Journal of accounting, finance and auditing studies

1-22

Authors: Eriabie Sylvester OSARUMWENSE, Adeyemo Kingsley ADEREMI

The main objective of this study was to evaluate the impact of Financial Literacy (FL) and Frequency of Meetings(FM) of members of Audit Committee on financial reporting quality in Nigerian quoted companies. Data for the study were derived from annual reports of one hundred and thirty one (131) companies quoted on the Nigerian Stock Exchange over the period of 2006 to 2012. The data were analyzed using descriptive, correlation and Ordinary Least Square (OLS). The multivariate regression technique was utilized to estimate our model. The findings showed that audit committee financial literacy and audit committee frequency of meetings had a positive significant influence on financial reporting quality. Based on these findings, some recommendations were made, prominent amongst them, was that, in order to strengthen the impact of financial literacy on financial reporting quality, regulatory authorities such as SEC, CBN and NDIC, should give special attention to audit committee members with high status with a view to making it mandatory for all companies to comply with it. Status, in this context, implies an aspect of personal power reflecting the ability to influence outcomes based on perceived skills, qualities and personal attributes.

39-69

Authors: Nevser Mine TÜKENMEZ, Ahmet Galip GENÇYÜREK

Sustainability is currently a very popular topic in the world of business. This paper explores the concept of sustainable investment, its evolution, the role of stock exchanges in corporate sustainability, sustainability indices both in developed and developing markets and literature regarding sustainable investing performance. The main purpose of the study is to introduce Borsa İstanbul Sustainability Index and to study its performance. Wilcoxon test is used to test the differences in return of the index companies before and after the launch of the index. The results obtained revealed that most of the companies suffered a decrease in return after being included in the index. Also, paired samples t-test is used to explore the differences in performance between BIST Sustainability Index and other benchmark indices. The results showed no statistically significant difference between BIST Sustainability index and other benchmark indices.

96-114

Authors: Ahmet Selçuk DİZKIRICI, Bayram TOPAL, Hatem YAGHI

The new conditions in airline industry due to the effects of liberalization have changed the market considerably since the 1980s. The difficulties in the industry force the airline companies to compete that financial analysis became indispensable to compare their profitability among the rivals worldwide. For this reason; it is aimed to reveal the relationship between profitability and traditional financial and airline-specific ratios for 17 leading major airlines for the 2011-2013 period in the study. Here; it is suggested to display the impact of traditional ratios on profitability rates for the companies. Operating Profit Margin (OPM), Net Profit Margin (NPM), Return on Assets (ROA) are selected as the profitability rates while Current Ratio (CR), Debt Ratio (DR), Total Assets Turnover Rate (TATR) and Revenue per Revenue Passenger Kilometers (RRPK) are chosen in the study as traditional financial and airline-specific ratios. The methods as Descriptive Statistics, Correlation and Regression Analyses (the profitability rates as dependent variables and traditional financial and airline-specific ratios as independent variables) are studied respectively by running SPSS 20.0 Software Package to reveal the mentioned relationship between profitability rates and traditional ratios and to interpret the outcome for major airlines.

128-144

Authors: Ahmet ÖZCAN

The accounting frauds have massive adverse impacts on the business environment. Due to high incidence of accounting fraud in the economic environment, regulatory bodies make considerable efforts to the development of a reliable and accurate model that can detect accounting fraud. The primary objective of this paper is to establish an empirical model that significantly contributes to the development of a reliable model for detecting accounting fraud committed by firms listed on Borsa İstanbul. This study investigates ten accounting variables with probit regression analysis and covers 144 firms between the time period of 2005 to 2015. The results indicate that firms with low liquidity ratios are more probable to issue fraudulent financial statements, negative financial performance is a vital motivational factor for fraud, smaller firms are more likely to issue fraudulent financial statements, firms with high debt to equity are more likely to be classified as fraud firms and fraud firms have lower accounts receivable turnover and inventory turnover than non-fraud firms.

164-191

Authors: Caner ATIŞ, Gizem ÇOPUR VARDAR

As a result of intensive competition, banks offer many differentiated loans. Unfortunately, while these loans are being offered, there may be differences among their forms and substances; and reporting them depending on their form distorts financial statements and misleads users. Banks can even offer loans with zero percent interest, while overcharging fees, commissions, and insurance premiums in advance to compensate the cost and make a reasonable profit. They may divert interest and commission sources of income by interchangeably reporting them. This study aims to show the effects of misrepresenting fixed repayment bank loans (installment loans) on the financial reports of relating parties and propose solutions in the light of International Accounting Standards/International Financial Reporting Standards.

224-238

Authors: Sedat DURMUŞKAYA

Several studies exist in the literature to analyze the effect of weather conditions on finance field. As an addition to the mentioned ones, in the study; the relationship between the weather condition reports and Istanbul Stock Exchange Food and Beverage Index is examined. For this reason, the daily data of weather conditions of Turkey from August 2013 to November 2015 besides closing prices of the Food and Beverage Index are benefited. As climatic factors like weather conditions are suggested to affect the amount of the agricultural products and their prices; the condition reports are assumed to cause volatility in cases such as costs in addition to financial structures of the companies listed on the index. Hence; the effect of mentioned factors on profitability and market value of the firms are tried to be revealed. Johansen ve Juselius Cointegration tests are run between the average temperature and daily closing prices data in advance and long term relationship is revealed between the variables in the study. Therefore; Vector Error Correction Model to indicate the short term effect of the relation is used so that findings are shown to obtain the balance for the deviation of short term deviation.

265-296

Authors: Cemal ELİTAŞ, A. Engin ERGÜDEN

While the independent auditing in publicly-held corporations was made in accordance with Serial X No:11 Communique of the Capital Market Law until 2005 pursuant to CML, then the regulatory authorities (Banking Regulation and Supervision Agency, BRSA - Undersecretariat of Treasury and Energy Market Regulatory Authority, etc.) led by the Capital Market Board ordered independent audit to be made over the financial statements prepared in accordance with the International Financial Reporting Standards within the framework of union acquis. Basically, all the companies in Turkey are obliged to prepare their financial statements in accordance with the provisions of Tax Procedure Law (TPL). Companies subject to supreme regulatory authorities led by publicly-held corporations subject to Capital Market Law are obliged to submit some correction and classification records while preparing their financial statements in accordance with International Financial Reporting Standards (IFRS) after the preparation of financial statements in accordance with the Tax Procedure Law; and generally these accounting records are provided by majority of the companies not over the accounting information system but outside accounting.