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An Analysis of how Financial Ratios of Companies in Turkey Are Affected by National Standards, and IFRS

Author

Listed:
  • Hülya Cengiz
  • Alan Combs
  • Martin Samy

Abstract

Adoption in 2005 of IAS/IFRS by Turkish listed companies resulted in changes in classification, valuation and disclosure of financial items. This paper makes accessible to non-Turkish speakers a detailed investigation of the results from previous ratio analysis studies identified by Balsari & Varan (Balsari & Varan, 2014), in addition to presenting a more extensive analysis than Cengiz (Cengiz, 2014). Eight financial ratios have been analysed before and after implementation of international standards. One set of results compares the periods 2002-2003 with 2005-2006; and the other 2004 with 2005. The companies investigated are substantially the same in both analyses, but different versions of national standards are compared against international standards. Significant differences in average Book Value of Equity per Share are found after implementation of international standards for both sets of comparisons; and for one set only, at a lower confidence level, significant differences are indicated in the leverage ratio. The major contribution of the paper is the analyses of the differences during the pre and post implementation of international standards.

Suggested Citation

  • Hülya Cengiz & Alan Combs & Martin Samy, 2017. "An Analysis of how Financial Ratios of Companies in Turkey Are Affected by National Standards, and IFRS," International Business Research, Canadian Center of Science and Education, vol. 10(12), pages 183-190, December.
    • Handle: RePEc:ibn:ibrjnl:v:10:y:2017:i:12:p183-190
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    References listed on IDEAS

    as
    1. Can Simga-Mugan, 1995. "Accounting in Turkey," European Accounting Review, Taylor & Francis Journals, vol. 4(2), pages 351-371.
    2. Cagnur Kaytmaz Balsari & Secil Varan, 2014. "IFRS implementation and studies in Turkey," Journal of Accounting and Management Information Systems, Faculty of Accounting and Management Information Systems, The Bucharest University of Economic Studies, vol. 13(2), pages 373-399, June.
    3. Goodwin, John & Ahmed, Kamran & Heaney, Richard, 2008. "The Effects of International Financial Reporting Standards on the Accounts and Accounting Quality of Australian Firms: A Retrospective Study," Journal of Contemporary Accounting and Economics, Elsevier, vol. 4(2), pages 89-119.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    financial reporting standards; financial performance; financial structure;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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