Intermediation Costs and Financial Fragility

This paper studies implications of intermediation costs in credit markets. The presence of intermediation costs increases the amount of risky projects therefore results in financial fragility. Moreover, for an open economy that has a perfectly liberal capital account, prudent firms finance their projects from foreign markets therefore shrinking the domestic credit markets. The theoretical predictions of our model gains support by Turkish data for the 1991 – 2004 period. Data suggests that an increase in intermediation costs results in an increase in non-performing loans, and an increase in foreign financing (shrinking of domestic credit markets). We argue that minimization of these costs improves financial soundness.

The Determinants and Implications of Financial Asset Holdings of Non-Financial Firms in Turkey : An Emprical Investigation

This paper investigates the determinants and financial crowding out consequences of nonfinancial firms’ holdings of financial assets (FA) including government bonds and securities (GS) in Turkey using the firm level data compiled by the Central Bank of the Republic of Turkey over the 1990-2004 period. The salient features of the Turkish financial system with financial dollarisation and short maturity of financial contracts allowed the corporate sector to remain relatively liquid in spite of high inflation persisting until very recently. Consistent with the presence of capital market imperfections and financial adaptation, the Turkish corporate sector’s transactions-cum-precautionary motive-led holdings of the FA as a financial buffer are found to be relatively high and persistent. Contrasting with the transactions-cum-precautionary motive based “economies of scale” argument of the trade-off theory, but reflecting a plausible argument that financial constraints decrease and the ability to allocate resources into financial and real investments increases with firm size, the holdings of FA and GS tend to increase with the firm size both for manufacturing industry and other non-financial firms. The empirical results based on the one-step robust GMM estimations of DPD models suggest that the FA and GS holdings of the corporate sector can be explained by firm-specific characteristics including profitability, leverage ratios, asset tangibility and size along with macroeconomic condition variables represented by uncertainty and real interest rates on GS. The results further suggest that the impacts of these variables significantly vary not only across manufacturing industry and other non-financial firms but also between the large, medium and small sized firms. Under macroeconomic instability leading to excessively high real rate of returns for financial assets, non-financial firms tend to hold FA and GS also for their speculative motive. Consequently, financial assets and real investments may become substitutes rather than complements leading the former to crowd out the latter. The empirical results from a conventional accelerator model of investment augmented with variables representing firms financing conditions and PSBR strongly support such a financial crowding out impact of FA holdings for large sized manufacturing industry firms. For the small and medium sized firms, the positive complementary impact of precautionary and the negative substitution impact of speculative FA holdings are found to offset each other. Consistent with the credit view of the balance sheet literature, real investments of bank-dependent firms decline with an increase in the PSBR potentially due to the fact that government domestic debt is heavily financed via banks, which in turn deteriorates the credit availability for the corporate sector. This provides a further support to the “expansionary fiscal contractions” literature. The sensitivity of investment to cash flow is found to reflect the firms’ profitability and investment opportunities which are not fully conveyed by the fundamental Q rather than the degree of financial constraints. This paper also argues that the conventional pecking-order and trade-off theories of the capital structure literature may not be solely adequate in explaining the non-financial firms’ behaviour as financial intermediaries in Turkey. This might be the case also the acceleration of the FA holdings of firms in many industrial countries during the last decade in spite of declining financial constraints due to deepening international financial integration. An alternative but not mutually exclusive approach may be treating firms as facing a choice between allocating their resources into financial and real investments. The results of this paper provide a strong support to such an approach and suggest that financial investments may be a substitute or complementary to real investment depending respectively on whether the speculative or transactions-cum-precautionary motive dominates.Balance sheets, Cash flow, Corporate sector, Financial constraints, Financial crowding-out, Investment, Liquidity demand, Panel data, Turkey

Intermediation Costs and Financial Fragility

This paper studies implications of intermediation costs in credit markets. The presence of intermediation costs increases the amount of risky projects therefore results in financial fragility. Moreover, for an open economy that has a perfectly liberal capital account, prudent firms finance their projects from foreign markets therefore shrinking the domestic credit markets. The theoretical predictions of our model gains support by Turkish data for the 1991 2004 period. Data suggests that an increase in intermediation costs results in an increase in non-performing loans, and an increase in foreign financing (shrinking of domestic credit markets). We argue that minimization of these costs improves financial soundness

Corporate Sector Financial Structure in Turkey : A Descriptive Analysis

This paper presents and discusses some stylised facts of the corporate sector financial structure in Turkey using the Company Sector Accounts compiled by the Central Bank of the Republic of Turkey (CBRT). The findings of the paper suggest that non-financial firms in Turkey have been heavily exposed almost all of the basic balance sheet risks. The corporate sector appears to be excessively leveraged with relatively lower asset tangibility creating also a credit risk for the lenders. The firms rely heavily on foreign currency denominated and short-term debt instruments making them vulnerable to both exchange rate and interest rate shocks through currency and maturity mismatches. The corporate sector can be characterised as financially constrained as the deepening of the Turkish bank-based financial system is rather low and the bank credits to the private sector tend to be crowded out by the mode of domestic debt finance. The corporate sector vulnerabilities to maturity, interest rate and currency risks are found to be improving with the firm size. With the relatively stable macroeconomic environment and stricter prudential regulation on the financial system, the corporate sector balance sheet risks, albeit still are at high levels, tend to be improving after the financial crisis of 2001.Balance sheets, Capital structure, Corporate sector, Debt composition, Financial crowding-out, Liability dollarisation, Turkey

Специфика организации транспортной службы предприятия

В данной статье были рассмотрены проблемы организации транспортной службы предприятия. Актуальность темы исследования обусловлена, тем, что любую готовую продукцию необходимо транспортировать, в связи с этим были рассмотрены общие характеристики транспортной службы предприятия, сделаны выводы, позволяющие повысить эффективность работы транспортного цеха предприятия за счет повышения качества надежности внешних и внутрипроизводственных перевозок, что обеспечит повышение конкурентоспособности предприятия в целом

Religious and social satire in Jeanette Winterson’s Oranges Are Not the Only Fruit

The aim of this study is to examine the religious and social satire in Jeanette Winterson’s Oranges Are Not The Only Fruit. The novel explores the life of a young girl named Jeanette, who faces the struggles of her religious and oppressive environment. To be able to deal with her struggles, she creates her own coping mechanism by creating stories that proposes alternative realities. While doing so, she deconstructs the traditional and social values. Chapter one presents a theoretical background to the terms related to the novel. Second chapter proposes the postmodern elements that is used to deconstruct the values. Third chapter of the thesis deals with the alternative realities created by the narrator of the novel. This thesis will apply postmodern theory in order to unfold the religious and social satire in the novel. Terms such as parody, intertextuality, and metafiction will be applied when analysing the text. Additionally, the characters, plotline and the narrative structure of the novel will closely be examined in accordance with the postmodern elements.Bu çalışmanın amacı Jeanette Winterson’ın Tek Meyve Portakallar Değildir adlı eserindeki dinî ve toplumsal hicivleri incelemektir. Roman, dini ve baskıcı bir çevre ile mücadele etmek durumunda kalan Jeanette adında bir genç kızın hayatını araştırır. Problemleriyle başa çıkabilmek için alternatif gerçeklikler inşaa eden hikâyeler yaratarak kendi başa çıkma mekanizmasını yaratır. Bunu yaparken de geleneksel ve toplumsal değerleri yapıbozuma uğratır. Birinci bölüm, ilgili terimlere teorik bir arka plan sunar. İkinci bölüm, değerleri yıkmak için kullanılan postmodern unsurları ele alır. Tezin üçüncü bölümü, romanın anlatıcısının yarattığı alternatif gerçeklikleri inceler. Bu tez, romandaki dinî ve sosyal hicvi ortaya çıkarmak için postmodern teoriyi uygulayacaktır. Metni analiz ederken parodi, metinlerarasılık, ve üstkurmaca gibi terimler uygulanacaktır. Ayrıca romanın karakterleri, olay örgüsü ve anlatı yapısı postmodern unsurlara uygun olarak yakından incelenecektir

Assesment of Superior Colliculus in Audiogenic Epilepsy-Prone Wistar Rats Using A Stereological Method

Objectives:Audiogenic seizures are generated in the brainstem and involve the inferior and superior colliculi in their expression. Aim of the present study was to estimate total number of neurons in the right and left superior colliculi in genetically audiogenic epilepsy-prone Wistar rats using stereological method.Methods:Ten female Wistar rats, weighing 180 to 220 g each, were divided into 2 groups: control (n=5) and audiogenic epilepsy (n=5) groups. Subjects were anesthetized with urethane (1.25 g/kg, intraperitoneal) and 10% formalin was perfused through the left cardiac ventricle. Total number of neurons was estimated in the right and left superior colliculi in both groups using optical fractionator stereological method.Results:Total number of neurons in the superior colliculi was statistically lower in the right side of group with epilepsy compared with same side of control group (p<0.05). There was also a significant difference between right and left sides in the epilepsy group (p<0.05).Conclusion:It has been determined that cellular mechanisms have a significant role in audiogenic epilepsy. The fact that there were significantly fewer neurons in right superior colliculus of epilepsy group compared with control group suggests that this area is likely to be influential on triggering the onset of seizure activity