JOURNAL OF APPLIED MICROECONOMETRICS

The impact of IFRS 16 on earnings management: Evidence from Borsa Istanbul

Göksal Selahatdin Kelten — 2024-12-28

This study explores the relationship between earnings management (EM) and the implementation of IFRS 16 - Leases in Borsa Istanbul. Using panel and panel quantile regression analyses, the study examines how IFRS 16, and closely related items (Size, ROA, Leverage, and CFO) effect EM. The analysis includes the annual data of 218 companies traded continuously on Borsa Istanbul in 2014–2021 and uses the Kasznik (1999) model to calculate discretionary accruals. According to the panel regression result, no significant link is observed between IFRS 16 and EM, while quantile regression reveals that IFRS 16 reduces EM in firms implementing small-scale EM applications but increases it in large-scale ones. These findings provide insights for investors, policymakers, regulators, and other market participants, highlighting the complex interplay between accounting standards and managerial discretion in financial reporting at Borsa Istanbul.

The empirical analysis of the effectiveness of internal audit and sustainability practices in businesses during the 2018 Turkish economic crisis

Kadriye Hilal Topal — 2024-12-28

The ability of businesses to survive in the competitive market and increase productivity depends on the strategies they implement. While businesses can achieve successful results under normal conditions, only businesses with good strategies can be successful in times of economic crisis. Some of these strategies are internal audit and sustainability. The main objective of internal audit is to effectively meet the requirements of business management. Due to the fact that businesses direct the economic life, their environmental and social responsibilities in other words, sustainability have become visible as well as their financial responsibilities. The aim of this study is to reveal the importance of internal audit and sustainability of businesses in times of economic crisis. For this purpose, the data is obtained as a result of surveys is conducted to businesses’ employees within the scope of the research are examined. In this study, which is based on employees working as manager in businesses, simple random sampling method is used and surveys are conducted to 122 business managers. The 10 incomplete and incorrectly filled surveys are excluded from the study, and the remaining 112 survey data are used. Descriptive statistics of internal audit and sustainability scales are obtained and interpreted. In addition, normality tests are performed for these two scales, and as a result, Mann Whitey-U and Kruskal-Wallis tests are applied to examine the differences between the means according to demographic variables in the series that are not normally distributed. As a result, it has been determined that there are significant differences in internal audit and sustainability practices for businesses according to the demographic characteristics of employees working as manager during the economic crisis period. In particular, it is concluded that there are significant differences according to age in terms of both internal audit and sustainability and education level only in terms of internal audit. In conclusion, it has been determined that the conscious and effective use of internal audit and sustainability contributes to performance of businesses in time of the 2018 Turkish economic crisis.

Alternative price and quantity indices for fresh fruits and vegetables

Aslıhan Atabek Demirhan — 2024-12-28

For central banks, whose main objective is price stability, it is crucial to expand information sets that support monitoring price development and advance methods that contribute to timely and sound predictions. Fruit and vegetable prices, which make up about a quarter of the food and non-alcoholic beverages group with the highest weight in the CPI basket, exhibit high seasonal and irregular changes due to unbalanced demand and supply conditions. Although monitoring developments in the fruit and vegetable sub-group is important due to both food security and the weight structure of the basket, available data sets and indicators are quite limited. This study aims to introduce new leading indicators that we have developed that enable monitor supply, demand and price developments of fruits and vegetables closely.