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International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
Comparison of the Performance of Banks with Electre
Method: The Case of ISE
Bilal Şişman
Afyon Kocatepe University, Afyonkarahisar, Turkey
bilalsis@hotmail.com
Mesut Doğan
Afyon Kocatepe University, Afyonkarahisar, Turkey
mesutdogan@aku.edu.tr
The banking sector is one of the most important factor in terms of
economic development for a country. Powerful and healthy banking sector
is accepted as a precondition for sustainable economic growth. One of the
most significant features of firms that survive in a competition
environment is able to measure their performance periodically, develop
available reactions and proactive solutions by evaluating the results. The
purpose of this paper is to measure and compare of 10 bank’s financial
performance with ELECTRE method for the period of 2005-2011 that
traded İstanbul Stock Exchange (ISE) shares. Because of banks’ financial
performance are effected lots of factors, too many criteria need to be
considered for measuring them. So, in this paper, we use profitability,
liquidity, leverage ratios and asset quality to measure. As a result, Finans
bank takes place first and Şeker Bank gets last related to financial
performance among the others
Keywords: Electre Method, Financial Performance, Banking.
57
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Comparison of the Performance of Banks with Electre Method: The Case of ISE
Author
Author
SISMAN, Bilal
DOGAN, Mesut
Abstract
A summary of the resource.
The banking sector is one of the most important factor in terms of economic development for a country. Powerful and healthy banking sector is accepted as a precondition for sustainable economic growth. One of the most significant features of firms that survive in a competition environment is able to measure their performance periodically, develop available reactions and proactive solutions by evaluating the results. The purpose of this paper is to measure and compare of 10 bank’s financial performance with ELECTRE method for the period of 2005-2011 that traded İstanbul Stock Exchange (ISE) shares. Because of banks’ financial performance are effected lots of factors, too many criteria need to be considered for measuring them. So, in this paper, we use profitability, liquidity, leverage ratios and asset quality to measure. As a result, Finans bank takes place first and Şeker Bank gets last related to financial performance among the others Keywords: Electre Method, Financial Performance, Banking.
Publisher
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International Burch University
Date
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2013-05-10
Keywords
Keywords.
Article
PeerReviewed
Identifier
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ISSN 2303-4564
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International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Optimization Models Performances for Transportation Cost Minimization
Fevzi Serkan Ozdemir
OndokuzMayıs University, Samsun, Turkey
fsozdemir@gmail.com
Ahmet Ergulen
Erciyes University, Kayseri, Turkey
aergulen@gmail.com
Abstract
Transportation is the foremost activity at every stage of logistics (supply,
production and distribution stages). It constitutes the huge part of logistics, because
of its relativesize intotallogistics costs. The rate of the transportation in all logistics
activities is approximately around 50-65 percent, however, that might be different
sector by sector. Transportation is a term which can be defined as the physical
movement of inventories such as raw materials, semi-finished goods and finished
goods from one location to another. Shipping of products into firm storage after
they have bought from suppliers, carrying of the storage items to manufacturing,
and delivery of the manufactured items to warehouses or dealers to be sold, and
delivery of the sold products to customers are some sub-activities of
transportation.In order to achieve transportation with minimal cost, first of all the
optimal transportation alternatives should be implied. In the literature there are
many researches which confirm this statement. But the applied technique for
decision problem is as important as transportation alternatives. For determining of
optimal solution there are certain models. The aim of this study is comparing the
performances (possible cost savings) of employed models (linear programming
[LP], goal programming [GP], and fuzzy logic based integer linear programming
[FLIP]) in the case analyses.
Keywords: Optimization models, optimization of transportation activities, integer
linear programming, goal programming, fuzzy logic.
Introduction
Due to the fact that developing communication facilities, rapidly changing technologies
and constantly increasing competitive pressure in the economy have encouraged the
managers to be in the triangle of short time, high quality and low cost. Managers have had
to search possible solutions which could provide higher added value. Also there has been a
decrease in the numbers of current alternatives for the firm value maximization which is
the prior aim for the businesses because of the changing environmental conditions.
Providing higher added value has started not to be managers’ price and selling policies any
more. It makes managers to be more concentrated on their production and cost policies.
Controlling the costs of value drivers, and removing the ones which don’t create value
become the basic principle for the managers, whom search for optimal solutions for certain
decision problems. In this context, transportation costs (especially with respect to physical
distrubition) have begun to be prominent inception for the managers.
In order to obtain cost minimization for transportation, optimum decision alternative
should be taken. In other words the question of “what should be the proportional rate of
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using internal and external sources for transportation to make the cost minimum?” can be
answered by only optimization.
In literature there are many case studies which prove that using quantitative and nonquantitative optimization techniques provide increase of efficiency in the conducted
activities (Chen and Wang (1997); Shih (1997); Ulucan and Tarım (1997); Kim and Kim
(2000); Balakrishnan, Natarajan and Pangburn (2000); Ruiz et al. (2003); Ergulen, Kazan
and Kaplan (2005); Chu (2005); Ergulen (2005); Olsson and Lohmander (2005); Gül and
Elevli (2006); Ergulen and Kazan (2007); Özdemir (2007); Özdemir and Ergülen (2012).
The aim of this study is not only comparing the performances (possible cost savings) of
employed models (linear programming [LP], goal programming [GP], and fuzzy logic
based integer linear programming [FLIP]) in the case analysis.
Transportation & Decision Alternatives
Transportation consists of fetching the products to company warehouses after being
purchased from its suppliers, from warehouses to production phase, dispatching finished
goods to the distributors or vendors for sale, or delivery of them to the customers.
Moreover transporting of the consumed products for recycling should be also considered as
a transportation activity. From this point of view, transportation is an immense activity
distresses the managers about finding effective solution to transport the products from one
location to another rapidly and safely with regards to following parameters: “via which
vehicles?”, “how?”, “by whom?” and “for how much?”
Since these parameters are important in determining the transportation cost (Kobu, 2003, p.
237), the managers deal with evaluating the available options and choosing the most
appropriate alternative or combination. The main objective of managers is transporting the
right products to the market at the right time, at the right place. Otherwise customer
dissatisfaction and increasing of transportation costs are become inevitable. But, the more
transporting service is fast, the more transportion cost must be faced.
Basically, transportation costs consist of expenses related to the product transfered between
the points of supply and demand. And in order to obtain efficient transportation results,
managers should determine an optimal solution among the parameters such as the size
and/or weight of the transported products, the capacity of the transportation vehicle under
the given set of conditions (Gökçen, 2003, p. 66-67).
Transporting activity is divided into two as inbound and outbound transportation, in terms
of place it is held. Inbound transportation; implies transporting the products from suppliers
to storage. Outbound transportation; implies transporting the finished products from
storages to distributers, vendors, or to the customers. And there may be three options
available for both transportation phases. These are as follows (Özdemir, 2007, p. 41):
First option is using rented vehicles as well as performing transporting activities through a
unit which formed within the organization and a fleet of vehichles which are bought by the
firm. In that case it is obvious that costs which arise as depreciation or rent expenses due to
this option can ratherly be qualified as fixed costs.
The other option is procurement of transportation service from third parties such as courier
companies, subcontractor firms or transporting cooperatives. The firm contacts with them
when service demand occurs. This demand can be covered by one of them which meet the
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firm’s requirements related to intended level of speed and quality with a favorable price. In
that case a particular transportation cost cannot be expressed. But they can usually know
what transporting rate for per unit (e.g. km.kg/TL or etc.) is, and it allows the firm to
determine the costs of transportation depending on amount of freight to be transported. As
the firm chose this option instead of the first option, depreciation and/or rent expenses
become qualified as variable costs.
The final option is procurement of transportation service from the organizations which are
specialized in transportation. This is called as “Outsourcing” in the literature. Outsourcing
is a good way for achieving resource efficiency through having required activities
performed by experts in a “strategic partnership”. Moreover the firm that demand logistics
support can focus more on its core business activities when it uses outsources rather than
insources. As the firm chose third option, like in the second, expenses such as depreciation
and/or rent become qualified as variable costs too. But it affects the behaviors of
transportation cost. It means when transporting activities are held by the firm’s own
vehicles, the proportion of the fixed cost -like depreciation- in total cost would be high. On
the contrary, when transporting activities are held by rented vehicles from the suppliers,
courier companies or expert organizations, this makes the proportion of variable costs in
total cost would be higher. Nutshell, whatever the transporting choice is, it is certain that
the firm bears cost.
Firms, which use their own resources for transportation, bear 15-20 % higher costs than
firms which perform transportation activities through outsourcing (Hacırüstemoğlu and
Şakrak, 2002, p. 96). Also managing of outsourcing variable costs is more rational rather
than managing of fixed investment costs of the resources when transportation has been
held by the firm itself.
Actually the relevant variable costs are manageable, while the fixed costs are accepted
unmanageable due to the fact that they are also sunk costs. This means from the point of
managerial accounting view that managers have a chance for decision making for
transporting alternatives, it is really important to decide on whether using the firm’s own
vehicles or making a deal with courier firms or outsourcers. Procuring of transporting
services from expert organization gives the firm an opportunity to dedicate their available
funds and time for their core business activity. Secondly it also gives the firm another
opportunity to focus its own activities and become more productive and profitable.
Additionally for estimating transportation cost of the product being transported, the
qualitative attributes (whether hazardous, or not etc.) is as important as the quantitative
attributes (its weight, dimensions, etc.). In this context, even if raw materials are less
valuable than the goods, due to their dimensions, weights, variety, and so forth, their
transportation cost per unit may have a significant proportion in total cost of the final
product.
How Transportation Activities to Be Optimized
In terms of outputs, optimization is a practice which attempt to reach the most favorable
and the best results under the given set of conditions (Bal, 1995, p. 1). In terms of inputs,
optimization means finding the most effective alternative which makes the cost minimum
or the profit maximum by making the idle capacity useable under the given constraints.
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From the perspective of management, optimization is a technique which helps the
managers to determine and select the most appropriate component(s) and to act on the
purpose of profit maximization or cost minimization while they need to make decision. In
this context, the optimization facilitates to determine the best plan related with a decision
problem or constructed model.
Optimization of transporting is also a type of decision problem which helps to reach the
lowest transporting costs through making idle transporting capacity usable under the given
constraints. This can be also used for reaching the best solutions for these problems
followings: How will transportation be held? Whether by vehicles belongs to company or
procurement of third parties, or etc.? Which combination of the vehicles and the size of the
fleet should be used for transportation? How many hours at least are required to transport
products? How many times transporting should be done to the regions? Which route
should be followed? And which combination of the load capacity of the vehicles should be
employed? The main determinants of decisional these decisions are the qualification of the
product, anticipated speed, service quality of transporting and the balance between the load
and the vehicles. Thus the logistic managers may apply optimization techniques in order to
minimize the transportation costs considering these issues.
The possible decision problems for the managers to decrease transportation cost through
optimization can be listed as followings (Özdemir, 2007, p. 101):
-
Choosing the most appropriate transporting alternative,
Determining the most appropriate storages (choosing the site of establishment in
asense),
Determining the most appropriate route,
Minimizing vehicle usage inside the storage and the activities non-vehicle,
Improving the loading durations and decreasing the labor usage on loading,
Choosing the most appropriate packaging alternative with regard to storing and
transportation.
The number of the decision problems listed above can be increased. However the firm
would try to optimize transportation can use one or more of them, it can be expressed that
themost commonly usedof them is the choosing the most appropriate transporting
alternative.
Mathematically reaching a solution on transportation problem within a potential solution
interval should not mean that this problem has been solved ideally. Even though
transporting the whole product within a given time with different transporting
combinations in different ways represents possible solutions, ideal solution is one of them
makes the firm or activity efficient. This is called as optimal solution for the decision
problem. And when the optimal solution is obtained, it can be expressed that maximum
products are transported within the shortest time and by the lowest cost by means of the
chosen combinations of the sources.
The optimal combination for transporting is determined according to past experiences, but
conditions which are determined under given variables and data may change over time and
optimum solution is needed to be revised. From the point of considering the effects of the
developments on the solution sets, optimization is not a permanent situation.
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Literature Review of Optimization Techniques for Transportation
The positive effect of optimization on transportation cost can be revealed by comparing
transportation costs and the freight counts to the regions before and after optimization. And
it shows that if the firm could have applied the optimal distribution plan ex-ante, the
transportation cost would be less than actual transportation cost.
There are many empirical studies related to minimization of transportation costs which
have employed various operational research techniques and/or computer software based on
these techniques. These studies have been evaluating transportation problems which have
different requirements and assumptions related to various subjects such as timing, distance,
number of the transporter and the quantity of the product to be transported. In the most of
these studies decision problems and the objectives have been modeled by using LP, integer
linear programming [ILP] and complex integer linear programming, GP, and fuzzy logic
based programming. Chen and Wang (1997), Shih (1997), Ulucan and Tarım (1997), Kim
and Kim (2000), Balakrishnanet. al (2000), Ruiz et. al (2003), Ergulen et. al (2005), Chu
(2005), Ergulen (2005), Olsson and Lohmander (2005), Gül and Elevli (2006), Ergulen and
Kazan (2007), Özdemir (2007), Özdemir and Ergülen (2012) can be listed as the instances
of these studies in literature.
LP is a mathematical modeling developed by the Russian economist Leonid Kantorovich
and the US economist C. Koopmans, on the basis of the work of the Russian
mathematician Andrei Nikolaevich Kolmogorov (Tamiz and Jones, 1997, p. 29). LP is a
specific case of mathematical programming used for determining a way to achieve the best
outcome (such as maximum profit or lowest cost) in a given mathematical model for some
list of requirements represented as linear relationships (“Linear Programming”, 2013).
There are many academicians who were rather attracted by LP. They have used it
successfully for many industries such as transportation, energy, telecommunication,
communication (Stapleton et al. 2003, p. 54).
Sometimes decision problems require integer solutions. In that case in order to create
optimum integer solutions to decision problems, a special form of LP should be employed
which is called as ILP (Lee, 1988, p. 174). In these models the entire or some of the
variables are integer values and the limiters of those consist of linear inequalities, and
objective functions consist of linear equations.
GP is a different technique used for minimizing transportation cost. In the cases that there
are many goals under certain conditions, this technique used for decision making (Levin et
al, 1989, p. 631). The algorithm of goal programming does not endeavor to optimize a
certain goal as LP. Instead of this it endeavors to minimize the deviations from the goals
(Tamiz and Jones, 1997, p. 29).There are certain studies which employed GP for different
decisions. Lee and Roy (1974) exploit GP for doing a case analysis for marketing
decisions. Chen and Wang (1997) employ it for integrated steel production and distribution
planning, and Balakrishnanet. al (2000) use it for optimizing delivery fees for a network of
distributors.
Another important technique for minimizing transportation costs is FLIP. Theoretically
FLIP model provides the best solution the highest amount of savings among all other
models due to usage of values not only (0) and (1) values like under classical logic, but
also values between (0) and (1). For example in fuzzy logic, distance as a variable is not
addressed only far and close, but also how far and how close. There are not many
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examples that FLIP model is used for optimization. Therefore beside the studies used
FLIP models, the studies about only fuzzy logic are also as followings: Teodorovic and
Vukadinovic (1998) use fuzzy logic rules for vehicle guidance, and to control signalized
intersections, and urban highways. Kelsey and Bissets (1993) use fuzzy sets in many
classic operational research problems in mathematical models. Chanas (1982) use fuzzy
sets in most of classic mathematical models for operational research. Gazdik (1983) do a
network planning with fuzzy sets and minimizing the costs by the help of network usage.
Kamburowski (1983) use fuzzy sets for activity timing restraint in critical road analysis.
Kelley (1961) use fuzzy as a mathematical based approach in critical road planning and
programming. Lootsma (1989) use fuzzy models for network-planning based on
stochastic and fuzzy models of the activity durations. There are some other studies such
as: fuzzy distribution application based project management (Mon et. al, 1995), range of
activity durations at PERT (Golenko-Ginsburg, 1988), describing expected values
(Shipley et. al, 1996) and analyzing the change of cost via fuzzy set theory (Zebda,
1984). Özdemir and Ergülen (2012) have compared the ILP and FLIP models
performances by using income statements. They have also evaluated the impacts of these
two models on the firm’s financial ratios which are specified as a tool of measuring
performance of the case firm in terms of financial ratios 1.
Case Analysis
The firm on the case analysis is from Turkey and it is running in food sector. It distributes
the products from the city of Adana, where manufacturing is done, to the dealers in the
certain cities of Turkey. These are as followings: Diyarbakır, Erzurum, Hatay, Kastamonu,
Malatya, Mardin, Mersin, Samsun, Sivas, Tokat and Trabzon.
In determining the actual distribution cost, actual transporting costs of per unit weight
(kilograms) are used. Actual transporting costs of per unit kilograms are fixed by the
agreement between the firm and the sub-contractors. According to agreement, prices start
with January prices but the sub-contractors give a 7.5 % rise to the agreement prices at the
following months March, June, July, August and November. This shows that actual
transporting prices are fixed.
The case firm distributes its products by using only 13 tones-capacity vehicles, and the
total amount of loading is 26,165 tones which have been transported through 2,218 trips.
The actual cost can be calculated by multiplying the load amounts delivered to the regions
with actual freight counts. In that case the total actual distribution cost of the firm has been
calculated as 447,547,099-TL.
Table 1: Available vehicle types, numbers and capacities
1
Vehicles types
I. Type
II. Type
III. Type
Carrying Capacity
13 Tonnes
20 Tonnes
25 Tonnes
Number of Vehicles
42 Unit
24 Unit
9 Unit
Özdemir and Ergülen (2012) have used the rest part of the same firm’s data and they have compared just ILP
and FLIP models. Moreover the cities from Turkey the case firm transport its products are as followings;
Afyon, Ankara, Antalya, Balıkesir, Burdur, Bursa, Edirne, Eskiş ehir, İstanbul, İzmir, Kayseri, Kırşehir,
Konya.
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Typically if the firm had had different loaded vehicle capacities as 20 and 25 tones besides
13 tones ex-ante, actual transportation costs could have been less than the cost under the
given actual conditions. Therefore the case analysis has been designed to search in the case
of the firm could run 24 unit 20 tones, and 9 unit 25 tones vehicles as well as 42 unit 13
tones capacity vehicles in the actual distribution plan, and has been intended to reveal how
much savings could be provided by the certain models below.
Naive integer linear programming (ILP) model
The ILP model is a mathematical optimization or feasibility program in which some or all
of the variables are restricted to be integers. ILP model is a kind of decision model which
has decision variables, parameters, limiters and objective functions.
Symbols which are used in a naive ILP model are given below:
i
m
J
n
Type of vehicles which are used in distribution(i = 1, 2, ..., m)
Number of the usable vehicle types
Distribution to the region (j = 1, 2, ...., n)
Number of the regions
The identified objective function for ILP model is given below:
m
n
Z m i n (d i jX i j)
i 1 j 1
(1)
The decision variable at the canonical form of ILP models can be expressed as followings:
X1j
: Essential trip count to the j-th region with the first type of vehicle,
X2j
:Essential trip trip count to the j-th region with the second type of vehicle,
X3j
: Essential trip count to the j-th region with the third type of vehicle.
ILP decision models also have the parameters in the objective function called as
coefficient. It is symbolized as d ij and represents the unit cost of one trip which is done by
the i-th type vehicle to the j-thjone.
Also there are other parameters which do not exist in the general pattern of the ILP model.
They exist in limits and they should be identified also. They can be divided into two
groups: I) Parameters for time limiters and II) Parameters for load limiters.
Parameters for time limiters are represented as a ij and bi . The a ij parameter represents the
time of the trip which is done by the i-th type of vehicle to the j-thjone. And the bi
parameterrepresents the total essential trip time which is done by the i-th type vehicle in
one year2.
2
For determining the trip time, there are two important drivers. One of them is the distance of regions to
city of Adana in where the headquarters running and second one is the time limit in a day for drivers in
Turkey. That might be different country by country but in Turkey legal arrangements says “drivers can
drive five hours continuously in one day and after 5 hours they have to have a rest. By this way the total
driving time must not exceed 9 hours according to current Highway Traffic Law in Turkey. Therefore
while the estimates are calculated, it is assumed that there is enough number of drivers on the vehicles.
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In that case the limiter of trip time is as below:
n
(a
j 1
ij
X i j ) bi
(2)
Parameters in load limit are represented as
f ij and h j .
The
f ij
parameter represents the load
of the trip which is done by the i-th type vehicle to the j-thjone. And the h j
parameterrepresents the total amount of the load demand from the regions. In the
formulation of load limits, the trips of the i-th type vehicle to the j-th region is guaranteed
sufficient counts of trips which should meet the total amount of the load demand from the
regions. In that case limiter of load is as below:
m
f
i 1
ij
X ij hj
(3)
Finallythe limit of being positive and integer meansthatdecision parameters must be greater
than zero and must be an integer in integer linear programming models. For this reason the
limit of being positive and integer is integrated in model also as following:
X i j 0 and Xi j Z
(4)
Goal programming (GP) model
The identified objective function for GP model is given below:
n
Z min W j Pk (d i d i )
i 1
i
k
j
(5)
Type of vehicles which are used in distribution( i = 1, 2, ... , n )
Distribution to the region ( k = 1, 2, ...., m )
Number of vehicles types ( j = 1, 2, … , t )
Limits;
n
a x
i
ei yi d1 d1 bi
(6)
c x
i
f i yi d1 d1 b j
(7)
i 1
n
i 1
i
i
n
h x
i 1
i
i
d1 d1 bk
(8)
Limit of being positive;
xi , yi , d1 , d1 0
(9)
And the other important compulsory issue in the same legal arrangement is that heavy vehicles can have a
maximum speed of 80 km/h apart from the residential unit.
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The used variables for objective function are given below:
W j : The value of its own weightinthe samepriorityobjectives
Pk : Theprimaryobjective ofthe deviationof eachvariable
d i : Negative deviation variableof the i-th objective
d i : Positive deviation variableof the i-th objective
The used variables for goal function are given below:
Variables in first limit
x i : Trip count of the i-th vehicle
y i : Trip count of the i-th rented vehicle
a i : Trip cost of the i-th vehicle
ei : Trip cost of the i-th rented vehicle
bi : Goal level of the i-th
Variables in second limit:
c i : Duration of a trip with the i-th vehicle
f i : Duration of a trip with the i-th rented vehicle
b j : The obtainable maximum trip time of the i-th vehicle
Variables in third limit:
hi : The loadings value of the i.th vehicle
bk : Total loadings need to transport to the k-th region
Fuzzy logic based integer linear programming (FLIP) model
The general ILP model of fuzzy distribution problem is different from naive ILP model.
For this reason general form of model, decision parameters, and parameters related to
model, limits and symbols used in model are re-identified as below.
Objective function identified for FLIP model is given below:
n
m
n
n
Z min j cij X ij g i Yi
j 1
i 1 j 1
i 1
i = 1, 2, ... , m
(m:number of vehicle type)
j = 1, 2, ... , n
(n: region number)
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In fuzzy logic based distribution model, parameters which “i” shows vehicle type and “j”
shows regions to the vehicle trip in objective function are identified below:
j : j interval usage rate stated in the j-thregion request
cij : Trip cost to the j-th region with the type of the i-thvehicle
g i : 10-days rent amount of the i-thtype rental vehicle
Decision parameters are identified below;
X ij : Trip count to the j-thregion with the type of the i-th type of vehicle
Yi : The i-thtype of vehicle which is included in vehicle fleet of company
In the present instance parameters in ime limit are identified as a ij , bi and hi . a ij and bi
have same meanings as ILP model; but the hi parameter should need to re-identify. It
represents obtainable running time within 10-days with the i-th type of rented vehicle (in
hours). In that case the time limiters can be expressed as below:
n
(a
j 1
ij
X ij hi Yi ) bi
j = 1, 2, ... , n
(11)
(n: the number of regions)
The parameters in load limits are considerably different than in ILP model. The parameters
in this model are symbolized as, f i , Q j and d j . The f ij parameter represents load amount in
tones of the i-th type vehicle to the j-thjone in one trip.
Load limits of the distribution of goods;
m
f X
i 1
i = 1, 2, ... , m
i
ij
d j j wkj u jt Q j
(m: The number of vehicle type)
( j k) ( j t)
J = 1, 2, ..., n
(n:region number)
k = 1, 2, ..., n
(n: region number)
t = 1, 2, ..., n
(12)
(13)
(n: region number)
f i : Tonnage value of the i-th capacity vehicle in trip
Q j : Load amount requested by the j-thjone (in kg)
d j : Negative deviation value in the j-thjone request
Wkj : Load amount (in kg) which is allowed by one vehicle in the k-th region to the j-th
region where is on the road of this vehicle
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
U jt : Load amount (in kg) which is allowed by one vehicle in the j-th region to the t-th
region where is on the road of this vehicle
In addition, if necessary, it is accepted that the demand amount of the j-th region can be
decreased as d j , which is identified as the fuzzy part of the demand, is equal to allowed
negative deviation in demand amount. The value of j variable represents the usage rate of
deviation. In order that j variable take the value between 0 and 1, load limits have been
set up.
Mentioned aims below are located in this model in order of their priority.
1. Aim: Minimization of total transportation cost,
2. Aim: Minimization of used part of allowed negative deviation for demand
capacity.
The coefficients in objective function of variables that related the second priority objective
is very lower value than coefficients in objective function of variables that related the first
priority objective so coefficients of ( j ) parameters is accepted as 1.
Another limit is related to usage rate of fuzzy interval.
j 1
j = 1,2, ... , n
(14)
(n: region number)
j : Usage rate of fuzzy interval of the j-th region’s request.
Finally “The limit of being positive and integer” is valid limit in FLIP model. Decision
parameters must be greater than (0) and must be an integer. For this reason, this limiter is
included in model as mentioned below.
X ij 0 and integer,
Yi 0 and integer
(15)
(16)
Wkj 0 , W jt 0
(17)
0 j 1
(18)
The Assumptions and the Limitations of the Case Analysis
This study aims to compare the employed mathematical models (ILP, GP, and FLIP) in
terms of optimization performances on a real case hypothetically. But naturally, this study
has a few limitations. The main limitation of this study is that only distribution process has
been focused on, since there is no possibility to determine transporting costs during premanufacturing and manufacturing processes separately. Therefore while decision problem
is stated, both processes costs’ have been assumed as fixed and just distribution process
cost could be minimized through optimization. The other limitation is related with data of
the analysis. The case firm actually has more cities to distribute its products than the areas
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
in analysis have been evaluated. Therefore some part of data from the case has been
excluded for the analysis.
There are some other assumptions and limitations stated in this research. In actual
distribution, only 13 tonnage vehicles of sub-contractor employed for the firm and these
vehicles are considered as they are homogenous in terms of their engines and models.
In identifying actual costs, the agreement between the firm and sub-contractor has been
considered and the statements reported by means of accounting information and documents
have been utilized.
In estimating of the achievable total trip times with the vehicles in a year, trips from region
to headquarters of the firm is not important for the analysis due to the fact that transporting
is run by sub-contractor. In taking into account of times of the trip for returning the
vehicles to the headquarters, those are subtracted from the achievable total trip times. That
is, in time limits not only trip time to the headquarters to the regions, but also the trip time
from the regions to the headquarters is considered.
Another limitation is related with the demand of the firms’ product. Typically demand is
not fixed during the year, but in this kind of analysis the demand should be fixed for a
particular duration. In this analysis the fixed demand duration is accepted 10-days.
Therefore by performing optimization models, the optimization period has considered as
every 10-days period of every month and 36 times optimization has been done. This means
that accepted fix demand period is in the analysis is 10 days.
Findings
Transportation costs after cost savings which are obtained according to actual distribution
costs and optimum distribution plans of business in application example are given in Table
2.
Table 2. Actual and Programmed Distribution Costs and Provided Savings
Actual
ILP Based
GP Based
FLIP Based
Estimated Total Cost
447,547,099
416,560,712
398,317,012
374,627,403
Estimated Trip Count (Amount)
2,218
1,505
1,340
1,055
Cost Savings
---
30,986,387
49,230,087
72,919,696
Cost Savings (Percent)
---
6.92
11.00
16.29
Trip Count Difference
---
713
878
1,163
Trip Count Savings (Percent)
---
32.15
39.59
52.43
According to Table-2, the followings findings can be expressed:
Estimated total cost could be minimum, if the firm had applied FLIP based
optimization models. The estimated cost of transportation in this model is 374.6
million Turkish Liras and the estimated trip counts are 1,055. This means that this
model provides 72.9 million Turkish Liras savings and this amount of savings is
equal to 16.29% according to actual cost, however the rate of decreasing trip counts
is 52.43%.
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
In GP model the estimated cost of transportation is 398.3 million Turkish Liras and
the estimated trip counts are 1,340. This means that this model provides 49.2
million Turkish Liras savings and this amount of savings is equal to 11.00%
according to actual cost, however the rate of decreasing trip counts is 39.59%.
The model which ensures the least savings is ILP model. In this model the
estimated cost of transportation is 416.6 million Turkish Liras and the estimated
trip counts are 1,340. This means that this model provides 31.0 million Turkish
Liras savings and this amount of savings is equal to 6.92% according to actual cost,
however the rate of decreasing trip counts is 32.15%.
Summary and Conclusions
As a result of optimization, it is expected that the costs decrease or at least not to increase
due to managers’ decisions depending on various decision alternatives beyond the
company. However additional costs occasionally become inevitable up to decisions taken.
Anticipating the effects of the decision on the firm is important in terms of in which
margin managers behave flexible. In this context optimization models enable managers to
determine this margin can be reached by various decision alternatives.
In this hypothetical case analysis, it is determined to what extent transportation costs can
be minimized through optimization models employed. According to findings, FLIP model
is observed as the model provides the best solution and the highest amount of savings due
to usage of values not only (0) and (1) values like under classical logic, but also values
between (0) and (1). Despite that ILP, which can be referred to the most primitive
optimization technique, is observed as it provides the least savings. And it is expressed that
the GP model results are in the middle of these two models’ results.
Additionally there is another important issue observed in the results. The rate of decreasing
trip counts and the rate of cost savings are not the same in these three models. Actually
when optimization models are set up perfectly, these rates might decrease parallel in each
model. But for this, first of all, every way of the problem about the case should be able to
formulize mathematically as limiters. It is theatrically possible, but also expensive and
exhausting. Therefore, it should not miss out that it is normal due to the employed models’
superior and inferior attributes.
It is concluded that the turnout between the rates of decreasing trip counts and the rates of
cost savings have become bigger in order of the employed models (ILP, GP, and FLIP). In
ILP model, the rate of decreasing trip counts is 32.15%, while the rate of cost savings is
6.92%, on the other hand the rate of decreasing trip counts in GP model is 39.59%, while
the rate of cost savings is 11.00%. Also in FLIP model the rate of decreasing trip counts is
52.43%, while the rate of cost savings is 16.29%.
Nevertheless these models show to what extent transportation costs can be minimized
through for the managers and indicate their flexibility while they need to make any
decision related to improve their transportation activity.
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Optimization Models Performances for Transportation Cost Minimization
Author
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SERKAN OZDEMIR, Fevzi
ERGULEN, Ahmet
Abstract
A summary of the resource.
Transportation is the foremost activity at every stage of logistics (supply, production and distribution stages). It constitutes the huge part of logistics, because of its relative size in total logistics costs. That might be different sector by sector but the rate of the transportation in all logistics activities is approximately around 50-65 percent. Transportation is a term which can be defined as the physical movement of inventories such as raw materials, semi-finished goods and finished goods from one location to another. Shipping of products into firm storage after they have bought from suppliers, carrying of the storage items to manufacturing, and delivery of the manufactured items to warehouses or dealers to be sold, and delivery of the sold products to customers are some sub-activities of transportation. In order to achieve transportation with minimal cost, first of all the optimal transportation alternatives should be implied. In the literature there are many researches which confirm this statement. But the applied technique for decision problem is as important as transportation alternatives. For determining of optimal solution there are certain models. This study aims that to compare of those models performances on a real case hypothetically. Employed models are integer linear programming; goal programming and fuzzy-logic based linear programming. Keywords: Logistic Activities, Transportation Costs, Optimization.
Publisher
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International Burch University
Date
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2013-05-10
Keywords
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ISSN 978-9958-834-23-3
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https://omeka.ibu.edu.ba/files/original/d91cd0ab9a3f32d7cecad8eabf3622b4.pdf
2490950386f69567a4085541303c9fd2
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International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
Efficiency of Experimental Program for the Parental
Instruction for Children
Hazim Selimovid
University of Travnik, Travnik, Bosnia and Herzegovina
hazim.selimovic@gmail.com
Zehrina Selimovid
University of Travnik, Travnik, Bosnia and Herzegovina
zehrina.selimovic@gmail.com
Parental instruction in terms of helping children with school activities is
very important. For this reason, this paper dealt with theoretical and
empirical segment of this problem. In the theoretical part, the concept of
parental instruction was defined as well as its importance for the success
of the child, the commitment of children to such assistance and the
aspects of parental instructions.
The objective of study was to investigate the level of parents’ ability to
provide instruction to children with school activities and learning. For this
purpose, an experimental method was applied (experiment with initial and
final measurements with one group). In order to examine the effect of
experimental treatment the instrument on parental instruction to children
was used.
The obtained results provided significant findings that lead us to the
conclusion that parents' education can improve their instructions to
children in school learning.
Keywords: Parental Instruction, Parents, Students.
156
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efaba95c70fa737eb8742e11b301c9a9
https://omeka.ibu.edu.ba/files/original/ceb466bde205d7691a65fb1c3ae93491.pdf
ab86cefb860aa8619f38c25c6558712f
PDF Text
Text
International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Application Efficiency of Experimental Program on Parental Instruction to
Children
Hazim Selimović
University of Travnik, Travnik, Bosnia and Herzegovina
hazim.selimovic@gmail.com
Zehrina Selimović
University of Travnik, Travnik, Bosnia and Herzegovina
zehrina.selimovic@gmail.com
Abstract
Privacy can be defined as areas which are peculiar to an individual not to public or
society. The concept of privacy is mentioned with the concepts of confidentiality
and security of personal information and private areas. While the governments
create electronic tools and environment to watch and make observation to provide
the citizens more secure and an environment to live, it might cause an individual’s
private area to shrink.
Parental instructions as a helping tool in children are learning process is highly
important. For that reason this paper focuses on theoretical and empirical issues
within this topic. The theoretical segment defines parental instruction and its
significance for child’s success, as well as the different forms of parental
instruction, and child’s openness to that form of assistance.
The starting point of this paper is testing the level of parents’ capability to instruct
children in learning processes. An experimental method (an experiment with initial
and final testing within a single group) is utilized. The instrument of parental
instruction to children is used in order to test the influence of the experimental
treatment.
The obtained data has answered significant questions. A positive effect of the
experimental process is determined in five out of seven subtests: complexity
reduction of the school matter being studied, parents paying significance to the
instruction, instruction frequency, monitoring child’s improvement, parents’
instruction level and capability. A positive level of the experimental program has
not been recognized in metacognitive context of the instructions and parents’
emotional support to their children. The data stemming from the research suggests
that parents coming from urban communities attach more significance to the
instruction than parents from rural or suburban communities. These findings lead to
the conclusion that parental instruction in children’s learning processes can be
improved by the parental education.
Keywords: parental instruction, parents, children,
Introduction
How well a child adapts depends on the environment by which they are surrounded.
School and family are a significant part of that environment. There is no doubt that the
family is the basic and the most significant institution in any given society. It is equally
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
significant both for the development of the society, and the individuals within that society.
Children’s experiences within the family greatly determine future ability to adapt to life
and working environment. The role of the family is education and upbringing, as well as
creating an environment for child’s continuous development as a cognitive, emotional,
social and functional human being in accordance to their affinities and capabilities.
Parent-child relations begin with a moment of birth; they develop throughout child’s stay
in parent’s house, and continue throughout the life. The quality of the parent-child
relationship depends on parents’ interpersonal relationship, their attitude towards the
children, as well as the relationship of all the family members and their attitude towards the
children.
Family relations significantly affect children’s success at school. Parents who attach more
significance to parental instruction will largely assistance their children to master the
school matters, than those parents who do not view parental instruction as an important
part of the learning process.
Family and school represent a changing socio-historical category, and with the
development of society, science and technology, their role changes, and also becomes
more significant to a certain extent. Therefore, the collaboration between school and family
in children’s education and upbringing is crucial.
The definition of parenting instruction
In order to discuss parenting instruction, first we need to clarify the meaning of the word
‘instruction’. It stems from the Latin word ‘instruction’ and means ‘to teach, to educate, to
direct, to order.’ (Anić, Klaić and Domović, 2007, pp. 609). The meaning of the word tells
us that its essence is to direct on how something should be done. Therefore, parental
instruction stands for parents giving their children directions on the easiest way to absorb
the school matter. This raises the question of how much significance parents attach to
parental instruction. According to pedagogical theory and practice, the level of parental
instruction is unsatisfactory. The reasons for it can be the parents themselves, as well as
their inadequate ability to instruct. Namely, our patriarchal society which views the
mothers as the main caregivers to children, together with the fact that mothers are
overwhelmed with housework and other obligations, leaves little room for parental
instruction on school matters. On the other hand, the schools’ lack of collaboration with the
parents, leaves the parents ill equipped to successfully assistance their children, seeing that
they simply are neither aware of the learning methods, nor the school syllabuses. The
result is children’s poor results at school, as well as their ‘unfamiliarity with effective
learning methods, as a result of children left on their own, overexposed to television, video
games or the streets.’(Suzić, 2005, pp. 384). This situation is unacceptable and steps should
be undertaken to provide improvement. A good starting point is to inform ourselves in how
is Western European countries dealing with this issue? ‘In Western countries it has become
a norm for parents to be involved in school education of their children, to monitor their
progress at school, and to frequently consult with teachers on ways how to assistance their
children in learning process’ (ibid. pp. 384). What is obvious is that parental instruction
would assistance the children in their learning process. The question is how open are the
children for this form of assistance. They can accept it or not. If children are not open to
this form of assistance, it can lead to them feeling overwhelmed and lost. If children are
open to parental instruction, they also start to value it and recognize its significance.
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Parental instruction needs to be unobtrusive in order for children to be open to it, it needs
to take into consideration child’s initial antagonism and offer easy and clear guidelines.
Unfortunately the reason for the lack of this form of assistance sometimes lies in parents,
when they feel that they are not competent enough to provide this kind of pedagogical
communication. In order to help the parents shake off the feeling of incompetence, the
schools should organize trainings aimed to enable the parents to help their children in
learning process. The parents will be able to annul the feeling of incompetence through
workshops and lectures, and also to acquire certain pedagogical competences which will
help them alleviate the learning process. The basic question which imposes itself is : How
to help a child in the learning process? The desire for success at school, as well as its
significance in modern society drives the parents to take an active role in their children’s
education. Their help consists of parents explaining how to approach the matter at hand, as
well as why it is important for the child to learn it. The purpose of learning is often left
unexplained, which leads to children withdrawing because they were not instructed on
importance of the learning process. Parents are expected to explain the purpose of learning
to their children through everyday communication, in order for a child to grasp the
importance of learning and be motivated to master the school matter. Parents should also
entice and encourage their children to persist in given tasks on a daily basis, which will
help develop their character, determination and confidence. Parents should entice and
encourage their children even in moments of setbacks, when that support is needed the
most.
Finally, parents’ love should also be pointed out as a foundation of parent-child
relationship, and a crucial ingredient for future success. Parents’ empathy as an amalgam
of all of the above instigates the emotional and rational understanding, ingredients which
are crucial for a child to become a physically and mentally balanced adult.
There are various forms of parental instruction, and this paper focuses on the following:
Metacognitive instruction context, Task complexity reduction, Attaching significance to
the instruction, Emotional support to a child, Instruction frequency, Child’s improvement
monitoring and Parent’s instruction capability level.
Our research
Hypotheses
The starting points for this research are four hypotheses:
1. Experimental process has a positive effect on parental instruction in child’s
learning process;
2. Experimental process has a positive effect on parental instruction in child’s
learning process with regards to the environment by which the school is
surrounded;
3. Experimental process has a positive effect on correlation between parental
instructions and parents’ education and financial status;
4. Experimental process has a positive effect on correlation between parental
instructions and parents’ age.
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Testing sample
Research testing sample are the of 1st, 2nd, 3rd, 4th and 5th grade primary school pupils from
Tuzla, Zvornik, Simin Han and Sapna.
The testing sample consists of 125 parents. The parents are divided into the following age
categories: 25 to 29 - 27 parents (21,6%), 30 to 34 - 34 parents(27,2%), 35 to 39 - 38
(30,4%), 40 to 44 - 22 (17,6%) and 45- 49 - 4 parents (3,2%).
Education categories are: 20 parents (16,0%) with four years of primary school education,
35 (28,0%) %) with eight years of primary school education, 48 (38,4%) with secondary
education, 10 (8,0%) with college education and 12 (9,6%) with university education.
Social categories are: 17 parents (13,6%) without any income, 3 (2,4%) with income up to
100 BAM, 12 (9,6) with income between 100 and 300 BAM, 27 (21,6) with income
between 300 and 500 BAM and 66 (52,8%) with income above 500 KM.
The Instrument
The instrument used in the research is RID- Parental instruction to children (Suzić, 2005,
pp. 909).
The instrument uses Likert type assessment scale which consists of the five-level list of
possible answers, two of which are agreement levels, one is neutral, and two are
disagreement.
The parents used this scale to express their agreement, neutrality or disagreement with the
information provided.
RID - Parental instruction to children is an instrument taken from the 21st Century
Pedagogy, (Suzić 2005, pp. 909).
It consists of seven subtests: Metacognitive instruction context (6 items),Task complexity
reduction (5 items), Attaching significance to the instruction (7 items), Emotional support
(7 items), Instruction frequency (5 items), Improvement monitoring (5 items), and Parent’s
instruction capability level (7 items).
The subtests are summary so we reached an overall RID score: The questions are answered
using the Likert scale as follows: 1 (none, never), 2 (to a certain extent, occasionally), 3
(medium or 50%), 4 (mostly, often) and 5 (completely, always).
Instrument’s reliability is determined by Alpha- Cronbach coefficient which is ( = 0,85).
Study Results
The first hypothesis of this study states that experimental treatment has beneficial effect on
parental instructions to children in relation to acquiring school curriculum.
Confirmation of this hypothesis can be seen in the Table 1.
Overall, it is evident that application of the experimental treatment has positive effect on
parental instructions to children.
4
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Table 1: Differences between parental instructions to children
Parameter
MKI 01i-06i
MKI 01f-06f
RKZ 07i-11i
RKZ 07f-11f
PZI 12i-18i
PZI 12f-18f
EPD 19i-25i
EPD 19f-25f
FID 26i-30i
FID 26f-30f
PND 31i-35i
PND 31f-35f
NOR 36i-42i
NOR 36f-42f
RID SUM i ∑
RID SUM f ∑
No of
subjec
ts
125
125
125
125
125
125
125
125
M
22,63
22,97
18,45
20,05
29,41
30,14
28,54
29,50
17,82
18,36
18,66
20,35
19,33
29,72
150,79
170,79
SD
Diff. M
4,30
3,06
3,82
1,98
3,52
2,22
3,63
2,41
2,58
1,56
2,79
1,74
5,27
2,92
18,17
10,11
Level of
freedom
Signif.
124
0,467
– 1,60
–
0,729
– 4,255
124
0,000
– 0,25
– 2,149
124
0,034
– 0,74
– 1,707
124
0,090
– 0,66
– 2,148
124
0,034
– 0,54
– 5,937
124
0,000
– 1,69
– 20,251
124
0,000
– 20,00
– 11,341
124
0,000
– 0,34
t-time.
Note: MKI (01-06) - Metacognitive instruction context
RKZ (07-11) - Task complexity reduction
PZI (12-18) - Attaching significance to the instruction
EPD (19-25) - Emotional support to a child
FID (26-30) - Instruction frequency
PND (31-35) - Child’s improvement monitoring
NOR (36-42) - Parent’s instruction capability level
RID (01-42) - Parental instruction to children (summarily)
Establishing the significance of the difference between the initial and final states of
parental instructions to child (RID) Metacognitive instruction context MKI 01-06 (IF) – the
very first parameter of Table 1 demonstrates that there are no statistically significant
differences (at p <0.05) in all six components of parental instruction to child, with a
statistically insignificant correlation of 0.05 between both sets before and after the
experimental treatment. The effect of the experimental treatment did not yield any
significant results in terms of metacognitive competence in parents-children relationship.
The reasons for these results are to be found in the fact that the development of
metacognition in parents was unsuccessful i.e. development of awareness of their own
cognition failed. The reasons for this are hard to explain but it is a fact that some parents
tend to analyze their own actions while others are mainly engaged in specific
activities.Determining the significance of the difference between the initial and final states
of parental instructions to child (RID) Reduction of the tasks’complexity RKZ 07-11 (IF) the second parameter of Table 1 shows that there are statistically significant differences (at
p <0.01) in all five components of parental instructions to child, with a statistically
insignificant correlation of 0.06 between both sets before and after the experimental
treatment. The effect of experimental treatments yielded significant results in terms of
reduction of the tasks’ complexity at the parents to children instructions. Based on the
analysis of the findings it can be concluded that the parents acquired certain knowledge
through workshops, knowledge regarding reduction of tasks’ complexity, i.e. they
managed to understand the importance of adjusting instructions to the needs of their
children. Understanding the specific ways of learning certain subject matters resulted in
5
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
learning how the same matter can be learnt more easily than when applying the method
used before the experiment.
Determining the significance of the difference between the initial and final states of
parental instruction to child (RID) Attributing significance to instruction PZI 12-18 (IF) the third parameter, Table 1 shows that there are statistically significant differences (at p
<0.05) in all seven components of parental instructions to child, with a statistically
insignificant correlation of 0.17 between both sets before and after the experimental
treatment. The effect of the experimental treatment yielded tangible results in terms of the
importance that parents attribute to instructions. The effect of knowledge that parents
acquired through workshops and relating to the instructions, motivated parents to attribute
greater importance to instructions to their children in mastering the curriculum content in
terms of time needed for instructions and personal engagement in the success. The fact that
they were involved in the experiment contributed to motivating parents, as well as the
desire for new knowledge about instructions which parents showed even during the
experimental treatment by reading additional literature.
Determining the significance of the difference between the initial and final states of
parental instructions to child (RID) Emotional support to the child EPD 19-25 (IF) - the
fourth parameter, Table 1 shows that there are no statistically significant differences (at p
<0.05) in all seven components of parental instructions to child, with a statistically
insignificant correlation of 0.03 between both sets of before and after the experimental
treatment. The effect of the experimental treatment did not yield significant results in terms
of emotional support from the parents to the child.
The lack of statistical significance in the emotional support to children points to the fact
that parents, during the instructions, paid more attention to the adoption of specific
teaching content ignoring the emotional support, which can be interpreted by different
levels of aspirations of children and parents where parents focused only on acquiring
knowledge while children needed emotional support as well. This also points to the
interconnectedness of metacognition which also did not show statistically significant
improvement in terms of emotional self-regulation of the parents.
Determining the significance of the difference between the initial and final states of
parental instructions to child (RID) Frequency of instructions to child FID 26-30 (IF) - the
fifth parameter, Table 1 shows that there are statistically significant differences (at p
<0.05) in all five components of parental instructions to child, with a statistically
insignificant correlation of 0.16 between both sets of before and after the experimental
treatment. The effect of experimental treatments yielded significant results in terms of
frequency of parental instructions. Parents started to help their children more often, to talk
more about the school and school related topics and to share parental concerns with
spouses. This last finding is rather interesting because the majority of parents in the initial
stage of the study indicated that solely they care about helping children in school activities
and they considered it to be justified, but under the influence of all that they have
experienced in the workshops their attitude changed and they began to include spouses and
considered them to be an equal collaborators/partners.
Determining the significance of the difference between the initial and final states of
parental instructions to child (RID) Monitoring progress of the child PND 31-35 (IF) - the
sixth parameter of Table 1 shows that there are statistically significant differences (at p
6
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
<0.01) in all five components of parental instructions to child, with a statistically
insignificant correlation of 0.07 between both sets before and after the experimental
treatment. Progress in this subtest came as a result of greater concern showed by parents
for the success of their child, as well as by creating a better, trusting relationship with their
children, dosing instructions to the needs of their children and monitoring the success of
instructions. All this came as a result of experimental treatment.
Determining the significance of the difference between the initial and final states of
parental instructions to child (RID) Competence level of parents for instructions NOR 3642 (IF) - the seventh parameter of Table 1 shows that there are statistically significant
differences (at p <0.01) in all five components of parental instructions to child, with a
statistically insignificant correlation of 0.11 between both sets before and after the
experimental treatment. Certainly the biggest improvement of all subtests was made with
respect to the level of competence of the parents which can be seen from the arithmetic
mean. Parents have entered experimental treatment with a very modest knowledge of
instructions as a way to help children learning. Active participation in all workshops
enabled them to get acquainted with all that is needed for their children to achieve better
results. Motivated by the desire to find out everything needed to successfully work with
children, parents have improved their instructions to children and it yielded statistical
significance compared to the initial test.
Determining the significance of the difference between the initial and final states of
parental instructions to child (RID) - Summary Table 1 shows that there are statistically
significant differences in general (at p <0.01) in all components of parental instructions to
child, with a statistically insignificant correlation of 0.12 between both sets before and
after the experimental treatment.
The effect of the experimental treatment was felt in the aggregate findings of the
instruments of parental instructions to children, which confirmed that parents were actively
involved in the experimental program and that they had gained considerable knowledge
and experience in order to better and improve success rate of instruction for their children
in learning process.
The second hypothesis of this study is that the experimental treatment has positive
influence on parental instructions to children in relation to school children attend. The
findings indicate that there are significant differences in terms of parental instructions to
the child with respect to school children attend. The results confirming this hypothesis are
shown in Table 2
Table 2:Differences between parental instructions to the child with respect to school children attend
Parameter
MKI 01-06 (I)
MKI 01-06 (F)
School
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
Subjects
tested
50
25
50
50
25
50
50
25
50
50
M
SD
23,42
22,52
23,42
21,90
22,52
21,90
22,86
23,04
22,86
23,00
4,23
4,86
4,23
4,03
4,86
4,03
3,29
2,26
3,29
3,20
7
Diff.
M
0,90
F
Signif.
t-time.
Signif.
0,166
0,685
0,826
0,411
1,52
0,317
0,575
1,840
0,069
0,62
0,001
0,970
0,586
0,560
–
0,18
–
0,14
2,700
0,105
– 0,245
0,807
0,037
0,849
– 0,277
0,783
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
RKZ 07-11 (I)
RKZ 07-11 (F)
PZI 12-18 (I)
PZI 12-18 (F)
EPD 19-25 (I)
EPD 19-25 (F)
FID 26-30 (I)
FID 26-30 (F)
PND 31-35 (I)
PND 31-35 (F)
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
suburban
rural
urbansuburban
urbanrural
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
25
50
50
23,04
23,00
19,36
17,76
19,36
17,88
17,76
17,88
20,76
19,56
20,76
19,58
19,56
19,58
30,76
29,32
30,76
28,10
29,32
28,10
30,56
31,12
30,56
29,24
31,12
29,24
29,96
28,64
29,96
27,08
28,64
27,08
29,30
28,68
29,30
29,36
28,68
29,36
18,52
17,28
18,52
17,40
17,28
17,40
18,68
17,96
18,68
18,24
17,96
18,24
19,60
17,64
19,60
18,24
17,64
18,24
20,62
20,12
20,62
20,20
2,26
3,20
4,12
3,91
4,12
3,32
3,91
3,32
2,11
1,32
2,11
1,94
1,32
1,94
2,37
3,50
2,37
4,01
3,50
4,01
1,79
1,42
1,79
2,60
1,42
2,60
3,42
3,12
3,42
3,56
3,12
3,56
2,56
1,60
2,56
2,59
1,60
2,59
2,51
2,81
2,51
2,43
2,81
2,43
1,45
1,10
1,45
1,80
1,10
1,80
2,35
3,09
2,35
2,81
3,09
2,81
1,94
1,39
1,94
1,69
8
0,04
3,005
0,101
0,231
0,926
1,60
0,307
0,581
1,611
0,111
1,48
2,231
0,139
1,976
0,051
–
0,12
1,20
0,397
0,531
– 0,139
0,890
9,573
0,003
2,589
0,012*
1,18
0,407
0,525
2,908
0,004**
–
0,02
1,44
7,835
0,007
– 0,046
5,466
0,022
2,106
0,039*
2,66
8,007
0,006
4,037
0,000**
1,22
0,166
0,685
1,294
0,200
–
0,56
1,32
1,532
0,220
– 1,364
0,177
6,871
0,010
2,959
0,004**
1,88
9,618
0,003
3,365
0,001**
1,32
0,039
0,845
1,620
0,110
2,88
0,686
0,409
4,123
0,000**
1,56
0,907
0,344
1,860
0,067
0,62
5,602
0,021
1,107
0,272
–
0,06
–
0,68
1,24
0,023
0,880
– 0,116
0,908
4,191
0,044
– 1,120
0,234
0,036
0,850
1,939
0,056
1,12
0,001
0,982
2,266
0,026*
–0,12
0,014
0,829
–0,191
0,849
0,72
1,323
0,254
2,187
0,032*
0,44
3,647
0,059
1,346
0,182
–
0,28
1,96
7,390
0,008
– 0,712
0,479
2,679
0,106
3,058
0,003**
1,36
1,488
0,225
2,626
0,010**
–
0,60
0,50
0,340
0,562
– 0,843
0,402
3,355
0,071
1,149
0,254
0,42
1,278
0,261
1,155
0,251
0,963
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
suburban
25 20,12
1,39
rural
50 20,20
1,69
NOR 36-42 (I)
urban50 21,04
6,23
suburban
25 17,56
3,12
urban50 21,04
6,23
rural
50 18,50
4,61
suburban
25 17,56
3,12
rural
50 18,50
4,61
NOR 36-42 (F)
urban50 31,04
1,95
suburban
25 30,84
1,07
urban50 31,04
1,95
rural
50 27,84
3,35
suburban
25 30,84
1,07
rural
50 27,84
3,35
RID 01-42 (I)
urban50 157,8
19,7
suburban
25 146,0
15,6
urban50 157,8
19,7
rural
50 146,2
15,7
suburban
25 146,0
15,6
rural
50 146,2
15,7
RID 01-42 (F)
urban50 173,8
10,2
suburban
25 171,3
6,99
urban50 173,8
10,2
rural
50 167,5
10,4
suburban
25 171,3
6,99
rural
50 167,5
10,4
Note: RID (01-42) – parental instructions to the child
** - level of significance of 0,01
* - level of significance of 0,05
–
0,08
3,48
0,860
0,357
– 0,204
13,93
0,000
2,625
0,011*
2,54
6,779
0,011
2,316
0,023*
–
0,94
0,20
2,654
0,108
– 0,918
0,362
3,532
0,064
0,478
0,634
3,20
3,583
0,061
5,836
0,000**
3,00
6,442
0,013
4,352
0,000**
11,8
3,259
0,075
2,606
0,011*
11,6
3,281
0,073
3,271
0,001**
–
0,12
2,50
0,209
0,649
– 0,031
0,975
1,627
0,206
1,097
0,276
6,32
0,098
0,755
3,053
0,003**
3,82
0,773
0,382
1,650
0,103
0,839
Determining the significance of difference between the parental instructions to child, with
respect to school children attend (urban, rural and suburban, i.e. educational institution
location) Table 2 shows that there are significant differences of the initial condition related
to attributing significance to instructions to child, emotional support for the child, the
frequency of instructions to the child, the level of competence of the parents for
instructions and parental instruction to the child (cumulative) before the experimental
treatment, in favor of the city (urban) schools, compared to suburban and rural schools
Also, it was found that there were statistically significant differences in the final condition
for reducing the complexity of the task, attributing importance to instructions to child,
frequency of instructions to a child, the level of competence of the parents for instructions
and parental instruction to the child (cumulative) before the experimental treatment, in
favor of the city (urban) schools, compared to suburban and rural schools.
This significance is not present in the context of metacognitive instructions which shows
that parents do not differ significantly in this subtest. Significance can be found in reducing
the complexity of the tasks in the favor of the city (urban) schools, and the reasons for this
are related to better understanding and understanding of these issues by parents living in
the urban areas as opposed to the parents from the country. Analysis of the arithmetic
means shows that there has also been progress with parents in suburban and rural schools,
but it is not statistically significant.
As for the subtests Attributing significance to the instructions it shows a statistically
significant difference between parents from urban area versus those from rural ones in both
9
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
initial and final study, which means that the parents from urban areas attribute greater
importance to instruction in relation to the parents from the rural areas. The reason for this
lies in the fact that the parents from the urban areas are more motivated for their child to
succeed than parents from the rural areas. The lack of statistically significant differences
between the parents from urban and rural areas (regardless of location of the school) with
regard to the emotional support to a child can be explained by the fact that parents still
value cognitive achievement of children above all other competencies , even emotional
ones.
Frequency of instructions was also present with parents of all schools and there were no
statistically significant differences except between urban and rural parents in the initial
study, and urban and suburban parents in final study. Regarding monitoring progress there
is no statistically significant change from the initial to the final state of the study which
suggests that parents of all schools paid great attention to this aspect of helping children
learning. The biggest statistical difference was between parents of urban and rural schools
in the subtest Parents’ instruction capability level. This shift indicates that parents in urban
schools are on the more advanced level in relation to the parents of suburban and rural
schools. The reasons behind this are greater motivation to learn demonstrated by parents
from urban schools.
The analysis of parental instruction to children in general shows a statistically significant
difference in the initial study of the parents from urban areas as compared to parents from
suburban and rural areas, and in the final study between parents from urban and rural areas
which suggests that parents from urban areas invest more and are more willing to help their
children learning.
The third hypothesis is that there is a positive correlation between parental instructions to
educational and economic status of the parents. Results are given in Tables 3 and 4. The
results show that the experimental treatment did not have positive effect on the association
of parental instructions to child and their level of education, as well as economic status of
parents, compared before and after the experimental treatment.
Analysis of the results of linear regression Table 3, prior to the experimental treatment,
indicates that the overall regression is statistically significant at the 0.01 level (Sig). It was
demonstrated by univariate analysis of variance (ANOVA short). The only conclusion that
can be drawn is that we should reject the basic hypothesis, i.e. the assumption that the
differences between parental instructions to child and educational status of parents does not
exist. The coefficient of determination (R2) and multiple correlations (R) show that the
variance of parental instructions to child (before experimental treatment) is possible to
explain by 24 percent by educational status of their parents, because their correlation is
0.49. Therefore, it can be argued that parental instructions to child can be predict based on
educational status of parents. Only one regression (before experimental treatment) was
statistically significant for the parent’s instructions to child and to Parent's instruction
capability level, given the educational status of the parents. Parental instructions to child
(RID-summary) in the initial state confirm that it is in general statistically significant in
explaining the educational status of parents.
Table 3:Correlation between parental instructions to a child with their educational status
before and after the experimental treatment
Ri =0,49 - Rf=0,40
R2i=0,24 - R2f=0,16
F-ratio =5,15/3,20
10
Significance F
=0,00/0,01
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Br.
1.
Parameters
Metacognitive instruction context (i)
Metacognitive instruction context (f)
2.
Task complexity reduction (i)
Task complexity reduction (f)
3.
Attaching significance to the instruction (i)
Attaching significance to the instruction (f)
4.
Emotional support to a child (i)
Emotional support to a child (f)
5.
Instruction frequency (i)
Instruction frequency (f)
6.
Child’s improvement monitoring (i)
Child’s improvement monitoring (f)
7.
Parents’ instruction capability level (i)
Parents’ instruction capability level (f)
∑
Parental instruction to child (sum-i)
Parental instruction to child (sum-f)
Note: ** - level of significance from 0,01
* - level of significance from 0,05
Beta
0,02
-0,01
-0,04
0,22
0,14
-0,07
0,05
-0,31
0,01
0,03
0,04
0,07
0,39
0,32
0,41
0,14
B
0,01
-0,01
-0,01
0,13
0,05
-0,04
0,02
-0,15
0,01
0,02
0,02
0,04
0,08
0,13
0,05
0,01
t-time
0,149
-0,131
-0,284
2,083
1,498
-0,680
0,481
-2,628
0,107
0,315
0,419
0,682
4,236
3,029
4,925
1,539
Signif. t
0,882
0,896
0,777
0,039*
0,137
0,498
0,632
0,010**
0,915
0,754
0,676
0,497
0,000**
0,003**
0,000**
0,126
Analysis of the results of linear regression Table 3, after the experimental treatment,
indicates that the overall regression is statistically significant at the 0.01 level (Sig). It was
demonstrated by univariate analysis of variance (ANOVA Short), and the only conclusion
that can be drawn is that we should reject the basic hypothesis, i.e. the assumption that the
differences between parental instructions to child and educational status of parents does not
exist .The coefficient of determination (R2) and multiple correlations (R) show that the
variance of parental instructions to child (before experimental treatment) is possible to
explain by 24 percent by educational status of their parents, because their correlation is
0.40. Therefore, it can be argued that parental instructions to child can be predicted based
on educational status of parents. Three regressions are (after experimental treatment)
determined to be statistically significant for parental instructions to child: Parent's
instruction capability level and Task complexity reduction, with respect to the educational
status of parents whereas emotional support to a child bears negative value. This negative
value indicates the fact that we are dealing with tendencies of opposite directions, which
means that when one tendency is growing (educational status of parents) the other
decreases (Emotional support to a child), and vice versa. Parental instructions to child
(RID-summary) in the final state confirm the fact that it is not generally statistically
significant in explaining the educational status of parents.
Analysis of the results of linear regression Table 4 (prior to the experimental treatment)
indicates that the overall regression is not statistically significant at the level of 0.05 (Sig).
It is demonstrated by univariate analysis of variance (ANOVA Short), with the only
conclusion that that we cannot reject the basic hypothesis, i.e. the assumption that the
differences between parental instructions to child and economic status of parents does not
exist. The coefficient of determination (R2) and multiple correlations (R) show that the
variance of parental instructions to child (before experimental treatment) is possible to
explain by only 10 percent by the economic status of parents, because their correlation is
0.32. Therefore, it cannot be argued that parental instructions to child can be predicted
based on economic status of the parents. Only one regression (before experimental
treatment) was statistically significant for the Parental instructions to child and to Parent's
instruction capability level, given the economic status of the parents. Parental instructions
to child (RID-summary) in the initial state indicate that it is in general statistically
significant in explaining the economic status of the parents.
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Table 4: Correlation between parental instructions to a child with their economic status
before and after the experimental treatment
Ri =0,32 - Rf=0,20
R2i=0,10 - R2f=0,04
Br.
Parameters
1.
Metacognitive instruction context (i)
Metacognitive instruction context (f)
2.
Task complexity reduction (i)
Task complexity reduction (f)
3.
Attaching significance to the instruction (i)
Attaching significance to the instruction (f)
4.
Emotional support to a child (i)
Emotional support to a child (f)
5.
Instruction frequency (i)
Instruction frequency (f)
6.
Child’s improvement monitoring (i)
Child’s improvement monitoring (f)
7.
Parents’ instruction capability level (i)
Parents’ instruction capability level (f)
∑
Parental instruction to child (sum-i)
Parental instruction to child (sum-f)
Note: ** - level of significance from 0,01
* - level of significance from 0,05
F-ratio =1,93/0,69
Beta
B
0,02
0,01
0,01
0,00
-0,03
-0,01
0,03
0,02
-0,14
-0,05
-0,11
-0,07
0,19
0,07
0,15
0,09
-0,20
-0,11
-0,07
-0,06
0,07
0,03
-0,03
-0,02
0,23
0,06
0,12
0,06
0,18
0,01
0,11
0,01
Signif. F =0,07/0,68
t-time
Signif. t
0,172
0,863
0,083
0,934
-0,242
0,809
0,274
0,784
-1,333
0,185
-1,034
0,303
1,724
0,087
1,173
0,243
-1,934
0,055
-0,698
0,487
0,646
0,520
-0,285
0,776
2,290
0,024*
1,035
0,303
2,087
0,039*
1,230
0,221
Analysis of the results of linear regression Table 4 (prior to the experimental treatment)
indicates that the overall regression is not statistically significant at the level of 0.05 (Sig).
It is demonstrated by univariate analysis of variance (ANOVA Short), with the only
conclusion that that we cannot reject the basic hypothesis, i.e. the assumption that the
differences between parental instructions to child and economic status of parents does not
exist. The coefficient of determination (R2) and multiple correlations (R) show that the
variance of parental instructions to child (after experimental treatment) is possible to
explain by only 4 percent by the economic status of parents, because their correlation is
0.20. Therefore, it can be argued that parental instructions to child cannot be predicted
based on economic status of the parents. Not a single regression (after experimental
treatment) was statistically significant for the Parental instructions to child and to Parent's
instruction capability level, given the economic status of the parents. Parental instructions
to child (RID-summary) in the initial state indicate that it is not in general statistically
significant in explaining the economic status of the parents.
The fourth hypothesis is that there is a correlation between parental instructions to child
and age of parents. The findings relevant to this correlation association are given in Table
5. They demonstrate partial correlation between parental instructions to child and parents’
age, as a result of the influence of experimental treatment.
Analysis of the results of linear regression Table 5 (prior to the experimental treatment)
indicates that the overall regression is not statistically significant at the level of 0.05
(Sig).It is demonstrated by univariate analysis of variance (ANOVA Short), with the only
conclusion that that we cannot reject the basic hypothesis, i.e. the assumption that the
differences between parental instructions to child and age of parents does not exist. The
coefficient of determination (R2) and multiple correlations (R) show that the variance of
parental instructions to child (before experimental treatment) is possible to explain by 6
percent by the economic status of parents, because their correlation is 0.24. Therefore, it
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
cannot be argued that parental instructions to child can be predicted based on the age of the
parents. Not a single regression (before experimental treatment) was statistically
significant for the Parental instructions to child, given the age of the parents. Parental
instructions to child (RID-summary) in the initial state indicate that it is not in general
statistically significant in explaining the age of the parents.
Conclusion
Parental instruction in learning process significantly affects the overall success a child
achieves at school. This form of assistance depends on the parents, as well as the
children. Their motivation is a key factor for instructions to be successful.
The process of parental instruction can be implemented by using various methods,
usually by empathy, helping children to reduce the amount of effort and energy needed
to master the matter,emotional support, supervising what is being learned as well as
how, and creating the environment to raise child’s awareness or metacognition on
what is being learned. These are all the methods that are largely unknown to parents.
The workshops that were organized from September to December 2008 sparked the
interest of the parents, and also enabled them to acquire basic pedagogical tools on
how to help their children.
The results of the research show that there is statistically significant difference in
parental instruction in five out of seven subtests: complexity reduction of the school
matter being studied, parents paying significance to the instruction, instruction
frequency, monitoring child’s improvement, parents’ instruction level and capability.
A positive level of the experimental program has not been recognized in metacognitive
context of the instructions and parents’ emotional support to their children . The
experimental program has not given positive results in all of the subtests with regards
to the school environment, although the parents from city schools achieved a certain
progress compared to parents from suburban or rural schools.
The conclusion that can be reached from the results obtained is that an improvement in
parental instruction in learning process can be achieved by working with parents.
Emotional support and metacognition require more time, seeing that the former
clashes with the traditional communication which does not recognize emotions, while
the latter is something which is largely unknown to the parents and requires more time
to be improved.
Reference
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Bakovljev,M. (1995). Statistika u pedagoškim istraţivanjiima. Beograd: Naučna knjiga
CURO, Učiteljski fakultet.
Brkić,M. iKundačina,M. (2003). Statistika u istraţivanju vaspitanja i obrazovanja. MostarSarajevo: Educa d.o.o. Sarajevo.
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Brown, A. L. (1987): Metacognition, excutive control, self-regulation and other more
mysterious mechanisms. Weinert, F. E. & Kluwe, R. H. (Eds) Distributed cognitions:
Psychological and educational considerations, Cambridge University Press, pp. 188227.
Demirović, M. i Kukić, S. (2003). Metodologija naučnoistraţivačkog rada društvenih
nauka. Bihać- Mostar: Pravni fakultet univerziteta u Bihaću i Ekonomski
fakultetsveučilišta uMostaru.
Došen-Dobud, A. ( 2001). Predškola. Vodič za voditelje i roditelje. Zagreb: Alinea.
Flavell, J. (1979). Metacognition and cognitive monitoring, a new area of cognitive
developmentalinquiry, American Psychologist, Vol. 34, No. 10, 906–911.
Flavell, J. H. (1976). Metacognition Aspects ofProblem Solving. In Resnick, L. (Ed.),
TheNature ofIntelligence (str. 231-236). Hillsdale, W.: Lawrence Erlbaum
Associates.
Fortunato, 1., Hecht, D., Tittle, C., Alvarez, L. (1991). Metacognition and problem solving,
Arithmetic Teacher, 39(4), pp. 38-40.
Handrin– Goakin, S. (1999). Roditeljstvo za neupućene. Beograd: Mikro knjiga i IDG
Books Worldwide Inc.
Ljubetić, M. (1998). Samoprocjena kompetentnosti roditelja za roditeljsku ulogu.
Napredak br. 139, str, 290–297
Mandić, P.(1980). Saradnja porodice i škole. Sarajevo: Svjetlost.
Muţić, V.(2004). Uvod u metodologiju istraţivanja i obrazovanja. Zagreb: Educa.
Raboteg-Šarić, Z. (1993). Empatija, moralno rasuđivanje i različiti oblici prosocijalnog
ponašanja. Zagreb: Sveučilište u Zagrebu-Filozofski fakultet.
Suzić, N. (2006). Traţenje pomoći kao kognitivna strategija učenika. Nastava i vaspitanje
br. 3, str. 239-257. Na sajtu: http://www.suzicnenad.com/knjige.html. Očitano:
24.10.2008.
Suzić, N.(2005). Pedagogija za XXI vijek. Banja Luka: TT–CentarRepublike Srpske i
UNICEF Kancelarija u Banjaluci.
Termiz, Dţ. (2003). Metodologija društvenih nauka. Sarajevo: Svjetlost.
14
�
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Efficiency of Experimental Program for the Parental Instruction for Children
Author
Author
SELIMOVIĆ, Hazim
SELIMOVIĆ, Zehrina
Abstract
A summary of the resource.
Parental instruction in terms of helping children with school activities is very important. For this reason, this paper dealt with theoretical and empirical segment of this problem. In the theoretical part, the concept of parental instruction was defined as well as its importance for the success of the child, the commitment of children to such assistance and the aspects of parental instructions. The objective of study was to investigate the level of parents’ ability to provide instruction to children with school activities and learning. For this purpose, an experimental method was applied (experiment with initial and final measurements with one group). In order to examine the effect of experimental treatment the instrument on parental instruction to children was used. The obtained results provided significant findings that lead us to the conclusion that parents' education can improve their instructions to children in school learning. Keywords: Parental Instruction, Parents, Students.
Publisher
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International Burch University
Date
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2013-05-10
Keywords
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ISSN 978-9958-834-23-3
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https://omeka.ibu.edu.ba/files/original/9b911e90db144c13056ae52fa6ff6160.pdf
e209093da86930f584b0c991386eec4f
PDF Text
Text
International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
A Different Banking Methods and the Developing in the
Turkish Finance Market-Turkish Participation Banking
For 2007-2012
Ferhat Sayım
Yalova University, Yalova, Turkey
f_sayim@hotmail.com
Financial systems and institutions has become the most important reason
in the fragility of world economic system. The formation and development
process of the financial structure also constitutes the infrastructure of the
world economic system. The course of the financial system and
development has led to debate with the financial crisis in 2008-2011. One
of the discussion topics in order to eliminate problems caused by the
conventional banking system is alternative financing systems. In Turkey,
the corporations based on profit share system which are named
participation based banking spotlight, if the alternative banking systems
are considered. These banks which determine different principles in the
risk distribution of the portfolio acquired are analyzed more nowadays.
Participation based banks are placed in almost every regulation related to
banking terms and get their legal infrastructure more stable in the banking
legislation of Turkey.
This study is a 2007-2012 part of research series. We try to find out the
place and the importance of participation based banking with the various
sub-headings especially in Turkey. We examine the comparative review
2007-2012 data of participation banks which Collected Turkish Currency
and Foreign Currency Funds, Bank Loan Funds, Total Assets, Equity and Net
Profit figures for the four participation banks in Turkey. We are comparing
the total figures with deposit banks for the same period.
One of our primary goals in this essay, to study in the framework of the
alternatives of the financial institutions and options. These options could
be asserted as a vibrant and viable well established choice as a nonwestern model- different from the classical western interest based
dominant banking system in the globe. Moreover, that participation
banking systems’ grow and increase with its resourceful bulk of
transactions and shares within the financial market. In addition, we
intended to delineate the basic functioning structures, rules, norms,
principles, procedures, operations of that alternate banking system in the
financial market.
119
�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
After that, we have applied as a descriptive, explanatory, discursive and
comparative analytic methodology to expound the matter in detail. Having
gathered literature reviews then we have concentrated on Turkey as a
model state in that banking system practice; at which, what kind of
instruments and tools used by referring basic indicators, data and
information related to the growth, flourish and share of that sector within
the total banking and financial system in Turkey.
Furthermore, that participation banking system positions, researched in
the country. Thus, it is explicated more concerns on by investigating its
credits, deposits, financing formulation systems and commitments with
the banks, customers and investors of the alternate banking system in the
country’s financial order. At last, we have attempted to clarify and
summarize the concepts, definitions, expositions, demonstrations, rules,
assets, liabilities, equities etc.. by giving special cultural internalizations
about the organizational and operational activities of the participation
banks both similarities and discrepancies, too; so as to draw the attentions
of the new researchers and studies in that situation.
Keywords: Bank, Finance Market, Finance Sector, Participation Bank,
Islamic Bank, Interest Free Banking, Alternative Banking System.
120
�
https://omeka.ibu.edu.ba/files/original/b676294e26a04ac1e9317b2fbc288b39.docx
05d60e3bbc9beb874f2f542c4134b3b2
https://omeka.ibu.edu.ba/files/original/97fcc661c7b6f2190adf5e438534a8d6.pdf
68e1cb931c338c1fd1d9b708cadcefc3
PDF Text
Text
International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
A Different Banking Methods and the Developing in the Turkish Finance
Market-Turkish Participation Banking for 2007-2012
FerhatSayım
Yalova University, Yalova, Turkey
f_sayim@hotmail.com
Abstract
Financial systems and institutions has become the most important reason in the
fragility of world economic system. The formation and development process of the
financial structure also constitutes the infrastructure of the world economic system.
The course of the financial system and development has led to debate with the
financial crisis in 2008-2011. One of the discussion topics in order to eliminate
problems caused by the conventional banking system is alternative financing
systems. In Turkey, the corporations based on profit share system which are named
participation based banking spotlight, if the alternative banking systems are
considered. These banks which determine different principles in the risk distribution
of the portfolio acquired are analyzed more nowadays. Participation based banks
are placed in almost every regulation related to banking terms and get their legal
infrastructure more stable in the banking legislation of Turkey.
This study is a 2007-2012 part of research series. We try to find out the place and
the importance of participation based banking with the various sub-headings
especially in Turkey. We examine the comparative review 2007-2012 data of
participation banks which Collected Turkish Currency and Foreign Currency Funds,
Bank Loan Funds, Total Assets, Equity and Net Profit figures for the four
participation banks in Turkey. We are comparing the total figures with deposit
banks for the same period.
One of our primary goals in this essay, to study in the framework of the alternatives
of the financial institutions and options. These options could be asserted as a vibrant
and viable well established choice as a non-western model- different from the
classical western interest based dominant banking system in the globe. Moreover,
that participation banking systems’ grow and increase with its resourceful bulk of
transactions and shares within the financial market. In addition, we intended to
delineate the basic functioning structures, rules, norms, principles, procedures,
operations of that alternate banking system in the financial market.
After that, we have applied as a descriptive, explanatory, discursive and
comparative analytic methodology to expound the matter in detail. Having gathered
literature reviews then we have concentrated on Turkey as a model state in that
banking system practice; at which, what kind of instruments and tools used by
referring basic indicators, data and information related to the growth, flourish and
share of that sector within the total banking and financial system in Turkey.
Furthermore, that participation banking system positions, researched in the country.
Thus, it is explicated more concerns on by investigating its credits, deposits,
financing formulation systems and commitments with the banks, customers and
investors of the alternate banking system in the country’s financial order. At last,
we have attempted to clarify and summarize the concepts, definitions, expositions,
demonstrations, rules, assets, liabilities, equities etc.. by giving special cultural
1
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
internalizations about the organizational and operational activities of the
participation banks both similarities and discrepancies, too; so as to draw the
attentions of the new researchers and studies in that situation.
Keywords: Bank, Finance Market, Finance Sector, Participation Bank, Islamic
Bank, Interest Free Banking, Alternative Banking System
Introduction
With their former name Private Finance Institutions, or with the new one, Participation
Banks have no authority to collect deposits but receive fund through special current
accounts or profit and loss participation accounts, and utilize fund through methods such as
production support, community of profit and loss, financial leasing, buying and selling
documents against payment. Even if these institutions are having been allowed in Turkey
since 1984, they have been limited in terms of both quantity and scale (Central Bank of
Republic of Turkey, 2005).
The constitution of the legal base for interest free banking in our country is dated as the
end of the year 1983. With the decree dated 16.12.1983 and numbered 83/7506, the
foundation of Private Finance Institutions is laid.
Participation Banks are banks operating in financial sector, financing real economy and
offering banking service. Participation banks collect funds from saving owners, use them
in industrial and trade sectors according to the interest free financing principles and shares
the profit or loss with saving owners. The word “participation” in their name expresses that
this type of banking is based on the principle of participation to profit and loss (The
Participation Banks Association of Turkey-FAQ, 2010).
Participation banks serve as a means of transformation of saving to capital. Proportional to
their advantage of working with a greater number of branches, they also give standard
banking services such as investment consulting, safe deposit box, money transfer service,
giving check book, mediating cash proceeds etc (Battal, 2007, p. 57). Today, variety of
such services given by participation banks is equal or similar to the standards of other
banks.
Now, in this article, we are going to elaborate as the unit of analysis, the Participation
Banks, new financial instruments. In the middle of the first quarter of 21th century, there
has been occurred a World Financial Crises. In fact, that crises mainly influenced the
capitals of the financial center in the West. For those countries which heavily affected by
this financial crises, forced them look for new financial instruments and systems. For that
reason, it leaded to the quest for alternative models, opportunities or proposals.
The fiscal and financial crises, especially in the European Union Member States, it may be
due to of the rigidity of Maastricht Euro criteria, is deepening and deteriorates further. So
we think that it proves the need for searching new sort of financial innovations, techniques
and tools. It is also our modest propositions that might be recorded some theoretical and
practical contributions and amendments to overcome these current troublesome critical
financial problematic.
One of our primary goals in this essay, to study in the framework of the alternatives of the
financial institutions and options. These options could be asserted as a vibrant and viable
well established choice as a non-western model- different from the classical western
interest based dominant banking system in the globe. Moreover, that participation banking
systems’ growth, advancement and increase with its resourceful bulk of transactions and
2
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
shares within the financial market. In addition, we intended to delineate the basic
functioning structures, rules, norms, principles, procedures, operations of the Alternate
banking system in the financial market.
After that, we have applied as a descriptive, explanatory, discursive and comparative
analytic methodology to expound the matter in detail. Having gathered literature reviews
then we have concentrated on Turkey as a model state in that banking system practice; at
which, what kind of instruments and tools used by referring basic indicators, data and
information related to the growth, flourish and share of that sector within the total banking
and financial system in Turkey.
Furthermore, that participation banking system positions has been researched in the
country. Thus, it has been explicated more concerns on how it can be investigated by
mentioning its credits, deposits, financing formulation systems and commitments with the
banks, customers and investors of the alternate banking system in the country’s financial
order. At last, we have attempted to clarify and summarize the concepts, definitions,
expositions, demonstrations, rules, assets, liabilities, equities etc.. by giving special cultural
internalizations about the organizational and operational activities of the participation
banks both similarities and discrepancies, too; so as to draw the attentions of the new
researchers and studies in that situation.
I. Participation Banking in the Literature
Banking methods defined in this system called “Islamic Banking” in the international
literature are methods such as various kinds of project partnership and others based on
prohibition of interest (Moles &Tery, 1999, p. 304). Islamic banks in general referred to
the three types of. (1)Development banks, (2) Islamic banks in special purpose, (3) Islamic
Commercial Banks. Participation banks may categorize in Islamic Commercial Banks
groups (Canbaş&Doğukanlı, 2007, p. 237). Islamic bank works as a trading concern and
financial intermediary to perform interest-free activities purely according to principles of
Sharia’h. It is a welfare organization that promotes business and trade activities by pooling
the financial resources for the sake of profit and loss for mutual benefit (Ahmad,
Humayoun, & Hassan, 2010, p. 8).
Participation or Islamic banks are not institutions peculiar to Turkey. All around the
world, especially in Muslim countries, there are many financial bodies operating according
to a similar system. Even if the system consisting of such kind of institutions operating on
the basis of partnership of profit and loss is known as “interest free banking” or “Islamic
banking” in the world, it is taken first as “special finance house”, and then as “participation
banking” in the Turkish regulations.
The first modern experiment with Islamic banking can be traced to the establishment of the
MitGhamr Savings Bank in Egypt in 1963. During the past four decades, however, Islamic
banking has grown rapidly in terms of size and the number of players. Islamic banking is
currently practiced in more than 50 countries worldwide. In Iran, Pakistan, and Sudan, only
Islamic banking is allowed. In other countries, such as Bangladesh, Egypt, Indonesia,
Jordan and Malaysia, Islamic banking co-exists with conventional banking. Islamic
banking, moreover, is not limited to Islamic countries (Chong & Liu, 2009, s. 125-126).
But, when we look at the books of financial institutions generally we can’t see these
institutions among the financial institutions (Rose & Marquis, 2009). (Burton, Nasiba, &
Brown, 2009) (Mishkin& Eakins, 2009) On the other hand Islamic banks’ ability to
withstand the global downturn has fuelled an expansion of Islamic finance around the
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
world. Islamic banks have learned that customer loyalty and brand loyalty must be earned
(Omar & Ali, 2010, p. 25).
The Islamic banking and finance systems in West will continue to grow in areas like
Sukuk, Takaful, hedging funds, mutual funds, equity & asset management, corporate
finance, wealth and asset management. These high street banks are far more accessible and
popular, and all offer similar services. The main reason for the struggle is that, the Islamic
bank is introducing an entirely new banking model into a country that has been built
around an existing banking system that has been around for a long time (Malik & Malik,
2011, p. 184).
Related Legal Regulations in Turkey
Generally six types of regulations seek to enhance the net social benefits of commercial
banks services to the economy(1)safety and soundness regulation, (2)monetary policy
regulation, (3)credit allocation regulation, (4)consumer protection regulation, (5)investor
protection regulation and (6) entry and chartering regulation (Saunders & Cornett,
Financial Markets and Institutions, 2004, p. 379). We will deal with some of these
regulations in this study for Turkey.
Deposit banks, participation banks, development and investment banks, branches of
foreign banks, financial holding firms in Turkey, The Banks Association of Turkey (BAT
– TürkiyeBankalarBirliği), The Participation Banks Association of Turkey (PBAT –
TürkiyeKatılımBankalarıBirliği), Banking Regulation and Supervision Agency (BRSA –
BankacılıkDüzenlemeveDenetlemeKurumu-BDDK), Savings Insurance Deposit Fund
(SIDF – TasarrufMevduatıSigortaFonu-TMSF) and their activities are regulated by the
mentioned Banking Act. With the condition that the provisions of the related law are also
valid for the banks founded according to special acts, the provisions of the Banking Act are
applied. In case of absence of related provisions in the special act, general provisions are
applied (Banking Act no. 5411, article 2).
Participation banks are supervised by Banking Regulation and Supervision Agency
(BRSA). In 2004, the Uniform Chart of Account was formed for participation banks, and
these institutions began bookkeeping as other banks, in accordance with the mentioned
chart of account (Central Bank of Republic of Turkey, 2005).
Definitions Regarding Participation Banks in the Banking Act
In the 3rd article of the Banking Act no. 5411, there are important definitions showing
differences and similarities between participation banks and other banks. According to
these definitions, both deposit banks and participation banks consist two lower members of
the higher definition of “Loan Institution”. There are also two banks associations defined
in the Banking Act, one of which is the Participation Banks Association of Turkey, and
other is the Banks Association of Turkey with a more widespread structuring.
The definition of “bank” in the Banking Act includes 3 types of banks. These are:
Deposit bank: Institutions operating mainly by accepting deposit and utilizing loan in
accordance with the Act in the name and account of itself, and branches in Turkey of such
foreign institutions,
Participation bank: Institutions operating mainly by collecting funds through special
current accounts and participation accounts and utilizing loan in accordance with the Act in
the name and account of itself, and branches in Turkey of such foreign institutions, and
Development and investment bank: Institutions operating mainly by utilizing loan rather
than accepting deposit or participation funds, in accordance with the Act in the name and
account of itself, and branches in Turkey of such foreign institutions.
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Permission for Foundation or Branch and Office Establishment (Subsidiary) in
Turkey
According to the 6th article of the Act no. 5411, the foundation of a bank in Turkey or the
first branch establishment in Turkey of a foreign bank, is allowed with the condition that it
is in accordance with the conditions proposed in the Act, and with decision taken through
positive votes of at least 5 members of BRSA. Allowance applications and principles
regarding to this allowance is determined by the regulations published by BRSA.
Conditions of Foundation
According to the 7th article of the Act, the main conditions for the foundation of a bank in
Turkey are as follows:
a) It has to be founded as an incorporated company,
b) Stocks have to be issued in against cash reserve and all has be written in the title,
c) Founders has to have the qualities defined in the Act,
d) Board members has to have the qualities defined in the Act and to have professional
experience in order to be able to realize planned operations,
e) Proposed subjects of operation have to be in accordance with planned structure of
finance, management and organization,
f) Its issued capital free of every kind of collusion and in cash has to be at least 30
million New Turkish Lira,
g) Its founding charter has to be in accordance with provisions of the Act.
In addition, it has not so complex structure of organization and partnership which would
prevent supervision, and plans regarding proposed operation objects and structures
regarding internal organization have to be designed in a realist manner.
Provisions Regarding Loans
Participation banks are subject to strict provisions of the Banking Act regarding loan and
loan limitations. At the end of the detailed definition of “loan” in the 48th article, in the
second paragraph, fund utilization styles peculiar to participation banks are mentioned to
be seen as loan in the implementation of the Act:
(…) funding obtained by participation banks through payments of prices of movable and
immovable possessions and services, or through methods such as profit and loss
partnership investments; supply of immovable, equipment or commodity; or financial rent;
funding of documents against payment, joint investments and so on are accepted as loan
(…)
Loan Limitations
The quality of loans in the assets of the banks is very significant in terms of building
banking system on a sound basis and operating with sound balance sheets. The motive
behind the Banking Act and regulations made by BRSA is the prevention of these bank
owners utilizes collected funds in too risky operation fields or in their own group
companies with disregard of objective evaluation. In order to achieve this goal, the
Banking Act puts some limitations on the distribution of loans and proposes severe penal
sanctions in case of violation. These limitations are valid also for participation banks.
These are shown below in general terms.
Total loans utilized by a natural entity or a legal entity or by a risk group cannot exceed 25
% of equities. (There are some exceptional cases in which different rates are implicated.)…
Loans given to an ordinary partnership are assumed to be given to partners proportional to
their responsibilities.
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Loans utilized by all partners registered in the stock register holding 1 % or more of the
bansk’s capital and entities consisting risk group with them cannot exceed 50 % of
equities.
Loans utilized by partnerships controlled jointly are assumed to be utilized by the risk
group which includes every shareholder controlling the partnership jointly proportional to
the rate of its share within the partnership capital to the total share controlled jointly.
Loans utilized by a natural entity or a legal entity or by a risk group and equaling or
exceeding 10 % of equities are assumed to be “great loan”. Total great loans cannot exceed
8-multiple of the equities. (…) When elements of the same risk group risk is included in
the assurance of a risk group’s loans, topics such as how calculations will be made and
how assurance elements with guarantee of country’s central government are mentioned in
the Act (Banking Act no. 5411, article 54).
Operations without Loan Limitations
Furthermore, the 55th article mentions operations which are outside of loan limitations.
Ones of these which are thought to be related to participation banks are listed below.
BRSA can made additions to these operation types.
a) Operations paid in cash, values and accounts similar to cash, and precious metals.
b) In case of allocation of a new loan to the same entity or same risk group, with the
condition of that loans given before in foreign currency or in unit of foreign
currency are considered in current exchange rate as of the date when the following
loan begins to be utilized, with the exception of use of check book or credit card,
increases of loans stemming from change of exchange rate, and interest, profit
share and other elements settled to overdue loans.
c) Partnership shares obtained free because of every kind of capital increases and
value increases of partnership shares which does not require any fund going out.
d) Operations between banks according to the principles determined by the Council.
e) Partnership shares obtained in scope of undertaking of mediating public offer.
f) Operations considered as discount value in the account of equity.
Participation Banks Founded in Turkey
Special finance houses adopted by Turkish society in short time showed a rapid
improvement in terms of collected funds, volume of work and project capacities. These
finance institutions are:
AlbarakaTürk Special Finance Institution Inc.: The first finance institution of interest free
banking in Turkey, AlbarakaTürk Participation Bank, finished its foundation in 1984, and
began its operations as of the beginning of 1985. Its name is still AlbarakaTürk
Participation Bank. (AlbarakaTürk – About Us, 2010)
KuveytTürkEvkaf Finance Institution Inc.: KuveytTürk, founded in 1989 at the status of
Special Finance Institution, changed its name in May 2006 as KuveytTürk Participation
Bank Inc (The History of KuveytTürk, 2010).
Anadolu Finance Institution Inc.: It began its operations in 1991 in Ankara. It is founded
with domestic capital.
Faisal Finance Institution Inc.: Founded in 1985. In 2001, Faisal Finance Institution Inc. It
has been taken over by ÜlkerGroup, its trade name was changed to Family Finance
Institution Inc. In 2005, Anadolu Finance Institution Inc. and Family Finance Institution
Inc. merged under the name of Türkiye Finance Participation Bank Inc.
İhlas Finance Institution Inc: Founded in 1995. As a result of the 2001 economic crisis, it
went on bankrupt and its official authorization has been cancelled. That bank still has been
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
in liquidation, since 2001. We should underline the fact that the bankruptcy of this finance
bank negatively influenced the other participation banks, too.
Asya Finance Institution Inc: Founded in 1996. After the Act no. 5411 came into effect, its
name has been changed to Bank Asya Participation Bank.
After the Banking Act no. 5411 accepted on October 19, 2005 and published in the Official
Journal on November 1, 2005, the name “Private Finance Institutions” has been changed to
“Participation Banks”. And the name “Private Finance Institutions Association” has been
changed to “Participation Banks Association of Turkey” which has also created their own
insurance funds so as to prevent their depositors’ loss; because of any of its member’s
probability of bankruptcy at which they could compensate similar to other banks. This
insurance include some limits like deposit banks insurance.
Participation banks operating today among the institutions mentioned above are
AlbarakaTürk Participation Bank Inc., KuveytTürk Participation Bank Inc., Asya
Participation Bank Inc. and TürkiyeFinans Participation Bank Inc.
II.
Methods of Fund Collection
These organizations collect funds in the form of sharing accounts or current accounts to
operate independently within each maturity group (Parasız, 2009, p. 251). Main items of
liability side in the balance sheet of all firms consist of equity capital and loan capital.
Equities are funds given by partners as capital or profit which is not distributed etc. These
express resources belonging to the capital owners. However the share of equity item within
the total capital is not so high in finance institutions and especially in banks in comparison
to other businesses. It can be read as follows: An important part of resources of banks
consist of loan capital. Because of the banking system is based on this. Bank or
participation bank transforms funds collected from real or legal entities to loan. And the
collected funds are naturally loan capital. Therefore, the growth of a bank depends on that
it collects funds as much as possible in order to be able to give loan as much as possible. In
deposit banks, fund collection is mostly realized through promise of interest. However
participation banks cannot promise any future interest which would mean a predefined
return.
Participation banks collect funds mainly through three ways below. In addition to them,
there are also investment accounts based on gold or precious metals.
Current Account
Current accounts are funds which belong to physical or legal entities, money in which can
be withdrawn every time partly or totally, and which don’t pay any interest or profit to
their holders. These accounts are similar to checking accounts in interest banks. Account
holders open current account to be free of trouble to protect their money against theft, loss
etc., and have opportunity to keep their money in a safe place. They also use services
provided by their bank such as use of commercial check book, Money transfer, collection
of check and bills. With the help of these accounts, services are provided such as payment
and so on, parallel to needs of commercial and daily life. Therefore, these accounts which
are mostly dynamic are not proper to bring return and to promise interest. However banks
can use these capitals as equity capital after determining average amounts held in these
accounts and keeping the needed reserves.
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Participation Accounts
Participation accounts are funds of interest free banks which belong to physical or legal
entities, money in which is deposited as Turkish Lira or foreign currency against contract
of profit/loss participation account, and which result in profit/loss participation. Interest
free banks pay amount of balance equivalent to unit account value to the account holder
according to the state of profit/loss. Payees of interest free banks have no right to demand
anything from funds accumulated in these funds (Akın, 1986, pp. 288-299). Returns
remaining back from the funds deposited by participation account holders are distributed to
account holders after deduction of losses stemming from returns obtained from funds
utilized in pools constituted after certain criteria are handled such as their fixed terms and
deposit date. When these returns are distributed, certain shares of these returns are hold by
participation banks as management share.
Special Fund Pools
Participation Banks, according to the 60th article 7th paragraph of the Banking Act, can
create special fund account pools for 3 or more months by collecting funds in private
accounts in order to be utilized for financing planned projects or other investments, without
the necessity of adhering time or types determined by the Central Bank of the Republic of
Turkey. Participation accounts belonging to funds collected in this manner are operated in
different accounts independent from other accounts and with different time. No transfer is
allowed from the collected funds to other period groups. The related authority or institution
has to be informed in 15 days after opening or closing dates, regarding special fund pools.
At the end of the period of funding, special fund pools get closed**.
III.
Fund Utilization Methods
Banking activity is mainly not a sector of trade of goods and service. This sector is a
service sector. With its operations, it is a sector aiming to utilize fund surplus – collected
from entities which have no opportunity or ability to use funds in their hands – for paving
the way for operations based on commercial activities, and to take a share from the added
value created. Therefore funds collected in order to create added value have surely to be
used for production of goods and service. Otherwise, it is obvious that money etc. held in
lockboxes would not increase where they stay, and not create added value. The most
important difference of participation banks is that they prohibit for themselves certain
methods of fund utilization and certain sectors used by other banks when utilizing
collected funds.
Fund Utilization Methods based on Commerce
The main fund utilization methods of participation banks can be listed under two titles: The
first of them is Fund Utilization Methods based on Commerce. Also deposit banks can use
these types of financing. However there are some points in certain procedures such as
handover of money which participation banks pay more attention. The important points
here are that it has to be an operation necessarily based on trade of goods or service, and
that payment to be made has to be delivered to the firm which sells the goods.
**Published in OfficialJournalno. 26333. Banking
BankacılıkDüzenlemeveDenetlemeKurumu (BDDK), article 7, 2006
8
Regulation
and
Supervision
Agency
(BRSA)
/
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Private Funding Support
Participation bank pays the price of goods or services – bought by real entities directly
from sellers for personal needs such as vehicle and apartment – in the name of the
customer to the seller, with the condition of not to be used in funding of commercial
activities, and in return the buyer is charged with a debt (The Participation Banks
Association of Turkey, 2008).
Financial Rent
In the operation which is called “leasing” today, the person who wants to buy a good
demands that this good is bought by the participation bank and rent to this person after the
agreement between this person and the participation bank. However it is decided the
customer of the participation bank will be the owner of that good after a certain period of
rent and of paying rents. In this way, the good with financial renting is used by the
customer demanding financial renting, and is owned by the bank. At the end of rent period,
the ownership is handed over. As investment banks, also participation banks can realize
financial renting operations without founding a separate company.
Murabaha: (Installment Sale)
Murabaha used in banking is sale of goods with an order of sale in which payment is made
some time after delivery of the goods transacted. A customer and a bank sign a precontract which proposes that the customer buys a good from the bank. After the contract,
upon the customer’s written demand, the bank buys the mentioned good in cash from the
seller, and sells it to its customer in accordance with the conditions agreed upon before
(Akın, 1986, p. 159). So, participation bank mediates trade, buys the good from the seller
in cash, and sells to its customer for the account.
Fund Utilization through Profit and Loss Partnership Method
Mudaraba: (Venture Capital)
Mudaraba is a method of fund utilization used by interest free banks very commonly. One
party gives its labor, know-how and experience (entrepreneur), and the other party gives
capital (interest free bank). In this method, real and legal entities present their applicable
projects to the bank. The manager accepted and funded by the bank is called “mudarib”,
and the person or institution funding or supporting the project is called “Rabbul-mal”.
After signing a contract with the mudarib, Rabbul-mal (interest free bank) has to keep
ready the amount of capital mentioned in the contract, in accordance with mudarib’s
demand. Other than conditions mentioned in the contract, bank has no authority to interfere
in transactions realized by the project owner. However in case of emergence of danger of
loss because of unplanned and irregular work, the bank can make some initiatives in order
to prevent loss. Normally, it can control accounts every time, and demand all formal and
informal bookings. Profit obtained at the end of mudaraba operation is shared among
Rabbul-Mal guaranteeing funding and mudarib using fund according to the proportion
determined before. In case of any loss, this loss is met by Rabbul-mal (Küçükkocaoğlu,
2010, p. 8).
Muşareke: (Joint Capital Partnership or Capital Invesment)
Muşareke is called “şirketu’l-İnan” in the Islamic Law. While One party, i.e. bank, gives
capital, and the other party, i.e. real or legal body demanding fund, gives labor in the
mudaraba contract, both of these two parties put forward both their labor and capital in
muşareke contract. One or more of participants of partnership realize the work, and every
partner included ones which does not take part in the work too deserves a certain right
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
according to the rate agreed before. Even if capitals are the same, profit shares can be
different, or vice versa. The finance method called muşareke is applied in following
manner: Islam Bank takes the responsibility to provide a part of the capital which is
demanded by its customer as its partner. And the customer provides the rest of project
capital due to its own financial opportunities and the qualification of the project. The
customer takes the responsibility of management, control and monitoring of the financial
aid because of its expertise. Taking these responsibilities, the customer deserves to take a
bigger share of the profit (Küçükkocaoğlu, 2010, p. 10).
SelemSale: (Current Sale of Future Delivery Goods or Future Markets and Sales)
“Selem sale” means buying a good on account with another good bought or sold in cash.
The bank buys a good by paying its price in cash which is going to be delivered to the bank
in a future date agreed upon in the contract between the bank and the seller. A different
style of selem sale, as in funding purchase of building, machinery and equipment, can be
used also in purchase of consumer durables in case of that conditions are proper in terms of
economy. In other words, this finance technique can be used in order to fund industry,
trade and agriculture (Akın, 1986, p. 163).
According to another definition, selem is the sale activity which is made with money in
cash and goods on account. In selem, type, quality, amount, price, delivery place and date
of the product have to be determined in the contract. With the help of selem, goods which
will be produced in a future date are sold, and the needed money is obtained. On the other
hand, customer buys a good which it will need in a future date. So, both parties meet their
needs without using interest (Yılmaz, 2010, p. 14). For example, a farmer which needs
money is supported by the bank in terms of capital, and the bank sells the yield in the
market.
Documents against Payment
This type of fund utilization method is used for funding of foreign trade. According to the
contract signed between participation bank and the party using fund, the participation
banks buy documents against payment in cash, and sells to one using fund on account with
a higher price. This type of finance technique is mainly based on the method of murabaha
(forward sale) (Akın, 1986, p. 290). However, methods and documents used in foreign
trade gain importance at that point. Documents are used in foreign trade especially in
operations of documented credit. They are documents which assure importer’s custom
clearance of goods sent by exporter. Therefore, these documents which make possible that
goods entering in customs in the country of exporter are delivered by customs authorities
are undertake the ownership of goods as documents with status of valuable papers.
It means that a participation bank buys goods abroad in the name of its customer who gave
him order, and sells them to its customer.
IV.
Personnel and Branch Structure of Participation Banks
Growth of Branch Numbers
As of the end of 2012, the number of deposit banks founded in Turkey is 32. While 3 of
them are based on public capital, 12 of them are based on domestic private capital, and 16
of them are based on foreign private capital, 1 of them belongs to SIDF. Additionally, there
are 13 development and investment banks founded in Turkey. When we take also 4
participation banks into consideration, it is seen that the number of banks in Turkey
reaches to 49.
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
The number of branches of deposit banks was 7.570 in 2007, and reached to 10.234 with
an increase of 35, 2 % as of the end of 2012. The number of branches of participation
banks was 422 in 2007, and reached to 828 with an increase of 96, 2 % as of the end of
2012.
3 public banks and 1 SIDF bank excluded, each of 28 private deposit banks has average
254 branches, and each of 4 participation banks has average 207 branches. Looking at the
growth rates of the number of their branches from 2007 to 2012, it is seen that the growth
rate of branches of participation banks is almost three times more than deposit banks. The
table below shows the position of participation banks within themselves.
Table 1 Growth of Branch Numbers, 2007-2012
END OF YEAR
ALBARAKA
TÜRK
BANK
ASYA
KUVEYT
TÜRK
TÜRKİYE
FİNANS
TOTAL
SUM
Average 2007-2012
2012
2011
2010
2009
2008
2007
108
137
123
109
101
100
80
174
250
200
175
158
143
118
144
221
180
141
121
113
87
179
220
182
182
180
174
137
605
828
685
607
560
530
422
Table 1/b Increase Rate from Previous Year at Branch Numbers, 2007-2012
END OF YEAR
ALBARAKA
TÜRK
14%
BANK
ASYA
19%
KUVEYT
TÜRK
19%
TÜRKİYE
FİNANS
11%
Increase Rate From
Prev.Year Total Sum
15%
Average
20072012
2012
11%
25%
23%
21%
21%
2011
13%
14%
28%
0%
13%
2010
8%
11%
17%
1%
8%
2009
1%
10%
7%
3%
6%
2008
25%
21%
30%
27%
26%
2007
27%
30%
10%
12%
19%
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13).
Growth of Personnel Number
As of the end of 2012, totally, 201.454 employees are employed in the banking sector in
Turkey. Personnel number of deposit banks was 153.212 in 2007, and reached to 181.197
with an increase of 18,3 % as of the end of 2012. The number of personnel of participation
banks was 9.215 in 2007, and reached to 15.356 with an increase of 66,4 % as of the end
of 2012. Looking at the growth rates of the number of their personnel from 2007 to 2012, it
is seen that the growth rate of personnel of participation banks is almost four times more
than deposit banks
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Table 2Employments in the Banking Sector, 2007-2012
2007
2008
2009
2010
2011
2012
Participation Banks
15.356
9.215
11.032
11.802
12.703
13.857
Deposit banks
153.212 166.325 167.063 173.133 176.576 181.197
>Public banks
41.056
43.333
44.856
47.235
50.239
51.587
>Private banks
75.124
82.158
82.270
83.633
89.047
90.612
>Fund banks
325
267
261
252
243
226
>Foreign banks
36.707
40.567
39.676
42.013
37.047
38.772
Development and investment 5.322
4.901
5.273
5.339
5.370
4.842
banks
Total
172.391 182.630 184.204 191.206 195.275 201.454
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 201213) (PBAT, The Participation Banks Association of Turkey, 2012-13).
As of the end of 2012 (December 2012), the average personnel number for branch in
participation banks is as follows:
Bank
AlbarakaTürk
Bank Asya
KuveytTürk
TürkiyeFinans
Total Sum
Deposit Banks
Total
Personnel
No./Branch No.
2012(2.758/137)
2012(5.064/250)
2012(3.939/221)
2012(3.595/220)
2012(15.356/828)
2012(181.197/10.192)
Average Personnel No. Average Personnel
for Branch 2011
No. for Branch 2012
21,1
20,1
22,7
20,3
18,5
17,8
18,6
16,3
20,2
18,5
18,0
17,8
Actually, Bank Asya Participation Bank has the biggest personnel number and average
personnel number. Apart from Bank Asya, Albaraka’s average is high. In deposit banks,
average personnel number reached by dividing the total personnel number to the branch
number is 18 in the end of 2011. The same average is 20,2 in participation banks. This
means that participation banks employ 12 % more employees for branch than deposit
banks for 2011. But both of them is equal almost in the end of 2012. The average personal
decreased in the end 2012 for participation banks. Rapidly increase in the brunch number
seems the cause of the decrease for average brunch personnel number.
Table 3/a Growth of Personnel Number (Participation Banks), 2007-2012
End of year
Albaraka
Turk
Bank Asya
Kuveyt
Turk
Türkiye
finance
Total sum
Average 2007-2012 2.124
4.181
2.767
3.254
12.326
2012
2.758
5.064
3.939
3.595
15.356
2011
2.601
4.548
3.326
3.382
13.857
2010
2.175
4.266
2.850
3.403
12.694
2009
1.935
4.074
2.447
3.346
11.802
2008
1.796
3.806
2.245
3.185
11.032
2007
1.481
3.329
1.794
2.611
9.215
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13).
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Table 3/b Increase Rate from Previous Year at Personnel Number (Participation Banks),
2007-2012
End of year
Albaraka
Turk
Bank
Asya
KuveytTurk
Türkiyefinance
Average20072012
2012
2011
2010
2009
2008
2007
16%
14%
19%
9%
Increase rate
from
prev.yeartotal
sum
14%
6%
20%
12%
8%
21%
28%
11%
7%
5%
7%
14%
40%
18%
17%
16%
9%
25%
29%
6%
-1%
2%
5%
22%
19%
11%
9%
8%
7%
20%
30%
V. Evaluation of Sectorial Quantitative Data
Turkish Currency Funds
Participation banks showed a quite better performance as of the end of 2012 compared to
2007 in funds of Turkish currency. As of the end of 2012, deposits of Turkish currency
reached to approximately 29 billion Turkish Lira after an increase of 265 %.Among
participation banks, Bank Asya has the biggest fund of Turkish currency. But highest
average grown rate owner is Kuveyt Turk. The second high performance belongs to the
AlbarakaTürk.
Table 4 Collected Turkish Currency Funds in Participation Banks, 2007-2012 (1000TL)
END
YEAR
OF ALBARAKA
TÜRK
Average
2007-2012
2012
2011
2010
2009
2008
2007
BANK
ASYA
KUVEYT TÜRKİYE
TÜRK
FİNANS
TOTAL
SUM
3.586.632 6.143.803
3.819.808
4.980.901 18.531.143
5.535.572
4.797.751
4.358.934
3.290.809
2.029.617
1.507.109
6.768.530
5.215.357
4.496.126
2.987.415
2.111.414
1.340.003
7.444.772
6.233.354
5.712.662
4.660.035
3.300.252
2.534.330
9.241.391
7.813.463
7.662.288
5.979.825
3.603.487
2.562.363
28.990.265
24.059.925
22.230.010
16.918.084
11.044.770
7.943.805
Table 4/b Increase Rate from Previous Year at Collected Turkish Currency Funds in Participation
Banks, 2007-2012 (1000TL)
END OF YEAR
ALBARAKA
TÜRK
BANK
ASYA
KUVEYT
TÜRK
TÜRKİYE
FİNANS
Increase Rate
From Prev.Year
Total Sum
34%
Average 200736%
35%
41%
28%
2012
2012
15%
18%
30%
19%
20%
2011
10%
2%
16%
9%
8%
2010
32%
28%
51%
23%
31%
2009
62%
66%
41%
41%
53%
2008
35%
41%
58%
30%
39%
2007
60%
56%
48%
44%
51%
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13).
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�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Foreign Currency Funds, 2007-2012
Table 5/aForeign Currency Funds, 2007-2012 (1.000TL)
END OF YEAR
Average 2007-2012
2012
2011
2010
2009
2008
2007
ALBARAKA
TÜRK
2.513.238
3.689.446
3.246.996
2.522.656
2.173.836
1.955.493
1.490.999
BANK
ASYA
3.686.636
6.500.467
4.583.580
3.504.294
3.156.753
2.239.334
2.135.387
KUVEYT
TÜRK
3.248.656
5.986.513
4.702.970
2.885.347
2.370.842
1.957.958
1.588.305
TÜRKİYE
FİNANS
2.660.856
3.984.764
3.275.811
2.685.234
2.222.455
2.012.296
1.784.575
TOTAL
SUM
12.109.385
20.161.190
15.809.357
11.597.531
9.923.886
8.165.081
6.999.266
Table 5/b Increase Rate from Previous Year at Foreign Currency Funds, 2007-2012 (1.000TL)
END OF YEAR
ALBARAKA
TÜRK
21%
BANK
ASYA
28%
KUVEYT
TÜRK
28%
TÜRKİYE
FİNANS
15%
Increase Rate From
Prev.Year Total Sum
23%
Average 20072012
2012
14%
42%
27%
22%
28%
2011
29%
31%
63%
22%
36%
2010
16%
11%
22%
21%
17%
2009
11%
41%
21%
10%
22%
2008
31%
5%
23%
13%
17%
2007
23%
37%
9%
2%
17%
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13).
The case in foreign currency funds is some different. Among participation banks, Bank
Asya has the biggest fund and the highest increase of performance of foreign currency in
2012. KuveytTürk and Bank Asya have the highest average growing rate in the foreign
funds. The second participant bank is KuveytTürk. As of the end of 2012, Foreign
currency deposits of participation banks reached to approximately 20 billion Turkish Liras
after an increase of 188 % compared to the end of 2007.
Total Funds Collected, 2007-2012
Bank Asya is the leading participation bank with an amount of 15.7 billion Turkish Lira; In
terms of total funds collected as the end of 2012. KuveytTürk, TürkiyeFinans and
AlbarakaTürk follow Bank Asya respectively. As of the end of 2012, total funds collected
by participation banks reached to approximately 49 billion Turkish Lira, after an increase
of 229 % compared to the end of 2007. Figures of deposit banks and participation banks
are shown below which facilitates to make a comparative analysis between them.
Table 6 Total Funds Collected, 2007-2012 (1000TL)
END OF YEAR
Average 2007-2012
2012
2011
2010
2009
2008
2007
ALBARAKA
TÜRK
6.099.870
9.225.018
8.044.747
6.881.590
5.464.645
3.985.110
2.998.108
BANK
ASYA
9.830.439
15.741.858
12.397.043
11.166.582
9.136.578
5.842.821
4.697.750
14
KUVEYT
TÜRK
7.068.463
12.755.043
9.918.327
7.381.473
5.358.257
4.069.372
2.928.308
TÜRKİYE
FİNANS
7.641.757
11.429.536
9.509.165
8.397.896
6.882.490
5.312.548
4.318.905
TOTAL
SUM
30.640.528
49.151.455
39.869.282
33.827.541
26.841.970
19.209.851
14.943.071
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Table 6/b Increase Rate from Previous Year at Total Funds Collected, 2007-2011 (1000TL)
ALBARAKA BANK KUVEYT TÜRKİYE
Increase Rate From
TÜRK
ASYA
TÜRK
FİNANS
Prev.Year Total Sum
Average 2007-2012
28%
31%
33%
22%
28%
2012
15%
27%
29%
20%
23%
2011
17%
11%
34%
13%
18%
2010
26%
22%
38%
22%
26%
2009
37%
56%
32%
30%
40%
2008
33%
24%
39%
23%
29%
2007
39%
47%
24%
23%
33%
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13).
END OF YEAR
Among participation banks, KuveytTürk has the highest increase rate for total funds in
2012, 2011 and 2010. The second bank is Bank Asya in the same 2012. KuveytTürk also
has the highest average growing rate in the foreign funds with Bank Asya. The second
participant bank is Bank Asya in the average rates.
Table 7 Fund Distributions of Participation and Deposit Banks, 2007-2012 (Million TL)
2007
2008
2009
2010
2011
2012
2007-2012
Inc. Rate
Deposit Banks
356.984 453.485 507.258 614.681 656.276 708.079
%98
Participation Banks
14.943
19.210
26.842
33.828
39.869
49.151
%229
Deposit+Participation B. 371.927 472.695 534.100 648.509 696.145 757.230
%104
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012-13) (PBAT, The Participation Banks Association of Turkey, 2012-13).
Table 8 Total Deposits in Deposit Banks, 2007-2012 (Million TL)
Year
2007
2008
2009
2010
2011
2012*
Total 1000TL
356.983.744
453.484.686
507.258.479
614.680.785
656.276.000
708.079.178
27
12
21
7
8
Inc. Rate
When figures are compared as of the end of 2007 and 2011, it is seen that participation
banks have two times bigger percentage of increase than deposit banks on the percentage
basis in terms of rate of increase. Participation banks taken into account, total fund +
deposit in Turkey reaches 696 billion TL as of the end of 2011.
Funds Utilized, 2007-2012
Increase rate of loan-fund utilization from the end of 2007 to the end of 2012 of
participation banks higher than deposit bank’s rate. They are 226% and 166**%
respectively.
Bank Asya is the leading participation bank with an amount of 16.1 billion Turkish Lira; In
terms of funds utilized as the end of 2012. TürkiyeFinans, KuveytTürk and AlbarakaTürk
*
This Figure Strong Estimate. Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. (Exact
figures will publish in the middle of May by BAT)
**
Very Strong Estimate. Deposit Banks 2012 Exact Figures will Publish in the Middle of May by BAT. This
Figure Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures.
15
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
follow Bank Asya respectively. It is seen that Bank Asya has the highest average increase
rate for last six years. The second performance is belonging to KuveytTürk.
Table 9/a Funds Utilized by Participation Banks 2007-2012 (1000TL)
END OF YEAR
Average 2007-2012
2012
2011
2010
2009
2008
2007
ALBARAKA
TÜRK
5.644.337
9.075.183
7.273.906
6.269.485
4.675.617
3.716.977
2.854.852
BANK
ASYA
9.871.255
16.085.168
13.141.380
10.916.732
8.221.427
6.253.160
4.609.665
KUVEYT
TÜRK
6.916.123
11.848.419
10.360.917
6.984.989
4.904.932
4.237.341
3.160.138
TÜRKİYE
FİNANS
8.092.604
12.971.058
10.327.232
7.913.437
7.109.233
5.526.380
4.708.285
TOTAL
SUM
30.524.319
49.979.828
41.103.435
32.084.643
24.911.209
19.733.858
15.332.940
Table9/b Increase Rate from Previous Year at Funds Utilized by Participation Banks 2007-2012
END OF
YEAR
ALBARAKA
TÜRK
BANK
ASYA
KUVEYT
TÜRK
TÜRKİYE
FİNANS
Increase Rate From
Prev.Year Total
Sum
26%
Average 200728%
37%
36%
23%
2012
2012
16%
48%
28%
0%
0%
2011
16%
20%
48%
31%
28%
2010
34%
33%
42%
11%
29%
2009
26%
31%
16%
29%
26%
2008
30%
36%
34%
17%
29%
2007
44%
51%
47%
49%
46%
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012-2013) (PBAT, The Participation Banks Association of Turkey, 2012-2013).
Growth of Net Profit
Table10/aGrowth of Net Profit, 2007-2012 (1000TL)
END OF YEAR
Average 2007-2012
2012
2011
2010
2009
2008
2007
ALBARAKA
TÜRK
135.655
191.835
160.870
134.379
105.626
136.242
84.979
BANK
ASYA
239.265
190.392
216.090
259.962
301.281
246.529
221.337
KUVEYT
TÜRK
151.698
250.156
195.042
159.648
127.133
104.086
74.123
TÜRKİYE
FİNANS
199.942
283.573
231.587
205.529
171.388
160.633
146.943
TOTAL SUM
726.561
915.956
803.589
759.518
705.428
647.490
527.382
Table 10/b Increase Rate from Previous Year at Net Profit, 2007-2012 (1000TL)
ALBARAKA BANK KUVEYT TÜRKİYE Increase Rate From
TÜRK
ASYA
TÜRK
FİNANS
Prev.Year Total Sum
Average 2007-2012
21%
7%
41%
13%
16%
2012
19%
-12%
28%
22%
14%
2011
20%
-17%
22%
13%
6%
2010
27%
-14%
26%
20%
8%
2009
-22%
22%
22%
7%
9%
2008
60%
11%
40%
9%
23%
2007
22%
51%
105%
5%
35%
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012).
END OF YEAR
16
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Looking at deposit banks for the 2007-2012 periods, their profit increased by %71 from
2007 to 2012, and reached to 23 billion TL in 2012. Increase rate of participant banks total
net profit is %74 from the end of 2007 to the end of 2012. The rate of participation bank’s
is a little higher than deposit banks. In terms of average profit per bank, deposit banks have
too high figures compared to participation banks naturally. However it is also obvious that
average scales, branch numbers and history of deposit banks are above participation banks.
TürkiyeFinans has the biggest share in total profitability of total participating banks at the
end of 2011. Bank Asya, KuveytTürk and Al Baraka follow it respectively. Furthermore,
KuveytTürk has the highest average net profit increase rate among the others. KuveytTürk
has more stable rates at the last six years.
Year
Table11 Net Profit/Loss of Deposit Banks for the Year, 2007-2012
2007
2008
2009
2010
2011
2012*
Total
Inc.Rate
13.467.940 11.851.867 18.489.700 20.518.216 19.849.000 23.064.743
16,2
-12
56
11
-3
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012).
Growth of Asset (Equity Capital)
Looking at the table regarding the equity capital growth, it is seen that participation banks
increased their equity in 2012 212% according to the 2007. Looking at deposit banks for
the 2007-2012 periods, their equity capital increased by 129 % from 2007 to 2012.
Table12/aGrowth of Equity Capital, 2007-2012 (1000TL)
END OF YEAR
Average 2007-2012
2012
2011
2010
2009
2008
2007
ALBARAKA
TÜRK
826.295
1.218.333
1.004.251
852.635
710.666
638.102
533.780
BANK
ASYA
KUVEYT
TÜRK
TÜRKİYE
FİNANS
1.732.301
2.349.273
2.137.426
1.941.667
1.707.894
1.403.692
853.856
1.043.379
1.684.037
1.437.978
1.256.685
807.312
685.679
388.583
1.321.276
2.125.162
1.613.659
1.406.096
1.193.692
1.001.456
587.592
TOTAL
SUM
4.923.251
7.376.805
6.193.314
5.457.083
4.419.564
3.728.929
2.363.811
Table 12/b Increase Rate from Previous Year at Equity Capital, 2007-2012 (1.000TL)
ALBARAKA BANK KUVEYT TÜRKİYE Increase Rate From
TÜRK
ASYA
TÜRK
FİNANS Prev.Year Total Sum
Average 2007-2012
35%
26%
39%
31%
31%
2012
21%
10%
17%
32%
19%
2011
18%
10%
14%
15%
13%
2010
20%
14%
56%
18%
23%
2009
11%
22%
18%
19%
19%
2008
20%
64%
76%
70%
58%
2007
117%
35%
55%
35%
52%
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012).
END OF YEAR
*
This Figure Strong Estimate. Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. (Exact
figures will publish in the middle of May by BAT)
17
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Bank Asya has the biggest share in total equity capital of total participating banks at the
end of 2012. TürkiyeFinans, KuveytTürk and Al Baraka follow it respectively.
Furthermore, KuveytTürk has the highest average equity capital increase rate among the
others. KuveytTürk has biggest equity growing rate at the last six years.
Table13Equity Growth of Deposit Banks,2007-2012(1.000 TL)
Year
2007
2008
2009
2010
2011
2012*
Total
64.533.482
72.060.575
93.832.584
114.978.956
123.007.000
147.585.754
12
30
23
7
20
Inc.Rate
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012) (BAT, The
Bank Association of Turkey, 2013)
Growth of Total Assets
Table14/a Growth of Total Assets in Participation Banks, 2007- 2012 (1000TL)
END OF YEAR
Average 2007-2012
2012
2011
2010
2009
2008
2007
ALBARAKA
TÜRK
7.681.482
12.327.654
10.460.885
8.406.301
6.414.914
4.789.108
3.690.029
BANK
ASYA
13.178.446
21.390.024
17.190.099
14.513.419
11.608.955
8.108.129
6.260.048
KUVEYT
TÜRK
10.012.683
18.910.513
14.897.592
9.727.117
6.904.526
5.768.034
3.868.318
TÜRKİYE
FİNANS
10.542.867
17.616.504
13.528.353
10.691.860
8.699.643
7.104.156
5.616.687
TOTAL
SUM
41.415.478
70.244.695
56.076.929
43.338.697
33.628.038
25.769.427
19.435.082
Table 14/b Increase Rate from Previous Year at Total Assets in Participation Banks,200712(1000TL)
ALBARAKA BANK KUVEYT TÜRKİYE
Increase Rate From
TÜRK
ASYA
TÜRK
FİNANS
Prev.Year Total Sum
Average 2007-2012
27%
32%
37%
27%
31%
2012
18%
24%
27%
30%
25%
2011
3%
18%
53%
27%
29%
2010
31%
25%
41%
23%
29%
2009
34%
43%
20%
22%
30%
2008
30%
30%
49%
26%
33%
2007
48%
50%
32%
36%
42%
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012).
END OF YEAR
When we look at the table of growth of assets, it is seen that participation banks provide in
the 2007-2012 period according to deposit banks. Participation banks increased their total
assets 261% owing to deposit banks increased their total assets 119%.
Bank Asya has the biggest asset among participation banks, which is followed by
KuveytTürk at the end of 2012.
*
This Figure Strong Estimate. Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. (Exact
figures will publish in the middle of May by BAT)
18
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
Similarly in this case, KuveytTürk has the highest average increase rate for 2007-2012
periods. Bank Asya, Al Baraka and TürkiyeFinans follow it respectively
Table15 Growth of Total Assets in Deposit Banks, 2007- 2012
Year
2007
2008
2009
2010
2011
2012*
Total
542.293.125
682.936.916
771.511.791
930.947.266
1.119.911.000
1.190.124.718
26
13
21
20
6,3
Inc.Rate
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012).
Table 16The Shares of Participation Banks within the Sector
Year
Sector
2012
1.315.759
Deposit Banks
Total
Ratio in
Assets
the
Sector
1.190.125 90,5%
*
1.119.911 92,0%
Dev. and Inv. Banks
Total
Ratio in
Assets
the
Sector
55.389*
4,2%
Participation Banks
Total
Ratio in the
Assets
Sector
70.245
5,3%**
2.01 1.217.695
41.636
3,4%
56.148
4,6%
1
2.01 1.006.667 932.371
92,6%
30.958
3,1%
43.339
4,3%
0
2.00 834.014
773.357
92,7%
27.029
3,2%
33.628
4,0%
9
2.00 732.536
683.823
93,4%
22.943
3,1%
25.770
3,5%
8
2.00 581.606
543.272
93,4%
18.888
3,2%
19.445
3,3%
7
Source: Collected from data provided by (BAT, The Bank Association of Turkey, 2011) (BAT, The Bank
Association of Turkey, 2012) (PBAT, The Participation Banks Association of Turkey, 2012).
Share in the Sector
6.00%
4.00%
2.00%
Share in the
Sector
0.00%
The table clearly shows that The Participation banks have increased the theirs shares in the
sector. While the share of Participation banks is %3,3 in 2007, the share reaches to %5,3 in
the end of 2012. The increasing rate of sector share is %61 as a number.
*
This Figure Strong Estimate. Calculated via increase rate of 9/2011 and 9/2012 on 12/2011 figures. (Exact
figures will publish in the middle of May by BAT)
** Very Strong Estimate. Deposit Banks Exact Figures will Publish in the Middle of May.
19
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
VI.
Conclusions
Participation banks, with their old name Special Finance Houses, are institutions collecting
funds similar to deposit through private current accounts and accounts giving right to
profit/loss participation, and utilizing funds through methods such as production support,
partnership of profit and loss, leasing, document against payment. In Turkey, the
foundation of these institutions has been allowed since 1984. Their number which has
increased to 6 decreased to 4 eventually parallel to the consolidation of deposit banks.
However growth of volume and branch number in the finance sector especially in the last
years is also extremely valid for these institutions. Their share is small today in total sector
but it grows in a stable manner with their higher growth rate than other banks. In 2001,
participation banks had total asset amount of 2,4 billion TL which meant a share of 1,08 %
in the total assets of the sector. These amounts and shares were 7,3 billion TL and 2,34 %
in 2004, 13.730 billion TL and 2,83 % in 2006, 25.769 billion TL and % 3,64 in 2008, and
56.148 billion TL and 5,3 % as of the end of 2012.
These companies which are subject to most limitations of general arrangements
and loan limitations in the Banking Act no. 5411 differ from deposit banks at most in
terms of that they don’t undertake the risk of interest. Because these kinds of banks
don’t undertake the risk of interest which is one of the greatest risks which have
to be managed in banking sector, we can talk about an asset-liability balance
which is less sensitive to financial crisis. However not to undertake the risk of
interest, in these kinds of banks, differently from deposit banks, eliminates the
opportunity to obtain sudden and high institutional profit based on interest rate
difference.
Putting three public banks and one SIDF bank aside, while 28 private deposit
banks have 254 branches on an average, each of 4 participation banks has 207
branches on an average. However in terms of the increase rate of branches from
2007 to 2012, it is seen that participation banks reached almost three times bigger
increase rate of branch numbers than deposit banks.
Increase rate of loan-fund utilization from the end of 2007 to the end of 2012
of participation banks higher than deposit bank’s rate. They are 226% and 166 %
respectively.
Total net profits increasing rate of participant is %74 from the end of 2007 to
the end of 2012. Looking at deposit banks for the 2007-2012 period, their profit
increased by %71 from 2007 to 2012, and reached to 18,2 billion TL in 2011. The
rate of participation banks is a little higher than deposit banks. In terms of average
profit per bank, deposit banks have too high figures compared to participation banks
naturally. However it is also obvious that average scales, branch numbers and history
of deposit banks are above participation banks
It is seen that participation banks increased their equity in 2012 212%
according to the 2007. Looking at deposit banks for the 2007-2012 periods, their
equity capital increased by 129 % from 2007 to 2012. The difference between them
is important.
Thus those given results also all support our thesis in this paper.
Meanwhile, the participation banks also have some problems for instance they
have needed such as the Interbank systems which provide urgent proper credits for
the depository banks in the short run. Whereas, this situation negatively hinders the
participation banks performance. Because they are sharing nearly all of their funds
20
�International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo
for the creditors or investors who uses them for leasing, production, sales, trade,
export and imports which composed the real sector of the economy.
For that reason it is very vital interest for the participation banks forming the
similar interbank system which would increases their customers and operational
transactions, too. For instance, the establishment of guaranty insurance system among
the participation banks positively influenced their expansion in the market.
Nevertheless, the depository banks they are the corporations so their rulers and
executive bodies are responsible fully form their operations and in any case, the state
quarantined their possible bankruptcy situations, but in the Participation Banking
systems there was no such kind of full responsibility or insurance system in their
financial credit operations because of joint losses or gains. In both theory and
practice there is a legal gap that is why it leaded to some corruptions and abuses, the
participation banks and companies in Turkey and European countries, too. This
problem has been partially solved for Turkey. Those banks and companies forced to
adopt the status and the legal structural establishment of banks and companies. Some
of them applied to be part of the Capital Stock Exchange Market. That is why they
could be checked and controlled by the state audit system.
This study examines the case of each participation bank among each other. The
tables and figures show the each participation bank ordering at 9 different criteria. In
conclusion, Bank Asya is the leader among the four banks in the eight
criteria,TürkiyeFinans is the first profitable bank.
This study examines the more important thing for these banks. The average
increasing rate for last five years has been calculated in this study. This figures show
that KuveytTürk Participation Bank has the highest average in the almost all of
criteria.
This study shows that The Participation banks have increased the theirs shares
in the sector also. While the share of Participation banks is %3,3 in 2007, the share
reaches to %5,3 in the end of 2012. The increasing rate of sector share is %61 as a
number.
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Pacific-Basin Finance Journal, 17, 125–144.
Küçükkocaoğlu, G. (2010, 6 28). İslami Bankalar ve İslami Finans Kurumları.Retrieved
from http://www.baskent.edu.tr/~gurayk/finpazcuma17.doc
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From Lagging to Leading. Asian Social Science, 7 (1), 179-186.
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Boston: Pearson Prentice Hall.
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Omar, M. W., & Ali, M. N. (2010). Brand Loyalty and Relationship Marketing in Islamic
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Parasız, İ. (2009). Para Banka ve Finansal Piyasalar (9 ed.). Bursa: Ezgi Kitabevi.
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PBAT, The Participation Banks Association of Turkey. (2010). Türkiye Katılım Bankaları
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&Itemid=382
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Mc Graw Hill.
Saunders, A., & Cornett, M. M. (2004). Financial Markets and Institutions (Fourth ed.).
Sigapore: Mc Graw Hill.
Sayım, F. & Alakel, M. (2011). The Participation Banking And Its Comparison With
Deposit Banking In The Turkish Finance Market, Scientific Journal European
Integration Studies, Kaunas University Of Technology Institute Of Europe, No:5,
152-164 (*This study contains only 2007-2009 year in the sector.)
The History of Kuveyt Türk. (2010). Retrieved 12 22, 2010, from Kuveyt Türk
Participation Bank: http://www.kuveytturk.com.tr/tr/Hakkimizda_Tarihce.aspx
The Participation Banks Association of Turkey, T. (2008). Türk Finans Sisteminde Katılım
Bankaları. Türkiye Katılım Bankaları Birliği.
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6&Itemid=83
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Türkiye Katılım Bankaları Birliği.
23
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A Different Banking Methods and the Developing in the Turkish Finance Market-Turkish Participation Banking For 2007-2012
Author
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SAYIM, Ferhat
Abstract
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Financial systems and institutions has become the most important reason in the fragility of world economic system. The formation and development process of the financial structure also constitutes the infrastructure of the world economic system. The course of the financial system and development has led to debate with the financial crisis in 2008-2011. One of the discussion topics in order to eliminate problems caused by the conventional banking system is alternative financing systems. In Turkey, the corporations based on profit share system which are named participation based banking spotlight, if the alternative banking systems are considered. These banks which determine different principles in the risk distribution of the portfolio acquired are analyzed more nowadays. Participation based banks are placed in almost every regulation related to banking terms and get their legal infrastructure more stable in the banking legislation of Turkey. This study is a 2007-2012 part of research series. We try to find out the place and the importance of participation based banking with the various sub-headings especially in Turkey. We examine the comparative review 2007-2012 data of participation banks which Collected Turkish Currency and Foreign Currency Funds, Bank Loan Funds, Total Assets, Equity and Net Profit figures for the four participation banks in Turkey. We are comparing the total figures with deposit banks for the same period. One of our primary goals in this essay, to study in the framework of the alternatives of the financial institutions and options. These options could be asserted as a vibrant and viable well established choice as a nonwestern model- different from the classical western interest based dominant banking system in the globe. Moreover, that participation banking systems’ grow and increase with its resourceful bulk of transactions and shares within the financial market. In addition, we intended to delineate the basic functioning structures, rules, norms, principles, procedures, operations of that alternate banking system in the financial market.After that, we have applied as a descriptive, explanatory, discursive and comparative analytic methodology to expound the matter in detail. Having gathered literature reviews then we have concentrated on Turkey as a model state in that banking system practice; at which, what kind of instruments and tools used by referring basic indicators, data and information related to the growth, flourish and share of that sector within the total banking and financial system in Turkey. Furthermore, that participation banking system positions, researched in the country. Thus, it is explicated more concerns on by investigating its credits, deposits, financing formulation systems and commitments with the banks, customers and investors of the alternate banking system in the country’s financial order. At last, we have attempted to clarify and summarize the concepts, definitions, expositions, demonstrations, rules, assets, liabilities, equities etc.. by giving special cultural internalizations about the organizational and operational activities of the participation banks both similarities and discrepancies, too; so as to draw the attentions of the new researchers and studies in that situation. Keywords: Bank, Finance Market, Finance Sector, Participation Bank, Islamic Bank, Interest Free Banking, Alternative Banking System.
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International Burch University
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2013-05-10
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ISSN 978-9958-834-23-3
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International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
Fiscal Impacts of Privatization in Turkey
Sinan Sarısoy
Namik Kemal University, Tekirdag, TURKEY
ssarisoy@nku.edu.tr, ssarisoy@hotmail.com
Fazlı Yıldız
Dumlupınar University, Kütahya, TURKEY
fyildiz43@hotmail.com
Ersin Nail Sağdıç
Dumlupınar University, Kütahya, TURKEY
nailsagdic@hotmail.com
There are many reasons for that privatization is an attractive application
for most of the countries. Since 1980s, fundamental problems that
developed and developing countries meet such as economic stagnation,
high public deficit, high borrowing cost, high inflation and high burden of
tax are forced the countries to find alternative sources of income. In this
regard, privatization applications have become an important policy which
aims economical, fiscal, political, and social purposes for many countries.
On the one hand, privatization incomes obtained from the selling of public
enterprises can become a solution to the permanent deficit of public
sector. On the other hand, these incomes can be used in the financing of
larger deficits arouse because of cyclical reasons. It can be said that it is
aimed business activities under private ownership are expected to increase
and in addition to this, the reasons of public finance gain importance,
public sector decreases and additional sources to increasing public
expenditures are formed by using the incomes from the privatization. The
proliferation of privatization works around the world has started with Chile
and England after 1980s. And because USSR system collapsed and these
countries entered to free market system based on private property,
privatization increased in these countries. In Turkey, legal infrastructure
works concerning privatization have started in the middle of 1980s, but the
increase in privatization works has accelerated after 2004.
In this study, fiscal impacts of income obtained from the privatization
applications in Turkey between 1986 and 2012 are examined. The
fundamental hypothesis of this study is whether or not privatization has a
detractive effect on budget deficits and public sector borrowing
requirement as a tool. To test this hypothesis, two different models
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�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
estimated has been developed by linking incomes from privatization and
some macroeconomic variables with budget deficit, public sector
borrowing requirement and public debt stock. In this study, the effect of
privatization incomes in turkey on budget deficits and public sector
borrowing requirement has been analysed on the basis of ordinary least
square method. The discovery of the analysis showed that between 19862012 privatization incomes in Turkey increased budget deficits and
increased public sector borrowing requirement. According to the result, it
can be expressed that privatization, as a tool which reduces budget deficits
does not satisfy the expectations, but because of its reducing effect on
public sector borrowing requirement, privatization has a positive effect on
public finance.
Keywords: Privatization, Fiscal Impacts, Turkey.
259
�
https://omeka.ibu.edu.ba/files/original/f4b8fa4a30f0955b8a9e377e3cb57226.docx
cf1aaeb3d3cf3b7ae0982ec9424084d6
https://omeka.ibu.edu.ba/files/original/bd6c26d5cc45936028e36d299ead0924.pdf
5924d296f9e5d9727da54fd7168de362
PDF Text
Text
International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Fiscal Impacts of Privatization in Turkey
Sinan Sarigoz
Namik Kemal University, Tekirdag, Turkey
ssarisoy@nku.edu.tr
Fazli Yildiz
DumlupinarUniversity, Kutahya, Turkey
fyildiz43@hotmail.com
E. Nail Sagdic
Dumlupinar University, Kutahya, Turkey
nailsagdic@hotmail.com
Abstract
There are many reasons for that privatization is an attractive application for most of
the countries. Since 1980s, fundamental problems that developed and developing
countries meet such as economic stagnation, high public deficit, high borrowing
cost, high inflation and high burden of tax are forcing the countries to find
alternative sources of income. In this regard, privatization applications have become
an important policy which aims economical, physical, political, and social purposes
for many countries. On the one hand, privatization incomes obtained from the
selling of public enterprises can become a solution to the permanent deficit of the
public sector. On the other hand, these incomes can be used in the financing of
larger deficits arouse because of cyclical reasons. It can be said that it is aimed
business activities under private ownership are expected to increase and in addition
to this, the reasons of public finance gain importance, public sector decreases and
additional sources of increasing public expenditures are formed by using the
incomes from the privatization. The proliferation of privatization works around the
world has started with Chile and England after 1980s. And because the USSR
system collapsed and these countries entered intoa free market system based on
private property, privatization increased in these countries. In Turkey, creating legal
infrastructure concerning privatization has started in the middle of 1980s, but the
increase in privatization works has accelerated after 2004.
In this study, fiscal impacts of income obtained from the privatization applications
in Turkey between 1986 and 2012 are examined. The fundamental hypothesis of
this study is whether or not privatization has a destructive effect on budget deficits
and public sector borrowing requirement as a tool. To test this hypothesis, two
different models estimated have been developed by linking incomes from
privatization and some macroeconomic variables with the budget deficit, public
sector borrowing requirement and public debt stock. In this study, the effect of
privatization incomes in Turkey on budget deficits and public sector borrowing
requirement has been analyzed on the basis of ordinary least square method. The
discovery of the analysis showed that between 1986-2012 privatization incomes in
Turkey increased budget deficits and increased public sector borrowing
requirement. According to the result, it can be expressed that privatization, as a tool
which reduces budget deficits does not satisfy the expectations, but because of its
reducing effect on the public sector borrowing requirement, privatization has a
positive effect on public finance.
Keywords: Privatization, Fiscal Impact, Budget Deficit, Public Debt, Public
Finance
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Introduction
Privatization, or in a more general meaning the selling of the property of state-controlled
entities to private sector has become one of the most important issues of the recent years in
the world economy. The privatization movement, having started with the Republic of Chile
in 1970s gained speed with the coming of Thatcher’s Government to the power of England
in 1979. Later, important privatizations were applied in such industrialized countries as
Italy, France, Spain, and Japan. Moreover, after the year 1990 important programs of
privatization were brought into force in Middle and Eastern European countries (Karluk,
1999: 321).
Privatization is a process that enforces the alienation of the property and management of
public enterprises partially or totally in the private sector for the purpose of replacing
private corporations with the public ones that meet the individual and social needs (Demir,
2000: 12). Privatization is described in both narrow and broad ways. In its narrow meaning
privatization is the act of passing the property and management of financial institutions of
state property or in another meaning, state-controlled entities. In this act an absolute
alienation of property must take place. In its broadest meaning privatization is the
alienation of financial institutions, which are under the control of the state sector to the
private sector for the purpose of reducing economic activities of the government. In the
privatization of the broad meaning lowering the activities of the government in overall
economy to the minimum level or removing them completely is the matter. The act of
lowering economic activities of public institutions to the minimum level in an occasion
where the rules of free market economy are valid is a far-going privatization (Karluk,
1999: 323-324).
In general it can be said that privatization involves applications that are to reduce the role
of the government in the economy. In the regulations of reducing the role of the
government in economy; the selling of public institutions directly to private companies,
contract of concession, the selling of the right for founding entities to private sector, giving
coupon for consumer products free of charge and service procurements, endowments,
regulations between the government and the private companies as purchasers for the
procurement of some goods and services can be shown (Ulusoy & Vural, 2003: 119). The
concept of privatization that can be expressed as ‘The selling of entities whose properties
belong to the public partially or completely to private persons or corporations’ can
technically be expressed in three parts: the first one of these parts is the selling of resources
of public side to private entrepreneurs, the second one is deregulation or liberalization. The
third part is contract of concession (Kök & Kara, 2011: 302).
The providing of goods and services produced, economically and the enhancing of
productivity depend on the provision of competition environment; and the alienation of
property to private sector has become a current issue for the competition environment to be
formed efficiently. Just like in our country, there are both defensive and opposed views of
privatization all over the world. Some of these views are like that (Yiğitgüden, 1999: 59):
Viewers like privatization will relieve the public’s burden, privatization will result in the
increase of the government’s revenues, privatization will create new sources of finance,
privatization will let entrepreneurial activities in the country gain speed, and private sector
is more profitable and has better management and technology compared to the public are
supporters of privatization.
However, views like privatization will cause dismissals, privatization will not bring
services to regions that do not answer its profit expectations, important sectors in economy
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
have a national characteristic, thus the properties of these sectors should belong to the
government, private sectors will not take the necessary measurements for the protection of
environment sufficiently as they bring incremental costs with them are the views opposed
to privatization.
M. Pirie, one of the writers of the Institution of A. Smith, who has generated the
philosophy of privatization; and of the supporters of the policy of Thatcher’s Government
claims that there is discipline in the programs of private sector’s side, it is hard to manage
the costs of public programs, if any program is to be handled also in the private sector, it
will be under a marked-based effect, and privatization will have public sector in hand and
gradually take the place of it.
According to this view, what the goal of privatization is not to make public enterprises are
competitive, but to transform them into the units of the private sector.
The Goals of Privatization and Privatization in Turkey
The basic goals of privatization are providing productivity and activism in production by
forming market economy based on competition, saving public finance from the fiscal
burden created by institutions that are making losses and enhancing the public welfare by
letting fixed capital investments be carried out by the private sector. Privatization has
economic goals like bringing free market economy into force, developing capital market,
enhancing productivity, fixing the distribution of income, enhancing foreign capital inflow,
and putting disguised unemployment in public enterprises away; financial goals like
struggle with inflation, providing revenues to the government, efficient use of funds and
providing balanced budget; and social and political goals like providing the spread of
wealth to the grassroots, and putting political philosophy into practice (Doğan, 2012: 8).
In its rule, numbered 953 (1990) related to privatizations, The Council of Europe’s
Parliamentary Assembly has determined its expectations from privatization like that (Tan,
1992: 29): enhancing productivity, reducing prices, providing income, retrenching in
public sector, reducing the monopolistic power of unions in public sector, sharing
resources out effectively, and minimizing the government budget. In England, kept as the
homeland of privatization, five basic goals of privatization have been determined (Emir &
Toksoy, 1993: 31): providing the rise of income, spreading property to the grassroots
through stock certificates, encouraging liberalism, enhancing related sector’s efficiency,
and solving the problems between the government and the nationalized company.
Privatization can be considered as a source of income for developing countries having high
fiscal deficits and depth stock problems. However, a successful privatization process
requires macroeconomic stabilization that can be described as a combination of a
supportive market place and a sustainable economic growth, a low inflation, a stable rate of
exchange and a strict budget constraint for the government (Kuştepeli & Gülcan, 2002:
16).
After the rotation of 1980, Turkish economy entered a new process and started to adopt the
policies of liberal economic. Within the scope of this, market economy started to be
focused on and in 1984 privatization actions found a field of application with the alienation
acts for the purpose of completing unfinished public institutions or founding new
institutions instead of them. Between the years 1980-1983 with the expose of statecontrolled entities to a reform, rather than privatizing them, they're making profit from this
same direction was also foreseen, and thus privatization has been considered as a goal
since the Fifth Five-year Progress Plan. The first legal-regulation in our country, related to
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
privatization was done with the rule dated 29.02.1984 and numbered 2983. With the rule
numbered 2983, the Board of Mass Housing and Public Participation, the Administration
of Mass Housing and Public Participation and the Public Participation Fund were founded
by the description of the methods of privatization that consisted of an income sharing
certificate, stock certificate and transfer of operating rights. And since from this date,
several legal regulations related to privatization have been done.
Table 1: Privatization Revenues in the World (1988-2011) and Turkey (1986-2012)
Privatization
Revenues in
Turkey ($)
Privatization
Revenues in the
World (Billion $)
Privatization
Revenues in
Turkey ($)
Privatization
Revenues in the
World (Billion $)
1986
954.895
--
2000
2.716.535.851
180.00
1987
832.842
--
2001
119.801.096
43,80
1988
26.856.987
39.00
2002
536.475.542
69,20
1989
131.199.960
28.00
2003
187.087.491
46,60
1990
485.989.167
24.00
2004
1.282.842.129
94.00
1991
243.841.620
46.00
2005
8.222.240.230
140.00
1992
422.881.905
39.00
2006
8.096.165.461
116.00
1993
567.538.720
60.00
2007
4.258.629.659
138.00
1994
411.754.739
76.00
2008
6.259.205.187
111.00
1995
572.456.490
80.00
2009
2.274.985.158
265,17
1996
291.998.907
100.00
2010
3.085.478.836
213,64
1997
465.517.964
162.00
2011
1.358.418.074
94.40
1998
1.019.715.144
140.00
2012
3.020.692.247
--
1999
38.328.651
140.00
Years
Years
Source: Doğan (2012), Republic Of Turkey Prime Ministry Privatization Administration, The PB
Report (2011)
An about 8 billion $ activity of privatization was done in Turkey between the years 1986
and 2003. Between the years 2003 and 2011 when the economic and political stabilizations
were provided and a determined attitude about privatization was set out, privatization
actions increased and about 35 billion $ privatization income was gained in this period. 43
billion $ incomeshave been gained in total up to present (Doğan, 2012: 23). In the
consequence of the selling of public interest that were in the stock of public enterprises
partially or completely through privatization practices of companies with foreign capital, a
total of 15,4 billion $ foreign capital inflow was provided between the years 1988 and 2011
(Doğan, 2012: 51).
Apart from Western Europe and the USA, in over one hundred either developing or
developed countries like Japan, Canada, China, India, Chile, Mexico, Brasil, Turkey, the
Republic of South Africa, and the old Commonwealth of Independent States privatization
actions have taken place. As a result of this, the share of the public sector in national
income has declined constantly in many countries since 1980 (Doğan, 2012: 10). In
worldwide, a total of 2 trillion and 445 billion $ privatization actions took place between
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
the years 1988 and 2011 in all the world countries. 1 trillion and 52 billion $ part of this
amount was made by twenty European Union countries. 43 percent of the total
privatization actions were carried out by EU countries and the rest of 57 percent were
carried out by the other countries (Bortolotti, 2012: 10).
Literature and Empirical Analysis
In literature, it is pointed out that the reasons behind privatization programs can be
classified virtually from two aspects as ideologically and pragmatically. In the example of
England, although it is commonly known that the concerns are about the economic
activeness; in fact ideological reasons are the matter; in Finland where it is believed that
the government and the private sector are equally active, and it really is so, privatization
activities are made to stir the interests of the private sector to investments, in Australia and
Spain it is made to improve capital market. There sometimes can be conflicts among the
goals governments follow while conducting their privatization programs. The most
encountered conflict within this scope rises between the goal of providing or enhancing of
competition in the market where the enterprises that are to be privatized are in services and
the goal of government for maximizing the income it will gain through the selling of
property (Temel, 2012: 8).
In some part of the empirical study made on privatization, the productivity and activism
that are revealed by the change of property. While doing this study, labor productivity,
employment, investments, profitability, and the levels of production are compared on the
basis of pre-privatization and post-privatization periods. In the result of the literature
review done by Dura (2006) and Oruç (2003) from this perspective, unlike the defenders of
the theory of property rights; in general it is precipitated that it is not always the matter that
public property is truly passive and there are many empirical studies that show public
enterprises work efficiently and effectively (Dura, 2006: 4-11 & Oruç et al. 2003: 16-23).
In the other part of the empirical study made on privatization, there is the empirical
research that analyzes the effects of privatization on fiscal deficits, public sector borrowing
need, the stock of public debts, inflation, unemployment. In this research, the studies in
both local and foreign literature that belong to this group will be shared.
Kuştepeli and Gülcan (2002) have analyzed the effect of macroeconomic stabilization on
the success of the government in the privatization efforts by using the data related to
Turkey’s economy between the years 1986 and 2002. The hypothesis analyzed in the study
is the failure of Turkish economy, which has difficulty in achieving and maintaining
macroeconomic stability because of this reason. In the study, a model that has predicted on
macroeconomic parameters including privatization income government has gained, real
economic growth, inflation, exchange rate, the stock of public debts, interest rates,
investments of public and private sectors, and unemployment rates has been used.
According to the results of the study, it has been revealed that the effect of debt stock is
ambiguous, while budget deficits affect privatization incomes in a negative way.
Moreover, it has been determined that the effects of exchange rate devaluations and private
sector investments on privatization incomes are positive.
Bortolotti et al. have analyzed why privatization is in the agendas of 34 countries with the
panel data analysis they have done by using data of these thirty four countries between the
years 1977 and 1999. According to the results of empirical analysis, it has been observed
that countries with high public debts, where democracy is powerful, but capital market has
depth and liquidity can carry out privatization policies more easily. Kuştepeli and Gülcan
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
(2003) have analyzed whether the government substitutes the stock of public debts with the
privatization income in Turkey in their research. It has been found out that the coefficients
of correlation debt stocks and/or public investments and privatization income for the period
between 1986 and 2002 are positive. When the investments specific to the model are also
added, a negative correlation has been found between correlation debt stocks and/or public
investments and privatization income. This result supports the idea that the more
privatization incomes increase, the less debt stocks and/or public investments decrease.
Katsoulakos and Likoyanni (2002) have analyzed the effects of privatization on public
deficit, public borrowing and the other macroeconomic parameters (unemployment and
growth) for OECD countries with the data related to the years 1990 and 2000 by using
panel data analysis. The results of the study show that there is no relation between
privatization income and budget deficit, there is statistically a significant and negative
relation between privatization income and public debt stock, there is a significant and
negative relation between privatization income, current unemployment and unemployment
rate of previous period, and there is no significant relation between economic growth and
privatization income.
Buhur (2011) has analyzed the effects of privatization actions that have been applied since
1986 in Turkey on public finance. In the result of this study, it is determined that the public
share in economic structure has decreased after the privatization actions, the incomes
acquired with privatizations have contributed to the balance of exchequer and currency in a
positive way. On the other hand, with the selling of public enterprises that are making
losses, the share of transfer expenditures transferred to these enterprises from the budget
has decreased, and this has affected the balance of the budget in a positive way has been
concluded.
Sunderland (2011) has analyzed the economical effects of privatization in 47 developing
countries. In the study completed by using a panel data analysis with the data taken from
the privatization database of World Bank related to the years between 1988 and 2008, a
relation between the increase of privatization income and the deterioration in the balance
of public budget has been found and results that support the hypothesis that the income
gained from the selling of public enterprises will be used to finance a big gap have been
recorded. Barnett (2000) has determined a powerful relation between the incomes earned
from the processes of privatization and the use of common public incomes. The other
important result he has made is the significant relation between macroeconomic
performance and privatization process.
Method and Data
In this study, the effects of the incomes obtained after the privatization actions in Turkey
between the years 1986 and 2012 on budget deficits and the need of public sector
borrowing requirements are analyzed. The models created for the determination of the size
and direction of the relation between privatization incomes and budget deficits and public
sector borrowing requirements have been tested by the method of ordinary least squares
(MOLS). Within a harmony with the previous studies in the literature, being about in the
same models, the rate of budget deficits and the need of public sector borrowing to GDP as
the dependent variable and the rate of inflation rate, population increase and privatization
income to national output as the independent variable have been included in the model.
The variables used in the analysis are summarized in Table 2.
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The data used in the models involve the years between 1986 and 2012. The data related to
privatization income is collected from Doğan (2012) and the Privatization Administration,
the data related to fiscal deficits, gross domestic product, and public sector borrowing
requirements, population increase, and inflation rates are collected from General
Directorate of Budget and Finance Control, Turkish Statistical Institute, and the
Directorate of Strategy Development of Finance Ministry.
Table 2: Variables
Abbreviation
PRV
Variable
Privization Revenues as share of GDP
BDFCT
PSBR
POP
INF
Budget Deficit as share of GDP
Debt-Level as share of GDP
Populaton Growth Rate
Inflation
Resource
Doğan (2012)
Türkiye'de Özelleştirme-2
Ministry of Finance
Ministry of Finance
Turkish Statistical Institute
Turkish Statistical Institute
Hypotheses and Models
It is clear that privatization is an important source of income for countries that have high
fiscal deficits and debt stock. Thus, incomes provided through privatization are expected to
have a positive effect on the balance of the budget. This effect is also in the direction of the
decrease of fiscal deficits and public sector borrowing requirements. In this study, the basic
hypotheses generated in the light of the presumptions above are like the ones below:
H1: Privatization incomes have a reducing effect on fiscal deficits.
H2: Privatization incomes have a reducing effect on public sector borrowing requirements.
The validity of these hypotheses that are created for the determination of the size and
direction of the relation between privatization incomes and budget deficits and public
sector borrowing requirements is tested with the help of two basic models below.
Table 3: Regression Models
Model 1: BDFCTt = PRVt POPt INFt µt
Model 2: PSBRt = PRVt POPt INFt µt
Note: In the equations; shows fixed variable, shows coefficients, µt shows error
term and t shows time.
Empirical Findings
One of the most important presumptions of time series is whether the data used in the
models is static or not. In the analysis technique being talked about, it is also necessary to
examine whether the variables are static or not in the period of time when they are
analyzed. Whether the variables used in the models are static or not and if they are so, at
which level they are static have been examined with the extended test of Dickey Fuller
(EDF) and Philips-Peron (PP) tests. In the result of unit root tests, it has been determined
that they haven’t been static on the level of variables and they have become stable in their
7
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
first discrimination. The results of regression analysis made through the ordinary least
squares method are summarized in Table 4.
Table 4: Ordinary Least Squares (OLS) Results
Model 1
Dependent Variable
∆ BDFCT
Constant
0.333
(0.528)
∆ PRV
291.877
(3.242)***
∆ INF
0.004
(0.217)
∆ POP
11.058
(0.684)
R2
0.353
Adj. R2
0.264
Durbin-Watson
2.04656
F-Value
4.00436
Probability (F-Value)
0.02042
Number of observations
26
t-statistics values showed parenthetically. (***) shows a 1 % level of significance.
Model 2
∆ PSBR
-0.189
(-0.285)
-296.897
(-3.141)***
-0.004
(0.836)
-5.834
(-0.344)
0.328
0.237
1.48833
3.59451
0.02976
26
As it can be concluded from the results of Table 4, as of the period decided in the research
there have been differences in the economic effects of privatization income in Turkey.
Model 1 has been developed to explain whether privatization incomes, inflation rate, and
population increase have an effect on fiscal deficits. According to the results of Model 1,
which has been developed basically for defining the relation between privatization incomes
and fiscal deficits; the expected reducing effect of privatization incomes on fiscal deficits
could not be observed. As opposed to what has been expected, it has been observed that the
relation between privatization incomes and fiscal deficits is statistically significant and
positive.
This state presents the necessity of prioritizing the precautions of lessening the fiscal
deficits in fiscal policies that are to be applied. Model 1 shows that population increase and
inflation rate have a positive effect on fiscal deficits, but are not statistically significant.
Model 2 has been developed to explain whether privatization incomes, inflation rates, and
population increase have an effect on public sector borrowing requirements. Model 2
shows that privatization incomes have a statistically significant and negative effect on
public sector borrowing requirements. There is a negative but statistically insignificant
relation between inflation rate, population increase and public sector borrowing
requirements. This result supports the idea that privatization incomes may have a positive
effect on public finance.
Conclusion
In this research, the financial effects of incomes obtained after the privatization actions
between the years 1986 and 2012, in Turkey. The basic hypothesis examined in the
research is whether privatization, as a tool, has a reducing effect on fiscal deficits and
public sector borrowing requirements or not. To examine this hypothesis, two different
8
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
models (Model 1 and Model 2) have been developed through associating incomes provided
from privatization and some macroeconomic parameters with fiscal deficit, public sector
borrowing requirements, public debt stock. These models have been tested with regression
analysis on the basis of Ordinary Least Squares (OLS) method.
According to the results of the analysis, as the period decided in the research there have
been differences in the economic effects of privatization income in Turkey. According to
the results of Model 1, which has been developed basically for defining the relation
between privatization incomes and fiscal deficits; the expected reducing effect of
privatization incomes on fiscal deficits could not be observed. Moreover, as opposed to
what has been expected, the relation between privatization incomes and fiscal deficits is in
a positive way. Model 2 has been developed to explain whether privatization incomes,
inflation rates, and population increase have an effect on public sector borrowing
requirements. The regression analysis applied for Model 2 shows that the privatization
incomes have an effect on public sector borrowing requirements in a negative way. Thus,
this result supports the idea that privatization incomes may have a positive effect on public
finance.
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11
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Title
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Fiscal Impacts of Privatization in Turkey
Author
Author
SARISOY, Sinan
YILDIZ, Fazli
NAIL SAGDIC, Ersin
Abstract
A summary of the resource.
There are many reasons for that privatization is an attractive application for most of the countries. Since 1980s, fundamental problems that developed and developing countries meet such as economic stagnation, high public deficit, high borrowing cost, high inflation and high burden of tax are forced the countries to find alternative sources of income. In this regard, privatization applications have become an important policy which aims economical, fiscal, political, and social purposes for many countries. On the one hand, privatization incomes obtained from the selling of public enterprises can become a solution to the permanent deficit of public sector. On the other hand, these incomes can be used in the financing of larger deficits arouse because of cyclical reasons. It can be said that it is aimed business activities under private ownership are expected to increase and in addition to this, the reasons of public finance gain importance, public sector decreases and additional sources to increasing public expenditures are formed by using the incomes from the privatization. The proliferation of privatization works around the world has started with Chile and England after 1980s. And because USSR system collapsed and these countries entered to free market system based on private property, privatization increased in these countries. In Turkey, legal infrastructure works concerning privatization have started in the middle of 1980s, but the increase in privatization works has accelerated after 2004. In this study, fiscal impacts of income obtained from the privatization applications in Turkey between 1986 and 2012 are examined. The fundamental hypothesis of this study is whether or not privatization has a detractive effect on budget deficits and public sector borrowing requirement as a tool. To test this hypothesis, two different models estimated has been developed by linking incomes from privatization and some macroeconomic variables with budget deficit, public sector borrowing requirement and public debt stock. In this study, the effect of privatization incomes in turkey on budget deficits and public sector borrowing requirement has been analysed on the basis of ordinary least square method. The discovery of the analysis showed that between 1986- 2012 privatization incomes in Turkey increased budget deficits and increased public sector borrowing requirement. According to the result, it can be expressed that privatization, as a tool which reduces budget deficits does not satisfy the expectations, but because of its reducing effect on public sector borrowing requirement, privatization has a positive effect on public finance. Keywords: Privatization, Fiscal Impacts, Turkey.
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ISSN 978-9958-834-23-3
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106febadf36ba84566866e23c14652bd
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International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
Audit Qualifications in Turkish Listed Firms
Turgay Sakin
İstanbul University, İstanbul, Turkey
tsakin@İstanbul.edu.tr
The purpose of this study is to provide some evidence on the effects of
some auditor-related, firm specific and legal factors on issuance of
modified audit opinions. The study covers Turkish firms listed in İstanbul
Stock Exchange. The audit opinions given during the periods between 2003
and 2011 were analyzed. The period selected can be defined as a transition
period for accounting and auditing in Turkey.
In the literature there are some studies on the factors affecting audit
opinions. Those factors comprised both financial and non-financial data.
However, besides those factors, especially in developing countries changes
in accounting and auditing regulations may be a significant factor on audit
opinions.
Changes in regulations related to accounting and auditing by Turkish
regulatory bodies is believed to increase the quality of accounting
information and auditing. However, every change in regulation creates
some problems in application. This transition period serves an opportunity
for the researchers to analyze possible effects of the transition on audit
reports. In this study relationships between these changes and audit
opinions are searched.
In Turkey statutory audit is required only a small number of companies.
Most of these companies are required to Turkish Capital Market Law
(TCML). However, only the financial statements and audit opinions of the
firms that are listed on the ISE are available to the public, and thus the
researchers. Because of this constraint the studies are generally limited to
the ISE firms. The data were collected from the audited financial
statements and their accompanying notes including the audit reports.
Those statements were uploaded from the website of the İstanbul Stock
Exchange.
In the study some debt, profitability, liquidity ratios and firms size used as
firms specific characteristics. Audit firm size and changes in accounting and
auditing standards are also used in the analysis.
The process of audit opinion formation is a complex procedure. There are
many factors, many of those limited in the working papers of auditors,
267
�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
affecting audit formation. Thus understanding some significant public
available factors affecting modified audit opinions would be a significant
mean for crediting auditors’ opinions. It is aimed to form a model based on
some firm and auditor specific characteristics to explain modified audit
opinions given in Turkish capital market. The model would serve audit
report readers in realizing the potential factors influential on the opinions
given, and estimating the a priori audit opinion.
Keywords: Audit Report, Audit Opinion, Qualification, Turkey, Regulation,
Audit Firm Size.
268
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1587
Title
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Audit Qualifications in Turkish Listed Firms
Author
Author
SAKIN, Turgay
Abstract
A summary of the resource.
The purpose of this study is to provide some evidence on the effects of some auditor-related, firm specific and legal factors on issuance of modified audit opinions. The study covers Turkish firms listed in İstanbul Stock Exchange. The audit opinions given during the periods between 2003 and 2011 were analyzed. The period selected can be defined as a transition period for accounting and auditing in Turkey. In the literature there are some studies on the factors affecting audit opinions. Those factors comprised both financial and non-financial data. However, besides those factors, especially in developing countries changes in accounting and auditing regulations may be a significant factor on audit opinions. Changes in regulations related to accounting and auditing by Turkish regulatory bodies is believed to increase the quality of accounting information and auditing. However, every change in regulation creates some problems in application. This transition period serves an opportunity for the researchers to analyze possible effects of the transition on audit reports. In this study relationships between these changes and audit opinions are searched. In Turkey statutory audit is required only a small number of companies. Most of these companies are required to Turkish Capital Market Law (TCML). However, only the financial statements and audit opinions of the firms that are listed on the ISE are available to the public, and thus the researchers. Because of this constraint the studies are generally limited to the ISE firms. The data were collected from the audited financial statements and their accompanying notes including the audit reports. Those statements were uploaded from the website of the İstanbul Stock Exchange. In the study some debt, profitability, liquidity ratios and firms size used as firms specific characteristics. Audit firm size and changes in accounting and auditing standards are also used in the analysis. The process of audit opinion formation is a complex procedure. There are many factors, many of those limited in the working papers of auditors,affecting audit formation. Thus understanding some significant public available factors affecting modified audit opinions would be a significant mean for crediting auditors’ opinions. It is aimed to form a model based on some firm and auditor specific characteristics to explain modified audit opinions given in Turkish capital market. The model would serve audit report readers in realizing the potential factors influential on the opinions given, and estimating the a priori audit opinion. Keywords: Audit Report, Audit Opinion, Qualification, Turkey, Regulation, Audit Firm Size.
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International Burch University
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2013-05-10
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ISSN 2303-4564
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https://omeka.ibu.edu.ba/files/original/0df2b605afb96c77e621b378bc2abb80.pdf
ae6d880547d56cd37d05eedd9de93f7e
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Text
International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
A case study of Online Marketing Tools Improving Online
Success
Semir Sakanovic
International Burch University, Sarajevo, Bosnia and Herzegovina
symorgh13@gmail.com
Armin Susa
International Burch University, Sarajevo, Bosnia and Herzegovina
asusa@ibu.edu.ba
The objective of this study was to identify and analyze the opportunities of
new technologies for companies and how they take benefit of it. The most
important online marketing tools were presented in detail to underpin the
theoretic concepts of marketing. Online marketing is not only important
for companies to increase turnover, it is nowadays necessary to stay
competitive to survive. Companies which do not implement online
marketing in their classical marketing activities have a strong competitive
disadvantage in today’s environment. The study shows how online
marketing tools have to be used to be successful, but it also shows that
exaggerated use of these tools could have the contrary effect. Every
activity has to be well-planned and well-considered.
Keywords: Online Marketing, Online Marketing Tools, Online Success,
Companies, Effect.
246
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1576
Title
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A case study of Online Marketing Tools Improving Online Success
Author
Author
SAKANOVIĆ, Semir
SUSA, Armin
Abstract
A summary of the resource.
The objective of this study was to identify and analyze the opportunities of new technologies for companies and how they take benefit of it. The most important online marketing tools were presented in detail to underpin the theoretic concepts of marketing. Online marketing is not only important for companies to increase turnover, it is nowadays necessary to stay competitive to survive. Companies which do not implement online marketing in their classical marketing activities have a strong competitive disadvantage in today’s environment. The study shows how online marketing tools have to be used to be successful, but it also shows that exaggerated use of these tools could have the contrary effect. Every activity has to be well-planned and well-considered. Keywords: Online Marketing, Online Marketing Tools, Online Success, Companies, Effect.
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International Burch University
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2013-05-10
Keywords
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Article
PeerReviewed
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ISSN 2303-4564
-
https://omeka.ibu.edu.ba/files/original/b4578f5ae026e1122bede2cee786f2a5.pdf
c8456176c4b5d54d9efa66c8c3cde1aa
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Text
International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
Online Marketing Communication Channels
Semir Sakanovic
International Burch University, Sarajevo, Bosnia and Herzegovina
symorgh13@gmail.com
Armin Susa
International Burch University, Sarajevo, Bosnia and Herzegovina
asusa@ibu.edu.ba
Online marketing communications are moving toward interactions
between individual recipients and consumers rather than being directed
from a marketing organization to masses of consumers. It is now possible
for an individual to be just as efficient in broadcasting information.
This article suggests an infrastructure that could be useful in studying how
online communication channels are emerging and how they might evolve
in the future.
The elements of this infrastructure are core/technological,
competitive/commercial, political/regulatory, and social.
Keywords: Online marketing, communications,
innovations, online communications.
247
social
networking,
�
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1626
Title
A name given to the resource
Online Marketing Communication Channels
Author
Author
SAKANOVIĆ, Semir
SUSA, Armin
Abstract
A summary of the resource.
Online marketing communications are moving toward interactions between individual recipients and consumers rather than being directed from a marketing organization to masses of consumers. It is now possible for an individual to be just as efficient in broadcasting information. This article suggests an infrastructure that could be useful in studying how online communication channels are emerging and how they might evolve in the future. The elements of this infrastructure are core/technological, competitive/commercial, political/regulatory, and social. Keywords: Online marketing, communications, social networking, innovations, online communications.
Publisher
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International Burch University
Date
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2013-05-10
Keywords
Keywords.
Article
PeerReviewed
Identifier
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ISSN 2303-4564
-
https://omeka.ibu.edu.ba/files/original/6107d8eb42be260c31754ff053981337.pdf
cefbca442e2e900d1ac4d37f1bdffec1
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Text
International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
The Impact of Tourism on Economic Growth
İsmail Şahin
Sakarya University, Sakarya, Türkiye
ismails@sakarya.edu.tr
Hüseyin Üner
Sakarya University, Sakarya, Türkiye
huner@sakarya.edu.tr
This study examines the impact of tourism revenues which is one of the
main factors on economic growth. It is accepted that generally among
countries conversion of merchandise refers as a means of growth. The
impact of tourism also effects economic growth as traditional exports.
Changing on long-term tourism revenues with some features has become
important for each country. Especially in recent years, the role of the rate
of tourism income has increased the economic growth. It is important for
developing countries that governments promote international tourism.
Negotiation is a different matter if public promoting is necessary in order
to achieve long-run economic growth for tourism sector of countries. Until
recently, many of the arguments focused on basic and processed exports
goods and each category has a different impact on growth. However, for
international tourism earning brings consumption of resources with,
should be considered as untraditional exports. The study in this paper has
a huge significance when we considered that tourism industry contributes
to country growth. Especially the main purpose of this study is to
investigate the relationship between long-term tourism and economic
growth and to explore the supporting empirical hypothesis. In national and
regional analysis including any sort of tourism, it gives significant
information to determine policy and plan strategy for government and
businessman working in tourism-based job. The main purpose of this paper
is to obtain an empirical language named growth mechanism intended for
tourism income by overcoming the noticed deficiency in existent literature.
Keywords: Tourism Earning, Public Promoting, Economic Growth, Tourism
Sector.
178
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1653
Title
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The Impact of Tourism on Economic Growth
Author
Author
SAHIN, Ismail
UNER, Huseyin
Abstract
A summary of the resource.
This study examines the impact of tourism revenues which is one of the main factors on economic growth. It is accepted that generally among countries conversion of merchandise refers as a means of growth. The impact of tourism also effects economic growth as traditional exports. Changing on long-term tourism revenues with some features has become important for each country. Especially in recent years, the role of the rate of tourism income has increased the economic growth. It is important for developing countries that governments promote international tourism. Negotiation is a different matter if public promoting is necessary in order to achieve long-run economic growth for tourism sector of countries. Until recently, many of the arguments focused on basic and processed exports goods and each category has a different impact on growth. However, for international tourism earning brings consumption of resources with, should be considered as untraditional exports. The study in this paper has a huge significance when we considered that tourism industry contributes to country growth. Especially the main purpose of this study is to investigate the relationship between long-term tourism and economic growth and to explore the supporting empirical hypothesis. In national and regional analysis including any sort of tourism, it gives significant information to determine policy and plan strategy for government and businessman working in tourism-based job. The main purpose of this paper is to obtain an empirical language named growth mechanism intended for tourism income by overcoming the noticed deficiency in existent literature. Keywords: Tourism Earning, Public Promoting, Economic Growth, Tourism Sector.
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International Burch University
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2013-05-10
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Keywords.
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ISSN 2303-4564
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International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
Determination of Cultural Characteristics of Hunters in
İstanbul Province to Hunting and Wildlife Management
(İstanbul Province Case)
İsmail Şafak
Aegean Forestry Research Institute, İstanbul, Turkey
isafak35@hotmail.com
Taner Okan
University of İstanbul, Faculty of Forest, İstanbul, Turkey
tokan@İstanbul.edu.tr
Erdem Hizal
University of İstanbul, Faculty of Forest, İstanbul, Turkey
hizal@İstanbul.edu.tr
Tamer Keçecioğlu
Ege University, İzmir, Turkey
tamer.kececioglu@ege.edu.tr
Caner Işık
Adnan Menderes University, Aydin, Turkey
kim.caner@gmail.com
Sedat Acar
Mustafa Kemal Paşa National Park, Turkey
sedatacar3495@hotmail.com
Turkey has a rather important potential from the point of view of wildlife
resources which includes both species diversity and sheltering capacity. On the
other hand, wildlife in Turkey has been endangered since wilderness
ecosystem and habitats have been damaged and managed badly. There is a
rather important role of hunters in this process.
Hunting, which means catching of either living or lifeless animals that live
freely in the nature, has attracted attention of mankind almost in every term.
Hunting has been accepted as an important activity also today as well as in the
past. It is not a realistic approach considering the hunting passion which comes
to today with the traces from the past as nothing. Today, hunters have become
a guaranty of biodiversity and wilderness by getting an environmentalist
status.
As increasing economic and social welfare, first of all demands of hunters and
demands of stakeholders from wildlife sector are getting increased by varying.
In this context, it is obligatory to develop and reach a rationalist management
of wildlife potential that promises a great future of Turkey.
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�International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo
In Turkey, lawful regulations were made in 2003 with act of 4915 to solve
problems of wildlife management. Wildlife management in Turkey still live a
transition period, problems are going on because new laws and its
implementations have not yet established. Among these problems, illegal
hunting, uneducated hunters, lack of hunter controlling have important place;
basic problems are social, cultural, economic and lack of scientific structure.
Associations, institutions and enterprises attach importance for knowing
cultural elements and factors that affect them. It has been use an active
instrument to convey cultural data and to reach aims. In this context,
researches that determine human structure and cultural sensitiveness fields in
the management of wildlife resources are very important.
There have been seen some researches which related to determine of hunter
profile since 2002. But, there are too few studies to determine cultural
characteristics of hunters. In this context, it is needed some studies for hunter
culture as related to management activities.
This research project includes hunting clubs and their members in İstanbul. For
this aim, according to sample size, there will be reached primary data using
questionnaire method which is prepared for hunters. Some data based on
literature research constitute secondary data of research.
In this research, questionnaire, called the hunter form, will be developed.
Hunter Form; cultural elements of hunters, profile of hunters and level of
importance on the issue of hunters were determined. Nine-point Likert Scale
was used in some questions to determine hunters’ thinking on the issue. The
hunter form is designed in two parts. The first part is related to the
demographic characteristics of hunters. The second section means detection
levels of the components of the culture of hunters.
In this research project, values forming culture of hunters were investigated in
context of leaders and heroes, ceremony and symbols, story and legends,
language, customs, norms and organizational socialization. Results of research
project will be used as basic data in controlling and training of hunters,
providing coordination and planning and sources.
Data obtained from the hunters were evaluated using frequency, percentage,
chi-square test, and Kruskal-Wallis one-way analysis of variance. In this
context, there were benefited from SPSS program and others.
Keywords: Hunting, Hunting Culture, Hunting and Wildlife Management,
İstanbul.
177
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Determination of Cultural Characteristics of Hunters for Hunting and Wildlife
Management (The Case of Istanbul Province)
Ismail Safak
Aegean Forestry Research Institute, Izmir, Turkey
isafak35@hotmail.com
Taner Okan
Istanbul University, Istanbul, Turkey
tokan@istanbul.edu.tr
Erdem Hızal
Istanbul University, Istanbul, Turkey
hizal@istanbul.edu.tr
Tamer Keçecioğlu
Ege University, İzmir, Turkey
tamer.kececioglu@ege.edu.tr
Caner Işık
Adnan Menderes University, Aydın, Turkey
caner@adu.edu.tr
Sedat Acar
Mustafa Kemal Paşa National Park, Bursa, Turkey
sedatacar3495@hotmail.com
Abstract
Turkey has a rather important potential from the point of view of wildlife
resources which includes both species diversity and sheltering capacity. On the
other hand, wildlife in Turkey has been endangered since wilderness ecosystem
and habitats have been damaged and managed badly. There is a rather important
role of hunters in this process.
Hunting, which means catching of either living or lifeless animals that live
freely in the nature, has attracted attention of mankind almost in every term.
Hunting has been accepted as an important activity also today as well as in the
past. It is not a realistic approach considering the hunting passion which comes
to today with the traces from the past as nothing. Today, hunters have become a
guaranty of biodiversity and wilderness by getting an environmentalist status.
Associations, institutions and enterprises attach importance to knowing cultural
elements and factors that affect them. It has been used as an active instrument to
convey cultural data and to reach aims. In this context, researches that
determine human structure and cultural sensitiveness fields in the management
of wildlife resources are very important.
This article includes hunting clubs and their members in Istanbul. For this aim,
according to sample size, there were reached primary data using questionnaire
method which is prepared for hunters. Some data based on literature research
constitute secondary data of research. In the research, questionnaire form;
�cultural elements of hunters, profile of hunters and level of importance on the
issue of hunters were determined. Nine-point Likert Scale was used in some
questions to determine hunters’ thinking on the issue. The hunter form was
designed in three sections. The first part is related to the demographic
characteristics of the hunters. The second part reflects culture of Hunters’
Associations. In the last part; the levels of the perception of the cultural
components of the hunters have been included.
In this study, values forming culture of hunters were investigated in context of
leaders and heroes, ceremony and symbols, story and legends, language,
customs, norms and organizational socialization. Results of research project
will be used as basic data in controlling and training of hunters, providing
coordination and planning and sources.
Keywords: Hunting, Hunting Culture, Hunting and Wildlife Management,
Istanbul, Turkey.
Introduction
In the past, wildlife sources played an important role for livelihood and development of
communities. In this period, hunting and wildlife is used as nutrient (meat), clothing material
(leather and fur), rope and thread (sinews and musculocutaneous nerves), fuel (fats),
decorative ware (antler, tooth), beverage container (horns), musical instrument (skin, horn),
weapon (bone) etc. (Mbaiwa, 2002). As a matter of fact, in many countries even today, people
still make use of most of these benefits including nutritional element.
Hunting and Wildlife resources managers are faced with a situation such as to meet hunting
demands of a section of society without any harm to the environment and by improving the
existence of hunting and wildlife. While doing all these things there is an obligation to act in
accordance with the Principle of Sustainability. Resource management must ensure coordination between nature (ecosystems), hunters and the institutions managing these resources
so as to be able to complete this process successfully. Planning by ignoring the nature which
offers hunting and wildlife resources or by not taking hunters into consideration, will result in
failure.
Hunters should take their place in the organization of hunting and wildlife, thus take on
important tasks in combating with poaching and illegal hunting. Planning hunting in Turkey
and increasing the contribution of hunting to the national economy depend on the hunters
taking place in the organization in a conscious and systematic way. Also, the first way of
achieving this is to know the hunters together with their various aspects.
In Turkey; studies conducted in relation to hunting and wildlife focus on the biology of game
and wild animals and hunting methods. Studies on the social dimensions of hunting and
wildlife management have not been dealt with adequately. However, the continuous decrease
in the presence of hunting and wildlife day by day, efforts to make hunting and wildlife
resources sustainable, cause attentions to focus on the users of these resources. In fact,
discussions on the management of hunting and wildlife in Turkey gained momentum in the
late 1990s. The workshop (İzmir 23-25th March 1999) focused on the theme of new
�approaches in hunting and wildlife management and the final report of the relevant workshop
prepared by Geray (1999) are very important in terms of hunting and wildlife management.
Synergies gained in the workshop were also continued later on so that the law called 4915
Land Hunting Act, which was necessary for a legal solution to the problems encountered on
hunting and wildlife management, was enacted in 2003.
In the doctoral dissertation prepared by Iğırcık (2001) and entitled "Socio-Economic Analysis
on the Development of the Hunting Potential of Turkey"; the importance of the sustainability
in the hunting and wildlife resources management strategy was emphasized and the socioeconomic dimension of hunting was also given in comparison with other countries. Edited by
Bora (2001) and published by General Directorate of National Parks and Game Wildlife, "The
Book of Basic Education for Sustainable Hunting" forms the primary resource of training
courses for the hunters.
Also, researches on profile of the hunters, which have a very effective role in the use of game
wildlife resources, have been carried out since 2002. For this purpose, 4 pieces of researches,
aimed at determining the profile of hunters in the Aegean, Marmara, Eastern and South
Eastern Regions, were encountered. Elbek et al. (2002) conducted a study to determine the
profile of the land hunters in the Aegean Region. Also, Ay et al. (2005) determined the profile
of the hunters who had hunting cards in the Aegean region. Iğırcık et al (2005) investigated
the profile of the hunters in the Marmara Region. Fidan et al (2007) interviewed with the land
hunters in a total of 16 provinces including 8 cities representing the hunters and huntees in the
Eastern Anatolia Region and 8 cities representing the hunters and huntees in the South-eastern
Anatolia Region. Bora (2002) announced the results of the survey carried out for the hunters
participating in hunter training courses. In Özbay (2006) it was aimed to create a glossary of
Elazığ Territory Hunting Terminology by compiling the terms hunters used between each
other as a rapid communication medium and which have specific meanings and by analyzing
them with regards to structure and origin. In Şafak (2006a) a research was also applied on 96
hunters on İzmir-scale in order to determine the organization culture. Also, in Şafak (2006b)
the issue of conflict management in hunting was investigated. Within the scope of this
research, “conflicts” that might be subject to the management of game wildlife resources by
taking hunters' associations in the province of Izmir and the registered hunters of these
associations as an example.In Oğurlu (2008), place of wildlife resources in the economy, the
need for resource planning, resource planning method and how to create a model of wildlife
management plan unique to Turkey were discussed and the most remarkable major political
and administrative errors in today's wildlife management and current managerial problems
were mentioned. Also, in Çetinkaya (2010), hunting and hunting provisions in Islamic Fiqh
(jurisprudence) were analyzed in terms of Quran, Sunni and different opinions of Islamic
sects and the provisions Islam religion presented were tried to be determined.
In recent years, the cultural dimension is considered to be very important in terms of
management. The fact that "Hunting in Turkish Culture" themed International symposium
was held between 15 to 16th November 2006 by the Marmara University Turkic Studies
Research and Application Center also reveals research dimension of the subject matter. This
symposium shortly aimed to examine and document hunting forms in our culture, hunting
regime, kinds of the animals hunted, which animals are hunted in which regions, huntingrelated traditions, beliefs, legal regulations, prohibitions, hunting in literature and etymology
of hunting-related words.
The culture of the hunter is the total of the results of the beliefs, values, feelings and thoughts,
manners and customs created by certain human communities together with the results of
�relations between other people; which affect the outcomes of the ways and activities of
hunting. The basic elements of the culture of the hunter; can be grouped under the headings
of the values, leaders and heroes, rituals and symbols, stories and legends, language and
manners and norms. The culture of the hunter gives a distinct identity to the hunters, helps
them latch on to hunting and is shared by the hunters (Şafak, 2009). In Geray and Iğırcık
(2002), it is indicated that the culture of hunting in Turkey has not yet been established and
one of the most important threats to wild animals also comes from the hunters themselves.
Once again, it is emphasized that the vast majority of hunters do not have any idea about the
animals they hunt, that without obeying any of the rules they can fecklessly hunt wild animals
that come their way; of all types and all ages. In the same publication it is expressed that this
attitude the hunters have towards game animals and wildlife resources needs to change and it
is obligatory that they should adopt new values to become an environmentally-conscious
community (Geray and Iğırcık, 2002).
Studies are required in order to identify the cultural characteristics of the hunters in Turkey.
Most of the problems arise from not knowing the human nature and areas of cultural
sensitivity. The Directorate of Nature Conservation and National Parks needs to be aware of
the cultural characteristics for an effective and efficient resource management. When training,
rewarding, punishing the hunters, when making them peaceful and happy and in efficient
management the share of the knowledge of cultural features, in other words, the knowledge of
mental, and psychological structure is of great importance (Şafak, 2009).
If hunting and wildlife management problems analyzed in terms of their causes, and solution
methods, these problems seems to be in a very close relationship with the cultural structure of
the society. Indeed, in this study, the hunters in the province of Istanbul are determined by
considering them within the scope of cultural characteristics, values, leaders and heroes,
rituals and symbols, stories and legends, language, manners and norms and organizational
socialization. The aim of this study is to support the creation of a culture oriented and
effective strategy by putting forward the recognition of the hunters as of their cultural features
so as to protect, develop and attain sustainable management of the hunting and wildlife
resources.
Material and Method
There are 80 hunters' associations in the province of Istanbul. This study has been carried out
in 14 of hunters’ associations which are effectively active in Istanbul such as Bakırköy,
Beykoz, Büyükçekmece, Çatalca, Kadıköy, Kartal, Kazasker, Kemerburgaz, Silivri,
Sultangazi, Şile Oruçoğlu, Ümraniye and Zeytinburnu associations.
The data presented in this study have been obtained from field studies carried out together
with the managers of the hunter associations and the hunters. In this context, survey method
which is considered to be a systematic data collection technique has been utilized. The
questionnaire form consists of three sections. In the first part; demographic characteristics of
the hunters, in the second part; choices such as personal tendencies of the hunters, hunting
ground, and type and frequency of hunting and also in the last part; the levels of the
perception of the cultural components of the hunters have been included.
Within the scope of the cultural components, the importance the hunters attach to the issues
such as values, leaders and heroes, rituals and symbols, stories and legends, language,
manners and norms and organizational socialization has been questioned.
�For some of the questions which would take place in the hunters' questionnaire form, the
Nine-point Likert Scale was used in order to determine the importance the hunters attach to
the relevant issues. This scale is described in Figure 1. Their meanings in the Scale are; 1. Of
very little Importance, 3. Of little importance, 5. Moderately important, 7. Very Important
and 9. Highly important. 2, 4, 6 and 8 are used as preceding and subsequent mid-point of the
degrees of importance.
Figure 1 Nine-point Likert Scale
Of very little
Importance
Of little
importance
Moderately
important
Very
Important
Highly
important
Findings
Demographic Findings with reference to the hunters
The average age of hunters participating in the study in the province of Istanbul is 49.9. As
can be seen in Table 1, 54.4% of the hunters are above the age of 50 and approximately 34%
of those are in the 35-49 age range. When it comes to the distribution of occupation of the
hunters, 33% of the hunters are the artisans, 9.7% are the workers, 8.7% are the drivers and
8.7% are the farmers (Table 2). The professions in the "others" group include biologists, the
hospital managers, the fireman, accountants, and the self-employment. On the other hand
49.5% , approximately half, of the hunters are retired.
When occupational groups and age distribution are paired with, the state of having ability to
create leisure times and having the opportunity to act freely are thought to be effective in
cases where individuals turn towards hunting. Because, occupational groups such as artisans,
workers, farmers, being at the forefront and nearly half of the participants in the survey being
retired people draw this conclusion.
Table 1: Age Distribution of the Hunters
Age Groups
%
18-29
1,9
30-34
9,7
35-49
33,9
50-59
28,2
60 and above
26,1
Table 2: Distribution of Hunters by
Occupational Groups
Occupational Group
Farmers
Workers
Students
Artisans
Officers
Drivers
Engineer
Technicians
Teachers
Others
%
8,7
9,7
1,0
33,0
4,9
8,7
5,8
4,9
1,9
21,4
�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
On the other hand, the lower ranks of teachers and students can be explained by their
lifestyles not being suitable for hunting. However there are no female hunters who
participated in the survey. All of the questionnaires were made with male hunters.
Table 3: Television channels watched (related to hunting)
TV Channel Name
Yaban TV
Chasse&Peche
Documentary Channels
I do not watch
%
86,4
13,6
7,8
7,8
Hunters participated in the study were seen to prefer visual media usually related to
hunting and wildlife as field of training and communication. In Table 3, it can be seen that
whether hunters follow TV channels about hunting and wildlife or not. Accordingly,
percentage of those who do not follow any channels is 7.8%. Therefore, approximately
92% of the surveyed hunters were confirmed to follow visual media related to hunting and
wildlife. In the area the survey was conducted 86.4% portion of the hunters follow Yaban
TV, one of the national TV channels in Turkey. Within the documentary channels, TRT
Documentary, Chasse & Peche, National Geographic, Discovery, Animal Planet, Toprak
TV, and Köy TV are preferred. At all associations where the survey was made it was
observed that that one of the mentioned channels was absolutely open. On the other hand,
it was also observed that magazines about hunting were followed. Also, it was seen that
there are library sections at some hunters' associations.
Findings in Concern with the Association Which Hunters are affiliated to and the
Culture Maintained in that Association
Table 4 shows association membership period of the hunters. Accordingly, mean
membership duration of hunters' association is 20,3 years. 58,2 % of the hunters are the
members of a hunters' association for more than 15 years. Zeytinburnu Hunting and
Shooting Sports Club Association have the longest membership duration of hunters'
association of 65 years. On the other hand, Arnavutköy Hunters Shooters and Amateur
Fishers Club Association have the shortest membership duration of 1 year.
Table 4: Membership duration of hunters' association
Membership period
1-5 year (s)
less than 6-10 years
11-15 years
16-20
21-25
more than 25 years
%
17,5
14,6
9,7
14,6
15,5
28,1
Whereas 63.1% association members know the establishment story of the relevant
association, 36.9% do not. In Table 5 the hunters were asked why they had become a
member of the association and they are asked to tell their 3 most preferred choices for the
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
membership. % 75,7 of the hunters stated that they became a member of the association
since they believed in "the necessity that the hunters should be organized". Accordingly,
"hunters' association should schedule various hunting programs" is in the second place
(35.0%), also for the hunters "the desire to receive training in hunting" is in the third place
(30.1%). Besides, the associations were observed to be the environments where the hunters
are socialized and where they exchange information on various topics.
Table 5: Reasons for Being a Member of the Hunters' Association
Reasons for Being a Member of the Hunters' Association
Since I believe that the hunters should be organized
Since it schedules various hunting programs
To receive training in hunting
To buy a hunting license at a cheaper price
No particular reason
To take advantage of opportunities such as clubhouse and amusement arcade
Others
%
75,7
35,0
30,1
15,5
10,7
8,7
16,5
According to the 74.8% of the hunters who are the current members of the association, the
relevant association refers to a location where they meet with their friends. Other reasons
are presented in Table 6. Accordingly, "a location where they can hand down to the next
generations of the culture of hunter " is in the second place (51.5%), also "conscious
hunting" is in the third place (45.6%).
Table 6: Meaning of the Hunter Association Which Hunters are affiliated to
The things Hunters' Association refers to
A location where I meet with my friends
A location where the culture of hunter will be handed down to the next generations
Conscious hunting
Love of nature
A place full of my memories
Training and application centre for the hunters
A place where I spend my free times
Dues payments and the bureaucracy
Other (Specify)
%
74,8
51,5
45,6
32,0
26,2
18,4
16,5
4,9
2,9
When Table 5 and Table 6 are taken together, it was seen that the hunters usually get
together at the associations they are affiliated to, exchange information on all matters and
they socialize at the same time.
Among the ones listed in table 7, the objectives the associations the hunters are affiliated
with attach importance to have been scored by the hunters via 1-9 scale. Accordingly,
preferences of "to help members fulfill bureaucratic procedures such as hunting permit and
hunting license", "to provide solidarity and cohesion among hunters" and "to ensure
gathering of the local hunters under a single roof" got the highest scores. There is a
contradiction between “Dues payments and the bureaucracy" option, which was preferred
by 4,9% in Table 6, and the one that is on the first rank here. In Table 7 it can be seen that
whereas hunters ignore "dues payments" title so as to be affiliated with the hunters'
associations, the associations make a lot of effort in this regard. The fact that associations
are recently entitled to get a share in dues payments to be transferred to public institutions
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
is thought to be among the main reasons for this situation. Besides, we can say that
associations less care about sociological activities or objectives. For example, "Social
activities for hunting, carrying out hunting organizations", option got the minimum score.
Similarly, “carrying out studies for the care, protection and reproduction of the game and
wildlife animals", “ensuring that new generations teach hunting" and “combating hunters
who hunt in an irregular and illegal way” options are scored less than the others.
Table 7: The Objectives the Hunters'Associations
The Objectives of the Hunters’ Association
Carrying out studies for the care, protection and reproduction of the game and
wildlife animals
Ensuring that new generations learn hunting
To ensure gathering of the local hunters under a single roof
To provide solidarity and cohesion among hunters
To help members fulfil bureaucratic procedures such as hunting permit and
hunting license
To ensure hunters hunt lawfully
Carrying out social activities and hunting organizations
Combating hunters who hunt in an irregular and illegal way
Help hunters receive training in hunting
Importance
score
6,3
6,3
7,1
7,2
8,2
7,2
6,0
6,4
6,6
According to the hunters the strengths of the Hunters' Association they are affiliated to be
shown in Table 8. Accordingly, "game chats and banter", "love of nature", "making
friends", "sharing the game animals" are the prominent headings. None the less, it is
possible to say that the hunters are in good condition in the fields of helping and supporting
each other.
Table 8: Strengths of the Culture at the Hunters’ Association
Powerful Components of the Culture
Importance
score
Game chats and banter
Love of nature, conscious hunting, environmental awareness, nature conservation
Making friends with the hunters of all ages and social classes
Affection and respect
Hunting with group of friends and sharing the game animals
Friendship and fraternity
Continuous implementation of hunting from past to present
Participating in the activities of solidarity such as hunting festival, banquet and
Islamic rituals and ceremonies
Participate in the special days, wedding and engagement of the members and
sending flowers
Sharing members' problems such as illness, death, economic hardships and so on
Exhibiting the pictures of the members
Going on a hunt organized by the association management
Exhibiting mounted game animals
7,8
7,7
7,6
7,5
7,5
7,4
7,4
6,8
6,7
6,5
5,9
5,4
4,0
When the hunters are asked whether there is someone they consider as a leader or they
hailed as a hero among themselves, current president of the association is highlighted.
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Association's president, who appears to be the leader in Table 9, has been put forward by
44%. In fact, the question asked has not fully served the purpose. The perception in
answering the question has turned towards the principle of the association who has the
ability to represent. On the other hand, it was expressed that at some of the associations,
there were also prominent members who came to the forefront with the leadership they
showed during the hunting activities.
Table 9: Leaders or Heroes at Hunters’ Association
Leaders or Heroes
Current president of the association
Some of the members
One of the members of the Board of Directors of the Association
Former president of the association
I have no idea
No, there aren’t any
%
43,8
17,9
8,0
5,3
10,7
14,3
In Table 10, the hunters were asked about the images expressing the cultural bond they
established with the associations they were affiliated. Accordingly, the vast majority of the
associations do not have an emblem. In these emblems, often components of the nature
such as dogs, rifles, hunters, birds, lakes and mountains are used. Of about 80% of the
associations do not have a standard outfit. Also, the majority of the "Yes, respondents"
assumed that as a dress. Associations do not usually have a special form of salutation. It
was seen that when hunters quit hunting, a special ceremony is held mostly for the
members who gained a place in the association (% 40). Substantially, an event is organized
at season openings.
Table 10: Cultural Images and Activities Reflecting the Hunters' Association
Preferred Images and Cultural Activities
Yes
No
I have no idea
%
%
%
65
28,2
6,8
Standard Outfit
15,5
77,7
6,8
Salutation
23,3
69,9
6,8
Common Terms and Concepts
13,6
59,2
27,2
Holding a Jubilee Ceremony for Those Who Quit Hunting
35,9
45,6
18,5
Organizing events such as banquet, entertainment, etc. at seasonal
openings or closings
84,40
10,70
4,9
Badges, Flags and Emblems
The hunters were asked about the sort of activities organized for the newly joined members
at the beginning. According to Table 11; it is seen that introduction/acquaintance response
comes forward. On the other hand, "shooting techniques", "weapons maintenance" and
"hunting techniques" altogether are significantly answered in relation to hunting.
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Table 11: Activities for Your Newly Joined Members
Name of the Event
We are introducing our friends
We are teaching dog care and training
We are teaching hunting techniques
We are giving first aid training
We provide information about gun care
Nature conservation
Respect for elders
We are teaching shooting techniques
We do not organize any events
I have no idea
%
57,3
13,6
30,1
9,7
16,5
23,3
21,4
21,4
10,7
16,5
Findings on Hunting Culture
Surveyed hunters answered the question "What is the motive that sparked your interest in
hunting?" by choosing alternatives on 1-9 scale. According to Table 12 it is understood
that the most important motivational tool was "love of nature". The response "motive to
be with friends" takes the second place and the response “physical activity" is also in the
third row. Preferences of "to provide economic benefits" and "to get nutrients" appeared
in the bottom rows. "Sense of shooting” and “motive of animal hunting" were in the
middle rows of the table. Both the options “to provide economic benefits” and “to get
nutrients" got highly low points. This is the point to be considered. Also, the score of
"animal hunting" option is in the middle ranks. This situation can be interpreted as a
transformation in hunting. Hunting has transformed from absolute activity of animal
hunting to a form of recreation. Looking at the results; "love of nature", "being together
with "friends", and “physical act" scored greater. As a matter of fact, the observation of the
hunting styles of the hunters hunting out with group of friends accompanied by food and
drinks, supports this finding.
Table 12: The Factors Effective in Sparking Interest in Hunting
Factor
In the period you first
started hunting
Love of nature
Being together with my friends
Physical act
Animal hunting
Shooting
To be alone in nature
To get nutrients
To provide economic benefits
7,5
7,3
6,5
5,6
4,8
3,8
2,2
1,5
Now
8,7
7,9
8,0
4,2
4,1
4,3
2,0
1,6
When asked about the change of these factors pushing people to hunt in the course of time,
in other words, when looked into "whether or not there are changes in motivational tools
which are effective in hunting as of the first day when they go hunting and today";
significant changes has not been determined. Just in time, the senses of animal hunting and
shooting are (albeit small) on the decline.
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
It has been determined that a large portion of hunters, nearly 71.8%, often wants to go
hunting with the same group of friends (Table 13). The rate of those who are open to new
friendships is 31%. Considered together with the results of the above table, hunters often
prefer to go on the hunt as friends and to socialize by doing so.
Table 13: Making New Friends for Hunting
New-friendship-relations
In general, I go hunting with my same friend
I prefer new friends even a little
I prefer new friends a lot
It does not matter with whom I go on hunting
%
71,8
31,1
8,7
8,7
A large portion of the hunters surveyed does not have any belief that they consider that it
brings good luck before or after the game. As can be seen in Table 14, 89% of the
respondents answered "no" to this question. Similarly, a large portion of the hunters
surveyed does not have any belief that they consider that it brings bad luck before or after
the game. 93% of the respondents answered "no" to this question.
Table 14: Superstitious Beliefs of the Hunters
Superstition
Do you have any beliefs that you consider that they bring
good luck before or after the game?
Do you have any beliefs that you consider that they bring
bad luck before or after the game?
Yes
(%)
No
(%)
10,7
89,3
6,8
93,2
In Table 15 various thoughts of the hunters about hunting activity are included. Hunters
stated their ideas on this subject by choosing alternatives on 1-9 scale. Looking at the
importance scores in Table 14, it is seen that hunters enjoy talking about the things done in
the previous game. Similarly, shooting related issues are also among the outstanding
conversation pieces. Escape of the game animals, return home empty-handed, unsuccessful
hunting activities are expressed as the situations which do not bother hunters. On the other
hand, it was observed that the hunters do not have a certain feeling about envying the
friends who realize a successful hunt.
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
Table 15: Thoughts on the Hunting Activity
Topics
Importance
Score
To what extent do you talk about the things you did in the previous game in
your conversations with the hunters?
To what extent do you talk about the issues in relation to handing down to
the next generations of the natural resources in your conversations with the
hunters?
To what extent do you talk about weapons, sighting and shooting techniques
in your conversations with the hunters?
To what extent do you question the negative hunts you did in the past?
7,5
How much does it upset you when the game animal escapes?
3,3
How much does it bother you to return home empty-handed after the game?
2,5
How much do you like to show the animals you shot to your relatives after
the game?
How much do you like to fill the legal limits at the end of the hunting?
3,3
What is your level of jealousy during hunting?
2,0
What is the priority of your passion for hunting in your social life?
6,2
To what extent do unsuccessful hunts affect you psychologically?
2,5
How much support does your spouse or family provide you for hunting?
4,9
How much do you like if your child or grandchild goes hunting?
7,3
How much will photo hunting, which is carried out by a camera instead of
the rifle hunting, become widespread in future?
5,0
6,7
6,3
5,8
4,9
Hunters surveyed seemed to be willing about their children or grandchildren becoming
hunters. However, it has clearly been determined that hunting prevents their social life
from time to time and consequently the families do not support the hunters.
Conclusion
It is obvious that game and wildlife resources management in Turkey faces with a mission
such as restoring the hunting activity with the permanent principles, norms and values. At
present, the situation of the game and wildlife assets makes it a priority to propose this
solution offer. Not only the hunters but also those who manage the resource are required to
comply with the mentioned paradigm shifting. In other words, those who manage resources
in question and those who carry out the activity of hunting must be integrated. The best
way to accomplish this is to let hunters participate in game and wildlife management.
Therefore, the hunters should primarily be recognized with their all value judgments.
Without having information about social, economic and cultural structures of the hunters
who want to take advantage of hunting and wildlife resources, it is not possible to plan
hunting and to create effective strategies on a going forward basis.
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�International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo
In this study, with the data obtained from questionnaire study carried out face to face in
Marmara Region of Turkey distinguished in terms of industrialization and natural
resources and in the most important province of Turkey, the cultural state of the territorial
hunters has been revealed. The size of Istanbul in terms of population and industrialization
necessitated the changes in the socio-cultural characteristics of the hunters. In comparison
with the similar studies carried out in Anatolia it is seen that this study differs from the
other ones.
References
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Acknowledgement
In this study, intermediate results of the TUBİTAK (Scientific and Technological Research
Council of Turkey) project, called "Determination of Cultural Characteristics and Profile
of Hunters (Balıkesir, Bursa and Istanbul Provinces)” and numbered 111K519, were used.
We would like to thank TUBİTAK for supporting this project.
14
�
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1597
Title
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Determination of Cultural Characteristics of Hunters in İstanbul Province to Hunting and Wildlife Management (İstanbul Province Case)
Author
Author
SAFAK, Ismail
OKAN, Taner
HIZAL, Erdem
KECECIOGLU, Tamer
ISIK, Caner
ACAR, Sedat
Abstract
A summary of the resource.
Turkey has a rather important potential from the point of view of wildlife resources which includes both species diversity and sheltering capacity. On the other hand, wildlife in Turkey has been endangered since wilderness ecosystem and habitats have been damaged and managed badly. There is a rather important role of hunters in this process. Hunting, which means catching of either living or lifeless animals that live freely in the nature, has attracted attention of mankind almost in every term. Hunting has been accepted as an important activity also today as well as in the past. It is not a realistic approach considering the hunting passion which comes to today with the traces from the past as nothing. Today, hunters have become a guaranty of biodiversity and wilderness by getting an environmentalist status. As increasing economic and social welfare, first of all demands of hunters and demands of stakeholders from wildlife sector are getting increased by varying. In this context, it is obligatory to develop and reach a rationalist management of wildlife potential that promises a great future of Turkey. In Turkey, lawful regulations were made in 2003 with act of 4915 to solve problems of wildlife management. Wildlife management in Turkey still live a transition period, problems are going on because new laws and its implementations have not yet established. Among these problems, illegal hunting, uneducated hunters, lack of hunter controlling have important place; basic problems are social, cultural, economic and lack of scientific structure. Associations, institutions and enterprises attach importance for knowing cultural elements and factors that affect them. It has been use an active instrument to convey cultural data and to reach aims. In this context, researches that determine human structure and cultural sensitiveness fields in the management of wildlife resources are very important. There have been seen some researches which related to determine of hunter profile since 2002. But, there are too few studies to determine cultural characteristics of hunters. In this context, it is needed some studies for hunter culture as related to management activities. This research project includes hunting clubs and their members in İstanbul. For this aim, according to sample size, there will be reached primary data using questionnaire method which is prepared for hunters. Some data based on literature research constitute secondary data of research. In this research, questionnaire, called the hunter form, will be developed. Hunter Form; cultural elements of hunters, profile of hunters and level of importance on the issue of hunters were determined. Nine-point Likert Scale was used in some questions to determine hunters’ thinking on the issue. The hunter form is designed in two parts. The first part is related to the demographic characteristics of hunters. The second section means detection levels of the components of the culture of hunters. In this research project, values forming culture of hunters were investigated in context of leaders and heroes, ceremony and symbols, story and legends, language, customs, norms and organizational socialization. Results of research project will be used as basic data in controlling and training of hunters, providing coordination and planning and sources. Data obtained from the hunters were evaluated using frequency, percentage, chi-square test, and Kruskal-Wallis one-way analysis of variance. In this context, there were benefited from SPSS program and others. Keywords: Hunting, Hunting Culture, Hunting and Wildlife Management, İstanbul.
Publisher
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International Burch University
Date
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2013-05-10
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ISSN 978-9958-834-23-3