The economic role of foreclosures

We consider the economic consequences of changing the foreclosure rules. By incorporating renegotiation into the analysis, we show that although renegotiation decreases the number of foreclosures it can make the effects of foreclosure more significant. Even when foreclosure does not actually occur, a change in foreclosure rules changes the threat points of lender and borrower in any renegotiation, and thus changes the effective interest rate that the lender receives. In the long run, stated interest rates on loans will adjust to compensate for any change in the effective interest rate. We also examine the impact of a change in foreclosure laws on the borrower's welfare.     

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.     

All-pay war

We study a model of conflicts and wars in which the outcome is uncertain not because of luck on the battlefield as in standard models, but because countries lack information about their opponent. In this model expected resource levels and production and military technologies are common knowledge, but realized resource levels are private information. Each country decides how to allocate its resources to production and warfare. The country with the stronger military wins and receives aggregate production. In equilibrium both comparative and absolute advantages matter: a larger resource share is allocated to warfare by the country with a comparative advantage in warfare at relatively low realized resource levels, and by the country with an absolute disadvantage in warfare at relatively high realized resource levels. From an ex-ante perspective the country with a comparative advantage in warfare is more likely to win the war unless its military potential is much lower.     

Trust types,distrust, and performance outcomes in small business relationships: the pharmacy–drug warehouse case

This study attempts to investigate the linkage among trust types, distrust, and relationship performance outcomes in the context of long-term supply agreement-type alliances between small business dyads. The results suggest a significant positive relationship among goodwill trust and risk-taking tendency, cooperation, satisfaction, and conflict resolution and a negative relationship between goodwill trust and transaction costs. Competence trust is found to have a positive relationship with cooperation, conflict resolution, and satisfaction and a negative relationship with transaction costs. However, no significant relationship is found between competence trust and risk-taking tendency. Distrust, on the other hand, is found to have a negative relationship with cooperation, satisfaction, and conflict resolution and a significant positive relationship with transaction costs with no effect on risk-taking tendency.     

The Relationship Between Paternalistic Leadership and Organizational Commitment: Investigating the Role of Climate Regarding Ethics

One of the important factors influencing perceptions of the existence of an ethical climate is leader behaviors. It is argued that paternalistic leadership behaviors are developed to humanize and remoralize the workplace. In various studies, leadership behaviors and climate regarding ethics were evaluated as antecedents of organizational commitment. In this sense, the purpose of this study is to investigate the relationship between paternalistic leadership behaviors, climate regarding ethics and organizational commitment. Data were obtained from 142 individuals. Results indicated that benevolent paternalistic leadership had a moderate effect on affective commitment and strong effect on continuance commitment. Moreover, it was found that paternalistic leadership had an effect on the perception of an ethical climate. Strong relationship was found between climate regarding ethics and affective commitment; moderate relationship was found between climate regarding ethics and continuance commitment. Finally, results indicated that climate regarding ethics had a mediating effect between benevolent paternalistic leadership and affective commitment. Gül Selin Erben holds MA degree on Human Resources Management. She is a Phd candidate on Organizational Behavior field. She works as a research assistant at the Maltepe University. Ayşe Begüm Güneşer holds MA degree on Human Resources Management and she holds Phd degree on Organizational Behavior.