Financial Structure Ratios Research Articles

MICRO-EVIDENCE FROM BUSINESSES OPERATING IN THE BIST TECHNOLOGY AND INFORMATION SECTOR

Today, technology trade and investment represent a global economy that disregards national boundaries. Within the scope of this study, it is aimed to reveal the effect of whether businesses operating in the technology and IT sector operate in technology zones or not on their financial performance, and customer satisfaction and internationalization levels are examined. The financial statements of 31 businesses listed in Borsa Istanbul (BIST) technology and IT sector for the year 2022 were subjected to ratio analysis. Businesses located in technology development zones and businesses located outside technology development zones were grouped and the results of the ratio analysis were compared with the Mann-Whitney U test. According to the findings, no difference was found between the businesses located in technology development zones and the businesses outside the zone in terms of liquidity ratios, activity ratios, and customer satisfaction. However, a significant difference was found in terms of the ratio of non-current assets to continuing capital among financial structure ratios; a significant difference was found in terms of gross profit margin ratio and operating profit margin ratio among profitability ratios. In terms of internationalization level, it was determined that the businesses located in technology development zones showed superior performance.

Financial structure: A new aspect of analysis and new results

There is growing evidence that the financial structure depends on the level of economic development of the country. In developed countries, firstly, there is a convergence of financial structures and, secondly, an increase in the share of non-bank financial intermediation sectors in national financial systems. Therefore, we propose to proceed to the analysis of the three-tier structure of the financial sector (banks — non-banking financial institutions — financial markets), for which we have developed new indicators that assess the relationship between a non-bank financial intermediation sector and financial markets. They showed that in the last 7—8 years in Russia there has also been an outstripping growth of this sector. Our regression studies, firstly, have confirmed the conclusion that in Russia the financial structure (in the traditional sense) slows down economic growth and, secondly, allowed us to assume (based on the results of a crosscountry analysis) that the current structure of the Russian financial sector (with a predominant share of banks) contributes to an increase in the volatility of economic growth. The behavior of the new financial structure ratios and regression analysis based on traditional financial structure ratios indicate the need to adjust government policy in the financial sector in order to ensure faster growth of financial markets.

COVİD 19 PANDEMİSİNDE İŞLETMELERİN BORÇLANMA YAPISINDAKİ DEĞİŞİMİN BELİRLENMESİ

With the Covid 19 pandemic, measures have been taken to prevent the rapid spread of the virus in Turkey and have been implemented quickly. While restrictions were imposed on the activities of businesses in some sectors, the majority of business activities were moved to the electronic environment. The main purpose of this study; It is to determine the change in the borrowing structures of businesses during the times of the Covid 19 pandemic. It will be an important data in the decisions to be taken for these enterprises and in economic evaluations. In this direction, within the scope of the study, an examination was made on the manufacturing companies traded in Borsa Istanbul and whose financial statements were announced on the Public Disclosure Platform. The financial data of the companies included in the research were analyzed with the ratio analysis technique. Financial structure ratios, one of the ratio groups in the ratio analysis technique, are the ratios that explain the resource structure of the enterprises, in other words, the debt-equity balance. In the study, the financial structure ratios of the times when the Covid 19 pandemic was intense and the financial structure ratios of previous years were compared. In the comparison, positive and negative changes in the ratios were determined and the number of affected companies was calculated for positive or negative changes

Effects of Changes in Financial Ratios of Companies on the Performance of Stock Prices in the Exchange Market: The Automotive Sector

By examining the relationship between financial ratios of companies and stock prices, this study investigates whether changes in the financial ratios of companies affect stock prices. Twelve financial ratios were used as independent variables and stock price was used as the dependent variable. The study was conducted via panel data analysis method with data from seven automotive companies traded in Borsa İstanbul (BIST) and six automotive companies traded in stock markets of Germany, the USA, and Sweden for the period of 2007Q1-2018Q4. For automotive companies traded in BIST, stock price is affected by liquidity ratios, financial structure ratios, and activity ratios but there is no statistically significant relationship between stock price and profitability ratios. On the other hand, for the automotive companies traded in stock exchanges in other countries, stock price is seen to be affected by liquidity ratios, financial structure ratios, activity ratios, and profitability ratios.

EVALUATION OF THE TEXTILE INDUSTRY BY RATIO ANALYSIS AND TOPSIS METHOD

Bu çalışmada, C13 tekstil imalat sektörünün, TCMB sektör 2009-2020 finansal tablo verileri ışığında hem imalat ana sektör hem de alt sektör olan tekstil sektörünün likidite, finansal yapı, faaliyet ve karlılık oranları ele alınarak karşılaştırmalı olarak genel durumları incelenmiştir. Ayrıca BIST tekstil, giyim eşyası ve deri sektöründe bulunan 13 işletmenin 2019-2021 yılları arası finansal oranları doğrultusunda performans değerlendirmesinde Entropi ve TOPSİS analizleri uygulanmıştır. Oran analizi sonucunda, tekstil imalat sektörünün, stokların nakde dönüşmesi ve alacakların tahsilinde genel sektör değerlerinin altında kaldığı, Entropi analizi sonucunda kriter ağırlıkta karlılık oranları ve finansal yapı oranlarının önemi, TOPSİS analizi sonucunda ise yıllar itibariyle en yüksek performansa BOSSA, en düşük performansa ise HATEKS ve KORDS işletmelerinin sahip olduğu gözlemlenmiştir.

Raporlama Sisteminde Yükselen Trend Entegre Raporlama: Çimento ve Bankacılık Sektöründe Bir Araştırma (The IncreasingTrend in the Reporting System Integrated Reporting: A Research in the Cement and Banking Sectors)

Purpose – In the study, an answer to whether the integrated reporting, which sums up all the social, environmental and economic information in a single report, will add financial value to the enterprises is sought and it is aimed to examine the effects to be determined both on their own performance and on a sectoral basis. Design/methodology/approach – The universe of the research consists of 475 enterprises in the BIST index. Four enterprises, two of which are on the cement and the other two are on the banking sectors, who have published integrated reports for the last three years in a row, constitute the sample of the research. Under the lead of these sectors, two for each enterprises from abroad in the cement and banking sectors that have prepared integrated reports for the last three years were selected, and the ratio analysis method was applied to the financial statements of the enterprises from the last threeyear integrated reports and the three-year financial statements before the integrated report application, and the differences between the actual rates were analyzed. Therewithal, the effects of integrated reporting and the financial reports of the previous period on profitability were analyzed by using the structural equation modeling. Findings – According to the analysis results of the cement industry; while the Turkish enterprises had more successful results than foreign companies in both reporting periods, the enterprises achieved more successful financial results in periods when they did not publish integrated reports regardless of their origin. In the banking sector, while Turkish banks are successful in their financial structure ratios, foreign banks have been more successful in the results of profitability ratio analysis. It was concluded that the earnings per share increased in all enterprises during the period when they published integrated reports, and it was determined that the financing ratio in the integrated reporting periods in the banking sector had a significant effect on the capital adequacy ratio. Discussion – According to the results of the research, it can be inferred that the integrated reporting does not have a significant effect on the financial data of the enterprises and the financial indicators that should be evaluated together with macroeconomic variables, time, social and environmental effects.

The idiosyncratic characteristics of Turkish REITs: evidence from financial ratios

PurposeThis paper aims to determine the specific financial ratio's effects on market value and return of assets for Turkish real estate investment trusts (REITs) traded at Istanbul Stock Exchange (ISE). The paper intends to define liquidity ratios, financial structure ratios, return ratios and stock performance ratios related to market value and return of asset.Design/methodology/approachThe study includes 17 REITs traded in ISE. The period of study is specified as the year from 2009 to 2018. Panel data analysis is applied in this study. Dependent variables are current market value and return of assets, independent variables are 12 financial ratios, which are considered to explain the model significantly. These ratios will be calculated from audited year-end balance sheets for specific periods throughout at least ten years as time series. Two different models and hypotheses have been established to identify the financial ratios that affect the market value and return of assets for REITs.FindingsAccording to the results, long-term financial loans/total assets, return of equity and working capital ratio are negatively correlated with market value, while market value/book value and total assets are correlated positively. On the other hand, market value/book value ratio, price/earning ratio, long-term financial loans/total assets and earnings per share are correlated with return of assets. REITs have high levels of financial leverage, especially in foreign currency. The striking point is that REITs hardly ever do not use financial derivatives to hedge their position again currency and interest rate risk. This approach makes the financial structures of REITs vulnerable and fragile against market volatility.Originality/valueIn Turkey, as an example of an emerging market, financial borrowing does not increase the return rates and market value for REITs due to market's idiosyncratic properties. This finding provides substantial insight into how the debt and equity allocation of Turkish REITs should be structured. Also, it has been observed that forward-looking expectations are considered more than the current situation in the market.

THE EFFECT OF FAIR VALUE ON FINANCIAL RATIOS: AN EXAMPLE OF INVESTMENT PROPERTIES

Bu çalışmada, yatırım amaçlı gayrimenkullerin değerlemesinde gerçeğe uygun değer yönteminin kullanımının finansal oranlar üzerine etkisine dair delil sağlanması amaçlanmıştır. Araştırma, BIST Pay Piyasası’na kayıtlı finansal kurumlar dışında kalan ve yatırım amaçlı gayrimenkullere sahip 34 şirket üzerinde frekans analizi kullanılarak yapılmıştır. Bu çalışmada, yatırım amaçlı gayrimenkullerin değerlemesinde gerçeğe uygun değer yönteminin kullanımının maliyet yönteminin kullanıldığı duruma göre araştırma kapsamındaki şirketlerin faaliyet oranları ve borsa performans oranları üzerindeki etkisinin olumsuz yönde olduğu; finansal yapı oranları ve kârlılık oranları üzerindeki etkisinin ise orana göre değişebildiği yani olumlu ya da olumsuz yönde olabildiği sonucuna ulaşılmıştır.

Belediyelerin Borç Ödeme Gücünün Analizi: Muğla-Sakarya Belediyeleri Örneği

Effective use of resources is one of the important issues in non-profit organizations as well as in profit-making businesses. In order to ensure effectiveness in the use of resources, necessary measures should be taken in order to measure the current situation and to ensure effectiveness in the future use of resources in cases where there is a deviation from the objectives. Various financial analysis techniques are used to measure the current and past financial performances of institutions and to make predictions about the future. These analysis techniques, which have been used in businesses for a long time, have become widespread recently in institutions that serve the public interest. One of the analysis techniques commonly used in non-profit organizations as well as businesses is ratio analysis. In the study, the liquidity and financial structure ratios of the metropolitan municipalities in Muğla and Sakarya provinces and 12 district municipalities affiliated to these municipalities were calculated based on the 2018 balance sheet data used by the institutions and submitted by the institutions. In the analysis, together with the frequently used rates, the rates used to determine the debt payment power of the enterprises used by the TCMB in the sector analysis were taken as basis. Although there are minor differences, it has been determined that the municipalities in Sakarya and Muğla provinces have high short and long term debt payment powers.

An Application of Financial Ratio Analysis on Concordat Firms: A Model Suggestion on Construction Firms Listed in Borsa Istanbul

The main purpose of this study is to apply a detailed financial ratio analysis on the firms that have declared concordat, to determine which kind of financial ratios predict the more successful preliminary estimations and to form a model according to the findings obtained and to apply this model to the firms operating in Borsa Istanbul construction sector. For this purpose, the last 5 years' financial statements of the two companies whose shares are traded on Borsa Istanbul and declared concordat are analyzed by the ratio analysis method. As a result of the analysis, it was found out that the ratios that gave the strongest concordat signal are the liquidity and financial structure ratios. According to the results of the analysis, a model that can be used for the general of the companies is proposed by giving weight to each rate type. In order to test these findings, the model is applied to the financial statements of three companies operating in Borsa Istanbul construction sector and financial ratio scores of firms are calculated over the years. According to the results of the analysis, it is found that the financial situation of the construction firms is much better than the ones of the firms that has declared concordat. However, when the construction firms are compared with each other, it can be stated that YYAPI is lagging behind others in terms of financial performance.

Market-Oriented vs. Bank-Oriented Financial Systems: Post-Crisis Balance Shifts in Russia and Abroad

The paper contributes to empirical discussion of pros and contras of bankoriented vs. market-oriented financial systems found in both theoretical and empirical literature. Following Beck’s and Levine’s methodological approach, we measure post-crisis shift s in financial structure ratios across the world; the research suggests that national financial systems in general tend to be biased toward stronger polarization. Some of them, however, shift toward market domination, while others (Russia being among them) turn to bank domination. International comparative studies prove that financial structure ratio is subject to variation over time, and both of its types may be sustainable in an enabling environment. Detailed empirical studies of Russia’s financial structure reveal both economic and policy origins of trend reverses from the bank orientation in the 1990s to the market orientation in 2001–2010 and back to the bank orientation after 2011. We argue that, for now, enhancing bank domination makes a poor contribution to general economic development due to the oligopolistic structure of the Russian banking sector and the resulting X-inefficiency. Nevertheless, the trend holds positive potential to mobilize liquidity from both households and firms, if properly supported by relevant policy measures. Deliberate structural policy with adequate allowance for complementarity of the two segments may efficiently upgrade the Russian financial system

Financial Analysis of Agricultural Development Cooperatives: A Case of Western Mediterranean Region, Turkey

In Turkey, Agricultural Development Cooperatives are very important for bringing the resources in rural area to the economy, establishment of agro-industrial facilities for processing agricultural products and preventing migration from rural area to cities. While the number of Agricultural Development Cooperatives in Turkey was 6000 in 1974, it rose to 7196 in 2017. Total number of partners of these cooperatives is 775255.The aim of the study is to reveal financial structures of Agricultural Development Cooperatives within the scope of the research by using ratio analyses. Data in this study were retrieved from income statement and balance sheets belonging to 2016 of 70 Agricultural Development Cooperatives in the Western Mediterranean Region. Ratio analyses were classified as financial structure ratios, activity efficiency ratios and profitability ratios in this study. Financial analysis was conducted for Agricultural Development Cooperatives by comparing the values obtained as a result of analysis with the standard values. Findings obtained from this study and other similar studies suggest that one of the most significant problems of agricultural development cooperatives is finance. As a result of the study, it was determined that the cooperatives studied were not in financial sufficient level. The financial weaknesses of the cooperatives examined mean that they can face financial problems in the long run. Financial insufficiency poses a risk in terms of the continuity of the surveyed cooperatives.

Effect of Financial Structure Ratios on Profitability: Panel Data Analysis on Manufacturing Sector

Purpose – By increasing their profitability, businesses can achieve their goals such as economic growth, regularity and increasing their market value. Financial structure is one of the main factor that affecting profitability. The resource components used in the financing of assets, directly affect the sustainability of profitability. In profit planning, businesses need to take into account the resource components that they will use in asset financing. The development of studies on the impact of the equity and liability components that compose the financial structure on the profitability will contribute to the field of business administration. In this context, the aim of this study is to investigate the effect of financial structure on profitability. Design/methodology/approach – Within this scope, to measure the effect of financial structure rates on profitability, the regression model was tested by panel data analysis which developed as a result of the literature review. The tests were carried out in the Eviews 9 package program. The data obtained from the financial statements of 155 publicly- traded company in the Istanbul stock exchange ( BIST) Manufacturing Industry between 2008-2017 were used in the study. Findings – As a result of the analyzes, it was determined that the borrowing ratios affected the asset profitability as financial structure ratios, and this effect was positive in the long-term borrowing ratio and negative in the short-term borrowing ratio. Discussion – Findings obtained from the study; has great importance for investors, researchers and the top management of enterprises.

Implementation of Fuzzy Tsukamoto Algorithm in Determining the Level of Financial Distress in Microfinance Institutions

Fuzzy Tsukamoto is one method that is very flexible and tolerant of existing data. Fuzzy Tsukamoto has the advantage of being more intuitive, accepted by many, more suitable for the input received from humans rather than machines. Microfinance institutions are specialized financial institutions established to provide business development services and community empowerment, either through loans or financing in micro-scale businesses to members and the community, deposit management, and the provision of business development consulting services that are not solely for profit. The purpose of this study is to apply the fuzzy Tsukamoto method to determine the level of financial distress in microfinance institutions in the city of Medan based on the variables Liquidity Ratio, Age Firm, and Cumulative Profitability Ratio, Profitability Ratio, Financial Structure Ratio, Capital Turnover Ratio.

Evaluation of Performances of Participation Banks: International Comparison with Topsis Method

In this study, performances of a total of 18 participation banks operating in countries such as Saudi Arabia, United Arab Emirates, Kuwait, Qatar, Jordan and Turkey between 2009 and 2015 were examined and the banks were attempted to be ranked accordingly. TOPSIS method, which is one of the multi-criteria decision making methods, allows alternative choices to be evaluated according to certain criteria and a ranking to be made. For this reason, the performance evaluation and ranking of the Participation Banks were carried out by using the TOPSIS method. In the scope of the study, ratios such as liquidity ratio, profitability ratio, activity ratio (efficiency ratio) and financial structure ratio are calculated by using the balance sheet and income tables of the examined participation banks and these calculated rates are used to calculate their performance scores. As a result of the TOPSIS method; the bank with the highest score received the first order. Given the performance scores achieved in this context, participation banks from countries such as Saudi Arabia and Qatar have been observed to perform better and rank higher. It is seen that participation banks from Turkey are placed in the middle order. Moreover, when the performance scores of participation banks in Turkey are examined separately, it is determined that Albaraka Turk participation bank generally performed better than others and had higher scores .

The Influence of Global Economic Crisis towards the Financial Performance of the Shipping Industry

In recent years, due to the influence of global economic cycle and container ship size became larger, the shipping industry has encountered with many competitions and crisis. Especially in 2008, as the global economic crisis have caused major change in the micro-environment; it has influenced on difficulties of business expansion of the shipping industry, and then further extended to the profitability. However, there were differences on the management policy of the various corporations in the shipping industry, which the purpose of this study was to explore that whether there were significant changes on the financial performance indexes of these corporations in the pre and post of the global economic crisis. This study further seeks on whether the economic crisis would create significant differences on the profitability and financial structure ratio of the shipping industry. The object of study was on the shipping corporations that were stock market listed in Taiwan, which there were total of nine corporations. To explain the financial performance of the shipping industry, this study would select multi financial ratio as initial indexes, and divide into five aspects of Profitability, Asset Turnover Ability, Short-Term Repayment Ability, Stability, and Cash Utilization Ability. Among the financial performance that was established in this study, the main analysis has shown that corporations were mostly concern with their profitability in their financial performance. Other than that, under the global economic crisis, the shipping industry has increased their short-term repayment ability in order to respond with the reduction problem of the global trade.