Manuscript2 – Page 52 – BUSINESS AND ECONOMICS RESEARCH JOURNAL

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An Alternative Approach for Manufacturing Performance Measurement: Preference Selection Index (PSI) Method

Posted on Saturday February 21st, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	An Alternative Approach for Manufacturing Performance Measurement: Preference Selection Index (PSI) Method
Author(s):	Gökhan Akyüz, Salih Aka
Volume:	6
Number:	1
Year:	2015
Page:	63-77
ISSN:	1309-2448

Abstract

The manufacturing firms have to monitor their performance to maintain competitive advantages and sustain improvements. In this study, an approach based on Preference Selection Index (PSI) is proposed to calculate the manufacturing performance index at a specific time interval. Unlike many methods in the literature, this method offers a systematic approach with simple calculations without the need to determine the relative weights of the criteria. The application was performed in three separate production lines of the company in the glass industry and improvements in the performance of the lines for eight-month period of time were analyzed.

Keywords:

Manufacturing performance, preference selection index method, performance index

JEL Classification:

M11, L61

Full Text ( ↓ 2291)

Short Run and Long Run Reasons That Affect The Nauri Model in Turkey

Posted on Saturday February 21st, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Short Run and Long Run Reasons That Affect The Nauri Model in Turkey
Author(s):	Cem Mehmet Baydur, Bora Süslü
Volume:	6
Number:	1
Year:	2015
Page:	43-62
ISSN:	1309-2448

Abstract

In this article, the study is done with the view of Nauri model, Keynes and Classical doctrine. According to the Classical doctrine, while the ratio of technology and mark-up depends on data, the value balance of unemployment level is determined by the share that the employees get from the whole salary. Aggressive salary policy increases the natural unemployment level. According to Nauri, in the situations where the expectations of inflation is right, the natural unemployment level is determined with the demand of salary related to the ratio. To Keynes doctrine, the natural unemployment level is explained with the investment expenses and the demand side. From the point of view of Keynes, instability in investment expenses, insufficiency in demands, decreased productivity increase the natural unemployment level. In the light of this view, between 2000 and 2013, in Turkey the development of variations such as salary, growing, investment which affect Nairu is studied. The evaluation of the natural unemployment is examined from the point of Classical and Keynes doctrine. As a result, it is found that the factor which affects the unemployment in Turkey is insufficiency in the demand.

Keywords:

Nairu, Keynesian doctrine, classic doctrine, ARDL

JEL Classification:

E66, E61, B22

Full Text ( ↓ 2547)

Evaluating the Effects of Various Financial Ratios on Company Financial Performance: Application in Borsa İstanbul

Posted on Saturday February 21st, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Evaluating the Effects of Various Financial Ratios on Company Financial Performance: Application in Borsa İstanbul
Author(s):	Eda Oruç Erdoğan, Murat Erdoğan, Vesile Ömürbek
Volume:	6
Number:	1
Year:	2015
Page:	35-42
ISSN:	1309-2448

Abstract

The purpose of this study was to determine the impact on the corporate financial performance to the several financial indicators. Companies that are traded continuously in Borsa İstanbul-30 (BIST-30) between 2002-2013 periods were analyzed in this study for this purpose. Current ratio, earnings per share, leverage ratio, firm size and market value to book value ratio were used as independent variables. Net profit margin was used as a dependent variables. The relationship between variables was analyzed by using panel data. According to the results of analysis, there is a positive and significant relation between corporate performance (t-period) and current ratio and corporate size (t- period) and there is a negative and significant relation between corporate performance (t-period) and leverage ratio (t-period).

Keywords:

Financial ratios, current ratio, leverage ratio, company performance, panel data analysis

JEL Classification:

G30, G32

Full Text ( ↓ 3201)

Tracking Ability and Pricing Efficiency of Exchange Traded Funds: Evidence from Borsa Istanbul

Posted on Saturday February 21st, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Tracking Ability and Pricing Efficiency of Exchange Traded Funds: Evidence from Borsa Istanbul
Author(s):	Nazlı Kalfa Baş, Serra Eren Sarıoğlu
Volume:	6
Number:	1
Year:	2015
Page:	19-33
ISSN:	1309-2448

Abstract

The purpose of this study is to evaluate the performance and pricing efficiency of the exchange-traded funds (ETFs) operating in the Turkish Capital Markets. In this paper, we examine the tracking errors and pricing efficiencies of 16 ETFs during the period 2005-2013. This is the first paper that makes an investigation with covering all ETFs in Turkish Capital Markets. Using daily data, we find out that Turkish ETFs underperform their underlying indices. We use three different methods (arithmetic mean, absolute mean and quadratic tracking error) to measure the tracking errors and find that these errors are significantly different from zero. The pricing efficiencies of ETFs are computed using four different methods: premiums and discounts calculated in Turkish Liras (TL) and percentage and absolute values of these calculations. As a result of our analysis, we find that Turkish ETFs are priced closely to their net asset values and there exists no arbitrage opportunities in this context.

Keywords:

Exchange traded funds, tracking error, pricing efficiency, Borsa Istanbul

JEL Classification:

G12, G23

Full Text ( ↓ 2121)

Inflation, Business Cycles, and Commodity Investing in Financialized Markets

Posted on Saturday February 21st, 2015 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Inflation, Business Cycles, and Commodity Investing in Financialized Markets
Author(s):	Adam Zaremba
Volume:	6
Number:	1
Year:	2015
Page:	1-18
ISSN:	1309-2448

Abstract

Financialization of commodity markets has been a broadly discussed topic in recent years. However, its implications for commodity investors have not yet been fully explored. This paper concentrates on the macroeconomic determinants of commodity returns in financialized and non-financialized markets and on their role for a tactical asset allocation. The study aims to contribute to the academic literature in four ways. First, it provides fresh evidence on the interdependences between commodity returns, inflation and the business activity. Second, it documents increased correlation of the commodity returns with the business activity in the financialized markets. Third, it explores changes in the lead/lag relationship of commodity prices and the business cycle. Fourth, it proves that the commodities retained their inflation hedging abilities in the financialized markets. The computations are based on listings of various commodity indices, which are calculated by S&P-GSCI, JP Morgan, and Dow Jones-UBS, between 1970 and 2013.

Keywords:

Commodities, inflation hedging, macroeconomic determinants, business cycle, financialization

JEL Classification:

G11, G13, Q02

Full Text ( ↓ 2254)

The Role of Corporate Communication and Perception of Justice during Organizational Change Process

Posted on Sunday November 2nd, 2014 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Role of Corporate Communication and Perception of Justice during Organizational Change Process
Author(s):	Neşe Saruhan
Volume:	5
Number:	4
Year:	2014
Page:	143-166
ISSN:	1309-2448

Abstract

Today, researchers have been exploring employee’s resistance to change and how to foresee these aversive behaviors during organizational change process (Armenakis & Harris, 2002, Dent & Goldberg, 1999, Oreg & Sverdlik, 2011). Some employees view organizational change in a negative way even if change efforts will results in favorable consequences for them. At this point, communication process has a crucial effect on the perception of employees towards change process. In addition, several studies confirm the role of perceived justice in the organization during organizational change. So, the effects of communication and perception of justice on behaviors of employees during change process and the contribution of communication on resistance to change through perception of organizational justice was explored. The research was conducted among 583 employees in Turkey. The results of the regression analysis showed that perception of organizational justice plays a mediating role between communication to resistance and change.

Keywords:

Change, resistance to change, perception of justice, communication

JEL Classification:

M10, M12

Full Text ( ↓ 2868)

An Investigation on the Relationship Between Credit Volume and Current Account Deficit in Turkey

Posted on Sunday November 2nd, 2014 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	An Investigation on the Relationship Between Credit Volume and Current Account Deficit in Turkey
Author(s):	Aydanur Gacener Atış, Fatih Saygılı
Volume:	5
Number:	4
Year:	2014
Page:	129-141
ISSN:	1309-2448

Abstract

Following the 2008 global financial crisis, Turkey’s current account deficit has deteriorated due to a rapid growth of total credit volume and the appreciation of domestic currency. In 2010, the Central Bank of Turkey implemented a new monetary policy to improve domestic financial stability. The new policy was designed to maintain a sustainable current account deficit by reducing total domestic credit volume. The aim of this paper is to explore the impact of the domestic credit volume on Turkey’s current account deficit. The relationship between the credit growth and current account is analyzed by using quarterly data over the period 1998:1-2013:1. An econometric VECM technique and Granger Causality tests are used to analyze and to detect the long-run relationship between variables. Our findings indicate that the total credit growth has a limited but an adverse effect on the current account deficit.

Keywords:

Current account deficit, credit volume, cointegration, granger causality, vector error correction mechanism

JEL Classification:

E42, E51, F32

Full Text ( ↓ 2451)

Causality Relationship between Export and Economic Growth in Turkish Economy

Posted on Sunday November 2nd, 2014 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Causality Relationship between Export and Economic Growth in Turkish Economy
Author(s):	Suna Korkmaz
Volume:	5
Number:	4
Year:	2014
Page:	119-128
ISSN:	1309-2448

Abstract

Every country is known to be more or less in commercial affairs with the outside world. Trade between countries influences the level of development in open economies. This study aims to search whether there has been a causality relationship between total export and economic growth variables of Turkey recently. The quarterly data of 1998:01-2013:03 were used as the period examined. In the analysis made for Turkey, unidirectional causality was seen from export to growth. Results which are supporting the hypothesis of export-led growth have emerged in accordance with literature.

Keywords:

Export, economic growth, Granger causality test

JEL Classification:

C22, F14, F43

Full Text ( ↓ 2649)

The Impact of Central Bank Interest Rate Releases on Financial Markets

Posted on Sunday November 2nd, 2014 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of Central Bank Interest Rate Releases on Financial Markets
Author(s):	Neilan Soylu, Turhan Korkmaz, Emrah İsmail Çevik
Volume:	5
Number:	4
Year:	2014
Page:	89-118
ISSN:	1309-2448

Abstract

Since the implementation of a new explicit inflation targeting policy in 2005, CBRT has followed a more transparent communication strategy. This has made more information available to markets regarding its decision making process in order to increase predictability. Within this framework, MPC meetings have been held on a scheduled monthly basis, at preannounced dates. After the meetings, the policy rate decisions were made public immediately, followed by a text providing the rationale behind the decisions. Through these implementations, CBRT provides guidance to the markets. In this study, the impact of Central Bank Interest Rate Releases on financial markets has been investigated in the period between February 2005 and April 2013. The variables used in this study are BIST 30 Index, US Dolar/TRY and EURO/TRY exchange rates, both spot and futures daily return series. The impact of interest rate releases on conditional mean and volatility was investigated using GARCH and EGARCH models. Empirical results suggest that markets respond differently when policy interest rates are separated into rate increases and rate decreases in policy rates.

Keywords:

Central bank, interest rates decisions, BIST 30, exchange rates, volatility

JEL Classification:

E52, E58, G17

Full Text ( ↓ 2408)

Credit Spreads during the Global Financial Crisis: Evidence from the Japanese Bond Market

Posted on Sunday November 2nd, 2014 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Credit Spreads during the Global Financial Crisis: Evidence from the Japanese Bond Market
Author(s):	Aydın Yüksel, Aslı Yüksel
Volume:	5
Number:	4
Year:	2014
Page:	71-88
ISSN:	1309-2448

Abstract

This paper uses credit spread data on Japanese bond indices to examine the possibility of a change in the determinants of daily credit spreads after the outbreak of the global financial crisis of 2007. A set of variables identified by prior research are used in a GARCH setting to explain credit spread changes both before and after the start of the crisis. The findings indicate that, overall, the coefficient estimates of the two bond market factors, namely changes in the spot rate and changes in the slope of the treasury yield curve, are consistent with prior literature. Moreover, the direction of the relationship is the same during the two periods. On the other hand, the relationship between credit spread changes and the two stock market factors, namely stock market index returns and changes in the implied index option volatility, is weak and sensitive to the period examined. Finally, the liquidity factor has a weak impact in both periods. It is also notable that the explanatory power of the empirical model used in the paper falls during the crisis.

Keywords:

Credit spreads, the Japanese Bond Market, the Global Financial Crisis, liquidity risk, GARCH

JEL Classification:

G12, G01

Full Text ( ↓ 2335)