The Expectation Gap in Internet Financial Reporting: Evidence from an Emerging Capital Market

The development of the internet as a global medium has significantly impacted financial reporting environment of the companies. Recently, companies have started reporting their financial results and other information relating to business on their web pages. The internet offers the facility to provide all interested groups with information to make well-informed, timely investment decision thus reducing the information advantages of institutional investors and information intermediaries. This study examines the level of internet financial reporting in Turkey. Furthermore, it tries to find out whether there is an expectation gap in internet financial reporting. In this study, “expectation gap” refers to the difference between (1) what financial statement users perceive important in decision making process to be and (2) what companies actually disclose or present in their web pages. Our findings indicate that an expectation gap exists; financial statement users have higher expectations for various facets than what companies actually report in the areas such as; reports of analysts, phone number to investor relations, segmental reporting, financial data in processable format, and summary of financial data. Our findings serve as evidence that the companies should engage in appropriate actions to reduce this expectation gap.Internet, Financial Reporting, Turkey

The determinants of social capital on facebook

This paper investigates the effect of socioeconomic status, trust and privacy concerns, and socio psychological factors on building three structural measures of social capital, which are bridging, bonding and network size (degree). Using online survey data, I find the evidence that trust and privacy concerns, being a female, and the number of hours spent in Facebook are significant determinants of bridging social capital and degree. I show that females and respondents that have trust and privacy concerns are less likely to build bridging social capital. In addition to this, the number of hours spent on Facebook is positively related to the probability of engaging in bridging social capital. The results also suggest that females are less likely to increase their network size. On the other hand, respondents that spend more hours on Facebook and respondents that come from high-income class are more likely to increase their network size.Social capital, Facebook, trust and privacy concern, socio-economic status, socio-psychological factors

Financial Integration, Credit Market Imperfections and Consumption Smoothing

Recent empirical research by Kose, Prasad and Terrones (2003) shows that financial integration is associated with higher consumption volatility in developing countries. This paper provides one possible explanation as to how international financial integration can increase consumption volatility in a developing country facing credit market imperfections. I use a two country international real business cycle model where the non-traded sector in the small country faces borrowing constraints due to contract enforceability problems. Financial integration provides households insurance against domestic risks that are amplified by the financial imperfections. If the international risk-sharing opportunities are nonexistent, households can secure themselves only by adjusting their labor effort, which leads to changes in sectorial output and terms of trade. The deterioration of the terms of trade acts as a dampening effect on consumption, causing it to be less volatile under financial autarky relative to financial integrationinternational business cycles, financial integration

Characteristic Lie Algebra and Classification of Semi-Discrete Models

Characteristic Lie algebras of semi-discrete chains are studied. The attempt to adopt this notion to the classification of Darboux integrable chains has been undertaken.Comment: 33 pages, corrected typos, submitted to the Proceedings of the workshop "Nonlinear Physics: Theory and Experiment IV", Theoretical Mathematical Physic

Symbolic dynamics and relatively hyperbolic groups

We study the action of a relatively hyperbolic group on its boundary, by methods of symbolic dynamics. Under a condition on the parabolic subgroups, we show that this dynamical system is finitely presented. We give examples where this condition is satisfied, including geometrically finite kleinian groups.Comment: Revision, 16 pages, 1 figur

A Product Shape Congruity Measure via Entropy in Shape Scale Space

Product shape is one of the factors that trigger preference decisions of customers. Congruity of shape elements and deformation of shape from the prototype are two factors that are found to influence aesthetic response, hence preference. We propose a measure to indirectly quantify congruity of different parts of the shape and the degree to which the parts deviate from a sphere, i.e. our choice of the prototype, without explicitly defining parts and their relations. The basic signals and systems concept that we use is the entropy. Our measure attains its lowest value for a volume enclosed by a sphere. On one hand, deformations from the prototype cause an increase in the measure. On the other hand, as deformations create congruent parts, our measure decreases due to the attained harmony. Our preliminary experimental results are consistent with our expectations.Comment: Proceedings of EUSIPCO 2017 Satellite Workshops, Corresponding Workshop: Creative Design and Advanced Manufacturing: An emerging application area for Signals and System

Creditor country regulations and commercial bank lending to developing countries

Ever since the debt crisis of 1982, commercial banks continue to be reluctant in lending to developing countries. It is often argued that regulatory pressures on commercial banks have also contributed to the banks'reduced exposure to developing countries. This paper explores this possibility, focusing particularly on the effect of the Bank for International Settlement (BIS) risk-related capital adequacy regulations and different practices of country risk provisioning in major creditor countries. The main conclusion of the paper is that the BIS capital adequacy regulations may be somewhat less effective than they appear in accomplishing their main goal of controlling the overall riskiness of the international banking system, but that they may be quite effective in decreasing the size of commercial banks'developing country loan portfolios. The paper also discusses how mandated provisioning rules against developing countries are an additional deterrent to increasing bank lending.Banks&Banking Reform,Financial Intermediation,Banking Law,International Terrorism&Counterterrorism,Economic Theory&Research

Developing country capital structures and emerging stock markets

In the developing world financing patterns vary greatly from what we observe in developed countries. In the poorest developing countries firms rely mostly on internal resources and informal credit markets for financing. This paper seeks to investigate the impact of emerging stock markets on the financing patterns of developing country corporations. The focus is to test whether equity markets and banking systems are complements or substituteds in providing financing to corporations. It is possible to answer this question by investigating capital structures of firms across a sample of countries with different levels of stock market development. If equity is substituted for debt financing one would expect countries with less developed stock markets to have higher leverage. However, if the opposite is true and there is complementarity between equity markets and banks, leverage would increase as stock markets become more developed. This paper discusses key properties of debt and equity contracts in financing decisions and reviews the literature on capital structure to identify relevant factors, other than stock market development, that may affect the financing pattern of corporations. It also presents preliminary empirical findings and identifies directions for further research.Economic Theory&Research,Banks&Banking Reform,Financial Intermediation,Environmental Economics&Policies,International Terrorism&Counterterrorism