary for developing countries to compete other developed countries. When production volumes increase, economic growth and also per capita income increase. Therefore developing countries have adopt outward-oriented trade polices to increase income level. When we looked at the relationship between Turkey and BRIC, Russia and China are an important trade partners according to other members of BRIC. China is primary country with highest imports by 12%in 2005 while Russia is the third country by 9.8%. Share of other countries are limited because of geographical distance. In this study foreign trade relation between Turkey and BRIC and key ındutstries of these countries have been tried to evaluate by using 1995, 2000, 2005, 2008 and 2011 datas with Input-Output analysis. According to result of analysis comprise a structure depend on foreign trade dependence for inputs in Turkey in 2000s. We saw that this situation occur partially to the extent terms for other countries in related to different kinds of sectors. Foreign trade dependence for inputs of Turkey continue an important problem and this position diminish structural ınterdependence inter –sectoral in sense of key endusties of Turkısh economy.

Keywords:

BRICS Countries, Input-Output Models, Input-Output Tables and Analysis, Key Industries, International Trade

JEL Classification:

C67, D57, P33

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Exchange Rates and Monetary Fundamentals: Evidence from Turkey

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Exchange Rates and Monetary Fundamentals: Evidence from Turkey
Author(s):	Oguz Tumturk
Volume:	8
Number:	3
Year:	2017
Page:	379-394
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.56

Abstract

The main purpose of the study is to investigate the predictability of exchange rates by using the long horizon regression approach (or the Error Correction Model) derived from the Vector Error Correction Model for Turkey. The data cover the period over the period of 2001:Q1-2016:Q2 as Turkey has adopted floating exchange rate regime since 2001 crisis. The predictive ability of the long horizon regression was evaluated according to in-sample fit and out-of sample analyses. The in-sample fit results indicate that the fundamentals are useful to explain the long horizon changes in exchange rates under the assumption of country specific money demand elasticities. On the other hand, the out-of sample analysis results present evidence that the Error Correction Model outperforms the Random Walk Model during the forecast period, 2008:Q1-2013:Q2; however, the Random Walk beats the Error Correction Model around 2008 recession period owing to elevated information uncertainty and short termism.

Keywords:

Exchange Rates, Monetary Fundamentals, Random Walk, Forecast Errors

JEL Classification:

F31, F37, F41

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Political Instability, Corruption, and Economic Growth: Evidence from a Panel of OECD Countries

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Political Instability, Corruption, and Economic Growth: Evidence from a Panel of OECD Countries
Author(s):	Emin Ahmet Kaplan, Alpaslan Akcoraoglu
Volume:	8
Number:	3
Year:	2017
Page:	363-377
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.55

Abstract

The major aim of this paper is to examine the empirical relations between economic growth and a broad group of political instability factors including corruption, government instability, internal and external conflicts, religious and ethnic tensions, democratic accountability and bureaucracy quality. Moreover, one of the main objectives of our paper is to explore the effects of serious problems such as political instability and corruption on economic growth for a panel of OECD countries by using the system-GMM (Generalized Method of Moments) estimator during the period 1984-2012. Our findings confirm most of the literature that political instability is negatively associated with economic growth. We found strong evidence in favor of the hypothesis that corruption negatively affects economic growth. Our paper presents strong evidence in favor of the view that government stability and internal and external conflicts are obstacles for rapid economic growth. However, the results of system-GMM estimation indicate that democratic accountability, ethnic and religious tensions and bureaucracy quality have no statistically significant impact on economic growth of OECD countries.

Keywords:

Political Instability, Corruption, Economic Growth, Political Conflict

JEL Classification:

D72, D73, O43, P48

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Auditing of Financial Sustainability for Publicly and Non-Publicly Listed Companies and A Research in Bursa

Posted on Thursday April 20th, 2017Monday April 24th, 2017 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Auditing of Financial Sustainability for Publicly and Non-Publicly Listed Companies and A Research in Bursa
Author(s):	Umit Gucenme Gencoglu, Alp Aytac
Volume:	8
Number:	2
Year:	2017
Page:	349-361
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.54

Abstract

According to the independent auditing standards, the auditor has to carry out the auditing of the annual report from 2014 and in this regards the financial adequacy of the enterprises, determination of the debt payment power and the operating risks are determined. This process has a positive effect on the financial sustainability of the public sector, which is subject to independent examination since 2005 as it is subject to the Capital Market Law. Since independent auditing process is new for companies outside the capital market, it is possible that adequate measures have not been taken to protect financial continuity in these enterprises. Based on this assumption, in this study, in order to compare financial sustainability of publicly traded and non-publicly traded companies which operate in Bursa and subjected to independent audit has been selected. After this selection, these companies’ average ratios of 2014-2015 period was entered to the SPSS 24 statistical program. The evaluation has been made based on Mann Whitney U test which is a non-parametric statistical method. As a result of the analysis, it was determined that there is a significant difference between only the turnover ratios, the turnover rate of return on equity and the return on equity ratio among publicly traded and non-publicly traded companies in Bursa.

Keywords:

Financial Sustainability, Independent Auditing, Publicly-listed Companies, Non-publicly Listed Companies

JEL Classification:

M40, M41

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The Impact of The Employees’ Organizational Justice and Burnout Levels on Perceptions of Organizational Silence

Posted on Wednesday April 19th, 2017Monday April 24th, 2017 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of The Employees’ Organizational Justice and Burnout Levels on Perceptions of Organizational Silence
Author(s):	Kemal Erogluer, Recep Caner Erselcan
Volume:	8
Number:	2
Year:	2017
Page:	325-348
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.53

Abstract

Employees in organizations that are important actors of social life are the basic element of organizational success. Accomplishment of an organization is closely tied to the management applications to be followed. Perception of employees on justice of organizational operations and procedures affect their support and participation in the processes Employee’ perception of organizational justice may have impact on burnout levels. It can be argued that low employee perception of justice can lead to increase in the level of burnout and decrease of their support and attandance tol procedures and diminishs with the time being finally causes employee silence. This study has been made on 209 employees of three manufacturing company which are operating in İzmir, Bursa and Balıkesir. Obtained data has been evaluated by the corelation, regression analyzes and decriptive stastistics. In this study following results have been reached; sub-dimensions of organizational justice affected emotional burnout, depersonalization and decline in personal sense of achievement negatively and sub-dimensions of organizational justice affect the employee silence negatively, although depersonalization and sense of decline in personal achievement affect employee silence positively. It is thought that the number of studies that deal with these three subjects is very limited and it will contribute in this sense.

Keywords:

Organizational Justice, Burnout, Employee Silence, Manufacturing Sector

JEL Classification:

M10, M12, J53

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Business’ Perceptions and Attitudes in Transition Process to Green and Low-Carbon Economy: Bursa Case Study

Posted on Wednesday April 19th, 2017Monday April 24th, 2017 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Business’ Perceptions and Attitudes in Transition Process to Green and Low-Carbon Economy: Bursa Case Study
Author(s):	Yasemin Kaya, Sevda Gursakal
Volume:	8
Number:	2
Year:	2017
Page:	305-324
ISSN:	1309-2448
DOI Number:	10.20409/berj.2017.52

Abstract

Green economy has become a central concept with the advent of the arguments contending green investments should take precedence in order to both prevent crisis and revitalize economies especially after the 2008 economic crisis. Green economy is regarded as an approach that presents significant opportunities in rendering the growth more inclusive and sustainable as well as invigorating the economy via investment in new green sectors, increasing productivity of resources and enabling the decarbonation of existing sectors. However green economy requires fundemental changes and a different perception in various venues such as international relations, private and public sector policies, personal behaviors and attitudes. In this study, transition to the green economy has been evaluated from the perspective of private sector since private organisations are viewed as the ones that should play a role. The study intends to inquire whether the private sector institutions are willing to carry out the expected transition or posses a voluntary attitude towards it. A survey form has been prepared to measure it and implemented to 134 firms of various scales and sectors in 8 orginized industrial zones in Bursa. First a coneceptual framework has been laid out for the green economy and then survey results has been analyzed.

Keywords:

Green Economy, Low-Carbon Economy, Sustainable Development, Bursa, Green Business

JEL Classification:

O13, O40

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