Corporate Sector Debt Composition and Exchange Rate Balance Sheet Effect in Turkey

This paper investigates the causes and balance sheet effect consequences of the liability dollarisation of non-financial sectors in Turkey using the Company Accounts database compiled by the Central Bank of Turkey. The results from the panel EGLS and GMM procedures suggest that both sector-specific (tangibility, leverage ratio, export share) and macroeconomic condition variables (inflation, real exchange rate change, budget deficits and confidence) are significant in explaining the corporate sector liability dollarisation. Firms are found to match only partially the currency composition of their debt with their income streams making them potentially vulnerable to negative balance sheet affects of real exchange rate depreciation shocks. Consistent with this argument, real exchange rate depreciations are found to be contractionary, in terms of investments and profits, for sectors with higher liability dollarisation. Macroeconomic instability, as proxied by budget deficits and inflation, appears to have a significant negative affect on the performance of the firms in the non-financial sectors, in terms of their investments, sales and profits. Our results also stress the importance of strong macroeconomic policy stance and price stability for an endogenous dedollarisation process along with regulatory measures to limit vulnerabilities caused by dollarisation.Balance sheet effects, Capital structure, Corporate sector, Debt composition, Liability dollarisation, Turkey

Corporate Sector Debt Composition and Exchange Rate Balance Sheet Effect in Turkey

This paper investigates the causes and balance sheet effect consequences of the liability dollarisation of non-financial sectors in Turkey using the Company Accounts database compiled by the Central Bank of Turkey. The results from the panel EGLS and GMM procedures suggest that both sector-specific (tangibility, leverage ratio, export share) and macroeconomic condition variables (inflation, real exchange rate change, budget deficits and confidence) are significant in explaining the corporate sector liability dollarisation. Firms are found to match only partially the currency composition of their debt with their income streams making them potentially vulnerable to negative balance sheet affects of real exchange rate depreciation shocks. Consistent with this argument, real exchange rate depreciations are found to be contractionary, in terms of investments and profits, for sectors with higher liability dollarisation. Macroeconomic instability, as proxied by budget deficits and inflation, appears to have a significant negative affect on the performance of the firms in the non-financial sectors, in terms of their investments, sales and profits. Our results also stress the importance of strong macroeconomic policy stance and price stability for an endogenous dedollarisation process along with regulatory measures to limit vulnerabilities caused by dollarisation.Balance sheet effects, Capital structure, Corporate sector, Debt composition, Liability dollarisation, Turkey

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

Parameterizing Gravity Waves and Understanding Their Impacts on Venus' Upper Atmosphere

The complexity of Venus upper atmospheric circulation is still being investigated. Simulations of Venus upper atmosphere largely depend on the utility of Rayleigh Friction (RF) as a driver and necessary process to reproduce observations (i.e. temperature, density, nightglow emission). Currently, there are additional observations which provide more constraints to help characterize the driver(s) of the circulation. This work will largely focus on the impact parameterized gravity waves have on Venus upper atmosphere circulation within a three dimensional hydrodynamic model (Venus Thermospheric General Circulation Model)

Implementing a Whole Atmosphere Gravity Wave Parameterization in the Middle and Upper Atmosphere Model: Preliminary Results

The Middle and Upper Atmosphere Model (MUAM) is used to implement a modern whole atmosphere gravity wave (GW) parameterization (Yigit et al., 2008). To adjust the resulting model climatology to observations, we compare two different spectra of GW phase speeds and the related momentum fluxes included in this parameterization.The first spectrum, termed Spectrum1, which is more narrow, covers phase speeds up to ±80 m s−1 and the second one, Spectrum2, goes up to ±95 m s−1. We analyzed the zonal GW drag, the acceleration of the zonal mean flow owing to breaking GWs, and the resulting background circulation. We also examined zonal wind amplitudes of the diurnal and semidiurnal migrating solar tide. As a result, we find that both GW phase speed spectra have their advantages and disadvantages. For example, Spectrum1 reproduces the zonal wind reversal in the mesosphere correctly, but it does not lead to a reversed zonal GW drag in the lower thermosphere. While the amplitudes of the diurnal tide tend to be more realistic for Spectrum1, those of the semidiurnal tide are more representational for Spectrum2. Overall, the new GW parameterization is a substantial improvement to the MUAM model.Das Modell für die mittlere und obere Atmosphäre (MUAM) wird für die Implementierung einer neuen Schwerewellenparametrisierung, die für die gesamte Atmosphäre geeignet ist, verwendet (Yigit et al., 2008). Um die Klimatologie des Modells basierend auf der neuen Parametrisierung an Beobachtungen anzupassen, werden zwei verschiedene Spektren für die Phasengeschwindigkeiten von Schwerewellen und deren Impulsflüsse verglichen. Das erste Spektrum, als Spectrum1 bezeichnet, das einen schmaleren Bereich von Phasengeschwindigkeiten abdeckt, geht bis zu ±80 m s−1 und das zweite, Spectrum2, geht bis zu ±95 m s−1. Wir analysieren die Beschleunigung des mittleren Zonalwindes durch brechende Schwerewellen und die daraus resultierende Hintergrundzirkulation. Wir untersuchen ebenfalls die Zonalwindamplituden der ganztägigen und halbtätigen migrierenden solaren Gezeiten. Das Ergebnis dieses Experiments zeigt, dass beide Phasengeschwindigkeitsspektren ihre Vor- sowie Nachteile haben. Beispielsweise reproduziert Spectrum1 die Umkehr des Zonalwindes in der Mesosphäre korrekt, jedoch führt es nicht zu einer umgekehrten zonalen Beschleunigung durch Schwerewellen in der Thermosphäre. Während die Amplituden der ganztägigen Gezeit bezüglich Spectrum1 wesentlich realistischer zu sein scheinen, sind jene der halbtägigen Gezeit bezüglich Spectrum2 repräsentativer. Insgesamt ist die neue Parameterisierung eine erhebliche Verbesserung des MUAM Modells

Thermal stress analysis in ZrO2 insulation coatings on Cr-Ni substrates during cooling process

In this study, thermal stresses analysis of ZrO2 insulation coatings on Cr-Ni substrate during the cooling process was investigated. A transient thermal analysis was performed using finite element method (FEM) via ANSYS software. The temperature versus the time curve obtained from FEM solution was controlled with the temperaturetime diagram measured by a thermocouple. The results obtained from the numerical calculations were improved by the experimental measurement. Additionally, residual stresses were calculated by FEM solutions and they were compared in different points. The compressive and tensile stresses occurred in ZrO2 coating and Cr-Ni substrate owing to the different thermal expansion coefficients in each material, respectively. © Association for Scientific Research

Implementing a Whole Atmosphere Gravity Wave Parameterization in the Middle and Upper Atmosphere Model: Preliminary Results

The Middle and Upper Atmosphere Model (MUAM) is used to implement a modern whole atmosphere gravity wave (GW) parameterization (Yigit et al., 2008). To adjust the resulting model climatology to observations, we compare two different spectra of GW phase speeds and the related momentum fluxes included in this parameterization.The first spectrum, termed Spectrum1, which is more narrow, covers phase speeds up to ±80 m s−1 and the second one, Spectrum2, goes up to ±95 m s−1. We analyzed the zonal GW drag, the acceleration of the zonal mean flow owing to breaking GWs, and the resulting background circulation. We also examined zonal wind amplitudes of the diurnal and semidiurnal migrating solar tide. As a result, we find that both GW phase speed spectra have their advantages and disadvantages. For example, Spectrum1 reproduces the zonal wind reversal in the mesosphere correctly, but it does not lead to a reversed zonal GW drag in the lower thermosphere. While the amplitudes of the diurnal tide tend to be more realistic for Spectrum1, those of the semidiurnal tide are more representational for Spectrum2. Overall, the new GW parameterization is a substantial improvement to the MUAM model.Das Modell für die mittlere und obere Atmosphäre (MUAM) wird für die Implementierung einer neuen Schwerewellenparametrisierung, die für die gesamte Atmosphäre geeignet ist, verwendet (Yigit et al., 2008). Um die Klimatologie des Modells basierend auf der neuen Parametrisierung an Beobachtungen anzupassen, werden zwei verschiedene Spektren für die Phasengeschwindigkeiten von Schwerewellen und deren Impulsflüsse verglichen. Das erste Spektrum, als Spectrum1 bezeichnet, das einen schmaleren Bereich von Phasengeschwindigkeiten abdeckt, geht bis zu ±80 m s−1 und das zweite, Spectrum2, geht bis zu ±95 m s−1. Wir analysieren die Beschleunigung des mittleren Zonalwindes durch brechende Schwerewellen und die daraus resultierende Hintergrundzirkulation. Wir untersuchen ebenfalls die Zonalwindamplituden der ganztägigen und halbtätigen migrierenden solaren Gezeiten. Das Ergebnis dieses Experiments zeigt, dass beide Phasengeschwindigkeitsspektren ihre Vor- sowie Nachteile haben. Beispielsweise reproduziert Spectrum1 die Umkehr des Zonalwindes in der Mesosphäre korrekt, jedoch führt es nicht zu einer umgekehrten zonalen Beschleunigung durch Schwerewellen in der Thermosphäre. Während die Amplituden der ganztägigen Gezeit bezüglich Spectrum1 wesentlich realistischer zu sein scheinen, sind jene der halbtägigen Gezeit bezüglich Spectrum2 repräsentativer. Insgesamt ist die neue Parameterisierung eine erhebliche Verbesserung des MUAM Modells