Gökberk CanPazartesi günü hakem raporlarına cevap verdiğim bir makaleyi dergiye göndereceğim. Uzun zamandır görmediğim bir kalite var hakemlerin taleplerinde. Ne kendi çalışmalarına atıf istemişler, ne de makaleyi okumadan cevap yazmışlar. Hakemlerin yorumları ile konunun anlatımının güçlendiğini düşünüyorum.
Sevgili Hakemler, kimsiniz bilmiyorum ama çok teşekkür ederim bu çalışmaya zaman ayırdığınız için.
Does Life-Cycle Stage Affect Companies’ Revenue Predictability? Evidence from Borsa Istanbul
In this paper we test the relationship between life-cycle stages and revenue predictability. We used three-year revenue divided by average total assets as the revenue predictability. Our life-cycle estimation is based on Dickinson’s (2011) cash-flow proxy model. Instead of using dummy variables and omitted the category with least observations, following Hansen et al. (2018), we assigned values of 0, 0.25, 0.50, 0.75, and 1 for the stages of introduction, growth, mature, shake-out, and decline, respectively. We used firm/year fixed effects regression to estimate our model. Our empirical evidence points out that companies’ revenue predictability increases as the revenue volatility decreases.
Citation: Can, G. & Günay, S. (2022). Does Life-Cycle Stage Affect Companies’ Revenue Predictability? Evidence from Borsa Istanbul. Gaziantep University Journal of Social Sciences, 21(2), 813-823. DOI: 10.21547/jss.1025389
Rezart Demiraj ve Ahmed Yamen ile yazdığımız “AC Tech and Cold Auto” isimli iç kontrol vak’ası İstanbul Üniversitesi Muhasebe Enstitüsünün yıllık olarak yayınladığı Vak’alar kitap serisinin 2021 yılı baskısında yer aldı.
Bu vak’ayı yazmaktaki amacımız gelişmemiş sermaye piyasalarında iç kontrolün artan önemine vurgu yapmaktır. Vak’a üniversite son sınıf lisans son sınıf ve yüksek lisans öğrencileri hedeflenerek hazırlanmıştır. Eserimizin esas metnine kitap erişilebilir ancak çözüm notlarını için dileyen öğretim elemanın üniversite e-posta adresine gönderebilirim.
Umarım insanların faydalanacağı bir eser ortaya çıkartabilmişizdir. Vak’alar 2021 aşağıdaki bağlantıdan erişebilirsiniz.
This study investigates the reaction of stock markets to the Covid-19 pandemic and the Global Financial Crisis of 2008 (GFC) and compares their influence in terms of risk exposures. The empirical investigation is conducted using the modified ICSS test, DCC-GARCH, and Diebold-Yilmaz connectedness analysis to examine financial contagion and volatility spillovers. To further reveal the impact of these two crises, the statistical features of tranquil and crisis periods under different time intervals are also compared. The test results show that although the outbreak’s origin was in China, the US stock market is the source of financial contagion and volatility spillovers during the pandemic, just as it was during the GFC. The propagation of shocks is considerably higher between developed economies compared to emerging markets. Additionally, the results show that the COVID-19 pandemic induced a more severe contagious effect and risk transmission than the GFC. The study provides an extensive examination of the COVID-19 pandemic and the GFC in terms of financial contagion and volatility spillovers. The results suggest the presence of strong co-movements of world stock markets with the US equity market, especially in periods of financial turmoil.
Gunay S, Can G (2022) The source of financial contagion and spillovers: An evaluation of the covid-19 pandemic and the global financial crisis. PLoS ONE 17(1): e0261835. https://doi.org/10.1371/journal.pone.0261835
https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0261835
Can, G. (2021). Do Life Cycles Affect Financial Reporting Quality? Evidence from Emerging Market. Cogent Business & Management.
Can, G., Günay, S., & Ocak, M. (2021). How Does Size Affect Capital Expenditures? Evidence from Borsa Istanbul. SN Business & Economics. Forthcoming. doi: 10.1007/s43546-020-00021-w
Günay, S., Can, G., & Ocak, M. (2021). Forecast of China’s Economic Growth During the COVID-19 Pandemic: A MIDAS Regression Analysis. Journal of Chinese Economic and Foreign Trade Studies. doi: 10.1108/JCEFTS-08-2020-0053
Can, G. (2021). “Does Sharia Compliance Affect Financial Reporting Quality? An Evidence from Muslim Majority Countries”, International Journal of Islamic and Middle Eastern Finance and Management, Forthcoming. doi: 10.1108/IMEFM-04-2019-0149
My new working paper is open to your comments.
Purpose – This paper aims to present the effect of the life cycle on financial reporting quality (FRQ). Discretionary accruals, small profits, and audit aggressiveness test the FRQ from different approaches. Recent studies focused on a single measure of FRQ with discretionary accruals (Hribar & Yehuda, 2015), tax avoidance (Hasan, Al-Hadi, Taylor, & Richardson, 2016; Mangoting & Onggara, 2019), small profits (Nagar & Sen, 2017), and accounting conservatism (Abdullah & Mohd-Saleh, 2014; Hansen, Hong, & Park, 2018; Park & Chen, 2006). There is no attention paid to the audit aggressiveness.
Design/methodology/approach – We used Borsa Istanbul listed companies between the years 2008 and 2017 for the research question. The sample comprises 1,802 observations, 217 companies, and 10 years. We estimated the life stages with Dickinson’s (2011) cash flow patterns for each observation. Following Hansen et al. (2018), we assigned values of 0, 0.25, 0.5, 0.75, and 1 for introduction, growth, mature, shake-out, and decline, respectively. We used discretionary accruals, small profits, and audit aggressiveness.
Findings – The findings of small profits and discretionary accruals are consistent with conjecture. Discretionary accruals and small profits decrease as the companies move forward in their life cycles. On the other hand, audit aggressiveness increases when the firms grow further in their life cycles. Considering the Turkish financial reporting framework, we also divided the listing duration for each year into quintiles to assign the life cycle to each observation. According to robustness tests, audit aggressiveness reduces with increased listing duration. We observed a negative coefficient but insignificant for the other dependent variables.
Research limitations/implications – This study has some limitations. We did not use any audit or governance based variables. We did not use a third measure to estimate a life cycle for each observation. Earnings quality was calculated using only discretionary accruals. We did not utilize any real activities manipulation models as a proxy of FRQ or its effect on the small profits. Our findings may not be generalized to developed and other emerging countries as Turkey shows a unique picture in terms of political and economic structure.
Practical implications – The findings provide an insight into the effect of life cycle stages on FRQ. Our results showed that the introduction and decline stages negatively affect FRQ. Our results also showed that Turkish companies’ audit aggressiveness decreases with increased listing duration.
Sevgili dostum Murat Ocak ile yazdığımız “Do government-experienced auditors reduce audit quality?” başlıklı makalemiz Managerial Auditing Journal‘da (SSCI – Q3, ABDC – B) yayımlanmıştır. Çalışmanın sonuçlarına ait özet aşağıda sunulmuştur.
The main findings are consistent with conjecture. Government-experienced auditors do not enhance AQ. They are aggressive, and they complete audit work slowly and they cannot detect discretionary accruals effectively. Spending more time in a government agency makes them more aggressive and slow, and they do not detect earnings management practices. The Heckman estimation results regarding the variable of interest are also consistent with the main estimation results. In addition, the authors found in predicting government-experienced auditor choice that family firms, domestic firms and firms that reported losses (larger firms, older firms) are more (less) likely to choose government-experienced auditors.
https://www.emeraldinsight.com/doi/full/10.1108/MAJ-12-2017-1756