Manuscript2 – Page 30 – BUSINESS AND ECONOMICS RESEARCH JOURNAL

Category: Manuscript2

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

Posted on Saturday March 16th, 2019Saturday March 23rd, 2019 by

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

Full Text ( ↓ 2130)

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

Posted on Saturday March 16th, 2019Saturday March 23rd, 2019 by

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

Full Text ( ↓ 2250)

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

Posted on Saturday March 16th, 2019Saturday March 23rd, 2019 by

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

Full Text ( ↓ 2412)

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

Posted on Saturday March 16th, 2019Saturday March 23rd, 2019 by

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

Full Text ( ↓ 2736)

The Bank Lending Channel of Monetary Transmission in Turkey

Posted on Saturday March 16th, 2019Saturday March 23rd, 2019 by

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

Full Text ( ↓ 2371)

Do German Green Mutual Funds Perform Better Than Their Peers?

Posted on Saturday March 16th, 2019Saturday March 23rd, 2019 by

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

Full Text ( ↓ 2927)

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

Posted on Tuesday January 22nd, 2019Monday January 28th, 2019 by

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

Full Text ( ↓ 3331)

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

Posted on Tuesday January 22nd, 2019Monday January 28th, 2019 by

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

Full Text ( ↓ 2700)

Political Marketing, Word of Mouth Communication and Voter Behaviours Interaction

Posted on Tuesday January 22nd, 2019Monday January 28th, 2019 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	Political Marketing, Word of Mouth Communication and Voter Behaviours Interaction
Author(s):	Resul Ozturk, Suzan Coban
Volume:	10
Number:	1
Year:	2019
Page:	245-258
ISSN:	2619-9491
DOI Number:	10.20409/berj.2019.166

Abstract

Political actors aim at persuading voters, who are the key elements of target market in order to win election by gaining a higher vote potential than their opponents. Whether voter preferences are shaped by political elements or by the effects of social environment has become the focus of the studies within the relevant literature. The main purpose of this study is to determine the effect of political marketing activities and word of mouth communication and to determine mediator role WOM communication on voter behaviours. The study is conducted in Konya on a sample consisting of 432 voters and the size of which is determined by convenience sampling method by using face-to-face survey method. Political marketing, word of mouth communication and voter behaviours are confirmed by structural equation modelling through confirmatory factor analysis. As a result of the study, political marketing activities and word of mouth communication are found to have a positive effect on voter behaviour. Furthermore, it is determined that word of mouth communication have mediator role in the effect of political marketing activities on voter behaviours.

Keywords:

Political Marketing, Word of Mouth Communication, Voter Behaviours

JEL Classification:

M31, D72

Full Text ( ↓ 2919)

The Role of Brand Equity and Perceived Value for Stimulating Purchase Intention in B2C e-Commerce Web Sites

Posted on Tuesday January 22nd, 2019Monday January 28th, 2019 by

Article Information

Journal:	Business and Economics Research Journal
Title of Article:	The Role of Brand Equity and Perceived Value for Stimulating Purchase Intention in B2C e-Commerce Web Sites
Author(s):	Mustafa Emre Civelek, Adnan Veysel Ertemel
Volume:	10
Number:	1
Year:	2019
Page:	233-243
ISSN:	2619-9491
DOI Number:	10.20409/berj.2019.165

Abstract

This paper attempts to clarify the underlying mechanism behind purchase decision on B2C e-commerce web sites. Research question of the study is to investigate the interaction between brand equity, perceived value and purchase intention in B2C e-commerce context by specifically questioning the direct and indirect effects within the process. Firstly, the hypotheses in the conceptual model were tested. Secondly, post-hoc analyses were conducted to clarify the mediator roles of perceived value and brand loyalty. Sub dimensions of brand equity are namely brand awareness, brand association and brand loyalty. As a result of post-hoc analyses, partial mediator roles of perceived value and brand loyalty have been proved for each variable. But the most prominent finding of this study is the disappearing of the relations between brand associations and brand loyalty and between perceived value and purchase intention after including all the variables into the global research model. This result, particularly, supported the joint mediator roles of perceived value and brand loyalty.

Keywords:

Brand Equity, Perceived Value, Purchase Intention

JEL Classification:

M10, L81, M31

Full Text ( ↓ 3056)