Cagnur Kaytmaz Balsari

Effect of Banking Regulation on Performance: Evidence from Turkey

In this study, we investigate the effect of regulation on banking sector performance in an emerging country context. Consecutive crises in the early 2000s led to three waves of reformist banking regulations in Turkey: (1) the banking sector restructuring program in 2002, (2) limitation of the full deposit insurance system in 2004, and (3) a corporate governance-related banking law in 2005. Results show that these actions had a positive effect on bank lending, asset quality, and profitability. Findings also support the view that the sequence and timing of banking reforms in Turkey acted as a shield against the global financial crisis of 2008.

The adoption of international financial reporting standards (IFRS) and loss avoidance in turkey

Abstract Purpose The purpose of the study is to present evidence on the International Financial Reporting Standards (IFRS) adoption and earnings quality relationship on an emerging country context focusing on firm characteristics. Design/methodology/approach To measure loss avoidance, the earnings distribution approach is followed. Data includes all the nonfinancial firms listed on the Borsa Istanbul (BIST) for the period covering 1998–2010. The sample is divided into subsegments according to size and leverage, considering the potential impact of different financial reporting incentives. Furthermore, mandatory and voluntary adopters are examined separately. Findings The results indicate lower loss aversion in the post-IFRS period. Furthermore, we found that incentives dominate accounting standards in determining financial reporting quality. The decrease in loss aversion after IFRS adoption is more significant for large firms compared to small firms, low leverage firms compared to high leverage firms, and for mandatory IFRS adopter firms compared to voluntary IFRS adopters. Originality/Value Research provides inconsistent evidence on the relationship between IFRS adoption and earnings quality. Turkey represents an interesting environment to test the impact of IFRS adoption, as the Turkish accounting system has followed a historical path from a Continental European accounting system to an Anglo-Saxon accounting system. The current Turkish accounting system exhibits features of both these systems. Additionally, IFRS adoption was optional in 2003 and mandatory in 2005 in line with EU regulations, and the changes in the reporting environment are supported by the regulatory developments and institutional changes in Turkey.

Türk firmalarının işletme sermayesi yönetimi uygulaması: 2001 ekonomik krizi sonrası

Bu calisma, enflasyonun goreceli olarak dusuk oldugu 2003-2004 yillarinda Istanbul Menkul Kiymetler Borsasi’nda (IMKB) islem goren firmalarin isletme sermayelerini nasil yonettiklerini ele almaktadir. Isletme sermayesi yonetiminin uc ogesi olan ticari alacaklar, ticari borclar ve stoklarin isletme kârliligi uzerindeki etkisi arastirilmistir. Arastirma, 2001 ekonomik krizi sonrasi isletme sermayesi yonetimini etkileyen faktorlerin incelemesi bakimindan onemlidir. Arastirmanin sonuclarina gore, isletmeler bu donemde satislarini arttirmak icin musterilerine ticari kredi saglamislar ve kendilerini borclanarak finanse etmislerdir. Buna ek olarak, isletmelerin parasal degerlerini enflasyona gore nasil yonettiklerini gosteren net parasal pozisyon kâri (zarari) kalemi ile faaliyet kâri arasindaki iliski anlamli ve pozitiftir. Net parasal pozisyon kâri yuksek olan ve stok maliyetleri dusuk olan isletmeler daha kârlidir.