Chapter 7 and Chapter 11 Bankruptcy Factors

In light of the Financial Accounting Standards Board’s August 2014 Accounting Standard Update on management Going Concern Statements, research using financial ratios to predict bankruptcy is more relevant than ever. Even though numerous research articles examine factors that predict bankruptcy, few make the distinction between the factors that affect Chapter 7 versus Chapter 11 bankruptcy. This work examines the factors that affect these two bankruptcy types (7 and 11) using the Securities and Exchange Commission data on 425 firms that filed for Chapter 7 or Chapter 11 bankruptcy. We tested our data using t-test, ordinary least squares (OLS), and logistic regression. Our results indicate that the asset turnover ratio and going concern statement are significant predictors of Chapter 7 versus Chapter 11 bankruptcy. We note the implications for auditors, corporate management, corporate creditors and investors, and the Financial Accounting Standards Board

Do stock returns lead real economic activity? Evidence from seasonal cointegration analysis

This paper investigates the causal relationship between the stock returns and real economic activity in seasonal unit roots and seasonal cointegration framework by taking into account of seasonal behaviors of the stock returns and industrial production as a proxy of real economic activity. We use seasonally unadjusted quarterly Turkish data series that covers the period from first quarter of 1987 to the third quarter of 2009. The empirical results support evidence for the existence of the causal relationship between stock returns and real economic activity. We determine unidirectional causality running from the real economic activity to the stock returns in the six-monthly term. The empirical findings support that only the real economic activity provides the forecasting ability for the stock returns and there is no feedback relationship between the stock returns and the real economic activity.Stock Returns, Real Economic Activity, Seasonal Cointegration

How do Smoking Bans in Bars/Restaurants Affect Alcohol Consumption?

In this study, we employ a rational addiction framework to analyze the effects of smoking bans on alcohol consumption in bars/restaurants. We use pseudo panel data approach which has many advantages compared to panel data. Although cigarettes and alcohol are complements in consumption, our findings suggest that smoking bans in restaurants do not have a significant effect on the restaurant alcohol consumption. It is possible that smoking bans at restaurants cause a decrease in the restaurant alcohol consumption of smokers, but lead to an increase in the restaurant alcohol consumption of nonsmokers. If this is the case, the net effect of smoking bans on overall restaurant alcohol consumption would be zero. These results are just preliminary, and further analyses are required.cigarette, alcohol, smoking ban, rational addiction, pseudo panel, Demand and Price Analysis,

The Interaction between Alcohol and Cigarette Consumption

It has long been recognized that cigarette and alcohol not only have adverse health effects, but also negative externalities imposed on third parties. If cigarette and alcohol are related in consumption, the information on the way in which they are related may allow a better coordination of the public policies concerning these goods. In this study, we use the expenditure data of a panel of US households to analyze the relation between cigarette and alcohol consumption in a rational addiction framework. We believe that individual level data would be a better tool to analyze addictive behavior as aggregate data might conceal much of micro behavior. We found that cigarettes and alcoholic beverages are substitutes. However, both cigarette and alcohol demand do not fit the rational addiction model so well.rational addiction, panel data, cigarette consumption, alcohol consumption, Demand and Price Analysis,

Alcoholic Beverages and Cigarettes: Complements or Substitutes? A Pseudo Panel Approach

In this paper, using pseudo panel data we analyze the relation between cigarette and alcoholic beverage consumption within the rational addiction framework. We believe that pseudo panel data approach has many advantages compared to aggregate and panel data models. We found that alcoholic beverages are complements for cigarettes, while it is not the same the other way around. Moreover, we found that alcohol is a gateway for cigarette which further supports our conclusion concerning the reinforcing effect of alcohol consumption on cigarette consumption. We believe that drinking works as a trigger for smoking especially in social settings like bars while it is also possible (although less likely) that people who want to cut cigarette consumption might increase alcohol consumption to cope with resulting stress, which induces an asymmetry in cross price elasticities. However we point out that the complementarity relationship is much stronger and significant. Policy implications for the results are explained and the direction for further research is addressed.cigarette, alcohol, rational addiction, pseudo panel, Demand and Price Analysis,

Rationally Addicted to Cigarettes, Alcohol and Coffee? A Pseudo Panel Approach

In this paper, using pseudo panel data we analyze the relation between cigarette, alcohol, and coffee consumption within the rational addiction framework. Our purpose in this study is twofold. First, we want to get more insights about behavioral processes concerning cigarette, alcohol and coffee consumption. Second, we hope that our attempt to generalize rational addiction model to include three addictive goods will be useful to generate further research in the related literature. We found that cross price elasticity of cigarette with respect to alcohol price is negative, while cross price elasticity of alcohol with respect to cigarette price is positive. We believe that drinking works as a trigger for smoking especially in social settings like bars while it is also possible that people who want to cut cigarette consumption might increase alcohol consumption to cope with resulting stress, which induces an asymmetry in cross price elasticities. We did not find a strong relation between coffee consumption and the consumption of cigarette and alcohol. This finding does not rule out the possibility that coffee and cigarette are complements for certain people. However there is not a significant complementarity relationship when we look at the whole population.cigarette, alcohol, coffee, rational addiction, pseudo panel, Demand and Price Analysis,

The analysis of sustainability of fiscal policies by periodic unit root test with structural break: the case of Turkey

Bu çalışmanın amacı Türkiye ekonomisinde uygulanan mali politikaların sürdürülebilirliğini, dönemler arası borçlanma kısıtı yaklaşımından hareketle araştırmaktır. Çalışmanın amacı doğrultusunda örnek dönemi olarak ele alınan 1990:1–2008:4 döneminde sürdürülebilirlik göstergesi olarak kabul edilen kamu toplam borç stokunun gayri safi yurtiçi hâsılaya oranı olan Borç/GSYİH değişkenine “yapısal kırılmalı periyodik birim kök testi” uygulanmıştır. Elde edilen ampirik bulgular Türkiye ekonomisinde mali politikaların sürdürülebilirlik durumunun periyodik davranışlar sergilediğini; uygulanan mali politikaların yapısal kırılma ve periyodik davranışlar altında “sürdürülemez” olduğunu göstermektedir.The aim of this study is to investigate the sustainability of fiscal policies that administered in Turkish economy within the framework of Intertemporal Borrowing Constraint approach. Towards to the aim of study, for the sample period that covers 1990:1-2008:4, the periodic unit root test with structural break is applied to the ratio of Total Public Debt Stock to Gross Domestic Product, Debt/GDP variable, which is assumed as the indicator of sustainability. The empirical findings show that the sustainability circumstance of fiscal policies that administered in Turkish economy exhibits periodic behaviors and also show that the administered fiscal policies are “unsustainable” under the structural break and periodic behaviors

Marriage Migration: Just another case of positive assortative matching?

It is a stylized fact that marriage formation generally involves positive assortative matching (PAM) on education. We test whether this is also the case for immigrants who tend to import their spouses and potentially use education as an exchange mechanism. We find that only women match positively on education. For Turks the results robustly confirm PAM, whereas for Pakistanis there is no evidence of PAM. For men there is local support to the exchange hypothesis, since cultural assimilation or conflicts with parents, through less spouse import, increase the likelihood of marrying a highly educated spouse.assortative matching; homogamy; exchange; marriage migration; spouse import

Arsa politikalarının kentsel dönüşüme etkisi: Yenimahalle’de değişen taşınmaz haklarının izini sürmek

Redevelopment of urban areas means reorganization of property rights through land policies and policy tools. This study is built on the argument that the earliest property pattern established in an area by land policies has a significant effect on the initial urban form, future transformation, future urban form and property pattern in that area. The theoretical framework is built on the causal two-way relationship between land policies and property rights. Land policies reorganize property rights through various policy instruments. Also, the prevailing property rights influence the development and implementation of future land policies. This study examines this relationship in Continental Europe and Turkey's urbanization history and in the redevelopment history of Yenimahalle. Yenimahalle was established by public and private landowners, which created differing property patterns in terms of plot size and land use. In seventy-year time, these two areas have been transformed with the same plans and policies. The production of sequential maps for each planning period allows tracing changing property rights on vertical and horizontal dimensions and whether different property patterns result in different transformation processes. A strong two-way causal relationship between land policies and property rights is revealed. The earliest property pattern of an area influences policy implementation, and consequently, future urban form and property pattern. Producing livable urban spaces with successful transformation processes and the formation of planned property patterns requires that the most recent land policies and policy instruments be well-developed and well-implemented and that the earliest property pattern and land policies be well-developed as well.Kentsel alanların yeniden geliştirilmesi, arsa politikaları ve politika araçları aracılığıyla mülkiyet haklarının yeniden düzenlenmesi anlamına gelir. Bu çalışma, arsa politikalarıyla bir alanda kurulan en eski mülkiyet örüntüsünün, o alandaki ilk kentsel biçim, gelecekteki dönüşüm, gelecekteki kentsel biçim ve mülkiyet örüntüsü üzerinde önemli bir etkiye sahip olduğu argümanı üzerine inşa edilmiştir. Teorik çerçeve, arsa politikaları ve mülkiyet hakları arasındaki nedensel çift yönlü ilişki üzerine kurulmuştur. Arsa politikaları, çeşitli politika araçları aracılığıyla mülkiyet haklarını yeniden düzenler. Ayrıca, hâkim mülkiyet hakları gelecekteki arsa politikalarının geliştirilmesini ve uygulanmasını etkiler. Bu çalışma, bu ilişkiyi Kıta Avrupası ve Türkiye'nin kentleşme tarihi ile Yenimahalle'nin yeniden gelişim tarihinde incelemektedir. Yenimahalle, arsa büyüklüğü ve arazi kullanımı açısından farklı mülkiyet örüntüleri yaratan kamu ve özel arsa sahipleri tarafından kurulmuştur. Yetmiş yıllık süreçte bu iki alan aynı plan ve politikalarla dönüştürülmüştür. Her bir planlama dönemi için ardışık haritaların üretilmesi, dikey ve yatay boyutlarda değişen mülkiyet haklarının ve farklı mülkiyet örüntülerinin farklı dönüşüm süreçleriyle sonuçlanıp sonuçlanmadığının izlenmesine olanak tanımaktadır. Arsa politikaları ve mülkiyet hakları arasında güçlü bir iki yönlü nedensellik ilişkisi ortaya çıkmaktadır. Bir alanın en eski mülkiyet örüntüsü, politika uygulamasını ve sonuç olarak gelecekteki kentsel biçimi ve mülkiyet dokusunu etkiler. Başarılı dönüşüm süreçleri ve planlı mülkiyet örüntülerinin oluşumu ile yaşanabilir kentsel alanların üretilmesi, güncel arsa politikalarının ve politika araçlarının iyi geliştirilmesi ve iyi bir şekilde uygulanması kadar en eski mülkiyet dokusunun ve arsa politikalarının da iyi geliştirilmiş olmasını gerektirir.M.S. - Master of Scienc