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Moderator Role of Financial Leverage in the Relationship of Asymmetric Information and Firm Value: An Application on BIST

Posted on Saturday July 23rd, 2022Saturday July 23rd, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Moderator Role of Financial Leverage in the Relationship of Asymmetric Information and Firm Value: An Application on BIST
Author(s):	Tugba Nur, Turhan Korkmaz
Volume:	13
Number:	3
Year:	2022
Page:	449-463
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.383

Abstract

This study aims to investigate the relationship between asymmetric information and firm value in companies traded in Borsa Istanbul (BIST) Food and Retail sector and whether financial leverage has a moderator role in the relationship between asymmetric information and firm value by panel data analysis method. The asymmetric information variable was measured with the analyst forecast distribution, analyst forecast error, and the dummy variable, which is formed according to the analysts’ estimates of returns per share, whether the distribution is greater or less than the median forecast of the sector. In order to investigate whether the financial leverage variable has a moderator role in the effect of asymmetric information on firm value, moderator variables such as asymmetric information x financial leverage were created. As a result of the analyzes carried out for the period of 10.06.2019-28.03.2022 using weekly data, it has been determined that asymmetric information negatively affects firm value and financial leverage has a limited moderator role on this effect. Although the findings obtained in the study are important for the decisions to be made by current and potential shareholders and managers, it can be said that the limited moderator role of financial leverage on asymmetric information should be taken into account.

Keywords:

Asymmetric Information, Firm Value, Financial Leverage, Panel Data Analysis, BIST

JEL Classification:

C33, G32

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The Determinants of Foreign Portfolio Investments Based on Firm Levels: The Example of Borsa Istanbul

Posted on Saturday July 23rd, 2022Saturday July 23rd, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Determinants of Foreign Portfolio Investments Based on Firm Levels: The Example of Borsa Istanbul
Author(s):	Zekai Senol, Tuba Gulcemal
Volume:	13
Number:	3
Year:	2022
Page:	435-448
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.382

Abstract

Foreign portfolio investments are critical for developing countries such as Turkey in terms of financing the current account deficit, deepening financial markets, increasing firm values, and making investment decisions. For many years, the percentage of foreign investors in Borsa Istanbul (BIST) has been greater than 60%. As a result, it is interesting to see which firms foreign investors invest in and how they make decisions in firms based on internal factors. The determinants of foreign portfolio investments are investigated at the firm level in this study. For the period 2009-2019, data from 41 firms in the BIST manufacturing sub-industries of Metal Goods, Machinery, Electrical Devices, and Transportation Vehicles, as well as Chemical, Pharmaceutical, Petroleum, Tire and Plastic Products, were used. According to the results of the study, it has been determined that Tobin’s Q firm value affects the foreign investor ratio positively, while the stock return and volume per share variables affect the foreign investor ratio negatively.

Keywords:

Foreign Portfolio Investment, Domestic Investors, Borsa Istanbul

JEL Classification:

G11, G10, C33

Full Text ( ↓ 1026)

The Moderator Effect of Institutional Ownership on the Relationship between Cash Holdings of Life-Cycle Stages: Evidence from Borsa Istanbul

Posted on Saturday July 23rd, 2022Saturday July 23rd, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Moderator Effect of Institutional Ownership on the Relationship between Cash Holdings of Life-Cycle Stages: Evidence from Borsa Istanbul
Author(s):	Hounaida Mersni, Gokberk Can
Volume:	13
Number:	3
Year:	2022
Page:	417-434
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.381

Abstract

This paper investigates how moving forward in a life-cycle stage affects a company’s cash holdings. Additionally, this research examines how institutional ownership affects a company’s cash holdings. We further test whether this ownership moderates the relationship between cash holdings and life-cycle stages or not. The empirical analysis is based on a sample of 1,305 observations in an unbalanced panel data set from 227 Turkish non-financial companies between 2015 and 2020. According to our analysis, moving forward through life-cycle stages has an increasing effect on cash holdings, and increased institutional ownership positively affects cash-holding behavior. Our robustness test also showed that increased foreign ownership increases the cash holdings as the companies move forward in their life cycle stages. On the other hand, local institutional ownership decreases cash holdings behavior. This paper implies that companies reaching their decline stage will hold more cash. The investors of these companies may expect fewer investments, thus growth opportunities from these firms because instead of utilizing these funds, the management will prefer to keep these funds unused.

Keywords:

Cash Holdings, Firm Life-Cycle, Panel Data Analysis, Life-Cycle Stages, Corporate Finance

JEL Classification:

G30, G39, C33

Full Text ( ↓ 959)

The Impact of Economic Variables on the Travel and Leisure Industry of Japan, the USA, Germany, and the UK

Posted on Saturday July 23rd, 2022Saturday July 23rd, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of Economic Variables on the Travel and Leisure Industry of Japan, the USA, Germany, and the UK
Author(s):	Alp Polat, Tuba Sevil
Volume:	13
Number:	3
Year:	2022
Page:	403-415
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.380

Abstract

After the spread of Covid-19 new concepts like social distance and mobility restrictions have become effective. Leisure activity preferences are changed toward in-home activities. These changes can affect the travel and leisure industry and economic changes owing to the Covid-19 pandemic. The study aims to investigate the travel and leisure industry of Japan, the USA, Germany, and the UK regarding economic linkages and Covid-19 impact. The research data covers the 2011-2020 period. The method of panel data analysis is implemented. The share price index of the industry is analyzed as a dependent variable which can be a benchmark for the industry with selected macro-economic factors. Independent variables are gross domestic product growth, consumer price index growth, consumer confidence index growth, share returns, and interest rates. Results support that the industry is highly dependent on economic factors. The interest rate and consumer confidence index growth have positive effects in the long run. In the short run, the effects of interest rates and gross domestic product growth are positive, while consumer price index growth contributes adverse effects. Results prove that the industry is affected by the Covid-19 pandemic, which is harmful in the long run.

Keywords:

Stock Market, Travel and Leisure, Economic Determinants, Covid-19

JEL Classification:

M10, G10

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The Impact of Economic Growth, Energy Consumption and Globalization on Ecological Footprint: The Case of Turkey

Posted on Saturday July 23rd, 2022Saturday July 23rd, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Impact of Economic Growth, Energy Consumption and Globalization on Ecological Footprint: The Case of Turkey
Author(s):	Ahmet Kardaslar
Volume:	13
Number:	3
Year:	2022
Page:	385-401
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.379

Abstract

This study aims to analyse the long-run effects of economic growth, energy consumption, and economic globalization process on ecological footprints in Turkey using annual time series data for the period 1980-2017. The analyses are conducted by employing the Fourier ADF unit root and the Fourier Autoregressive Distributive Lag (ADL) cointegration methods. Fourier ADL cointegration test results reveal that there is a long-run relationship between ecological footprint and economic growth, energy consumption, population density, and economic globalization in Turkey. Finally, the long-term coefficients obtained from the Dynamic Least Squares (DOLS) estimator reveal that economic growth and energy consumption have positive and statistically significant effects on ecological footprint, whereas economic globalization and population density have positive but statistically insignificant coefficients in the long-run. For the existence of a sustainable ecological system in Turkey, it is necessary to decrease the use of fossil fuel resources, to expand the environment-oriented technologies in production processes, and to implement environmental policies effectively.

Keywords:

Ecological Footprint, Economic Growth, Energy Consumption, Economic Globalization, Fourier ADL Cointegration

JEL Classification:

C32, C50, Q57

Full Text ( ↓ 1106)

Testing Pollution Haven and Pollution Halo Hypotheses for the Energy Sector: Evidence from Turkey

Posted on Saturday July 23rd, 2022Saturday July 23rd, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Testing Pollution Haven and Pollution Halo Hypotheses for the Energy Sector: Evidence from Turkey
Author(s):	Ahmet Emrah Tayyar
Volume:	13
Number:	3
Year:	2022
Page:	367-383
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.378

Abstract

The mobility in foreign direct investment has increased with the liberalization of trade and globalization. Depending on this mobility, changes have occurred in the environmental quality of the countries according to the pollution level of the economic sectors. For this reason, the study’s main aim is to examine the energy sector in Turkey in terms of pollution haven and pollution halo hypotheses. In the study, the variables of total greenhouse gas emissions from the energy sector (CO2 equivalent), urban population growth, and foreign direct investment inflows (%GDP) for the period 1990-2019 were used. The Johansen-Juselius (1990) test was used to determine the cointegration relationship between variables. The VECM (vector error correction model) and Toda-Yamamoto (1995) tests were used for causality analysis. According to the results of the analysis, there is a long-term relationship between the variables. In addition, it has been concluded that the pollution haven hypothesis is valid for the energy sector in Turkey in the long term. Therefore, the use of fossil energy resources by foreign direct investments in the energy sector should be deterred by various policies. As a result, administrative and financial regulations must be strong to ensure permanent environmental quality increases.

Keywords:

Pollution Haven Hypothesis, Pollution Halo Hypothesis, Environmental Pollution, Energy Sector, Industrial Flight

JEL Classification:

Q53, O13, P18

Full Text ( ↓ 1144)

The Relationship Between Income Inequality and Financial Development: Panel Data Analysis

Posted on Saturday July 23rd, 2022Saturday July 23rd, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Relationship Between Income Inequality and Financial Development: Panel Data Analysis
Author(s):	Ali Altiner, Eda Bozkurt, Salih Turedi
Volume:	13
Number:	3
Year:	2022
Page:	349-366
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.377

Abstract

If all classes of society cannot benefit equally from the blessings of growth, although economic growth rates reach the desired level, an income inequality problem arises. At a time when income inequality is growing at the global level, governments are looking for various remedies to establish a more equitable distribution of income. Regulation and improvement of financial markets and ensuring financial development are among the solution offers. In this study, the relationship between income inequality and financial development in the period of 2000-2015 was examined for 30 countries. The countries covered are divided into three groups as the countries with the best, medium, and poor performance in terms of financial development. Panel data-based analyses were used. In this context, the Durbin-Hausman panel cointegration test and Common Correlated Error (CCE) coefficient estimator were applied. The findings proved the existence of a long-term relationship between the variables in all country groups. As a result of coefficient estimates, it was determined that the inverted U-hypothesis was valid for the countries with the best performance, the mixed results for the countries with a medium performance, and the partially inequality-narrowing hypothesis was valid for the countries with poor performance.

Keywords:

Financial Development, Income Inequality, Financial Kuznets Curve Hypothesis, Sustainable Development, Panel Data Analysis

JEL Classification:

E44, D31, O47, Q01, C23

Full Text ( ↓ 1344)

Is Employee Voice Affected By Satisfaction With Leader And Occupational Identification?: Example of Service Sector Employees

Posted on Tuesday April 26th, 2022Tuesday April 26th, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Is Employee Voice Affected By Satisfaction With Leader And Occupational Identification?: Example of Service Sector Employees
Author(s):	Rukiye Can Yalcin, Pinar Fayganoglu
Volume:	13
Number:	2
Year:	2022
Page:	329-348
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.376

Abstract

This study aims to examine the effects of service sector employees’ occupational identification and satisfaction with the leader on employee voice. The variables of the study were investigated in the context of social exchange and path-goal theories. For this purpose, the data obtained through questionnaires from 303 employees working in different service sectors in Malatya and Ankara were analyzed. t-test, ANOVA, and hierarchical regression analysis were used in the analysis of the data. According to the findings, occupational identification and satisfaction with the leader positively and significantly affect the employee voice in the service sector. There is no study available in the literature that directly deals with the bilateral relations of these variables in terms of service sector employees. In this context, it is considered that the findings of the study will be important for both the literature and practitioners.

Keywords:

Satisfaction with Leader, Occupational Identification, Employee Voice

JEL Classification:

L20, M1, M10

Full Text ( ↓ 1417)

Investigating Moral Emotions in Organizations: The Role of Moral Elevation in Organizational Research

Posted on Tuesday April 26th, 2022Tuesday April 26th, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Investigating Moral Emotions in Organizations: The Role of Moral Elevation in Organizational Research
Author(s):	Furkan Marasli, Ali Ekber Akgun, Busra Muceldili
Volume:	13
Number:	2
Year:	2022
Page:	319-328
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.375

Abstract

In recent years, the relationship between moral emotions and positive work outcomes in organizational studies has attracted great attention by researchers. Moral emotions family serves to support the moral standards institutionalized by the society. In organizational context, it helps individuals to evaluate not only their own behaviour but also the behaviour of others they interact with. Moral elevation, which is an emotion belonging to the family of moral emotions; refers to the emotion that individuals experience when they witness a moral beauty. Current literature provides numerous studies conducted to explore and test the conceptualization of moral elevation, its antecedents and consequences and the linkage mechanisms with other concepts. This conceptual study will outline the moral elevation literature by drawing its theoretical background and identify the findings and variables linked to the concept. Introducing moral elevation concept to the local literature will be expected to guide scholars for further research. Suggestions for theoretical research and practical implications are presented for both scholars and practitioners.

Keywords:

Moral Elevation, Moral Emotions, Emotions, Positive Emotions, Broaden-and-Build Theory

JEL Classification:

M10, M12

Full Text ( ↓ 1312)

Financial Performance of Football Clubs and The Impact of The Covid-19 Epidemic: Comparison of the Five National League of Union of European Football Associations

Posted on Tuesday April 26th, 2022Tuesday April 26th, 2022 by editor

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Financial Performance of Football Clubs and The Impact of The Covid-19 Epidemic: Comparison of the Five National League of Union of European Football Associations
Author(s):	Erdinc Karadeniz, Omer Iskenderoglu
Volume:	13
Number:	2
Year:	2022
Page:	299-317
ISSN:	2619-9491
DOI Number:	10.20409/berj.2022.374

Abstract

The main purposes of this research are to comparatively analyse the financial performance of football clubs in national leagues in the European continent and to examine the effects of the Covid-19 outbreak on financial performance. In this context, the financial performance of 23 football clubs in five national leagues (Italy-Seria A, England-Premier League, Portugal-Liga Nos, Denmark-Superliga, Turkey-Super Lig) affiliated to the Union of European Football Associations (UEFA) and whose financial data are available between 2017-2021 was examined by the ratio analysis method. In the study, it was also tested with the wilcoxon signed rank test whether there is a statistically significant difference in the financial performance of football clubs between the pre-Covid-19 epidemic (2017-2019) and post-Covid-19 epidemic (2020-2021) period. As a result of the research, it has been determined that the liquidity and financial risk levels of football clubs are very high, whereas their profitability, activity and cash flow performance are very low. It was determined that the activity, profitability and cash flow performance of football clubs decreased further after the Covid 19 epidemic. On the other hand, a statistically significant difference was found only in terms of activity ratios and return on asset ratio in the context of the pre- and post-epidemic period.

Keywords:

Financial Performance, Ratio Analysis, Football Clubs, Covid-19 Outbreak, UEFA

JEL Classification:

M41, Z20, Z23

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