Business and Economics Research Journal

491-507

Authors: Resat Can Akkay

This study investigates the relationship between industrial employment and producer price index-based real effective exchange rate, over the period 2009M01-2019M10, by employing the autoregressive distributed lag cointegration procedure, for the Turkish economy. The empirical findings support the existence of a positive relationship between the appreciation of the producer price index-based real effective exchange rate and an increase in industrial employment. Accordingly, a 1% appreciation of the producer price index-based real effective exchange rate leads to a 0.092% increase in industrial employment. This finding supports the dominance of the “imported input” channel over the other transmission channels for Turkey at the industry level.

523-535

Authors: Merve Siretli, Metin Karadag

The effects of public capital stock on reducing regional disparities and on regional economic growth process have been studied in the literature in recent years. Regarding Turkey, there are large disparities in regional growth rates and thus studying the effects of public capital stock on regional economic growth gains importance. Hence, the main aim of this study is to investigate the impact of public capital stock on regional economic growth. For the aim of the study, we use panel data analysis by using the data set for the time period 2007-2014 at NUTS-2 level. The study uses the real gross domestic product as a dependent variable and private capital stock, labor, public capital stock as an independent variable. The results of the study show that; public capital stock, private capital stock, and labor have a positive and significant effect on regional output. In addition, the results of the study show that; public capital stock increases regional output although the amounts are different for each NUTS-2 region.

557-573

Authors: Ramazan Ekinci

This study aims to analyze the effect of competition on total factor productivity (TFP) for selected 77 companies operating in the manufacturing industry for the 2011-2019 period. The competitiveness of firms is calculated using the Lerner index. Total factor productivity is estimated based on the cost function using the stochastic frontier analysis (SFA) method. As a result of the estimation, the total factor productivity growth rate decreases rapidly after 2015 and becomes negative in 2018 and 2019. Although the average Lerner index, which shows the competitive power of the companies, is 35.06%, there is no significant change in the level of competition. Among the sectors, while the Basic Metal Industry is the lowest sector in terms of TFP growth rate; the sector with the highest TFP growth is the Chemicals, Petroleum Rubber and Plastic Products sector. On the other hand, while the most competitive sector is the Paper and Paper Products, Printing and Publishing, the sector with the least competition is the Non-Metallic Mineral Products Sub-sector. The findings of the study shows that the relationship between competition and total factor productivity is not linear. The estimated competition (1-Lerner index) threshold value for firms is 0.322. When competition is below the threshold, the effect of increased competition on total factor productivity is insignificant. When competition is above the threshold, the effect of increased competition on total factor productivity is positive and statistically significant.

359-368

Authors: Hilal H. Erdogan

The study aims to examine beta herding in the Covid-19 era in Borsa Istanbul. Herding was analyzed based on the state-space model utilizing cross-sectional volatility of beta coefficients between January 2010 and November 2020. The results provided evidence of herding in Borsa Istanbul. In case of beta herding, this model provides to detect whether herding is intentional or spurious, as well. Within this context, market volatility, market return, size, and value factors of the Fama-French model were included in the analysis. Accordingly, intentional herding was found in Borsa Istanbul and investors tend to herd more, particularly under the global pandemic of Covid-19.

385-397

Authors: Md. Uzzal Hossain

Taking the theory of planned behavior as a basis, this study investigates the role of individual characteristics on social entrepreneurial intention (SEI). More specifically, this study has examined the impact of risk-taking tendency, locus of control, self-efficacy, empathy, and prior experience on the inclination process to become a social entrepreneur. Using systematic random sampling, data were collected from 336 Bangladeshi university students with an average age of 23. The survey was conducted based on a structured questionnaire consisting of 20 items. Correlation analysis and multiple regression analysis were conducted to test the relationship among variables and check the hypotheses. The results showed significant positive relationships among variables, and self-efficacy, locus of control, risk-taking propensity, prior experience, and empathy significantly influenced students’ intention to be future social entrepreneurs. The current study contributes to the social entrepreneurship literature by incorporating risk-taking tendency and locus of control to SEI research and validating previous findings in the Bangladeshi context. The research outcome may facilitate academicians to create a psychological support system for students that can promote social entrepreneurship in Bangladesh.

419-442

Authors: Berrin Arzu Eren

This study aims to explain the loyalty of corporate customers towards their main banks within the scope of perceived service quality, customer trust, customer satisfaction, corporate image, perceived switching costs, and the attractiveness of alternatives. Another aim of the study is to reveal the relationship between service quality and customer loyalty and word-of-mouth. In the study within the scope of quantitative research, data was collected from 252 corporate customers located in Ankara with the survey technique, and the data obtained were analyzed by structural equation model. According to the findings of the study, while service quality, customer satisfaction, and attractiveness of alternatives determine customer loyalty. However, there is no relationship between corporate image, customer trust, and perceived switching costs and customer loyalty. While perceived switching costs do not affect customer loyalty alone, they have a moderating effect on the relationship between customer satisfaction and loyalty. Finally, another finding obtained in the study is the existence of a linear relationship between customer loyalty and word of mouth.

17-32

Authors: Ugur Akkoc, Burca Kizilirmak

This paper aims to explore the distribution of inflation rates at the household level and estimate their determinants using the Household Budget Surveys. It derives the household level inflation rates using the democratic price index and analyzes inflation inequality and its persistency. The main contributions of the paper are as follows: (i) to determine inflation inequality by examining the distribution of household-specific inflation rates calculated by the democratic price index, (ii) to examine new dimensions of inflation inequality in Turkey by income groups and household characteristics, (iii) to estimate the micro-level determinants of household inflation rates in Turkey. Results suggest that inflation rates are lower for the rich than for the poor, and the distribution of inflation has worsened the income inequality in Turkey. This analysis provides rich information for monetary policymakers. Households have different responses to price changes or monetary policy tools because of their unique characteristics and economic conditions. Thus, we need to know how inflation rates differ at the household level in order to understand how monetary policy and inflation affect the well-being of households.

49-64

Authors: Faruk Mike, Ali Eren Alper

This study aims to analyse the impact of financial development on economic growth for fragile five economies, which are based on the country classification by Morgan Stanley. Accordingly, Shin cointegration, Fourier Shin cointegration, and Toda-Yamamoto causality analyses were performed for the annual observations from 1980 to 2017. Fourier Shin cointegration test results reveal the existence of a long-run relationship between economic growth and financial development, capital stock, and human development index for four countries, namely Brazil, India, South Africa, and Turkey. On the other hand, Shin cointegration test results indicate the existence of cointegration relationship between series for Brazil, Indonesia, and South Africa. Dynamic Least Squares estimator shows that financial development has positive and statistically significant coefficients for four countries, namely India, Indonesia, South Africa, and Turkey (except Brazil). Finally, Toda-Yamamoto causality analyses reveal that there is only a unidirectional causality running from financial development to economic growth for Indonesia and South Africa. The findings reveal that the level of financial development is a significant parameter in fragile economies’ sustainable growth processes.

89-110

Authors: Baris Aksoy

In this study, stock price with the calculated next three-month average of five manufacturing industry companies in the Borsa İstanbul 30 Index and the Corporate Governance Index was predicted with the data of the 2010/3 and 2020/3 periods. The dataset consisted of quarterly nine financial statements and five macroeconomic variables with a three-month average of the sample companies. Artificial Neural Networks, Classification and Regression Tree, and K- Nearest Neighbor Algorithm were used as prediction methods. A 10-fold cross-validation method was used in all methods in the study. In Artificial Neural Networks, Classification and Regression Tree analysis, the models that gave the best results in line with the given parameter ranges were obtained by using the determining the best parameters and performance criteria function. According to the results of the analysis, general classification accuracy was achieved 98.05% for Artificial Neural Networks, 96.10% for Classification and Regression Tree, and 92.20% K-Nearest Neighbor Algorithm. “Net Profit Margin”, “Price/Earning”, “Profit Per Share”, “CDS Premium (3-month average)”, “Consumer Confidence Index” were found as important variables that divided the data into two in the creation of the Classification and Regression Tree (CART) analysis. This result shows that the models used in this study can be incorporated into the models used by investors.

145-155

Authors: Cagri Bulut, Sefer Aydogan

Previous research on measuring the service quality presents alternative assessment instruments of SERVQUAL by customizing the generic indicators of service quality to sector-specific features for various service markets. EduQUAL is the specific method of SERVQUAL assessment for measuring the service quality of educational services. This study contributes to the EduQUAL literature by extending with a new dimension covering the quality assessment of the core educational services with empirical evidence generated in 2019 over the secondary-school students of private schools operating in Turkey. Therefore, the current study aims to extend the EduQUAL assessment of the private chain schools and aims to which of these successful schools’ service quality indicators predict student satisfaction and student loyalty. The study’s data represents 305 students’ perceptions of a private school operating in Turkey with more than 100 branches. The factor analysis results yield a new dimension related to core educational services. The regression analyses’ results reveal that the core educational services predict only student satisfaction with other service quality indicators. Empathy-related services at schools are the most significant indicators of the EduQUAL both on student satisfaction and student loyalty.

12

Authors: Nilcan Mert, Sibel Cengiz

The Triple Helix Innovation Approach Model, based on university-industry-government cooperation, was first proposed by Etzkowitz (1983) and was developed by Leydesdorff in 1995. Triple Helix Innovation Approach Model in the information age is based on the cooperation of universities, industry and government to develop innovation. For this reason, it focuses on the need for a compulsory and strong communication between the university, industry and government. This model is thought to be the key to improving conditions for innovation, where university-industry and government interaction. In this study, innovation capacities in Turkey’s technology systems were examined in the framework of the Triple Helix Innovation Model. The Bounds test approach was used in the study, which used R&D expenditures, number of patents, government incentives and number of scientific articles covering the period 1991-2017. The results showed that there was a statistically significant and long-term positive relationship between high technology exports with number of patents, and negative relationship between R&D expenditures. In addition, a positive but statistically insignificant relationship was found between the number of government subsidies and scientific articles and high technology exports. The results of the error correction analysis showed that there is a short-run relationship between high technology exports and variables. Results indicate that the Triple Helix approach is invalid for Turkey in the analysis period.

14

Authors: Deniz Ikizlerli, Haluk Yener, Burak Alparslan Eroglu

This study examines the effect of FOMC’s (Federal Open Market Committee) announcements on the volatility of stock returns in the Borsa Istanbul (BIST) from January 4, 2000 to May 31, 2019. We find that FOMC’s news increases the market level of volatility on announcement days but cannot find any evidence that it had a destabilizing effect on the Turkish stock market over our observation period. We also look at the effect of FOMC’s news on the return volatility of the BIST100 index over different states of the stock market and find that FOMC’s announcement days give a lift to conditional volatility both in bull periods and bear periods, but find no evidence of destabilizing impact. On the contrary, both positive announcement and negative announcement shocks in bull periods are found to depress volatility on consecutive days. In other words, FOMC’s announcements in bull periods have a stabilizing effect on equity prices rather than a destabilizing in the BIST100 index.

16

Authors: Gulcin Tapsin

The recovery in asset prices during 2000’s accompanied by quick growth and the recession caused by global financial crisis increased the interest in asset prices’ role on macroeconomic fluctuations and hence monetary policy. In the relevant literature, it is seen that the studies analyzing the response of the monetary policies to the asset prices focus mostly on policy rules of the industrialized countries. In addition, most of the financial crises throughout the world happened in the developing economies that were open to international capital flows. The main focus of this article is to analyze the response of monetary policy to share price movements for the purpose of differentiating the developed and developing countries. Within the scope of this study, the effect of share price changes, market capitalization and interaction on short-term interest rates was researched for OECD countries for the period of 2000-2019 by means of System-GMM method. The results showed that the effect of share prices on short-term interest rates in the developed countries with high market capitalization was higher than the effect of those in the developing countries with asset lower market capitalization. The study also demonstrated that the effect of inflation deficit on short-term interest rate was positive and significant while unemployment had negative and significant effect on short-term interest rate.

19

Authors: Furkan Fahri Altintas

When countries evaluate innovation and logistics as a whole and carry out activities to complement each other, countries will be able to specialize in the field of innovation and logistics and, accordingly, ensure the development of innovation and logistics dimensions globally. In this context, in research, the relations between the innovation and logistics dimensions within the scope of the global innovation and logistics performance values of G-7 countries, which have more than half of the global wealth in the world and have a certain economic development and size, were evaluated in multi-dimensional terms. According to the findings, it is determined that there is a significant, positive, and very high-level relationship between innovation and logistics dimensions. The fact that the relationship between innovation and logistics is very high has been evaluated as one of the factors or reasons that G7 countries have economic size, development, and global wealth. Again, according to the findings, it was concluded that the innovation dimension contributed more to the relationship between innovation and logistics dimension than the logistics dimension. Therefore, it is considered that these countries place more importance on the innovation dimension in ensuring the relationship between innovation and logistics dimensions.

21

Authors: Ozgur Teoman, Cumali Bozpinar

Article Information Journal: Business and Economics Research Journal Title of Article: The Problem of Institutionalization of Capital in the Ottoman Manufacturing Industry: An Evaluation on Bursa Silk Sector Author(s): Ozgur Teoman, Cumali Bozpinar Volume: 11 Number: 4 Year: 2020 Page: 1013-1033 ISSN: 2619-9491 DOI Number: 10.20409/berj.2020.296 Abstract The debate on transition to capitalism in the Ottoman Empire continues. In this study, the role of capital in the development of capitalist relations in the Ottoman Empire in the absence of an institutional credit mechanism was investigated through the incorporation practice. For this purpose, the XIXth century Bursa silk sector case was analysed. This is because it is the most integrated among the Ottoman Empire sectors with the European markets. This quality of the sector has enabled the comparison of Western Europe with the Ottoman Empire in terms of industrial capitalism. For making the comparison, Western European company history, secondary sources and studies on the subject were examined. In this context, the political, religious, and socioeconomic features that were effective on the emergence and development of institutional organizations in the Ottoman Empire were taken into consideration. Depending on the characteristics in question, it was understood that the capitalist transformation was realized through formal and tacit agreements of usurer-foreign/minority merchant-bureaucrat cooperation in Bursa silk sector, differently from the corporation in Western Europe, even at the point of raw material-intermediate production. However, the capitalist transformation was not observed in the manufacture of final products and other textiles, and that then loss of employment and production appeared in these branches of activity as a result of the complete incorporation of the Empire into the center-periphery relationship with the Act of Port of Treaty of 1838 signed with Britain.

609-620

Authors: Bilgin Bari

This study researches the effect of exchange rate movements on Turkey’s domestic prices from 2003 through 2019. For the Turkish economy, the structural problems behind the inflation phenomenon are the dependency on imported intermediate goods for production and inflation expectations. Therefore, changes in exchange rates have a significant impact on domestic inflation. To analyze this process, the consumer price index (CPI), producer price index (PPI) and import price index (IPI) are examined by using VAR analysis. Estimations for two distinct periods- stable and upward courses in the exchange rate movement- yield different results. For the first stable period, import price and producer price shocks were more reflective than exchange rate shocks. Exchange rate shocks are found to be stronger than the import price shocks in the second period. The results show that structural problems of the Turkish economy related to production based on the import of intermediate goods, dollarization, and pricing behavior support exchange rate and imported price pass-through to consumer prices.

671-680

Authors: Marlena Akhbari, M. Fall Ainina, James E. Larsen

Equity investors are always interested in identifying profitable trading strategies. The price-to-earnings ratio (P/E) and price-to-sales ratio (P/S) are two simple metrics that researchers have reported may meet this objective under particular market conditions. During our study period, which is longer in duration than most of the previous works, the performance of portfolios based on P/S dominated those based on P/E. However, portfolios based upon the combination of low P/E and net profit momentum outperformed all other strategies tested. Another way the predictive power of P/E may be improved is by dividing it by a measure of the firm’s earnings growth, yielding a composite metric known as the price-to-earnings-to-earnings growth ratio (PEG). This metric has gained the attention of professional investors and researchers. Because many investors prefer P/S over P/E, it is surprising that a counterpart to PEG has not gained similar traction. Our results provide evidence that helps explain why the price-to-sales-to-sales growth ratio (PSG) has failed to gain attention. Our results also indicate that none of these market multiples alone can be employed to provide consistently profitable investment performance.

793-805

Authors: Pih-Shuw Chen, Jia-Jan Lee, Sheng-Ju Huang, Che Liang Lin

With the advancement of smart phones, the rise of mobile payments has become a new payment method for consumers. The purpose of this study is to use structural equation model to verify the factors that affect consumers’ behavior in using bank’s mobile payment applications (APPs), so as to provide recommendations as main reference to enhance bank’s mobile payment APPs. In this study, the research subjects were consumers who have used mobile payments APPs, a total of 300 valid responses were collected. The results show that security has a significant positive impact on perceived usefulness and perceived ease of use; perceived ease of use has a significant positive impact on perceived usefulness. Both of perceived usefulness and perceived ease of use have significantly positive influences on functional consumption value. Furthermore, functional consumption value and perceived usefulness have significant positive effect on usage behavior. As a result, banks are recommended to continually increase cooperative merchants that can use their mobile payments APPs, support for various operating systems of mobile phones, facilitate transaction speeds, ensure personal information, and provide user friendly interfaces.