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International Journal of Economics and Financial Research

Online ISSN: 2411-9407
Print ISSN: 2413-8533

Quarterly Published (4 Issues Per Year)

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Volume 8 Number 3 September 2022

Does Foreign Direct Investment Affect Macroeconomic Dynamics? An S-VAR Approach for Turkey

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Authors: Emel SIKLAR ; Ilyas SIKLAR
Pages: 85-103
DOI: doi.org/10.32861/ijefr.83.85.103
Abstract

This study analyzes the effects of foreign direct investments (FDI) on the macroeconomic dynamics of the Turkish economy through the Structural Vector Autoregressive (SVAR) model. The results obtained, by the economic theory, reveal the positive effects of FDI on economic growth and domestic investment volume. The results also confirm the assumption of economic theory that domestic and foreign investments are complementary. It is understood that the FDI put some pressure on prices to increase, but it is balanced by the decisions of the monetary authority. While FDI does not play a critical role in reducing unemployment, it significantly contributes to the increase in imports, especially in capital goods.

The Pricing of Discretionary Accruals Revisited: The Application of Mixtures of Regressions Based on Asymmetric Investor Behavior

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Authors: Assoc. Prof. Leon Li
Pages: 78-84
DOI: doi.org/10.32861/ijefr.83.78.84
Abstract

This paper reexamines the issue of the pricing of discretionary accruals using the approach of mixtures of regressions. In contrast to previously documented contemporaneous results, this study retests the issue by addressing the heterogeneous perceptions and behaviors of investors when they encounter various conditions of return and risk. The empirical results of this study indicate that market investors positively value discretionary accruals when the stock they invest in experiences a rise in price and carries a low degree of risk. Conversely, investors negatively value managerial accruals for stock that shows a fall in price and carries a high degree of risk.