Financial components of FDI and choice of capital structure: an analysis for 30 OECD countries

Even though the choice of capital structure depends on the three different financial components of foreign direct investment (FDI), previous research has regarded FDI as unidimensional rather than multidimensional. This study addresses new findings in the FDI area and investigates the relevant determinants of capital structure in 30 OECD countries from 2006 to 2014 within the framework of a simultaneous equation model. Our primary findings reveal that each component has its own deterministic features driven by relevant policy variables and risks in the market. While an increase or decrease in equity capital shows the ability of the host country to attract new investments, the subsequent components are mostly used to adjust the equity capital investment exposure.     

Public–private wage differentials in Turkey: public policy or market dynamics?

We evaluate public–private sector wage differentials by gender in Turkey between the years 2005 and 2013. Using micro data from Household Labor Force Surveys we find a positive premium for low wage earners and a penalty of working in the public sector at the higher end of the distribution. Although the penalty has not disappeared, the price effect has increased at both ends of the distribution. The increase at the lower tail is attributed to a higher price effect in the public sector, whereas at the higher tail it has been a result of a relatively uneven wage increase in the private sector along the distribution, rather than an explicit public wage policy.     

Exploring Adaptivity in Service Development: The Case of Mobile Platforms

Together with the developing technologies of a fast‐evolving Web environment, computers, and handheld devices, human–computer interaction is gaining more importance. User interface, as the interactive layer between user and information systems, has a great role in system adoption. Based on a technology acceptance model, acceptance of a system can be explained as a function of perceived usefulness (PU) and perceived ease of use (PEOU). Because several external variables have impact on PU and PEOU, the content and interface design of every single application should be addressed accordingly in a way that enhances the consumer's attitude about using the system by considering the impact of external variables through system usage. The objective of this study was to uncover potential external variables that may influence PEOU and PU, and indirectly influence behavioral attitude in mobile service acceptance and to explore the effects of those variables, primarily adaptivity and the relationships of all the variables among each other, through the limited interface of a mobile platform. Thus, developers will be able to relate the tuning of product features to the adoption of the products they are developing based on a platform.     

Estimation of Public–Private Wage Differentials in Turkey with Sample Correction

The aim of this study is to determine how the change in the balance between public–private sector employments affected public and private earnings during the 1990s and 2000s in Turkey. We use the Oaxaca–Blinder and quantile decomposition methods to determine the wage gap between public and private sectors utilizing the 1994 Household Income Distribution and Consumption Expenditure Survey and the 2008 Household Budget Survey conducted by the Turkish Statistical Institute. The study determined that the primary difference in the average wages between sectors arises from the differences in the endowments without correction for gender. After adjusting for correction using quantile regression, we find that the difference in the endowments between sectors at lower quantiles explains the majority of the raw wage gap; whereas a substantial amount of the raw wage gap is explained by the sector effect at higher quantiles.     

Exploring the connections among spiritual leadership,altruism, and trust in family businesses

The purpose of this study is to test the claim that the top manager family members’ altruism and trust with regard to other family members should be connected with these top managers’ spiritual leadership feature. Data are collected from the top manager family members, who are in charge of their family businesses in Beylikduzu Organized Industrial Zone. Many instruments’ items are used for spiritual leadership, altruism and trust. The scope of spiritual leadership is wider than those of altruism and trust; besides references to the family, spiritual leadership also includes references to the participants, their subordinates and their businesses. The participants’ spiritual leadership factors are powerfully and positively related with their altruism and trust with regard to other family members. If altruism and trust are posited to affect spiritual leadership factors, this effect is partly achieved. Only some items of altruism and trust can affect spiritual leadership feature. The literature points out that spiritual leadership is suitable for family businesses on the grounds that intra-family altruism and trust can be related with spiritual leadership feature. The current study proves this relationship. Such knowledge can be used for family business succession, mentoring and coaching applications in family businesses, conflict management towards the issues related with both the family and the business, and structuring family’s involvement in the business.     

Systemic risk contagion in FX market: A frequency connectedness and network analysis

In this study, we analyse systemic risk contagion between a set of most actively traded currencies (EURO, JPY, GBP, AUD, CAD and CHF) by application of VAR based frequency connectedness proposed by Baruník and K?ehlík. By using this novel approach, we gauge foreign exchange (FX) market connectedness in 200‐day frequency band using spectral representation of variance decompositions of VAR and identify directional spillovers between the most actively traded foreign exchange rates. Dynamics of the overall spillover index reveals that the index capture well‐known financial stress incidents properly. Finally, network topology of directional spillovers between currency pairs is provided for visulalization interconnectedness between them.     

Financial Crisis and Changes in Firm Governance,Corporate Structure,and Boundaries

The paper researches the effects of the 2008 financial crisis on various measures of firm governance, including the impact on firm boundaries such as buyer–supplier relationship, capital structure, and employment effects. Using a unique data set of 1686 Eastern European firms, we examine how the crisis affected the financial and employment decisions of different industrial and service sector firms. As these firms faced a steep decline in sales and capacity utilization, as well as credit constrains, they were forced to make significant and far reaching changes in various aspects of their operations. We discuss the implications of these changes. Copyright © 2013 John Wiley & Sons, Ltd.     

Wage inequality in Turkey, 2002–10

This paper studies the evolution of wage inequality in Turkey using household labour force survey data from 2002 to 2010. Between 2002 and 2004, the relative supply of more‐educated workers to less‐educated workers remained constant while their relative wages decreased in favour of less‐educated workers. However, between 2004 and 2010, the relative supply of more‐educated workers to less‐educated workers rose, while their relative wages remained constant or kept increasing in favour of more‐educated workers. This suggests factors other than those implied by a simple supply‐demand model are involved, such as skill‐biased technical change or minimum wage variations. The decomposition of wage inequality reveals that the price (wage) effect dominates the composition effect particularly in the first period. Our results show that the real minimum wage hike in 2004 corresponds to a major institutional change, which proved to be welfare‐increasing in terms of wage inequality. The upper‐tail (90/50) wage inequality decreased between 2002 and 2004 and stayed constant thereafter, whereas the lower‐tail (50/10) wage inequality decreased throughout the period. Our findings thus provide evidence supporting the institutional argument for explaining wage inequality.