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Impact of New Standard “IFRS 16 Leases” on Statement of Financial Position and Key Ratios: A Case Study on an Airline Company in Turkey

Posted on Friday October 21st, 2016Wednesday October 26th, 2016 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Impact of New Standard “IFRS 16 Leases” on Statement of Financial Position and Key Ratios: A Case Study on an Airline Company in Turkey
Author(s):	Meryem Öztürk, Murat Serçemeli
Volume:	7
Number:	4
Year:	2016
Page:	143-157
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422344

Abstract

The studies regarding the changes made related to the accounting for lease have taken its final status with the publication of IFRS16 Lease Standard as a result of a long time and effort in January 2016. The related Standard shall ensure (1) the reporting of all the leases in the same way, (2) the displaying of the unrecorded leases in the financial statements and therefore, (3) the submission of more transparent, correct and comparable information. The purpose of our study is to examine the statement of financial position of the lessee enterprise after the transition to the new financial reporting standard IFRS 16 and the impacts of the change in the basic ratios. For this purpose, the impacts possible to occur in the financial position of an airline company having activities in Turkey as a result of the application of the related standard have been examined. The results of the study show that the reflection of the operating leases on the balance sheet shall cause to significant increases in the assets and liabilities and for this reason; there shall be a significant increase in the ratio of liability/asset and a significant decrease return on asset.

Keywords:

IFRS16, IAS 17, Operating Leases, Financial Leases, Off Balance Sheet Financing

JEL Classification:

M40, M41, M48

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The Effects of Interactions between Management Control Systems and Strategy on Firm Performance: An Empirical Study

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of Interactions between Management Control Systems and Strategy on Firm Performance: An Empirical Study
Author(s):	Melek Eker, Semih Eker
Volume:	7
Number:	4
Year:	2016
Page:	123-141
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422343

Abstract

In recent years, there has been growing interest in examining the relationships among management control systems, business strategy and firm performance. In this study, the interactions of management control systems and strategy with their impact on firm performance are examined with an empirical analysis, based on the data from 94 manufacturing firms from the top 500 in Turkey in 2014. The results support the postulate that high interaction between interactive control system (ICS) and differentiation strategy (DS) is associated with high firm performance and that high interaction between diagnostic control system (DCS) and cost leadership strategy (CS) is associated with high firm performance.

Keywords:

Business Strategy, Diagnostic Control System, Interactive Control System, Financial Performance, Non-Financial Performance, General Firm Performance

JEL Classification:

M10, M40

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The Effects of E-Retail Service Quality on Repurchase Intention

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of E-Retail Service Quality on Repurchase Intention
Author(s):	Melih Başkol
Volume:	7
Number:	4
Year:	2016
Page:	107-121
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422342

Abstract

The purpose of this study is to investigate the dimensions of e-retailing service quality and the affects of e-retailing service quality on customer’s repurchase intention. Appropriate measures which are based on literature were used and tested 358 studens of Bartın University faculty of Economics and Administrative Sciences by questionnaire survey and suryey results were analysed by using Structural Equation Modelling. The results of our analysis showed that e-retailing service quality can be theorised as a composite of six dimensions of ease of use, reliability, customer service, order condition, order accuracy, timeliness of order delivery. The results also showed that ease of use, customer service and order condition have strong affects on e-retailing service quality. Second section of the study confirmed that e-retailing service quality has positive and strong affect on customer repurchase intention.

Keywords:

E-Service Quality, Service Quality, Repurchase Intention, E-Retailing, Retailing

JEL Classification:

M30, M31

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Analysis of Service Recovery Failure: From Minority Perspective

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Analysis of Service Recovery Failure: From Minority Perspective
Author(s):	Yasemin Ocal Atinc
Volume:	7
Number:	4
Year:	2016
Page:	97-106
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422341

Abstract

We investigate the service failures towards diverse customer groups for the purpose to bring insightful proposals to the managers to recover from these failures. Previous literature provided insights regarding the perception of service failures by minorities and the challenge of recovery due to racial implications driven from the failure, however lacked to propose suggestions for the managers so that they can take either corrective steps toward service failure recovery or prevent service failure through an effective training program. In this conceptual paper, we propose that, when the service provider and the customer are from different races, and the customer experiences a service failure, without the understanding of the process, service recovery is very hard to achieve. Race is an important factor in intention to bring the customer back for repurchase. The main contribution of this research is adding the race factor and the understanding of the service process into the model.

Keywords:

Service Failure, Service Recovery, Consumer Behavior, Minority Marketing, Race difference

JEL Classification:

M10, M30

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The Effect of Creative Class on Economic Development of Cities: The Case of Turkey

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effect of Creative Class on Economic Development of Cities: The Case of Turkey
Author(s):	Habibe Günsel Doğrul, Mediha Mine Çelikkol, Naci Murat
Volume:	7
Number:	4
Year:	2016
Page:	79-95
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422340

Abstract

Economic power of cities depends on their human capital as much as their pyhsical capital. Florida’s hypothesis about Creative Class is tested in this study in the context of Turkey. For this purpose, we examine the relationsip between alternative mesures of human capital and regional development applying structural equation models and path analysis. Our results confirm Florida’s hypothesis that high level of creativity fosters regional economic development. Evidence also suggest that total creative class seems to be better measurement than education in accounting for regional development across Turkish cities. In addition, our results suggest that while there is statistically significant association between the distribution of creative class and the presence of artistically culturally creative individuals (bohemians), there is no significant association with consumer amenities and university. As a result, Florida’s hypothesis does not completely explain the distribution of creatives in the Turkish context.

Keywords:

Human Capital, Creative Class, Regional Economic Development, Technology, Path Analysis and Structural Equations Model

JEL Classification:

J24, R10, R20, O30

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Analysis of Volatility in Gold Prices with the Markov Regime-Switching Models

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Analysis of Volatility in Gold Prices with the Markov Regime-Switching Models
Author(s):	Samet Evci, Nazan Şak, Gökben Adana Karaağaç
Volume:	7
Number:	4
Year:	2016
Page:	67-77
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422339

Abstract

Aim of this study is to determine winning and losing periods with Markov regime-switching models in the gold market. Monthly return data of BIST and London gold markets are used for the period July 1995-July 2015. Results show that Markov regime-switching models are more suitable than the linear model for analyzing the gold returns and also the probabilities of remaining within the same regime are high for the gold returns. Another finding is that two months lagged value of London gold returns affect BIST gold returns.

Keywords:

Gold Price, Markov Regime-Switching Models, Time Varying Markov Regime-Switching Models, Turkey

JEL Classification:

C22, G11, 050

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The Impact of the Global Economic Crisis on the Turkish Labor Market: A Markov Transition Analysis

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of the Global Economic Crisis on the Turkish Labor Market: A Markov Transition Analysis
Author(s):	Elif Öznur Acar
Volume:	7
Number:	4
Year:	2016
Page:	51-66
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422338

Abstract

This study examines the impacts of the global economic crisis on the dynamics of the Turkish labor market, 2006-2009 Income and Living Conditions Survey (SILC) panel data set and Markov transition analysis. For this purpose, Markov probabilities of annual individual flows between four market labor market states of salaried employment, self-employment, unemployment and inactivity are compared across pre-crisis and crisis period. Further, the analysis is conducted for gender, age and education subcategories to analyze the extent and nature of the crisis on different labor market groups. The results show that the crisis has negatively affected the Turkish labor market, particularly through salaried employment and unemployment channels. During the crisis, the probability of becoming unemployed for salaried workers fell significantly, while the probability of remaining unemployed increased. Moreover, the probability of moving into employment decreased and that into unemployment rose for the inactive group. Women, low skilled and youth are found to be the most negatively affected from the crisis.

Keywords:

Labor Market Transitions, Labor Mobility, Global Economic Crisis, Markov Transition Process, Turkey

JEL Classification:

J11, J21, J60, J63

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The Effects of Institutional Structure on Economic Growth: An Application on G-20 Countries (1996-2014)

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of Institutional Structure on Economic Growth: An Application on G-20 Countries (1996-2014)
Author(s):	Ömer Yalçınkaya, Şekip Yazgan
Volume:	7
Number:	4
Year:	2016
Page:	31-49
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422337

Abstract

In parallel to the evolution of the economic growth theories regarding the main indicators of long term economic growth, this article econometrically analyses the long term effects of the institutional structure on the economic growth of G-20 countries with different development levels for the period of 1996-2014. In order to examine the impact of the institutional structure on economic growth more coherently and to compare the results, G-20 countries are included in the analysis under two sub-groups respectively as economically developed G-9 countries and developing G-10 countries. Thus the article aims to evaluate the impact of the institutional structure on the differentiation of the long term economic growth performances and economic development levels of the countries under the groups G-9 and G-10. The article concludes that, effects of the institutional structure indicators on the economic growth have been positive and significant in statistical terms in the sub-group G-9, while they have been usually negative and significant in sub-group G-10 during the period analysed. Nonetheless, the article indicates that, along with the physical and human capital accumulation, possession of different institutional structures are more effective in differentiation of the long term economic growth performances and development levels of the countries in the groups of G-9 and G-10 during the sample period.

Keywords:

Sustainable Growth, Institutional Structure, G-20 Countries, New Generation Panel Data Analysis

JEL Classification:

B22, C49, H00

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Asset Market Linkages in a Regime Switching Environment: Evidence from Commodity and Stock Markets in India

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Asset Market Linkages in a Regime Switching Environment: Evidence from Commodity and Stock Markets in India
Author(s):	Shelly Singhal, P.C. Biswal
Volume:	7
Number:	4
Year:	2016
Page:	17-29
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422336

Abstract

Time series models investigating the linkages between various asset markets (Commodity and Equity) in India have assumed a symmetric and linear relationship between them. They examine these interrelationships by assuming the presence of a uniform economic state. However the returns from commodity futures and stock market do not show a continuous trend but exhibit time varying behaviour i.e. the returns of stocks might be higher in a certain economic condition and it may fall as the economic environment changes due to financial crises, oil price rise, rupee depreciation etc. Similarly the return of commodities is also subject to variation with the changing economic conditions due to which the basic assumptions of stationary and linearity of time series models gets refuted. Therefore, this paper empirically examines the interrelationships between commodity futures (Energy, Metal and Agriculture) and stock markets in dynamic economic states by employing Markov Regime Switching model proposed by Hamilton (2005) which has the capability of capturing temporal asymmetries and nonlinear dynamics of time series. For each market a composite index indicating the overall movement and performance of a particular investment asset has been considered. In order to provide robust results this paper uses daily data from 2006 to 2014 which significantly represents different states in the Indian Economy. The result of the study confirms the impact of economic environment on Indian commodity and stock markets and validates the presence of two distinct regimes: a “tranquil regime” representing the state of economic expansion and a “crisis regime” representing the state of economic decline. Additionally, the result confirms that commodities and stock markets oscillate between high and low volatility regimes and this movement is different across different commodity class (Energy, Metal and Agriculture). In a portfolio, when commodity futures are combined with stock, due consideration must be given to the state varying behaviour of different asset class. However, previous studies on performance of commodity futures in context of portfolio have been done in a single time period/static context and therefore the results of the study provide interesting insights for investors and portfolio managers. By detecting the switching points in the economic states, they can rebalance their portfolio accordingly so as to reduce loss and enhance portfolio returns.

Keywords:

Commodity Market, Markov Regime Switching Model, Portfolio Management, Stock Market

JEL Classification:

G10, G11,C6, E30

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The Relationship between Aggregated–Disaggregated Energy Consumption and Economic Growth in Turkey

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Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Relationship between Aggregated–Disaggregated Energy Consumption and Economic Growth in Turkey
Author(s):	Uğur Korkut Pata, Harun Terzi
Volume:	7
Number:	4
Year:	2016
Page:	1-15
ISSN:	1309-2448
DOI Number:	10.20409/berj.2016422335

Abstract

Energy is recognized as an important factor in the production process by capital and labor. Energy consumption has increased substantially in the world, especially since the Industrial Revolution and the 1973 oil crisis. In this study, the causality relationship between energy consumption (petroleum, electricity, per capita and total primary energy consumption, carbon dioxide emissions) and economic growth is estimated by using the JJ cointegration test, DLVAR, generalized impulse-response, and variance decomposition analyses for the Turkish economy for the 1972–2011 period. According to the results of the JJ cointegration test, there is no co-movement between energy consumption and economic growth in the long run, but the DLVAR analysis indicates that energy is an important input for the Turkish economy’s steady growth in the short run. The findings lead to the conclusion that a positive unidirectional causality runs from petroleum, electricity, primary energy consumption, and carbon dioxide emissions to economic growth in the short run. The results of generalized impulse-response and variance decomposition analyses also support the results of the DLVAR analysis.

Keywords:

Energy Consumption, Economic Growth, Dolado-Lütkepohl VAR, Causality, Turkey

JEL Classification:

C22, Q40, Q43

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