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STAR Models: An Application for GDP Per Capita Growth Rate

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: STAR Models: An Application for GDP Per Capita Growth Rate
Author(s): Fatma Idil Baktemur
Volume: 10
Number: 2
Year: 2019
Page: 405-414
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.176
Abstract
The linearity assumption has been valid for a long time but most of the economic time series exhibit asymmetric behavior. The number of studies of nonlinear time series studies have increased in application by removing calculation difficulties. Markov regime switching models, TAR and STAR models are examples of nonlinear time series studies. GDP per capita is an important element of economical growth and has been the subject of many studies. This study covering the annual 1961-2017 data examined the nonlinear structure of GDP per capita growth rate for Turkey with STAR models. The serie is stationary according to the unit root test results and the delay length of the model has been found as two. Transition variables has been created by the delays of the dependent variable one by one and the linearity of the model has been tested against its nonlinearity alternative. The first delay has been selected as the transition variable. At the level of significance of 5%, the linearity hypothesis has been rejected. Findings of the study show that LSTAR model type is appropriate for growth. Since the appropriate model is LSTAR, transition variable has been standardized by its standard error. The parameter indicating the smoothness of transition shows that the transition from one regime to another is quick.

Keywords: Nonlinear, GDP, Growth, STAR Models, Regime Switching

JEL Classification: C24, C01, C22

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Comparison of Country Ratings of Credit Rating Agencies with MOORA Method

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: Comparison of Country Ratings of Credit Rating Agencies with MOORA Method
Author(s): Elif Guneren Genc, Ozlem Deniz Basar
Volume: 10
Number: 2
Year: 2019
Page: 391-404
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.175
Abstract
The three main credit rating agencies, Standard and Poor’s, Moody’s and Fitch, use a combination of economic, social and political factors to determine the capacity and current and future debt obligation of countries. This study contributes to literature in two ways. The first one is comparison of results obtained by rating countries on various macroeconomic variables using credit scores given by the three main credit rating agencies and using the MOORA method. The second one is the determination of how optimistic or pessimistic country-based results the three main credit rating agencies yield according to their estimates by macroeconomic variables. Among the three rating agencies, Moody’s make the most optimistic estimates in terms of its rating of countries. Moody’s is followed by Standard and Poor’s, and the credit rating agencies that make the most pessimistic estimates is observed to be Fitch.

Keywords: MOORA, Sovereign Credit Rating, Rating Agencies

JEL Classification: C10, G24, O57

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The Impact of Auditor Qualifications on Earnings Management of Companies Listed on the Borsa Istanbul Industrial Index

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: The Impact of Auditor Qualifications on Earnings Management of Companies Listed on the Borsa Istanbul Industrial Index
Author(s): Gokberk Can
Volume: 10
Number: 2
Year: 2019
Page: 373-390
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.174
Abstract
This research aims to reveal whether independent auditor’s (as the real person and the legal entity) qualifications (audit firm size, audit opinion, audit gender, audit firm specialization, audit firm rotation, geographical difference) have any effect on earnings management via discretionary accruals and real activities manipulations by using a panel data regression analyses of 162 units over 5 years (2011-2015). According to the results, independent auditor qualifications (audit firm and engagement partner) has no impact on the real activities manipulation. The results show that an independent audit by Big-4 firms has a decreasing effect on discretionary accruals. Earnings management via discretionary accruals increases when the local audit firms conduct the audit. The audit firms with diversified expertise decrease the earnings management via accruals. The results also confirm that disclaimer of opinion signals an increase in the discretionary accruals in Borsa İstanbul.

Keywords: Independent Audit, Discretionary Accruals, Business Activity Manipulation, Earnings Management, Manufacturing Companies, Panel Data Analysis

JEL Classification: C23, M42, M41, M49

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The Economic Effects of Regulation in the Mobile Telecommunications Industry: The Case of Number Portability in Turkey

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: The Economic Effects of Regulation in the Mobile Telecommunications Industry: The Case of Number Portability in Turkey
Author(s): Mikail Kar
Volume: 10
Number: 2
Year: 2019
Page: 357-372
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.173
Abstract
The aim of this study is to analyze the economic effects of regulation in mobile telecommunications markets with the example of Number Portability in Turkey. In this study, switching costs as a factor preventing competition and mobile number portability as an example of regulation are taken into consideration. Switching costs affect the price elasticity of the consumer negatively and the loyalty of the customer positively, creating dependence and inertia, directing the consumer to buy again from the same firm, even if they are not satisfied with the current situation. Regulatory authorities in mobile telecommunications markets where these costs are observed are seeking to reduce these costs by implementing mobile number portability and create a more competitive structure. Examples from the world show that the effects of this regulation vary from country to country. In the empirical analysis, the long-term relationship between price and quantity in the Turkish Mobile Telecommunications Market is determined by cointegration with structural breaks analysis and the effect of the regulation on this relationship is examined. Considering the cost and goals, it was concluded that the regulation in Turkey creates a positive effect as a right and policy that promotes competition, but does not achieve its purpose.

Keywords: Regulation, Switching Costs, Mobile Number Portability, Mobile Telecommunications Market, Cointegration with Structural Breaks

JEL Classification: L51, L13, L96, K23, C13

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Relationship between Economic Freedom and Foreign Direct Investment: Panel Cointegration Analysis

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: Relationship between Economic Freedom and Foreign Direct Investment: Panel Cointegration Analysis
Author(s): Emrah Sofuoglu, Oktay Kizilkaya, Dogan Uysal
Volume: 10
Number: 2
Year: 2019
Page: 341-355
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.172
Abstract
Economic freedoms have recently become one of the most important institutional indicators that attracted the attention of researchers. The level of economic freedom of a country is thought to be an important factor in attracting investments. This study aims to examine the relationship between economic freedom and foreign direct investment. In this context, countries need to establish efficient policies for economic freedoms to increase foreign direct investments. To this extent, most attractive foreign direct investment countries (The U.S, Hong Kong, China, Ireland, Netherlands, Switzerland, Singapore, Brazil, Canada and India) are investigated in the study. The study covers the period 1995-2015 and Pedroni cointegration test, panel FMOLS and panel DOLS methods are utilised to determine the relationship between the variables. According to analysis findings, there is a long-term relationship between economic freedom and foreign direct investment. In addition, both panel FMOLS and DOLS results indicate that economic freedom has a positive impact on foreign direct investment in the long term. These findings are evaluated and some policy recommendations are suggested in the conclusion part.

Keywords: Economic Freedom, FDI, FMOLS, DOLS, Panel Data Analysis

JEL Classification: C23, F14, F49

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Investigation of Environmental Kuznets Curve Hypothesis with Non-Additive Fixed Effect Panel Quantile Method

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: Investigation of Environmental Kuznets Curve Hypothesis with Non-Additive Fixed Effect Panel Quantile Method
Author(s): Selahattin Guris, Nazan Sak
Volume: 10
Number: 2
Year: 2019
Page: 327-339
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.171
Abstract
Increased economic growth causes an increase in the amount of harmful gases released by the use of fossil fuels due to the increase in production amount. This effect, known as the greenhouse gas effect, is recognized as one of the main causes of global warming worldwide. According to the environmental Kuznets curve, economic growth increases the release of environmental pollutants, but after a certain economic growth, the growth and development of countries, the increase of environmental awareness, the use of environmentally friendly technologies and renewable energy sources decrease the release of harmful substances. In this study, the factors affecting the carbon dioxide emission by using the data of the period of 1993-2014 of the 32 OECD countries were analyzed by non-additive fixed effect panel regression model. In the study, it was found that the increase in energy usage increased the amount of emission, but the rate of urbanization, renewable energy consumption, commercial openness and increase in financial development decreased the amount of emissions. As a result of the analysis, the validity of the Environmental Kuznets curve hypothesis in different quantiles in the OECD countries was examined and it was determined that the functional form of the relationship between the amount of carbon dioxide emission and economic growth was in N form. Although the functional shape of the Environmental Kuznets curve is N, it is found that there is no turning point in the models, but there is a twist point. The results show that the amount of emission at the twist point does not decrease, but continues to increase by changing the slope at this point.

Keywords: Panel Quantile Regression, Environmental Kuznets Curve, Non Additive Fixed Effect, Carbon Dioxide Emission, Economic Growth

JEL Classification: C31, C33, C51, Q43, Q56

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The Bank Lending Channel of Monetary Transmission in Turkey

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: The Bank Lending Channel of Monetary Transmission in Turkey
Author(s): Neslihan Turguttopbas
Volume: 10
Number: 2
Year: 2019
Page: 313-326
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.170
Abstract
In this paper, it is aimed to fill a gap in the literature by providing empirical evidence on the influence of monetary policy of Central Bank of Turkey on bank lending in Turkish financial system. In the analysis, the bank level data consisting of 20 banks and monthly market interest rates are used for the period 2001-2017. The findings of the study address three different perspectives of transmission of monetary policy rates. Firstly, the effect of the policy rate on bank lending rates is evaluated and it is confirmed that a change in the policy rate has been reflected in banks’ lending rate with 3 months lag. The second group of findings report that the monetary policy affects banks’ lending rate in Turkey mainly through its effects on the deposit rates with a lag of 2 months. The third perspective focuses on the balance sheet channel of monetary policy transmission. The results indicate that mainly the policy rate of central bank and liquidity level affect the supply of bank loans. Each of the variables of the adequacy of bank capital and ROA affects the bank’s supply of the loans. Amongst the economic variables, the GDP growth has a positive and significant and stock exchange index has negative and significant relation with the supply of bank loans.

Keywords: Monetary Policy, Bank Lending Channel, Balance Sheet Channel

JEL Classification: E52, E58

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Do German Green Mutual Funds Perform Better Than Their Peers?

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: Do German Green Mutual Funds Perform Better Than Their Peers?
Author(s): Manuel Salazar Fernández, Ahmad Abu-Alkheil, Ghadeer M. Khartabiel
Volume: 10
Number: 2
Year: 2019
Page: 297-312
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.169
Abstract
Due to current environment awareness, there has been an increase in investment opportunities concerning mutual funds with a focus on environmental issues. This paper analyzes the performance and risk sensitivities of German green mutual funds in comparison with their German socially responsible investment (SRI) and conventional peers. We also evaluate the results of the German green mutual funds in different market conditions. Because of this, we use and compare this performance during three periods, differentiating crises and non-crisis periods. In order to implement this analysis, we apply a CAPM-1 factor and a Carhart 4-factor methodology and find that in the full sample period 2007–2018 period, environmental funds had lower performance than conventional funds and SRI funds with similar characteristics. However, if we focus on crisis and non-crisis periods, the results change. During the financial crisis (2007–2009), green funds achieved adjusted returns slightly better than their peers; in the Eurozone sovereign debt crisis (2010-2012), the results are again similar to the results from the full sample period. And during the non-crisis period, they are not significantly different from conventional mutual funds, but they perform better than SRI mutual funds.

Keywords: Environmental Mutual Funds, SRI Funds, Conventional Funds, Performance Evaluation, Crises/Non-Crises Periods

JEL Classification: F30, G11, G15, G23, M14

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The Impact of Advertising Content on Purchase Intention: A Moderated Mediation Model of Attitude toward the Product and Environmental Concern

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: The Impact of Advertising Content on Purchase Intention: A Moderated Mediation Model of Attitude toward the Product and Environmental Concern
Author(s): Bilge Nur Ozturk, Serkan Akinci
Volume: 10
Number: 1
Year: 2019
Page: 277-296
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.168
Abstract
In this research, the effect of advertising content on purchase intention through the consumers’ attitudes towards behavior depend on their environmental concern have questioned. For this purpose, two experiments were carried out using manipulated printed advertising banners. Three basic findings have been reached. First, results were support for the moderator role of environmental concern between advertising content and attitude toward behavior. Second, consumers’ attitudes toward behavior were determined to have a mediating role between advertising content and intent to purchase. The third finding is that the relationship between ad content and purchase intention, through the consumers’ attitude toward behavior were affected by the level of environmental concern. The research is based on the Planned Behavior Theory, which has a widespread use rate in consumer behavior studies. The research carried out in this framework has two important contributions. The first is that, within the conceptual model proposed, it has been determined when the consumer’s environmental concern affects green consumption behavior. Secondly, the research is carried out through the experimental design method through advertisements.

Keywords: Advertisement content, attitude, purchase intention, green consumption, environmental concern

JEL Classification: M30, M31, M37

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Determination of Packaging Design Factors Affecting Product Preferences by Part-Worth Conjoint Analysis: A Study on Organic Soap Products

 
Article Information
Journal: Business and Economics Research Journal
Title of Article: Determination of Packaging Design Factors Affecting Product Preferences by Part-Worth Conjoint Analysis: A Study on Organic Soap Products
Author(s): Meltem Kiygi Calli, Semih Kilic
Volume: 10
Number: 1
Year: 2019
Page: 259-276
ISSN: 2619-9491
DOI Number: 10.20409/berj.2019.167
Abstract
The purpose of this study is to determine the effects of different packaging designs on consumer purchase intention and to determine the most effective packaging design. For this purpose, different factors in the packaging design are determined and the effect of each factor on the consumers’ purchase intentions is investigated. In this study, the factors of the packaging design are the shape, color of the packaging and the writing style on it. In order to determine the most important factor of the packaging design, which affects the consumers’ purchase intentions, online survey method is applied and data are collected. Different packaging designs are generated and the respondents are asked to rate the different design combinations according to their purchase intention. Data are analyzed by part-worth conjoint analysis method. As a result, the packaging design, which has an effect on consumers’ preferences and purchase intentions and has the highest importance rate, has been determined for the organic soap product. It has been analyzed whether the benefit factor differs according to the demographic characteristics of the participants. Additionally, the market segments obtained by benefit-based segmentation, one of the market segmentation methods, are also investigated in this study.

Keywords: Package Design, Purchase Intention, Conjoint Analysis, Part-Worth, Benefit-Based Segmentation

JEL Classification: M30, M31, M39

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