Perceptions and knowledge of accounting professionals on IFRS for SMEs: Evidence from Turkey

This exploratory study extends the literature on IFRS for SMEs issued by the IASB in July 2009, and adopted by Turkey in November 2010. A questionnaire survey, based on the relevant literature and IFRS for SMEs, was developed. The aim was to investigate basic knowledge and perceptions of accountants regarding IFRS for SMEs. Our findings suggest that proponents of stand-alone IFRS for SMEs outnumber its opponents. The respondents are not highly informed about the omission of certain topics in IFRS for SMEs. Their awareness of valuation methods/concepts in IFRS for SMEs is at a moderate level. Inadequacy of accounting personnel’s training and lack of training programs arranged by professional bodies are considered to be the most serious obstacles in implementation of the standards. The majority of the participants are not aware of the key differences between full IFRS and IFRS for SMEs and simplifications made in IFRS for SMEs. Accounting professionals who are trained about IFRS for SMEs and the employees of Big4 auditing firms are more knowledgeable about the standards in comparison to others. Education level and experience of respondents have partial positive impact on knowledge of the standards.     

OUTPUT–EMPLOYMENT RELATIONSHIP ACROSS SECTORS: A LONG‐ VERSUS SHORT‐RUN PERSPECTIVE

This paper investigates the nature of the output–employment relationship by using the Turkish quarterly data for the period 1988–2008. Even if we fail to find a long‐run relationship between aggregate output and total employment, there are long‐run relationships for the aggregate output with non‐agricultural employment and sectoral employment levels for seven of nine sectors that we consider. However, a further investigation for the output and employment relationship within a short‐run perspective does not reveal statistically significant relationships for either total employment or non‐agriculture employment, or eight of the nine sectors that we consider. Although there are various long‐run relationships between output and employment, the short‐run links between demand and employment are weak. The various implications of this for the economy and the labour market are discussed. As a result, maintaining high levels of output in the long‐run creating demand is essential for employment generation.     

Communication versus Information Transparency in One‐Shot Interactions: A Labor Market Experiment

This is an experimental study of communication and information transparency in one‐shot labor market relations with incomplete contracts. We find that communication in the form of non‐binding broadcast chat messages increases wages, effort levels, and overall efficiency regardless of the information regime. It serves as a negotiation platform and helps workers and firms learn how to cooperate. Communication outperforms information transparency in motivating trust and cooperative behavior in one‐shot interactions. Although transparency might be important in the long term, it does not improve any of the market outcomes in short‐term relations unless it is combined with communication. Copyright © 2017 John Wiley & Sons, Ltd.     

Visualizing financial success: planning is key

Recent economic troubles in the US and abroad highlight the importance of family financial capability, including an understanding of financial markets. Financial capability is the foundation for desired financial behaviours, such as saving, budgeting, using credit wisely and planning. Study participants, a subsample of respondents to a Turkish university financial literacy survey (n = 374), who reported uninterrupted income for a 3‐year period were grouped as ‘planners’ and ‘non‐planners’. These groupings allowed examination of the relationships between planning, financial management decisions, and differential outcomes in daily household financial well‐being. The practice of preferred financial management behaviours was predictive of debt. This research makes a unique contribution to the literature, demonstrating the importance of uninterrupted income over income amount in support of the planning process. Findings of this study have implications for professionals in the family and consumer sciences field and other practitioners assisting consumers with improving financial management outcomes.     

The Japanese saving rate between 1960 and 2000: productivity,policy changes,and demographics

In this paper, we use an overlapping generations model to study the factors generating the saving rate in Japan between 1960–2000. The model economy allows for observed aging of the population, total factor productivity (TFP), and fiscal policy to affect the national saving rate. Our calibrated general equilibrium setup generates saving rates that are reasonably similar to the data during this period. Our counterfactual experiments indicate that observed TFP growth rates are the main reason for both the secular decline and the two humps in the saving rate during 1960–2000.      

A life cycle analysis of social security

Summary We develop an applied general equilibrium model to examine the optimal social security replacement rate and the welfare benefits associated with it. Our setup consists of overlapping generations of 65-period lived individuals facing mortality risk and individual income risk. Private credit markets, including markets for private annuities, are closed by assumption. Unlike previous analyses, we find that an unfunded social security system may well enhance economic welfare. In our benchmark economy, the optimal social security replacement rate is 30%, and an empirically more plausible replacement rate of 60% raises welfare compared with an economy with no social security system.We would like to thank Andy Atkeson, V. V. Chari, Steve Davis, Paul Evans, Lars Hansen, Tim Kehoe, Nobu Kiyotaki, Ed Prescott, José-Victor Ríos-Rull, Richard Rogerson, Tom Sargent, Nancy Stokey, Dick Sweeney, Robert Townsend, and the participants of the NBER Economic Fluctuations Small Group Workshop on Micro and Macro Perspectives on the Aggregate Labor Market in Palo Alto, the NBER General Equilibrium Theory Conference in Minneapolis, the Money and Banking Workshop at the University of Chicago, and the NBER Summer Institute. An earlier version of this paper was titled A Dynamic Stochastic General Equilibrium Analysis of Social Security. This material is based upon work supported by the National Science Foundation under Grant No. SES-9210291. We also thank the Minnesota and San Diego Supercomputer Centers for their support.     

Repeated moral hazard with persistence

Summary. This paper considers the optimal contract when the current (hidden) action of an agent has a persistent effect on the future outcome. The optimal contract in a two-effort choice, two-period setting is characterized analytically and numerically. In particular, we show that persistence tends to make compensation less responsive to the first-period outcome. At the extreme, there are cases where the agent is perfectly insured against the first-period outcome: the agent obtains the same utility regardless of the first-period outcome. The model is extended to three periods. We also present a computational method to characterize an N-period model with two-period persistence.Received: 9 December 2003, Revised: 13 February 2004, JEL Classification Numbers: D82, J31, J65. Correspondence to: Ayegül ahinWe are grateful to an anonymous referee, Jack Barron, Mark Bils, Hugo Hopenhayn, Per Krusell, Lance Lochner, Steve Williamson, and seminar participants at Concordia University, Purdue University, the applied theory meetings at University of Rochester, the Conference of the Society for the Advancement of Economic Theory 2003, the Rochester Wegmans Conference 2002, and the Society for Economic Dynamics Meetings 2003 for their comments and suggestions. We also wish to thank Vera Brencic, Nancy Marmon, and Roxanne Stanoprud for excellent research assistance.