Manuscript2 – Page 47 – BUSINESS AND ECONOMICS RESEARCH JOURNAL

Category: Manuscript2

Analysis of the Effect of Interest Rate Corridor Strategy on Common Stock and Exchange Rate

Posted on Sunday December 20th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Analysis of the Effect of Interest Rate Corridor Strategy on Common Stock and Exchange Rate
Author(s):	Metin Tetik, Reşat Ceylan
Volume:	6
Number:	4
Year:	2015
Page:	55-69
ISSN:	1309-2448

Abstract

This study is found to find out how interest rate corridor strategy, which is new policy tool implemented by Central Bank of Turkey in 2011, affects financial investment tools, common stocks and Exchange rates. The study separates the time into two periods, the period before interest rate corridor strategy and the period after implementation of interest rate corridor strategy. The effects of the changes in policy interest rate on the common stocks and exchange rate are examined in the framework of structural vector auto regression (SVAR) model. The most important finding is that the effect of a change in policy interest rate on common stocks and exchange rate becomes more permanent after interest rate corridor strategy. Another finding is that short term capital flows with speculative move is deterred from after this strategy. Findings are in coincidence with the results of increase in interest rate volatility as Başçı and Kara (2011) suggests.

Keywords:

Monetary policy, interest rate corridor, common stock, exchange rate, structural vector auto regression model

JEL Classification:

E58, G12

Full Text

International Interactions between Index Futures Markets: Testing Meteor Shower and Heat Wave Hypotheses on Turkey and US Markets

Posted on Sunday December 20th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	International Interactions between Index Futures Markets: Testing Meteor Shower and Heat Wave Hypotheses on Turkey and US Markets
Author(s):	İbrahim Yaşar Gök, Şeref Kalaycı
Volume:	6
Number:	4
Year:	2015
Page:	39-53
ISSN:	1309-2448

Abstract

The heat wave hypothesis is that a market’s return and volatility are explained with its past values and are determined by country-specific effects. The meteor shower hypothesis refers that a market’s return and volatility can not be explained just with its past values and there are return and volatility spillovers to a market from others. In this study, the heat wave and meteor shower hypotheses are tested for Turkish and US index futures markets. In this context, the cointegration relationship and the return and volatility spillovers between markets are examined for 2010-2012 period using daily data with applying Johansen cointegration test and multivariate generalized autoregressive conditional heteroskedasticity model. In the study, the finding is reached that there is no long term relationship between US and Turkish markets. In terms of return spillovers across markets, there are one way spillovers from US market to Turkish market. The results for volatility spillovers across markets indicate that there are one way shocks spillovers from US market to Turkish market volatility. Thus, it is concluded that as US market supports the heat wave hypothesis, the Turkish market supports the meteor shower hypothesis. These results reflect the difference of information processing of markets and the US market is more informationally efficient.

Keywords:

Index futures markets, return spillovers, volatility spillovers, heat wave hypothesis, meteor shower hypothesis

JEL Classification:

C58, G15

Full Text

Investigation of the Anomaly Existence in the Advanced and Emerging Markets

Posted on Sunday December 20th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Investigation of the Anomaly Existence in the Advanced and Emerging Markets
Author(s):	İbrahim Bozkurt
Volume:	6
Number:	4
Year:	2015
Page:	19-37
ISSN:	1309-2448

Abstract

The main aim of this study is to investigate the existence of the anomalies which are the day of the week effect, Friday the thirteenth effect, January effect and full moon effect and is to reveal whether or not these anomalies become different between the advanced and emerging markets if there are these anomalies. In this study which used the daily close prices of 6 advanced and 6 emerging market indexes between 2000-2014 as data, the hypothesizes were tested by using Mann-Whitney U and Kruskal Wallis H tests. The findings of this study have revealed that there is the day of the week anomaly in Brazil, Peru, Poland, the United Kingdom and the Singapore stock exchanges; there is January anomaly in India and the UK stock exchanges; there is full moon anomaly in Turkey, Brazil, Poland, Japan, the USA and Canadian stock exchanges and there is Friday the thirteenth anomaly in Mexico. The findings of this study have also revealed that there is not a relationship between the development levels of the markets and aforementioned anomalies.

Keywords:

Anomaly, index, stock return, advanced market, emerging market

JEL Classification:

G02, G12, G15

Full Text

An Empirical Test of Efficiency of Exchange-Traded Currency Options in India

Posted on Sunday December 20th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	An Empirical Test of Efficiency of Exchange-Traded Currency Options in India
Author(s):	Aparna Bhat, Kirti Arekar
Volume:	6
Number:	4
Year:	2015
Page:	1-17
ISSN:	1309-2448

Abstract

The objective of this paper is to examine efficiency of the exchange-traded currency options market in India. Put-call-futures parity for the USD-INR currency options is studied by analyzing daily closing prices of options and futures for thirty two months on the National Stock Exchange. The study reveals frequent violations of the put-call-futures parity creating significant arbitrage opportunities. The pattern of mispricing varies when examined for time to maturity, option moneyness, liquidity and volatility of the underlying asset. These observations are consistent with those of studies of other young markets.

Keywords:

Put-call parity, efficient markets, currency options

JEL Classification:

G13, G14

Full Text

The Effects of Word of Mouth Communication on The Sub Dimensions of Consumer Based Brand Equity: The Mediating Role of Brand Image

Posted on Tuesday September 15th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Effects of Word of Mouth Communication on The Sub Dimensions of Consumer Based Brand Equity: The Mediating Role of Brand Image
Author(s):	Erkan Yıldız
Volume:	6
Number:	3
Year:	2015
Page:	163-181
ISSN:	1309-2448

Abstract

Including an increase in the sales order information and communication possibilities of today’s consumers are exposed to excessive information. Consumers also need to hear more and does not have enough time non-purposeful sales gained extensive knowledge of the surrounding environment as well as the proposal to evaluate this information. Word of mouth communication of environmental information reaching the consumer may also be active in the buying decision. Today, a large number of similar types on the market, offering goods and services that the company has lead to violent competition. To survive in the long term business in a highly competitive environment, representing a value for the consumer and depends on having a strong brand and brand equity will constantly be put forward their purchase. The purpose of this study is to investigate the effects of word of mouth communication on the sub dimensions of consumer-based brand equity; brand awareness, brand association, perceived quality and brand loyalty. At the same time making determinations the mediating role of brand image on among these relations. For this purpose, a study was conducted in Ankara with the participation of mobile phone subscribers with 384 consumers. The data of the research was compiled by the convenience sampling method and by online questionnaire. The structural equation modeling was empoyed during the tests of the hypothesis and the effects of the mediating role. In the result of the research it was observed that word of mouth communication has a meaningful effect in the positive direction on all the dimensions of the consumer based brand equity. It was also understood that, brand image has a complete association effect on; brand awareness, brand association and brand loyalty while it has partial association effects on perceived quality dimension.

Keywords:

Word of mouth communication, consumer based brand equity, brand image

JEL Classification:

M31, M39

Full Text

Downward Price-Based Brand Line Extensions Effects on Luxury Brands

Posted on Tuesday September 15th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Downward Price-Based Brand Line Extensions Effects on Luxury Brands
Author(s):	Marcelo Royo-Vela, Eileen Voss
Volume:	6
Number:	3
Year:	2015
Page:	145-161
ISSN:	1309-2448

Abstract

This study tries to examine the brand concept consistency, the self-concept congruence and the resulting loyalty status of the consumers in order to evaluate whether a downward price-based line extensions in the luxury goods market has any negative or positive effect on them. By conducting focus group and in-depth interviews it was tried to filter out how brand concepts of luxury brands are perceived before and after a line extension. Results revealed that a crucial aspect for the evaluation of downward price-based line extensions is the exclusivity variable. Additionally, the research showed different modification to the brand concept consistency after an extension depending whether the brand is bought for pure hedonic or emotional reasons or actually for functional reasons. As practical implications brands appealing to hedonic/emotional motivations need to be crucially differentiated to those brands appealing to functional/rational motivations. In the case of a mixed concept an in-depth segmentation of the target markets is needed in order to successfully reach the consumers’ needs.

Keywords:

Brand concept, line extension, downward price, luxury market, qualitative, loyalty

JEL Classification:

M30, M31

Full Text

An Investigation of the Effect of Cyberloafing Behaviors on Organizational Learning Capacity

Posted on Tuesday September 15th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	An Investigation of the Effect of Cyberloafing Behaviors on Organizational Learning Capacity
Author(s):	Belma Keklik, Recep Kılıç, Harun Yıldız, Bora Yıldız
Volume:	6
Number:	3
Year:	2015
Page:	129-144
ISSN:	1309-2448

Abstract

With the improvement of technology, use of information technologies has become widespread in organizations. Information technologies have been used as a matter of course and sometimes could be used out of purpose as surfing on internet and following social media. Use of information and communication technologies out of purpose in offices has been named as cyberloafing. The aim of the research is to measure the effect of cyberloafing on organizational learning capacity of employees. At the end of the research, it has been concluded that important cyberloafing behaviors have affected organizational learning capacity (in terms of participative decision making and interaction with the external environment dimensions) positively. This issue has revealed that cyberloafing behaviors, which have caused the loss of productivity in the organization, could also affect learning capacity positively. When looked through to the research regarding of contribution to science and business world, it has come up with the agenda that how this research could be directed to the organization’s benefit than the prohibition of cyberloafing behaviors which has contributed to organizational learning capacities.

Keywords:

Cyberloafing, use of internet non-work, organizational learning, technology

JEL Classification:

M10, M12, I20

Full Text

Turkish Version of the Need for Cognitive Closure Scale: Evaluation of the Validity and Reliability

Posted on Tuesday September 15th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Turkish Version of the Need for Cognitive Closure Scale: Evaluation of the Validity and Reliability
Author(s):	İnci Dursun, Kutalmış Emre Ceylan, Ebru Tümer Kabadayı
Volume:	6
Number:	3
Year:	2015
Page:	113-128
ISSN:	1309-2448

Abstract

Need for cognitive closure (NFCC) is a motivational mechanism leading people to experience a sense of urgency about reaching a closure in their decisions and judgments. It is defined as a desire an answer on a given topic compared to confusion and ambiguity. NFCC has acritical role for understanding how information is acquired and processed. A five facet scale was introduced (Webster and Kruglanski 1994), reduced and refined (Houghton ve Grewal, 2000) to assess NFCC as a stable individual disposition. This study aims to introduce the Turkish version of the reduced NFCC scale, assess its factor structure, and test its validity and reliability. Data was collected from a total sample of 1094 respondents live in İstanbul, Kocaeli and Yalova. In line with findings from previous studies, sub facets “decisiveness” and “closed mindedness” emerged as independent dimensions inconsistent with the proposed one-dimensional structure. Probable causes are discussed, a three facet scale was proposed and suggestions for an improved quality Turkish NFCC scale are provided.

Keywords:

Lay epistemic theory, need for cognitive closure scale, scale validation

JEL Classification:

M31, M39

Full Text

Sustainability of Social Security Policies in Turkey: Cointegration Analysis with Multiple Structural Breaks

Posted on Tuesday September 15th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Sustainability of Social Security Policies in Turkey: Cointegration Analysis with Multiple Structural Breaks
Author(s):	Halim Tatlı, İsmet Göçer
Volume:	6
Number:	3
Year:	2015
Page:	87-111
ISSN:	1309-2448

Abstract

In this study, sustainability of social security policies in Turkey was analyzed by using 1989-2013 period annual data and 2007:M01-2014:M05 monthly data from by means of unit root test with multiple structural breaks of Carrion-i-Silvestre (2009) and cointegration test with multiple structural breaks of Maki (2012) and it was determined that there is a cointegration relationship between the series. Long-term cointegration coefficients were estimated by FMOLS and it was found that social security policies are sustainable in the weak form in Turkey. It was found that around 70% within 1989-2013 period and around 78% within 2007-2014 period of social security expenditures were met by income of social security institute. It was seen that sustainability of social security system has slightly improved in recent years.

Keywords:

Social security system, sustainability, multiple structural break analysis

JEL Classification:

H55, I18, P23

Full Text

The Importance and Effectiveness of Financial Support for Small Enterprises within the Framework of Law no.6331

Posted on Tuesday September 15th, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Importance and Effectiveness of Financial Support for Small Enterprises within the Framework of Law no.6331
Author(s):	Yusuf Alper, İlknur Kılkış, Tuğba Engin
Volume:	6
Number:	3
Year:	2015
Page:	69-86
ISSN:	1309-2448

Abstract

Small and Medium Enterprises forms 99.77% of all enterprises in Turkey and 78% of the workers are employed in these workplaces. While Small and Medium Enterprises contributing to economic and social life in a positive way, they have problems especially about finacial situation, the technology used, the quality of labour and working conditions. One of the other problems related to these workplaces is occupational health and safety, 75% of the accidents at work occur in these workplaces according to the 2012 statistics. In addition to the structural problems in these workplaces, inadequacies of the occupational health and safety legislation are effective in the emergence of this situation. With the Occupational Health and Safety Law, all the workplaces were compelled to employ health and safety professionals. This situation brought financial burdens for especially small businesses. Law No. 6331, made a favorable regulation and contribution to small businesses for reducing the cost of employment of occupational health and safety professionals. However, it was observed that aforementioned financial support for small businesses was not beneficial since the coming into force of the Law. The main reasons of this situation are lack of knowledge of the parties’ involved, insufficient institutional infrastructure and also lack of support provided.

Keywords:

Occupational health and safety services, small and medium enterprises, financial support, common health and safety units, authorized community health centers

JEL Classification:

I19, K32

Full Text