201 10 3494 https://omeka.ibu.edu.ba/files/original/a17303ef5f814cbda651f929326a78fe.pdf 91198689cf98acd0424bfa5d1538ffa3 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Crucial Issue for the Enlargement Process of the European Union: “Turkey” Galip Ferhat Akbal Dumlupınar University, Kütahya, Turkey ferhatakbal89@gmail.com The probable accession of Turkey to European Union has been widely discussed for last decade. Some thinkers believe that further enlargement of the European Union will harm the harmony of the current structure. If we use the realist point of view here, we can say that it is a controversial issue to accept Turkey as a member of EU, due to the fact that each member states seeks its benefits and agree on issues, if there is a mutual gain. Even though there is general agreement among the member states that Turkey is an important strategic partner and should be closely associated with the EU, the full membership of Turkey to EU raised deep skepticism in member states due to the perceived costs of Turkey’s membership to EU. This skepticism prolonged the membership process of Turkey. However, throughout the new developments and events especially in the area of economy, Turkey came into prominence again. Yet, it is still overwhelming to acknowledge that Turkey is ready to full membership because there are tough problems such as unsolved Kurdish issue, economic stability etc. In this paper, I will utilize from two significant international relations theories: Intergovernmentalism and Neofunctionalism. Then I will do the single-country study and analyses Turkey’s circumstances with the framework of these two theories. In this single country study, I will explain the Westernization process of Turkey since 1923 and I will continue with three perspectives which give form to perceptions of Turkey in the foreign policy. After this, I will calculate the benefits and costs of the membership both from EU and Turkey. Keywords: Turkey-EU Relations, Realism, Intergovernmentalism, Neofunctionalism, Unanimity, Supranational Institutions, EU Enlargement Process 125 � https://omeka.ibu.edu.ba/files/original/c2a5d12f034034236f4e4336a6b148fe.docx 66bd444acb97ca4e84ca989962a86dc2 https://omeka.ibu.edu.ba/files/original/9b6b2f6cb90c32b11b94b5a9bdd6db9a.pdf f54311eb097ae32267b5f74415846aa0 PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo The Crucial Issue for the Enlargement Process of the European Union: „Turkey‟ Galip Ferhat Akbal Dumlupinar University, Kutahya, Turkey ferhatakbal89@gmail.com Abstract The probable accession of Turkey to European Union has been widely discussed for last decade. Some thinkers believe that further enlargement of the European Union will harm the harmony of the current structure. If we use the realist point of view here, we can say that it is a controversial issue to accept Turkey as a member of EU, due to the fact that each member states seeks its benefits and agree on issues, if there is a mutual gain. Even though there is general agreement among the member states that Turkey is an important strategic partner and should be closely associated with the EU, the full membership of Turkey to EU raised deep skepticism in member states due to the perceived costs of Turkey‟s membership to EU. This skepticism prolonged the membership process of Turkey. However, throughout the new developments and events especially in the area of economy, Turkey came into prominence again. Yet, it is still overwhelming to acknowledge that Turkey is ready to full membership because there are tough problems such as unsolved Kurdish issue, economic stability etc. In this paper, I will utilize from two significant international relations theories: Intergovernmentalism and Neofunctionalism. Then I will do the single-country study and analyses Turkey‟s circumstances with the framework of these two theories. In this single country study, I will explain the Westernization process of Turkey since 1923 and I will continue with three perspectives which give form to perceptions of Turkey in the foreign policy. After this, I will calculate the benefits and costs of the membership both from EU and Turkey. Keywords: Turkey-EU Relations, Realism, Intergovernmentalism, Neofunctionalism, Unanimity, Supranational Institutions, EU Enlargement Process Introduction The probable accession of Turkey to European Union has been widely discussed for last decade. Some thinkers believe that further enlargement of the European Union will harm the harmony of the current structure. If we use the realist point of view here, we can say that it is a controversial issue to accept Turkey as a member of EU, due to the fact that each member states seeks its benefits and agree on issues, if there is a mutual gain. Even though there is general agreement among the member states that Turkey is an important strategic partner and should be closely associated with the EU, the full membership of Turkey to EU raised deep skepticism in member states due to the perceived costs of Turkey‟s membership to EU. This skepticism prolonged the membership process of Turkey. However, throughout the new developments and events especially in the area of economy, Turkey came into prominence again. Yet, it is still overwhelming to acknowledge that Turkey is ready to full membership because there are tough problems such as unsolved Kurdish issue, economic stability etc. 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo In this paper, I will utilize from two significant international relations theories: Intergovernmentalism and Neofunctionalism. Then I will do the single-country study and analyse Turkey‟s circumstances with the framework of these two theories. In this single country study, Key Words: Turkey-EU Relations, Realism, Intergovernmentalism, Neofunctionalism, unanimity, supranational institutions, EU enlargement process Intergovernmentalist Approach: Intergovernmentalism is one of the well-known approaches in international relations. According to this approach, nation states plays crucial role. George Bache thinks that European integration process would only go as far as the nation states were prepared to allow it to go (Bache, 2006: 13). Because of the fact that nation states are the most important and powerful actors in this approach, interests of nation states may postpones the integration process of candidate membership. One of the measure or principle that the intergovernmentalist point of view passionately advocates in the body of the EU is the unanimity. Unanimity refers to the complete agreement between member states. Individuals consider unanimous decisions as the sign of agreement, solidarity and unity. If a decision has to be taken by unanimity, there must not be any negative vote to this decision. If there is just one negative vote to a decision, the decision will not come into effect. Thus, individuals also name unanimity as the „veto power‟. But why is this unanimity principle crucial for Turkey? If the full membership negotiations which was launched on 3 October 2005 come to a conclusion positively and the final decision that determine the membership of Turkey to EU is decided to be taken by unanimity, for Turkey to be a member of the EU could be impossible. Today, there are some members states enthusiastically opposing to the membership of Turkey such as Cyprus, Greece and Austria due to the political and historical reasons and even though Turkish government conducts positive policy initiatives so as to get the support of these countries, it could be impossible to obtain their positive votes for the membership of Turkey to EU. For instance, Austria does not support Turkey‟s membership mostly because of the historical reasons. The siege of Vienna by the Ottomans in 1683 caused stereotypes such as „cruel Turks‟, „barbarous Turks‟ and these stereotypes are still preserving its impact on Austrian politicians and citizens. “Even centuries later, the historical memory of the siege of Vienna serves as the most significant reason why Austria remains the most ardent opponent of Turkish membership” (Kösebalaban 2007:99). The bare truth is that for Turkey none of the initiatives may not be enough to eradicate these stereotypes so if the final decision about Turkey‟s membership to EU is decided to be taken by unanimity principle, Turkey could be out of the Union. The same thing is valid in the case of Cyprus. The government of Cyprus puts forward the recognition of Cyprus by Turkey as the precondition for Turkey‟s membership to EU but as we all know that Turkey evaluates Cyprus issue as the national problem and conducts a strict politics and attitude towards Cyprus issue and rejects to undertake any initiative that leads to the recognition of Cyprus. So if the final decision about Turkey‟s membership to 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo EU is decided to be taken by unanimity principle, Turkey would not get the positive vote or support of Cyprus (Ker-Lindsay, 2007: 71-83). Neofunctionalist Approach Neofunctionalism is one of the well-known theories in international relations considered as the counter-theory to abovementioned intergovernmentalism. Neofunctionalism strongly argues that nation-states are not the only actors in international relations. According to neofunctionalist point of view, non-state actors are as important as nation-states, hence they give so much significance to the supranational institutions like EU and interest groups and bureaucratic actors (Bache, 2006:9). For neofunctionalism, the activities of interest groups and bureaucratic actors should not be restricted to the domestic political arena (Bache, 2006:9). That is to say, interest groups and bureaucratic actors should play a global or worldwide role in international arena instead of merely conducting activities related to domestic politics. The most vital concept for the neofunctionalism is the concept of „spillover‟. The concept of spillover “refers to a situation in which a given action, related to a specific goal, creates a situation in which the original goal can be assured only by taking further actions, which in turn create a further condition and a need for more action and so forth” (Lindberg, 1963: 10). Clearer, this concept signifies that once national governments take a step for the integration of one sector, the process of integration will continue inevitably with the integration of other sectors. For instance, with the establishment of European Coal and Steel Community (ECSC) in 1951 with the Treaty of Paris, the sector of coal and steel was integrated and taken under the control of a High Authority and this process of integration continued and expanded more with the establishment of European Economic Community (EEC) and the European Atomic Energy Community (EURATOM) in 1958 with the Treaty of Rome. Furthermore, for the neofunctionalist thinking European Commission is the most significant non-state international actor. According to neofunctionalist logic, European Commission can manipulate both domestic and international pressures on national governments to develop the process of European integration even if the national governments are reluctant (Bache, 2006: 9. Through regular Progress Reports, Negotiating Framework, Paper on issues arising from Turkey's membership perspective, and Screening Reports, European Commission tries to impose the obligations which should be met by the Turkish government for the EU membership. As a result of these reports, Turkish government mostly endeavors to pass legislations in order to meet the obligations implied by the European Commission for the EU membership. So, the bare truth is that European Commission is the most influential institution with regard to Turkey‟s accession to EU. The European Commission has played a key role in the membership process of Turkey to EU. In its Regular Report of 2004, the European Commission expressed that Turkey has achieved significant legislative progress in many areas, through further reform packages, constitutional changes and the adoption of a new Penal Code (Schimmelfennig, 2009: 425). At the end of this report, the European Commission declared that Turkey has fulfilled the necessary political criteria indicated in the Copenhagen Criteria and recommended that accession negotiations should be opened with Turkey (Commission of the European Communities). 2004 As a result of the recommendation of the European Commission, the European Council accepted the Commission‟s assessments and recommendation and on 3 October 2005, the full membership negotiations were launched with Turkey. 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Besides, neofunctionalist point of view cares about the augmentation of new markets in the body of EU. Thus, they interpret Turkey‟s membership to EU in a positive and affirmative manner on the basis of „creation or increase of new markets‟. According to neofuncionalist ideology, Turkey, with its population of seventy-two million which consist of a considerable amount of young population, would be a great market and this would increase the trade volume of EU member states (Nugent, 2007: 484). Apart from the notion of new market, the neofunctionalist logic seems confirmative to Turkey‟s EU membership due to the idea of democracy. According to neofunctionalist perspective, if Turkey is excluded from the EU, Turkey would turn its face to the East where there are lots of countries that have unstable and unconsolidated democracies and anti-democratic polity such as Iraq, Iran and Syria and this situation would damage the delicate structure of Turkish democracy. In addition, the neofunctionalist thinking states that Turkey which has unconsolidated and unstable democracy would cause a security problem for the Europe since it would be the sole European country that has unreliable democracy. In this case, Turkey would affect the democratic tradition, values and norms of Europe terribly (Oğuzlu and Kibaroğlu, 2008: 945). Conclusion In both theories, there are constant doubts about membership of Turkey. However, not only Turkey but also member states of European Union may face with the dangerous potential of intergovernmentalism due to the fact that nation states can follow their own interests. Neofunctionalist approach can play a significant role for Turkey and EU. Membership of Turkey and future of European Union is strongly linked with each other. There is a mutual gain. Yet, there are homework should be done by Turkey. Turkish democracy has still some important problems, although some important steps done. On the other hand, European Union should minimize the negative discrimination against Turkey. References Bache, Ian; George, Stephen 2006, Politics in the European Union, New York: Oxford University Press. Lindberg, L. 1963, The Political Dynamics of European Economic Integration, Stanford: Stanford University Press. Ker-Lindsay, James 2007, The Policies of Greece and Cyprus towards Turkey‟s EU Accession, Turkish Studies, Vol. 8, No. 1, pp. 71-83. Kösebalaban, Hasan 2007, The Permanent “Other”? Turkey and the Question of European Identity, Mediterranean Quarterly Vol. 18, No. 4, Mediterranean Affairs Inc., pp. 87-111. Nugent, Neill 2007, The EU‟s Response to Turkey‟s Membership Application: Not Just a Weighing of Costs and Benefits, European Integration Vol. 29, No. 4, Routledge, pp. 481-502. 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Oğuzlu Tarık; Kibaroğlu, Mustafa 2008, Incompatibilities in Turkish and European Security Cultures Diminish Turkey‟s Prospects for EU Membership, Middle Eastern Studies Vol.44, No. 6, Routledge, pp. 945-962. Schimmelfennig, Frank 2009, Entrapped again: The way to EU membership negotiations with Turkey, International Politics Vol. 46, No. 4, Palgrave Macmillan, pp. 413431. Commission of the European Communities, 2004b. 5 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1555 Title A name given to the resource The Crucial Issue for the Enlargement Process of the European Union: “Turkey” Author Author FERHAT AKBAL, Galip Abstract A summary of the resource. The probable accession of Turkey to European Union has been widely discussed for last decade. Some thinkers believe that further enlargement of the European Union will harm the harmony of the current structure. If we use the realist point of view here, we can say that it is a controversial issue to accept Turkey as a member of EU, due to the fact that each member states seeks its benefits and agree on issues, if there is a mutual gain. Even though there is general agreement among the member states that Turkey is an important strategic partner and should be closely associated with the EU, the full membership of Turkey to EU raised deep skepticism in member states due to the perceived costs of Turkey’s membership to EU. This skepticism prolonged the membership process of Turkey. However, throughout the new developments and events especially in the area of economy, Turkey came into prominence again. Yet, it is still overwhelming to acknowledge that Turkey is ready to full membership because there are tough problems such as unsolved Kurdish issue, economic stability etc. In this paper, I will utilize from two significant international relations theories: Intergovernmentalism and Neofunctionalism. Then I will do the single-country study and analyses Turkey’s circumstances with the framework of these two theories. In this single country study, I will explain the Westernization process of Turkey since 1923 and I will continue with three perspectives which give form to perceptions of Turkey in the foreign policy. After this, I will calculate the benefits and costs of the membership both from EU and Turkey. Keywords: Turkey-EU Relations, Realism, Intergovernmentalism, Neofunctionalism, Unanimity, Supranational Institutions, EU Enlargement Process Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/9c2fa4b4dc6a3b5dded1a1e46e5616ea.pdf da4c42af30cef3cd9a9246f8022586bb PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Students’ Perceptions of Corporate Social Responsibility and Repeat Patronage Intentions: The Moderating Role of Trust Rana Fawad Asif Shaheed Zulfiqar Ali Bhutto, Institute of science & Technology Islamabad, Pakistan fawadasif@gmail.com Sami Abdul Ahad National Defence University, Islamabad, Pakistan unsung1990@yahoo.com Ahmed Gull Department of Management Print o Plast, Islamabad,Pakistan unsung1990@yahoo.com Corporate Social Responsibility (CSR) is an extensive concept and has been becoming more and more important in the contemporary world. This research study aims to highlight the significance of Corporate Social Responsibility in Education Sector and happenings that are necessary for a university to act as socially responsible. It also studies the students’ belief about the social responsibility performance of their institutions and in a broad-spectrum as well. This study deliberates the impact of Corporate Social Responsibility on students’ commitment at university level. The study develops and tests a conceptual framework which predicts a positive relationship of Corporate Social Responsibility towards Perceived Service Quality, Attitudinal Loyalty, Repeat Patronage Intentions and the moderating role of Trust in the context of universities located in Islamabad. At the same time the study examines the mediating relationship of Attitudinal Loyalty between Perceived Service Quality and Repeat Patronage Intentions. The results generally support this relationship except for the moderating direction of Trust between Corporate Social Responsibility and Attitudinal Loyalty. The results also showed that Attitudinal Loyalty mediates the relationship among Perceived Service Quality and Repeat Patronage Intentions. The social responsible activities of the universities were highlighted in the study and students’ perceptions about Corporate Social Responsibility 240 �International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo were also considered. The outcomes showed that the social responsible behaviors of the university increases the students’ commitment and loyalty for the university which leads to repeat behavioral intentions, by means of creating a positive image of the university. The universities primarily business schools were selected as the context of the study because business schools educate and train graduates who become future business experts and managers. Therefore the universities need to understand the emerging concept of Corporate Social Responsibility and make the students aware of it and realize its importance to make them effective business leaders. Keywords: Trust, Corporate Social Responsibility, Perceived Service Quality, Attitudinal Loyalty, Repeat Patronage Intentions. 241 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1640 Title A name given to the resource Students’ Perceptions of Corporate Social Responsibility and Repeat Patronage Intentions: The Moderating Role of Trust Author Author FAWAD ASIF, Rana ABDUL AHAD, Sami GULL, Ahmed Abstract A summary of the resource. Corporate Social Responsibility (CSR) is an extensive concept and has been becoming more and more important in the contemporary world. This research study aims to highlight the significance of Corporate Social Responsibility in Education Sector and happenings that are necessary for a university to act as socially responsible. It also studies the students’ belief about the social responsibility performance of their institutions and in a broad-spectrum as well. This study deliberates the impact of Corporate Social Responsibility on students’ commitment at university level. The study develops and tests a conceptual framework which predicts a positive relationship of Corporate Social Responsibility towards Perceived Service Quality, Attitudinal Loyalty, Repeat Patronage Intentions and the moderating role of Trust in the context of universities located in Islamabad. At the same time the study examines the mediating relationship of Attitudinal Loyalty between Perceived Service Quality and Repeat Patronage Intentions. The results generally support this relationship except for the moderating direction of Trust between Corporate Social Responsibility and Attitudinal Loyalty. The results also showed that Attitudinal Loyalty mediates the relationship among Perceived Service Quality and Repeat Patronage Intentions. The social responsible activities of the universities were highlighted in the study and students’ perceptions about Corporate Social Responsibility were also considered. The outcomes showed that the social responsible behaviors of the university increases the students’ commitment and loyalty for the university which leads to repeat behavioral intentions, by means of creating a positive image of the university. The universities primarily business schools were selected as the context of the study because business schools educate and train graduates who become future business experts and managers. Therefore the universities need to understand the emerging concept of Corporate Social Responsibility and make the students aware of it and realize its importance to make them effective business leaders. Keywords: Trust, Corporate Social Responsibility, Perceived Service Quality, Attitudinal Loyalty, Repeat Patronage Intentions. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/c5dbf47aba2fc52e1772cc44bb4e9599.docx fde5272eda3b3133fab2f7d40abb8db7 https://omeka.ibu.edu.ba/files/original/cd98b2a0a85a3a4e4b4375d23a668fac.pdf 5b01a6e2c86db7662708035a2f9ca906 PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Point of View from the Perspective of an Accountant to Independent Auditing with the New Turkish Commercial Code Güler F. ÜnalUyar Akdeniz University/Antalya, Turkey gulerferhan@hotmail.com HalitGörmez Akdeniz University/Antalya, Turkey BülentKınay Akdeniz University/Antalya, Turkey In 01 July 2012, the enactment of the Turkish Commercial Law no 6102, lead to significant changes, especially in the field of independent auditing. These changes include the determination of the persons or organizations for independent audit companies and auditors. These regulations with the other regulations in the new Turkish Commercial Law, will mostly affect Professional groups. For this reason, 29 females, 64 males, including 93 public accountants registered in the Chamber of Certified Public Accountants of Antalya asked for expectations by a survey about the new Turkish Commercial Law. In the first part of the questionnaire includes demographic data such as age, education and gender, the second part includes multiple-choice questions concerning the audit process, the last part includes five-point Likert scale questions about how professionals will be affected. The results were analysed by SPSS package program. Keywords: New Accountants. Turkish Commercial Law, Independent Auditing, 1. Introduction The need of information users for reliable information is increasing in order to use the resources efficiently and effectively while making decisions for financial reports prepared by enterprises the in the presence of global economy and increasing competition. Reliable information makes information inspection obligatory. The limits of independent audit in our country which are indicated in the law with CMB (Capital Markets Board) regulations in 1988 is increasing even more with the enactment of 6102 Turkish Commercial Code on the date of 01.07.2012. In this context “Public Supervision, Accounting and Audit Standards Institution” was founded as a regulatingauthority for independent audit activity and the profession of auditorship. There have been major changes in the field of independent audit with this. These changes include determination of audited companies and possible auditor persons or organizations. It is envisioned that members of a profession will be affected most with the changes done in the independent audit in the New Turkish Commercial Code. For this reason, 29 7 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo females, 64 males, including 93 public accountant registered in the Chamber of Certified Public Accountants of Antalya were asked for expectations by a survey about the new Turkish Commercial Code. The first part of the questionnaire includes demographic data such as age, education and gender, the second part includes multiple-choice questions concerning the audit process, the last part includes five-point Likert scale questions about how professionals will be affected. The results were interpreted by Frequency analysis in SPSS package program. 2. Literature Research In the study carried out by Ulusan, Eren and Köylü (2012), a survey was conducted for 41 members of profession about how the new regulations brought on accounting and audit by Turkish Commercial Code no 6102 are perceived by members of profession, and results were interpreted by SPSS package program. As a result of the study, it was seen that number of people who believe that new regulations brought by New Commercial Code are necessary are correct is more than the number of people who do not believe so. In the study carried out by Hatunoğlu (2010), a survey was conducted for 131 members of profession registered in Chamber of Independent Accountant and Financial Advisor in Kahramanmaraş about how the regulations in Stock Corporations affect members of profession, while New Turkish Commercial Code was in draft. As a result of this study, majority of the attendants believe that bringing of the New Turkish Commercial Code will be positive. 3. Materials And Methods 29 female and 64 male public accountants registered in the Chamber of Certified Public Accountants of Antalya were asked for their expectations from changes in independent audit by New Turkish Commercial Code in a survey. Survey consists of 3 parts: A. First part of the survey The first part of the questionnaire consists of demographic data such as age, education and gender. A1. Distribution of Age and Gender Gender Age Total Female Male Total 25-35 12 20 32 36-45 14 26 40 46-55 2 10 12 56-…. 1 8 9 29 64 93 8 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 29 of the attendants are female and 64 of them are males, 34% of them are between ages of 25-35 in total, 43% of them are between ages of 36-45 and the rest are above the age of 46. A2. Education Level Education Level High School Gender College Undergraduate Postgraduate Total Female 1 1 26 1 29 Male 1 1 56 6 64 2 2 82 7 93 Total 96% of the attendants have completed undergraduate and post graduate education A3. Taxpayer Numbers of the Accountants TaxpayerNumbers Company 1-20 Gender 21-40 41-60 61-80 81 -….. accountant Total Female 11 8 4 1 3 2 29 Male 15 13 10 11 12 3 64 26 21 14 12 15 5 93 Total 50% of the attendants are working with more than 40 taxpayers. A4. Distribution of Professional Times Professional Times 1-5 years Gender Female Male Total 6-10 years 11-15 years 16-20 years 21-… Total 9 8 5 4 3 29 12 16 15 8 13 64 21 24 20 12 16 93 Approximately 23% of the accountants are working for 1 and 5 years, 26% of them are working for 6-10 years and approximately 30% of them are working for more than 15 years as accountant. 25% of these are female and 75% of them are male accountants. 9 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo A5. Distribution of Employee Numbers EmployeeNumbers N/A Gender 1-3 persons 4-7 persons 8 andex Total Female 17 6 4 2 29 Male 16 32 13 3 64 33 38 17 5 93 Total 35% of the accountants do not employ anyone with them and only 41% of them employ more than 3 people. A6. Training of the Personnel Training Of Personnel Yes Gender No Total Female 21 8 29 Male 60 4 64 81 12 93 Total Also 87% of the accountants prove training for accounting to the employed personnel. B. Second part of the survey In the second part of the survey multiple-choice questions concerning the regulation of independent audit, rate setting, determination of audited companies are asked and it is stated that they are able to select more than one option for these questions. B1. Independent Audit Regulation Institution q1 CapitalMark Revenue ets Board TÜRMOB Gender Total 1 Administrati (CMB) KGK2 on (RA) Total Others Female 17 4 2 6 0 29 Male 52 2 2 7 1 64 69 6 4 13 1 93 When accountants were asked which institution should perform the regulations and controls about independent audit, 74% of them stated TÜRMOB. 1 TÜRMOB : Union Of Chambers Of Certified Public Accountants of Turkey. 2 KGK : Public Oversight Accounting and Auditing Standards Authority 10 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo B2. Who Should Auditors Be Selected From Auditor’schoice Independent Auditing Accountants Gender Firm Total Female 27 2 29 Male 63 1 64 90 3 93 Total Accountants were asked, according to the New TCC, about whom should the independent auditors be selected from and given answers include lawyer, revenue, academics and independent audit firms. 97% of the accountants stated that independent auditors should only be selected from accountants (Independent Accountant and Financial Advisor and Certified Public Accountant), 3% of them stated that they should be selected from Independent Audit firms. B3. Rate Setting for Independent Audit Rate SettingforIndependent Auditing a Gender Female Male Total b c d e Total 8 2 9 10 0 29 19 12 18 14 1 64 27 14 27 24 1 93 Attendants were asked about which criteria should be considered for rate setting and while approximately 30% of them were thinking about a “minimum fee tariff publication” 30% of them were thinking “a specific percentage of sales revenue of the organization” should be taken. Another part of 26% said that “a percentage of organization's size of assets” should be taken. B4. Criteria of Organizations Which Should be Audited Criterias a Gender Total abcde b c d e Total Female 1 0 0 5 13 10 29 Male 5 2 4 9 26 18 64 6 2 4 14 39 28 93 Necessary criteria for being audited of an organization were asked to attendant accountants and it was indicated that they are able to select more than one option. Given options were capital of the organization, assets of the organization, sales revenues and size of the employed personnel and if it should be a capital company or not. 42% of them stated that it should be based on “Size of Organization's Assets” and 30% of them stated that it should be based on “Size of Organization’s Sales Revenues”. 11 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo B5. Contribution of Independent Audit Contributions a Gender b d e Total Female 10 4 15 0 29 Male 21 2 40 1 64 31 6 55 1 93 Total It was asked that who would independent audit contribute most and approximately 60% of them stated that it would contribute to the “financial table user”. It was followed by “struggle with off the books transactions” with 33%% and “independent audited company” with 6%. However none of the accountants selected the option of “it would contribute to the members of profession”. B6. Organizations Which Should be Independently Audited It was asked to the accountants that which organization or organizations should be independently audited and it was stated that they are free to select more than one option. For this reason, 13% of them Private Companies, 63% of them Limited Companies, 75% of them Family Incorporations, 96% of them Open Public Companies, 45% of them Cooperatives and 5% of them envisaged Sole Proprietorships should be audited. C. Third part of the survey In the third part of the survey eagerness and chances of members of profession to become independent audit and their thoughts about the financial and professional contributions and burden it would bring and besides if the New TCC was enough or not was asked by way of five-point Likert scale. And the evaluation of five-point Likert scale will be as follows: 1: I certainly disagree 2: I disagree 3: I am neutral 4: I agree 5: I certainly agree 12 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo C1. TÜRMOB, Takes an Active Role in Preparation of TCC and Formation of the Independent Audit q1 1 2 3 4 5 Total Proffesionaltimes A 5 10 3 1 2 21 B 4 17 2 1 0 24 C 8 4 2 2 4 20 D 2 6 0 4 0 12 E 4 6 3 1 2 16 23 43 10 9 8 93 Total 71% of the accountants think that TÜRMOB takes an active role regarding this subject. C2. In Addition to the condition of Being a Member of Profession, There Should be an Examination Done by Institution in order to Become an Independent Audit. q2 1 Age Total 2 3 4 5 Total A 9 5 0 9 9 32 B 13 14 0 11 2 40 C 3 5 1 3 0 12 D 1 5 0 2 1 9 26 29 1 25 12 93 While 40% though an examination was necessary, 58% of them did not think it was necessary. 50% of the accountants who think that examination is not necessary are between ages of 36-45, 25% of them are between ages of 25-25. 13 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo C3. Finding Criteria of Companies Which Will be Audited Independently Adequate q3 1 Professional times 2 3 4 5 Total a 5 8 3 3 2 21 b 5 12 6 1 0 24 c 3 5 4 7 0 19 d 0 4 4 3 1 12 e 4 9 2 1 0 16 17 38 19 15 3 92 Total 59% of the attendants find criteria of companies which will be audited independently adequate and 19% of them do not, and the rest is neutral C4. Request of Being an Independent Auditor q4 1 Professional times 2 3 4 5 Total a 0 0 3 12 6 21 b 0 1 4 14 5 24 c 1 1 5 10 3 20 d 0 0 3 5 4 12 e 1 0 6 6 3 16 2 2 21 47 21 93 Total C5. Chance of Being an Independent Auditor q5 1 Professional times Total 2 3 4 5 Total a 1 3 2 8 7 21 b 1 5 2 13 3 24 c 3 4 3 5 5 20 d 0 0 6 4 2 12 e 2 5 5 3 1 16 7 17 18 33 18 93 While 73% of the audits are resolute about being an independent audit, 23% of them are still abstain on this subject. 14 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Also 54% of the attendants think that their chances are high, 26% of them think that they cannot become one. 30% of those who think their chances of becoming an independent audit is low consist of people who worked more than 21 years in this profession. C6. Audit Will Place a Burden on IAFA q6 1 Professional times 2 3 4 5 Total a 2 3 1 9 6 21 b 2 5 2 9 6 24 c 3 4 0 6 7 20 d 0 3 1 6 2 12 e 3 4 0 5 4 16 10 19 4 35 25 93 Total 65% of them think that the audit will be a burden for public accountants and 31% of them think that it will certainly not be a burden. C7. Audit Will Contribute to IAFA in Terms of Professional Knowledge. q7 1 Professional times Total 2 3 4 5 Total a 2 0 1 12 5 20 b 0 2 3 11 8 24 c 2 2 0 8 8 20 d 0 1 2 5 4 12 e 1 2 0 7 6 16 5 7 6 43 31 92 80% of the attendants believe that new regulations will contribute to the audit in terms of profession. 13% of them certainly do not expect any contributions at all. 15 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo C8. Audit Will Contribute Financially to IAFA q8 1 Professional times 2 3 4 5 Total a 4 3 4 8 2 21 b 2 4 4 11 3 24 c 4 1 2 9 4 20 d 0 4 1 5 2 12 e 3 3 2 7 1 16 13 15 13 40 12 93 Total 67% of the attendants think that independent audit will contribute to public accountants financially. 30% of them do not think that way. 4. Conclusion Results of the survey conducted for 93 accountants registered in Chamber of Certified Public Accountants of Antalya and the interpretation by Frequency Analysis on SPSS program are as follows: 1. 96% of the questioned accountants have completed Undergraduate of Graduate education. 2. 61% of them have less than 60 taxpayers. 3. Approximately 70 of them have worked in the profession for less than 15 years. 4. 41% of them employ maximum 3 people. 5. 87% of the provide trainings to the employed personnel. 6. When accountants were asked which institution should perform the regulations and controls about independent audit, 74% of them stated TÜRMOB. 7. When it was asked who should perform the independent audit, 97% of them envisaged that it should be done by IAFA and not by independent audit companies. 8. For the rate setting of independent audit, approximately 30% of them think it is necessary to publish a minimum fee tariff, and another 30% of them think that a specific percentage of sales revenue of the organization should be taken. 9. 42% of them think that the determination of the criteria of the company which should be audited independently should be done by “size of assets of the company”. 10. When it was asked which organizations should be audited independently, and it was stated that they are free to select more than one option, 96% of them selected Public Incorporations and 75% of them selected Family Incorporations. 11. 60% of them think that independent audit will contribute most to the financial table users. 12. Approximately 71% of the accountants think that TÜRMOB does not take an active role in preparation of the new TCC. 13. 58% of them think that it is enough to be a member of the profession in order to become an independent audit, and that there is no need to conduct an examination. 14. According to New TCC, criteria of companies which will be audited independently are not enough for 59% of them. 16 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo 15. Percentage of those who want to become an independent audit is 73%. Also, 54% of them think that their chances of becoming an independent audit are high. 16. 65% of them believe that audit will bring a burden to them, 80% of them think that it will certainly contribute to the profession, 67% of them believe that it will contribute financially. References Hatunoğlu Z. (2010). Ttk Yasa Tasarısında Sermaye Şirketlerinde Denetime İlişkin Düzenlemeler Konusunda Muhasebe Meslek Mensuplarının Değerlendirmeleri: Kahramanmaraş Örneği, Ç.Ü. Sosyal Bilimler Enstitüsü Dergisi, Cilt 19, S 1, S. 233-253. Turkish Commercial Law No 6102, Http://Www.Tbmm.Gov.Tr/Kanunlar/ K6102.Html, (20/04/2012). Ulusan H., Eren E., Köylü Ç.(2012). 6102 Sayılı Yeni Türk Ticaret Kanunu’ Nun Muhasebe Ve Denetim Uygulamalarına Getirdiği Yenilikler Üzerine Bir Araştırma, Muhasebe Ve Finansman Dergisi, S. 11-34. 17 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 2335 Title A name given to the resource Point of View from the Perspective of an Accountant to Independent Auditing with the New Turkish Commercial Code Author Author F. ÜnalUyar, Güler Halit, Görmez KINAY, Bulent Abstract A summary of the resource. In 01 July 2012, the enactment of the Turkish Commercial Law no 6102, lead to significant changes, especially in the field of independent auditing. These changes include the determination of the persons or organizations for independent audit companies and auditors. These regulations with the other regulations in the new Turkish Commercial Law, will mostly affect Professional groups. For this reason, 29 females, 64 males, including 93 public accountants registered in the Chamber of Certified Public Accountants of Antalya asked for expectations by a survey about the new Turkish Commercial Law. In the first part of the questionnaire includes demographic data such as age, education and gender, the second part includes multiple-choice questions concerning the audit process, the last part includes five-point Likert scale questions about how professionals will be affected. The results were analysed by SPSS package program. Keywords: New Turkish Commercial Law, Independent Auditing, Accountants. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/d5d100240ea4d7bc820a2342d8aa4849.pdf 6ff70b2f0f0ac83a3a2f084293282822 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Interaction of Cultural Differences, Machiavellianism and Mobbing in Globalization Process Gülten Eren Gümüştekin Dumlupınar Üniversity, Kütahya, Turkey ggumustekin@hotmail.com Nuray Mercan Dumlupınar Üniversity, Kütahya, Turkey snmmercan@yahoo.com Bayram Alamur Dumlupınar Üniversity, Kütahya, Turkey alamur_bayram@hotmail.com Emine Oyur Dumlupınar Üniversity, Kütahya, Turkey oyuremine@hotmail.com Culture and cultural differences are being important in the globalized business world and the public administration day by day. Moreover, the competition level has increased recently. In accordence with the philosoply of globalization the whole world is a common market. As a result cultural differences and unethical behaivours can be observed. Machiavellianism mostly emerges in an enviroment of intense competition and It is considered as a type of mobbing which aims to manipulate the people into serving for the benefit of power. In this study, the relationship between Hofstede’s cultural differences, mobbing and Machiavellianism is discussed. Globalization periot has converted national firms to international firms. As a result of globalization It has been a new issue of the world that the struggle of different cultures to live together and generate common values. To solve this problem it is needed to develop a different perspective. If the cultural differences are not approved, people tend to dominate the other cultures with their own culture, which is called as ‘Cultural Myopy’. This situation may lead up arising of unhealthy of unhealty network of relation and comminication between the cultures and as a censequence increasing mobbing. Also culturel differences reflect on cultures and climate of organizations. The cultural differences in organizations must be well manage, otherwise comminication disorders. This problem may come along and this could cause pressure of management. Keywords: Cultural Differences, Machiavellianism, Mobbing. 135 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1566 Title A name given to the resource The Interaction of Cultural Differences, Machiavellianism and Mobbing in Globalization Process Author Author EREN GUMUSTEKIN, Gulten MERCAN, Nuray ALAMUR, Bayram OYUR, Emine Abstract A summary of the resource. Culture and cultural differences are being important in the globalized business world and the public administration day by day. Moreover, the competition level has increased recently. In accordence with the philosoply of globalization the whole world is a common market. As a result cultural differences and unethical behaivours can be observed. Machiavellianism mostly emerges in an enviroment of intense competition and It is considered as a type of mobbing which aims to manipulate the people into serving for the benefit of power. In this study, the relationship between Hofstede’s cultural differences, mobbing and Machiavellianism is discussed. Globalization periot has converted national firms to international firms. As a result of globalization It has been a new issue of the world that the struggle of different cultures to live together and generate common values. To solve this problem it is needed to develop a different perspective. If the cultural differences are not approved, people tend to dominate the other cultures with their own culture, which is called as ‘Cultural Myopy’. This situation may lead up arising of unhealthy of unhealty network of relation and comminication between the cultures and as a censequence increasing mobbing. Also culturel differences reflect on cultures and climate of organizations. The cultural differences in organizations must be well manage, otherwise comminication disorders. This problem may come along and this could cause pressure of management. Keywords: Cultural Differences, Machiavellianism, Mobbing. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/f80021602d66732c920e8e0dc862c16d.pdf ccad62002def05869e16ecef4d84a1af PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Problems of the Turkish Political Parties and the Turgut Ozal’s Party ANAP Selami Erdoğan Dumlupınar University, Kütahya, Turkey erdogans274@mynet.com Feyzullah Ünal Dumlupınar University, Kütahya, Turkey funal@dumlupinar.edu.tr A lot of political parties were established in Turkey, so far. But a large majority of them were dissolved or couldn’t live long-term. In this respect, Turkish political history is the history of short-lived political parties without CHP (Republican Populist Party). Both in Ottoman Period or Republican Period there were no durable political party. Whereas, when we look at United States and European Countries, we see long-lived and durable political parties, e.g. Republican Party in U.S and Conservative Party in U.K. etc. In this point, Turgut Özal’s Motherland Party can be considered one of the most excellent examples of the short-lived parties in Turkey. This party was established in 1983 and then, it has finished its life in 20 years. What was the reason for this finishing? İn this view, our study aims to indicate the common problems of the Turkish political parties by analysing Motherland Party (ANAP), for instance, weakness of institutionalism, leader-oriented extremely, patronage system etc. Keywords: Özal, ANAP, Turkish Political Parties, U.S Parties, European Parties, Weak institutionalism. 250 � https://omeka.ibu.edu.ba/files/original/390faa4dfeab46b1388f8e6af6628624.docx e3db11e964c04daeb99c49ac315aee34 https://omeka.ibu.edu.ba/files/original/4ad8dba5b07a7777fb1baa878e545ff0.pdf aac05096bfd58582a8c84fe293b4eb14 PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Problems of the Turkish Political Parties and Turgut Ozal’s Party ANAP Selami Erdogan Dumlupinar University, Kutahya, Turkey erdogans274@mynet.com Feyzullah Unal Dumlupinar University, Kutahya, Turkey Abstract A lot of political parties have been established in Turkey, so far. But a large majority of these parties was dissolved or couldn’t stand long-term. İn this respect, the Turkish political history is also the history of short-lived political parties without CHP (Republican Populist Party). Both in the Ottoman Period and the Republican Period there were no durable political parties. Whereas, when we look at the United States and European Countries, we see long-lived and durable political parties, e.g Republican Party in U.S and Conservative Party in U.K. etc. At this point, Turgut Özal’s Motherland Party can be considered as one of the most excellent examples of a short-lived party in Turkey. This party established in 1983 and then, it finished its life in 20 years. What was the reasons for this finishing. İn this view, our study aims to indicate the common problems of the Turkish political parties by analyzing the Motherland Party (ANAP). And for instance, the weakness of institutionalism, extreme leader-oriented and the patronage system etc. Key words: Özal, ANAP, Turkish Political Parties, U.S Parties, European Parties, Weak institutionalism. Concept Of The Political Party İn today’s world, political parties are accepted as an indispensable element of the modern political systems. İn one sense, they created the contemporary democracy ( Özbudun, 1979: 1). İn liberal democracies, political parties serve as a mediator between the citizens and the government. Without the well-organized party system, representative democracy cannot function fairly ( Akgün, 2001: 71 ). Especially, after the period when the countries which were being ruled by democracy ( eg. England ) came out with a victory after II. World War, it is seen that political parties appeared with adopting democracy in many countries of the World. İn this respect, we are able to say that political parties have a crucial role in the rise of democracy (Özüerman, 1999:153 ). But it must be pointed that the political parties are not only seen in democratic systems. We are able to come across the political parties in totalitarian and fascist regimes. There are political parties in most of the states in the World. Because, political parties have important functions without looking at the types of the regimes. İf we think about its functions such as carrying the public’s wishes to the government, bringing up elite 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo administrators, representing the benefits etc., every regime feels the need to have political parties. When we look at the existence of the political parties in the World, we see that political parties come out on account of too many different reasons. Some of them appear to carry out an independence war against the colonialists (CHP in Turkey, Congress Party in India etc.), some of them appear because of the participation crisis (eg. The Democratic Party in Turkey ) or because of the crisis which is called the integration crisis, political parties may exist (Özbudun, 1979:25). These parties come out on account of differences such as language or religion (BDP, in Turkey). As a result, it is seen that political parties appear because of many different reasons. Transition To Democracy In Turkey And Political Parties The term of political parties is in fact a very new term. They were only in a few countries in the World in the 1850s (USA, England). But the political parties became common in the 20th century. When we look at the Ottoman Period we see the İttihat Terakki Party, when we look at the Republican Period we see the Republican People’s Party (Yanık, 2002:22). The latter was a leader-oriented party. İn one period (1930s), the leader of the CHP İsmet İnönü was announced as the “national Chief”. Then, DP was founded in Turkey in the year 1946 as an opposition party and multi-party system which was adopted with the election in the same year. İt can be said that the multi-party system was accepted because of many different reasons. For example, the fans of democracy won the II. World War, the threatening of the Soviets to Turkey, also the discontentedness of the one-party government etc. The elections which were held in 1946 were in fact unfair because the rule of hidden voting and open counting was not carried out. İnfact, it can be said that Turkey practiced the multi-party system in the coming elections which were held in 1950 DP surprisingly won the elections of 1950 by an outstanding range. DP tried to carry out liberal policies, civilian police. Although the Democratic Party showed great success inthe field of economy, it could not show the same success about political freedoms, it made pressure to the press and the civilian society. On the other hand, İt could not place intraparty democracy and the culture of the widespread democracy. Some anti-democratic applications of the DP to the press and oppositional ideas disturb the a number of its own deputies, for that reason they left the DP and founded the new Party, the Freedom Party (Hurriyet Partisi). As They won the elections, they thought that they were the real representatives of the public and that they could do as everything. Turkish Political Parties And Their Problems Hunderds of political parties have been established from the year 1946 when multi-party political life was adopted in Turkey to the present date. However, noticeably, it is seen that these political parties didn’t last for a long time. We should think of only CHP separate from these parties, because CHP was founded in the year 1923 (it was closed between 1981 and 1992) and has been able to survive until now. None of the parties except from CHP has lasted for as long (Tuncer, 1995: 1) . Increasing the number of political parties doesn’t mean that itstrengthened the pluralism and the democracy. Institutioanalisation of the political parties is important for a strong democracy. Besides, the multi-party system 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo should be carried on without interrupting. İt doesn’t mean that there is a pluralist democracy in a country, as inTurkey, where a lot of parties are established and then closed down. When we look at the political life of Turkey it is seen that the political parties are facing the problems of institutionalisation. From this respect, it is stated that the structure and the tradition of the state in Turkey is different from the Western Europe. According to commonly accepted opinion, while political parties appear based on the class system in the European Societies, the political parties in Turkey appear as fully leader-oriented parties rather than a class system (Özüerman, 1998: 95). On account of this, Turkish political parties become leader parties and the life of that party is limited to the life of its leader’s life (eg. Demirel’s party DYP, Özal’s party ANAP etc.).Whereas, in 1950s famous political thinker Duverger was telling us to the importance of the political party organizations, not charismatic leaders. On the other hand, lack of the institutionalism brings about so much volatility in the vote rates of political parties. We have seen that, the General Elections in 1990s. After the Özal’s leadership his party ANAP declined, similarly after the Suleyman Demirel’s leadership his party DYP weakened politically. Both ANAP and DYP became ineffective ordinary parties in the beginning years of 2000s. When political parties are talking about inTurkey, three basic features come to mind. Firstly the absolute sovereignty of only one person, secondly a common center which was extreme authorities and thirdly, weak local organizations. Deputy candidates of the party are mostly determined by the central organization, in fact the party leader determines them. The preselection results of the local organizations don’t regard by the central organization and party leader. İn this respect, one which is in front of all these is that the Turkish parties have the specialty of being the latter party. İn some political articles, Turkish leaders are compared with well-known powerful German leader Bismark (Türmen, 2011: 15) İnfact, even the source of the power that a leader hasn’t a legal authority but he has “defacto” authority (Özdalga, 2005: 49). The leaders who are at the top of the hierarchical structure in Turkey’s political parties, always use their authorities for protecting his or her surrounding’s ruling. This situation is reminding of us the “Iron Law of Oligarchy”. According to Robert Michels, a minority group in anorganization use all power, and it causes the degeneration of democracy (Michels, 1959: 29-49). Generally, a new opinion or the existence of a new person is not well accepted by the leader or his surroundings. The relationship of a leader with his surroundings depends on loyalty not on meritocracy (Çapoğlu, 1997: 13). The local authorities that come intogoverning by the votes of the members of the party in the province or sub-province congresses, are taken out of their duties by the leader at any time, for instance, in my province (Kütahya) in February 2013, city organization of the MHP was dissolved by the central organization without a court decision. The will of the members who voted are neglected. In fact this situation is not a new situation in the Turkish political system, the central organizations or leaders of the political parties haven’t noticed the local organizations since İttihat Terakki and CHP (Kabasakal, 1995: 130 ). That is the process of the parties in the Turkish party system which goes on a net of the leader not to a democratic ground (Çarkoğlu, Erdem, Kabasakal, 2000: 36 ). The oligarchical structures of political parties in Turkey prevents the change and protects the status quo. Different views don’t occur at the party except for the ones which the leader thinks about. This prevents the parties from improving themselves and to produce political views according to changing conditions. This causes a vicious circle. Leaders and their 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo surroundings had their ways to protect the governing with all their organizational efforts after they gain control of the party.The person who gains the control of a political party in Turkey cannot be taken out of his position easily, even if he or she had lost several elections (e.g Mesut Yılmaz) (Akgün, 2001:86). Nevertheless, there are a few exceptions in Turkey. Namely, in 1972 Bülent Ecevit won the party leadership competition against the current charismatic leader İsmet İnönü. Similarly, in 1991 former Prime Minister Yıldırım Akbulut lost the party leadership competition against to Mesut Yılmaz. On the other hand, generally current party leaders win that competition , in Turkish politics. Because, selecting delegates are usually selected or appointed by the central organization. This anti-democratic inner structure is valid for most of the parties in Turkey. The leaders have always been dominant rather than the institutional identity of the party or the program of the party since the day we accepted the multi-party political systems up to now. Also, Turkish political parties have not fundamental principles. The in electoral process, the programs of the parties aren’tdebated in almost. At that time, The political party leaders tried to persuade people by using populist discourses, e.g. I remember that Suleyman Demirel said in the 1991 General Elections “I will give you five more liras from others”. Also when they come to power they applied patronage politics. They distributed some sources to the supporters (e.g, Demirel). For that reason Turkish voters don’t believe politicians and political parties. Populist politics and patronage system in Turkey alienated Turkish citizens to the political sphere. This negative image eroded the roots of political parties. According to some thinkers the military impacts are shown as the fundamental cause of the political parties not being able to institutionalize in Turkey. After the process in which Turkey entered the multi-party system, Turkey encountered three coup d’etat. The first one was in 1960, the other was in 1971 and the last one is 1980. Beside this, in 1997 and 2007, some serious interventions in civil government and political parties were observed. Since 1983, approximately 15 political parties have been dissolved (Akgün, 2001: 86). Every coup d’etat prepared its constitution in order to shape the political and societal sphere. Furthermore, the product of the 1980 Coup which is known that Law of Political Parties and Election Laws are still in force. Military regimes moved civil governments from politics. Some of the politicians were hanged; many political parties and associations were closed. Numerous citizens were prohibited from participating in politics. Laws in which majority of the citizens was prohibited to involve in politics came into force. Citizens could not participate in the politics of the new established parties after the coup. During the same period, two constitutions which do not rely on civil negotiation are in force. Due to this, “coup d’etat”s in Turkey created a gap in politic socialization (Çarkoğlu, Erdem, Kabasakal, 2000: 3940). This situation prevented the existence of democratic political culture. Moreover, it shortened the life of political parties because of the fact that many of the parties were closed. Beside this, it is claimed that party leadership emerged as a new and significant paradigm not only in Turkey but also in different parts of the world. During propaganda periods, marketing techniques were used and image selling made abundantly (Poggi, 2002). According to this, image of party leadership became significant dimension. Throughout the subordination of ideologies, differences of political parties were blurred; party leaders became the most important dynamic in the elections (Yıldız, 2002:88). This phenomenon 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo has especially valid for 1980. When we look at the political parties of Turkey, we can easily detect that almost all of them has charismatic leaders such as Demirel, Ecevit and Özal. Turgut Özal’s Party: ANAP Actually, Turgut Özal and ANAP is a beneficial example to understand the Turkish political party question. Özal drown such a profile that he has the ultimate authority since he established his party in 1983. Even if He became President of Turkey, acted as ANAP party leader. He chose the way in which decisions were made only by himself without asking anybody. For instance, he informed Yıldırım Akbulut at the last moment when he appointed Akbulut as a Prime Minister (Acar, 2002: 170). During the Akbulut’s period, Gulf Cirise exploded, Özal intervened the governmental policies, for that reason General Stuff of Turkey resigned.At the same time, Özal intervened economic affairs, he tried to prevent populist applications of Akbulut, then Mesut Yılmaz. During his premiership hadn’t applied populist politics without any exceptions. On the other hand, he interested in intra-party issues of ANAP. Although it was a short period, his wife was elected as a party chairman of İstanbul prominence by Özal. He selected the most of the deputy candidates. This circumstance can be observed in most of the times in Turkish politics. ANAP had the same characteristic with former political parties. It is hard to say that there was an intra- party democracy in ANAP. M. Keçeciler, who has strong and close ties with Özal, says that it is a must to bring democracy in the party level (Keçeciler, 2000:33). Although Özal was a clever reformist Turkish politician, he made many significant reforms. He liberated Turkish economy; he opened it to the liberal system of the world. He terminated the importation barriers; he ended the absence of some products. Beside this, he minimized public bureaucracy and destroyed the negative image of the state. He internalized the philosophy of “state for people”.He opposed the “National Security State”. After he became president of Turkey, he ended the Kurdish speech prohibition. He defended freedom of religion, thought and conscience (Erdogan, Acar, 2012: 3) However, mostly Özal did all this expansion by himself. He did not choose the deliberation method. While he was making liberal reforms, a large majority member of his party opposed these changes (e.g Kurdish speaking law). Özal’s his own wasn’t thinking state-oriented, but his friends were. Probably because of this reason, he defended the Presidential system. Unfortunately after Özal’s party leadership, his party downed to opposition. And ANAP encountered intra-party problems, and party politics changed sharply. Unlike Özal policies under the leadership of Mesut Yılmaz party adopted the state-oriented policies, not liberal policies.If ANAP wasn’t a leader party, It couldn’t change its politics easily. İn this respect, political parties should have fundamental politics. That is, should be institutionalized. It can be said that, due to the lack of instutionalization, later his party was eradicated from political life. At this point, it must be stated that, In 1997 ANAP leader Mesut Yılmaz cooperated with military to become Prime Minister. Because of this cooperation Turkish voters rejected ANAP. Actually, he and his party was a summary of Turkish political leadership and Turkish political parties. As we tested before,When the military supports a party which lose elections. 5 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo References Akgün, Birol (2001), “Aspects of Party System Development in Turkey”, Turkish Studies Vol.2, No.1, s.71-92, London. Acar, Feride (2002), “Turgut Özal”, Political Leaders and Democracy in Turkey, Lexington Book, New York. Çapoğlu, Gökhan (1994), “Türkiye’de Siyasi Tıkanıklığı Aşmak İçin”, Stratejik Araştırmalar Vakfı, Ankara. Çapoğlu, Gökhan (1997), “Partiler Sistemi, Parti İçi Demokrasi ve Lider Sultası”, Yeni Türkiye Dergisi, S.13. Duverger, Maurice (1993), Siyasal Partiler, (Çev: Ergun Özbudun), 4. Baskı, Yayınevi, İstanbul. Bilgi Erdem, Tarhan - Çarkoğlu Ali, Kabasakal Mehmet, (2002), Siyasi Partilerde Reform, TESEV, İstanbul. Erdoğan, Selami -Acar, Eray, (2012) “Legacy of Turgut Özal and the Sustainable Transformation of Turkey with AK Party governments” 3th İnternational Symposium on Sustainable Development at Burch University, s.102-111, BosniaHerzegovina Kabasakal, Ali.,(1995), “Türkiye’de Siyasal Parti Örgütlenmesindeki Kısıtlamalar”, Siyasi Partiler ve Democracy Sempozyumu, TESAV. Keçeciler, Mehmet (1995), “Parti İçi Demokrasi Açısından Siyasal Partiler” Siyasal Partiler ve Demokrasi Sempozyumu, TESAV. Michels, Robert (1959), A Sociological Study of The Oligarchical Tendencies of Modern Democracy, Dover Publications, New York Özbudun, Ergun (1979), Siyasal Partiler, 3.baskı, A.Ü.H.F. Yay. , Ankara. Özdalga, Haluk (2005), Kötü Yönetilen Türkiye, Kitap Yayınevi, İstanbul. Özüerman, Tülay, (1998), Türkiye’nin Batılılaşma ve Demokratikleşme Açmazı, D.E.Ü. Yay., İzmir Özüerman, Tülay, (2000), “Türkiye’de Siyasal Partilerin Yeniden Yapılanması”, Mülkiye Dergisi Poggi, G., (2002), Modern Devletin Gelişimi, (Çev: Şule Kut, Binnaz Toprak), 2.baskı, Bilgi Üniversitesi Yay., İstanbul. Tuncer, Erol, (1995), Siyasi Partiler ve Demokrasi, TESAV. Türmen, Rıza (2011), “Bismark ve Günümüz Türkiyesi” Radikal Gazetesi , 20.11.2011. 6 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Yıldız, Nuran (2002), Türkiye’de Siyasetin Yeni Biçimi, Phoenix, Ankara. 7 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1631 Title A name given to the resource Problems of the Turkish Political Parties and the Turgut Ozal’s Party ANAP Author Author ERDOGAN, Selami UNAL, Feyzullah Abstract A summary of the resource. A lot of political parties were established in Turkey, so far. But a large majority of them were dissolved or couldn’t live long-term. In this respect, Turkish political history is the history of short-lived political parties without CHP (Republican Populist Party). Both in Ottoman Period or Republican Period there were no durable political party. Whereas, when we look at United States and European Countries, we see long-lived and durable political parties, e.g. Republican Party in U.S and Conservative Party in U.K. etc. In this point, Turgut Özal’s Motherland Party can be considered one of the most excellent examples of the short-lived parties in Turkey. This party was established in 1983 and then, it has finished its life in 20 years. What was the reason for this finishing? İn this view, our study aims to indicate the common problems of the Turkish political parties by analysing Motherland Party (ANAP), for instance, weakness of institutionalism, leader-oriented extremely, patronage system etc. Keywords: Özal, ANAP, Turkish Political Parties, U.S Parties, European Parties, Weak institutionalism. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/c1cc6c9c9b5d885982c47b534ca1c8d9.pdf 2d2e5a7a8b03fa72be664d22d4ff7720 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo An Evaluation of Turkey’s Role in the “War on Terror”: ISAF Case İsa Eraslan Fatih University, İstanbul, Turkey isaeraslan@gmail.com After 9/11 World Trade Center terror attacks a large scale operation was conducted by US and its allies against Afghanistan. After the battle was won some thought the main aim was achieved but as the time passed by it was seen that destroying an authority and replacing nothing was not an effective solution. The ISAF operation has become an impasse for the NATO forces. The aim of this study is to discuss the role of Turkey in ISAF as a peacekeeping force. Among the many participants of ISAF mission Turkey has a significant role as the only NATO member with a Muslim majority. Thanks to her shared values and past with Afghan people and the effective strategy of Turkish armed forces Turkey has proved to be the most successful peacekeeping force in Afghanistan. Keywords: NATO, ISAF, Turkey, Peacekeeping, War on Terror. 174 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1584 Title A name given to the resource An Evaluation of Turkey’s Role in the “War on Terror”: ISAF Case Author Author ERASLAN, Isa Abstract A summary of the resource. After 9/11 World Trade Center terror attacks a large scale operation was conducted by US and its allies against Afghanistan. After the battle was won some thought the main aim was achieved but as the time passed by it was seen that destroying an authority and replacing nothing was not an effective solution. The ISAF operation has become an impasse for the NATO forces. The aim of this study is to discuss the role of Turkey in ISAF as a peacekeeping force. Among the many participants of ISAF mission Turkey has a significant role as the only NATO member with a Muslim majority. Thanks to her shared values and past with Afghan people and the effective strategy of Turkish armed forces Turkey has proved to be the most successful peacekeeping force in Afghanistan. Keywords: NATO, ISAF, Turkey, Peacekeeping, War on Terror. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 2303-4564 https://omeka.ibu.edu.ba/files/original/ec68975b424ad163254e237012924151.pdf a0d6aabc8c5210a4c8eb712a95a3c686 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo The Measurement of Brand Personality in the City Brand: a case of Kayseri Emin Emirza Melikşah University, Kayseri, Turkey eemirza@meliksah.edu.tr İdris Seri University of Keele i.seri@gmail.com Cities all over the world use several conduits to promote themselves to relevant audiences such as investors, visitors and residents and in their efforts they commonly include striking logos and captivating slogans that feature in welcoming websites and advertising campaigns in national and international media. Because of those, city branding has in recent years become a prevailing activity within city management. Also brand personality component is major component of city brand identity. In this context, the main subject of the study is to evaluate brand personality dimensions of Kayseri city. This paper first describes the rise of city branding and the essentials of brand personality of city brand. Afterwards developed brand personality scale for products and service has been adapted to city branding. Sample of the study has been conducted at the universities in Kayseri. Data were collected via an online survey and face to face survey. Findings have been analyzed by factor and one way ANOVA analysis using SPSS 16 Program. Keywords: City Brand, Brand Personality, Brand Identity. 92 � https://omeka.ibu.edu.ba/files/original/0cfb1ef3c4c744749f43ef3e9570566f.docx c4aeeec49ea8d4b9a2e8114b9f011437 https://omeka.ibu.edu.ba/files/original/abaf6e2fca79f0233f994e2d0015215c.pdf c98f11c0dbc2ff954a2db9fdd75e2799 PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo The Measurement of Brand Personality in the City Brand: a Case of Kayseri EminEmirza MelikşahUniversity, Kayseri, Turkey eemirza@meliksah.edu.tr İdris Seri University of Keele i.seri@gmail.com Abstract Cities all over the world use several conduits to promote themselves to relevant audiences such as investors, visitors and residents and in their efforts they commonly include striking logos and captivating slogans that feature in welcoming websites and advertising campaigns in national and international media. Because of those, city branding has in recent years become a prevailing activity within city management. Also brand personality component is major component of city brand identity. In this context, the main subject of the study is to evaluate brand peronality dimentions of Kayseri city. This paper first describes the rise of city branding and the essentials of brand personality of city brand. Afterwards developed brand personality scale for products and service has been adapted to city branding. Sample of the study has been conducted at the universities in Kayseri. Data were collected via an online survey and face to face survey. Findings have been analyzed by using SPSS 16 Program. Keywords: City Brand, Place Marketing, Brand Personality, Brand Identity. 1. Introduction Branding has become one of the most powerful tools in marketing strategy. Classical theories of brand management generally focus on how companies can build strong consumer brands that differentiate one seller from another (Aaker, 1996; Kapferer, 1997). Traditionally brands have been considered as the means of establishing a desired position in the minds of the customers that through perceived added values (Brown, Shivashanker, and Brucker, 1989) could attract loyal customers that willingly pay a price premium for the product or service (de Chernatony and McDonald, 2003). The majority of contemporary branding theories have been developed with an eye to consumer markets. A city's brand is increasingly considered an important asset for urban development and an effective tool for cities to distinguish themselves and improve their positioning (Ashworth and Kavaratzis, 2009: 520). City branding has in recent years become a prevailing activity within city management. Cities all over the world use several tools to promote themselves to relevant audiences such as investors, visitors and residents and in their efforts they commonly include striking logos and captivating slogans that feature in welcoming websites and advertising campaigns in national and international media. There has been a general agreement among academics and practitioners that places can be branded in the same way as consumer goods and services. Place or Destination branding is 168 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo a relatively new concept, however, and there is a lack of empirical academic research on the topic. This is in contrast to the increasing evidence in the press that branding, at least as a concept, is increasingly being applied to locations‟. Place branding, like place marketing in general, is impossible because places are not products, governments are not producers and users are not consumers. LiteratureReview Global Cities have endeavored differentiate themselves from each other, to assert their individuality in pursuit of various economic, political or socio-psychological objectives (Kavaratzis and Ashoworth, 2005: 506).In recent years cities are in search for new ways to promote themselves. Due to fast changes in technology and the shift from local to a globalized environment, cities are forced to compete with each other in order to be an attractive tourist destination, workplace, cultural rich place and much more (Kotler, 2002). Kavaratzis (2005:1) argues that the rising competition among cities might be seen as one of the effects of the globalization, which is visible in various forms and activity fields. The contemporary city has to be up dated continuously. In that sense cities develop strategies to support, to `sell` and advertise them within the global market. Literature survey reveals that there are mainly three approaches for promoting cities: cultural mega events, restoration and promoting heritage and the construction of iconic buildings (Hankinson, 2006, p.240; Kavaratzis, 2005:1). Among these approaches, construction of iconic buildings has been extensively utilized by many cities in order to get attention and attraction. The main motive behind this attempt is to create an identifiable image. There have been numerous studies of the promotion of individual and groups of places, since Burgess’ (1982) pioneering account of promotional media used in UK local authorities. Almost 20 years later Hankinson (2001) studied the practice of branding in 12 English cities, discovering that it was both widely used and little understood, which was a not altogether startling or indeed very helpful conclusion but is all too typical of many such investigations. Truemanet al., (2001: 8–13) struggled with this problem of transfer of conventional product brand analysis to places, oncluding that it was possible, „provided sufficient weight is given to different stakeholders‟. This is no more than a recognition that places have more varied „users‟, „owners‟ and „governors‟ than do commercial corporations and thus not only are the products more varied, so also are the goals of the producers and the utilities of the consumers. The two intrinsic weaknesses of stakeholder approaches, namely that the list will never be all-inclusive and the weighting between them crude, are so more evident with places than with commercial products as to effectively admit that the conditions can never be met. De Chernatony&Dall’Olmo Riley (1998) identify 12 perspectives on the definition of the brand found in the literature. After a critical examination of those perspectives, they suggest that „the brand is a multidimensional construct whereby managers augment products or services with values and this facilitates the process by which consumers confidently recognise and appreciate these values‟. The boundaries of the brand construct are, on the one side the activities of the firm and on the other side the perceptions of the consumers. The brand becomes the interface between these two. A branded product requires a brand identity, a brand differentiation and a brandpersonality (Aaker 1996). These are not so much separate attributes as re-statements of the same feature from different perspectives. Identifying and clarifying the brand 169 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo identity, or the core identity, is in itself an instrument of differentiation of one product from another and recognising its brand positioning, that is its relationship to competing products within a defined competitive arena. The process of product branding is both creative initiation and careful maintenance. Places can be easily assumed to possess the above characteristics of identity, differentiation and personality and can thus be managed to maximise equity, value and awareness. However, whether the terms suffer a significant shift in meaning when applied to place products remains to be considered. The importance of the image for the consumer or user of the place is what connects city branding to cultural geography. It also focuses upon the ever-necessary consumer orientation. We think of the place from the viewpoint of the end user; in terms of the way they sense, understand, use and connect to the place. All branding tries to endow a product with a specific and more distinctive identity (Cova, 1996) and that is, in essence, what most city marketing to do for cities. A place needs to be differentiated through unique brand identity if it wants to be first, recognised as existing, second, perceived in the minds of place customers as possessing qualities superior to those of competitors, and third, consumed in a manner commensurate with the objectives of the place. Thus identity, differentiation, personality and thereby positioning in competitive arenas are all transferable concepts as long as the implications of this transfer are fully understood. By this we mean that we can accept places as brandable products if their intrinsic and distinctive characteristics as place products are understood and a special form of marketing developed which accommodates and utilises these characteristics. Much of the literature from marketing specialists is not encouraging in these respects. There are at least three different sorts of place branding which are often confused in the literature, but which are really quite different operations conducted by different types of producers for widely different objectives. The first is geographical nomenclature, the second, product-place co-branding and the third, branding as place management. Geographical nomenclature is merely where a physical product is named for a geographical location. The archetype is the sparkling wine „Champagne‟. City Brand Perssonality In consumer behavior research, a considerable amount of attention has been given to the construct brand personality, which refers to the set of human characteristics associated with a brand. Researchers have focused on how the personality of brand enables a consumer to Express his or her own self (Belk 1988), an ideal self (Malhotra 1988), or specific dimentions of the self (Kleine, Kleine, and Kernan, 1993) through the use of a brand. The work of Aaker (1997) inspired the majority of the research on brand personality to date. He meticulously developed a 44 item Brand Personality Scale which encompasses five broad dimensions: Sincerity, Excitement, Competence, Sophistication, and Ruggedness. The scale has served as a brand personality measure in many studies and its factor structure proved to be robust in several of them (Aaker, 1997; 1999; Aaker, BenetMartinez, and Garolera, 2001; Kim, Han, and Park, 2001). However, Aaker‟s scale has recently received criticism on several grounds. 170 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Brand Identity, Brand Image and Brand Personality Kapferer (2008) defines brand identity as a brand‟s meaning as put forward by the firm. It is the way a company wants to present its brand to its target groups. Brand image, on the other hand, is the consumers‟ perception and interpretation of the brand‟s identity (De Pelsmacker, Geuens, & Van den Bergh, 2007). Academics typically conceptualize brand identity and image as multi-dimensional constructs of which brand personality is an important component. Keller (2008), for example, defines brand image as consisting of (1) user profiles, (2) purchase and usage situations, (3) personality and values, and (4) history, heritage and experiences. Aaker and Joachimsthaler (2000) organize brand identity elements around four perspectives: (1) the brand as a product, (2) the brand as an organization, (3) the brand as a person, and (4) the brand as a symbol. Personality in Human Personality Scales Psychologists define the substance of personality as „the systematic description of traits‟ (McCrae and Costa, 1987: 81), where traits are „relatively enduring styles of thinking, feeling, and acting‟ (McCrae and Costa, 1997: 509). After decades of research on a taxonomy of human personality, consensus now rests upon five dimensions that provide a complete description of personality: (1) Extraversion or Surgency (talkative, assertive, energetic), (2) Agreeableness (good-natured, cooperative, trustful), (3) Conscientiousness (orderly, responsible, dependable), (4) Emotional Stability versus Neuroticism (calm, not neurotic, easily upset), and (5) Openness or Intellect (intellectual, imaginative, independent-minded) (John &Srivastava, 1999). The “Big Five” dimensions are a result of analyses of the natural language terms humans use to describe themselves and others (Goldberg, 1993). Although the development of the Big Five was not theory-driven, most important personality constructs as put forward by personality theorists as diverse as Jung, Leary, Guilford, and Eysenk, are integrated in the Big Five structure, which increased trust in the Big Five (Sanz, Gil, Garcia-Vera, and Barrasa, 2008). One of the cornerstones of marketing thought is undoubtedly consumer orientation; thinking about the product, the company and the way we „do business‟ from the consumer‟s viewpoint. In city marketing and especially in the case of the city‟s existing residents, consumer‟s orientation would have to be how the residents encounter the city they live in, how they make sense of it, which physical, symbolic or other elements they evaluate in order to make their assessment of the city. The field of cultural geography has dealt with such matters and has developed an understanding, which is useful at this point. Empirical study: A Survey In Kayseri This study has two aims: First, to develop personality items of city brand and to apply over the city of Kayseri, Turkey. Second, to measure brand personality of Kayseri and to share the outputs of the study with municipality and non govermental organizations of Kayseri, such as chamber of Commerce and Industry. Consequently, we will contribute to branding identity of Kayseri. The city of Kayseri, in middle of Anatolia became the location of four universities; namely Erciyes which was established in 1979, Meliksah (foundation University) which was 171 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo established in 2009, NuhNaciYazgan (foundation University) which was established in 2010 and Abdullah Gul (state) which was established in 2011, in the last five years. This development earns a new brand to Kayseri; namely the city of universities. According to YOK‟s Higher Education data, today approximately fifty thousands students study in these universities. And nearly twenty thousand students come from outside Kayseri. Hence, Kayseri becomes the city of universities. Before that Kayseri brand has known to be the home of the many industrial factories, and pastırma, manti and sucuk. Subjects, non-native students of Kayseri, were only asked to answer the survey about native people of Kayseri.Basically, We focused on merely native people of Kayseri. Because native people of Kayseri can represent distinctive Kayserian‟s image very well to non-native students. In the first part of the questionnaire, brand personality scale of the city of Kayseri was generated using brand personality dimensions and traits developed by Aaker (1999), Mervielde (1982), Saucier (1994), and Costa and McCrae (1992). In the second part, students were asked to tell the first three things which come to their mind when they hear the name of Kayseri. In the fourth part, demographic data regarding students‟ age, gender, duration of stay in Kayseri, income status, hometown, university and faculty were recorded. 13 variables regarding satisfaction and 16 personality traits were rated according to 5-point Likert scale. Positive or negative perception of each variable were measured through following answers: strongly agree (4 points), agree (3 points), undecided (2 points), disagree (1 point), strongly disagree (0 points). The mean of each 15 personality traits and its standart deviations were calculated in the range of 0-4 according to the demographic variables . After that, they are compared in Tables.The city of Personality items have been analysed in three groups and commented : Personality items which are rated 3,00 and over (strong perception),those which are rated between 2,00 and 2,99 (unsure perception), and those who are rated below 2,00 (weak perception). The research was conducted in order to evaluate how the city of Kayseri and the native population of Kayseri are perceived by the non-native students. Taking into account the constraints of time, costs and accessibility, a sample size of 800 participants was thought to be sufficient for the study. This study will form the basis of a larger study in the future. In this first phase of the study, the perceptions of Turkish students (non-notive) from outside Kayseri have been evaluated. In the second part of the research, foreign students‟ perception of Kayseri will be evaluated and analyzed. Before the actual survey conducted, questions of the questionnaire was revised through pilot studies; consequently, reliability factor was increased. The survey was conducted at Erciyes University and Meliksah University. In order to gather data, the questionnaire forms were hand-delivered to students, who wanted to participate, at two universities and also a copy of the questionnaire was uploaded at Google Drive so that it was shared using social media by students. The collected data were analysed using SPSS 15.0 program. Method and Findings In the study, firstly, frequency distributions of demographic data, which allow us to get to know the students more closely, were analysed. Secondly, data, which was obtained 172 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo through brand personality scale, are averaged out of 4.00 and analysed through comparing demographic data. Thirdly, students' level of satisfaction regarding the city of Kayseri were measured and later significant or meaningful differences -if there are any- between the groups were examined. And fourthly, students‟ open-ended statements about Kayseri were interpreted through content analysis. 1. Sample There are four universities in Kayseri. 3 of them (one is a state university, two are foundation universities) admit students and continue teaching for the 2012-2013 academic year. There are fifty-thousand students who receive education at the undergraduate, graduate and postgraduate levels at these universities Students coming from outside Kayseri, which form the main body of the study, make up 40% of the total number of university students in Kayseri. Therefore, our research pool consists of approximately 20 thousand students. Through random sampling, 285 domestic and 79 foreign students have been surveyed. After screening the completed questionnaires, some are regarded as dubious; and at the end, the forms of 267 Turkish students were evaluated. As mentioned earlier, in this study, perceptions of Turkish students from outside Kayseri was evaluated, however perceptions of foreign students who participated in the survey were excluded. 2. Analysis Students participating in the survey are classified according to their gender, university, accomodation type, population size of the city which they come from and duration of stay in Kayseri. Table 1 shows the frequency distribution of the groups. As seen on the table, among the 267 students, 59% (160) are male and 41% (107) are female. Moreover, 39% (104) of the participants study at Erciyes University while 61% (163) study at Meliksah University. At the time of the study, there was not enough data collected from NuhNaciYazgan University and Abdullah Gul University had not started admitting students. Consequently, these universities have not been included in the study. As a methodological approach, based on the brand personality theories, 15 personality traits for Kayseri were identified. After that, the participants were told to think Kayseri as human being and asked to asses the personality traits. These 15 personality traits were rated out of 4, standard deviations were calculated; and according to the demographic variables they are compared in Table 2, Table 3, Table 4 and Table 5. 173 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 1.The Frequency distributiution of Demografic Factors. Demographic Faktors Male Female Gender Total Melikşah University Erciyes Total State Dormitory Private Dormitory Accomodation Rent home (n) 160 107 267 163 104 267 27 132 108 267 Total Bigger cities than Kayseri 113 Population of Smaller cities than 154 the city Kayseri (Homeland) 267 Total Less then one year 70 2-4 year 152 Living time in Five or more then five Kayseri 45 year 267 Total (%) 59 41 100 61 39 100 10,11 49,44 40,45 89,89 42,33 57,67 100 26,22 56,93 16,85 100 Notable aspects of personality traits could be analysed in three groups: Personality traits which are rated 3,00 and over, those which are rated between 2,00 and 2,99, and those who are rated below 2,00. Among the 15 personality traits, which were rated by the students, only the statement “(The people of Kayseri) like showing off” received a score above 3,00 (strong perception). Throughout all of the demographic variables, students clearly believe the people of Kayseri like showing off. The personality traits, which are rated between 2,00 and 2,99 by the students, are “disciplined”, “economical”, “hard working”, “enterprising”, “organized” and “loyal”. Among these, the highest rated (2,80) trait is “economical”. 174 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 2:According to Gender, City of Kayseri Personality Perception of TheStudents Male Female No Personality Factors Std. Std. Mean Mean Deviation Deviation 1 People in Kayseri has discipline at work. 2,556 1,114 2,664 0,911 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Tolerant towards different cultures an ideas. In general, they are hardworking. They don‟t like extravagant (sparing). They are enterpreneur and pioneer. Çlose to each other and friendly to students. They are sophisticated people. They are generous to each other and students. They are modest. They areopen to dialog and adaptable. They are modern people. They are planned. they are trustworthy. They care about social responsibility They like showing up. 1,763 2,488 2,913 2,569 1,775 1,850 1,456 1,581 1,900 1,694 2,356 1,988 1,763 3,288 1,221 1,070 1,184 1,164 1,259 1,134 1,170 1,241 1,204 1,229 1,205 1,264 1,216 1,151 1,972 2,794 2,682 2,617 1,907 2,047 1,579 1,897 2,215 1,897 2,542 2,121 1,916 3,402 No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1,014 0,821 1,162 0,987 1,095 1,085 1,182 1,009 0,901 1,055 0,924 0,997 0,982 0,930 Table 3: According to University, TheCitiy of Kayseri Personality Perception of TheStudents MelikşahÜniv ErciyesÜniv Personality Factors Std. Std. Mean Mean Deviation Deviation People in Kayseri has discipline at work. 2,577 1,116 2,635 0,904 Tolerant towards different cultures an ideas. 1,779 1,222 1,952 1,009 In general, they are hardworking. 2,503 1,068 2,779 0,824 They don‟t like extravagant. 2,908 1,185 2,683 1,160 They are enterpreneur and pioneer. 2,564 1,166 2,625 0,977 Çlose to each other and friendly to students. 1,791 1,259 1,885 1,091 They are sophisticated people. 1,871 1,139 2,019 1,079 They are generous to each other and students. 1,485 1,183 1,538 1,165 They are modest. 1,601 1,245 1,875 1,002 They areopen to dialog and adaptable. 1,914 1,204 2,202 0,896 They are modern people. 1,699 1,238 1,894 1,033 They are planned. 2,368 1,212 2,529 0,903 they are trustworthy. 2,006 1,264 2,096 0,990 They care about social responsibility 1,779 1,217 1,894 0,975 They like showing up. 3,301 1,145 3,385 0,938 The personality traits, which are rated below 1,99 by the students are “tolerant”, “friendly”, “versatile”, “generous”, “modest-humble”, “adaptable”, open to change” and “sharing”. 175 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Among these traits, the lowest rated (1,46) trait is “generous towards students and the community”. This was followed by statements in the order of; "modest and humble", "open for new experiences and adaptable", "sharing the gains of the society", “closer to each other and to students”, and “higly versatile in terms of capabilities”. In the study, the statement “(Kayseriens‟) like showing off” received the highest point, while the statement “(Kayseriens‟) are modest and humble” received a low point. The consistency in these two results is a sign that students answered the questions carefully. Table 4: According to Homeland (Bigger or smaller than Kayseri)The City of Kayseri Personality Perception of TheStudents. Smaller than Bigger than Kayseri Kayseri No Personality Factors Std. Std. Mean Deviation Mean Deviation 1 People in Kayseri hasdiscipline at work. 2,575 1,076 2,617 1,011 2 Tolerant towards different cultures an ideas. 1,708 1,170 1,948 1,119 3 In general, they are hardworking. 2,619 0,957 2,604 1,012 4 They don‟t like extravagant. 2,850 1,212 2,799 1,157 5 They are enterpreneur and pioneer. 2,655 1,084 2,539 1,103 6 Çlose to each other and friendly to students. 1,761 1,144 1,877 1,233 7 They are sophisticated people. 1,850 1,071 1,987 1,149 8 They are generous to each other and students. 1,460 1,195 1,539 1,161 9 They are modest. 1,673 1,073 1,734 1,226 10 They areopen to dialog and adaptable. 1,938 1,136 2,091 1,075 11 They are modern people. 1,602 1,177 1,903 1,142 12 They are planned. 2,283 1,089 2,539 1,103 13 they are trustworthy. 2,088 1,154 2,006 1,174 14 They care about social responsibility 1,717 1,138 1,903 1,119 15 They like showing up. 1,093 1,052 3,301 3,357 176 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Table 5:According to Period of Stay, The City of Kayseri Personality Perception of TheStudents 1 year and 2-4 years / 5 years and over under / n= 70 n= 153 / n= 44 No Personality Factors Std. Std. Std. Mean Deviation Mean Deviation Mean Deviation People in Kayseri hasdiscipline at 1 work. 2,64 1,10 2,59 0,95 2,57 1,23 Tolerant towards different cultures an 2 ideas. 1,81 1,12 1,83 1,15 1,95 1,18 3 In general, they are hardworking. 2,50 1,07 2,70 0,91 2,48 1,09 4 They don‟t like extravagant. 2,67 1,26 2,86 1,14 2,93 1,19 5 They are enterpreneur and pioneer. 2,44 1,07 2,61 1,06 2,73 1,23 Çlose to each other and friendly to 6 students. 1,61 1,22 1,82 1,18 2,18 1,17 7 They are sophisticated people. 1,69 1,04 2,05 1,10 1,89 1,24 They are generous to each other and 8 students. 1,49 1,21 1,50 1,15 1,55 1,21 9 They are modest. 1,76 1,21 1,65 1,14 1,82 1,17 They areopen to dialog and 10 adaptable. 1,99 1,08 2,03 1,12 2,07 1,09 11 They are modern people. 1,89 1,12 1,73 1,13 1,75 1,35 12 They are planned. 2,49 1,10 2,48 1,05 2,18 1,28 13 they are trustworthy. 2,09 1,14 1,91 1,13 2,43 1,25 14 They care about social responsibility 1,81 1,13 1,77 1,10 2,02 1,23 15 They like showing up. 3,16 1,12 3,44 0,97 3,23 1,27 Conclusions The city of Kayseri, in accordance with the vision of Turkey in 2023, make strides in the areas of industry, tourism and education on national and international levels. For this reason, the city of Kayseri, local government, chambers of commerce and industry and a large number of opinion leaders frequently make assessments of the current situation and take new decisions/resolutions. In this context, this research suggests that all the efforts that put forth for Kayseri should be designed to contribute to a perception of the city brand, and also searches how Kayseri‟s brand personality is perceived. Since the study covers students who are from outside Kayseri, the results may not reflect the general perception; however, considering their social and economic potentials, university students are regarded as potential ambassadors to Kayseri in the their home cities. For this reason, the findings of this study are important. One of the most important results that emerged from assessing the findings is that Kayseri is not perceived by students as it is ought to be. For example; generally people of Kayseri are known for their philanthrophy but this trait is little known or recalled by the participant students. Moreover, generosity of the people of Kayseri is called into question and there is a strong perception that the people of Kayseri like showing off. Regarding this issue, it would not be wrong to argue that institutions and organizations of Kayseri have been inefficient in their interaction with the 177 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo students. Perhaps the most important recommendation that can be made is for municipality and other non-governmental organizations to establish closer relations with student clubs, to include university students in their activities or to support student activities through sponsorships. Aiming for socio-economic growth, industrialists and businessmen of Kayseri must develop employability and make institutional reformations in order to reverse the brain drain. Although it is not the subject of this study, it should be noted that the most important reasons for the brain drain are low wage policies and the fact that Kayseri‟s private sector has no corporate culture. References Aaker, J.L. (1997). Dimensions of brand personality.Journal of Marketing Research, 34(August), pp. 347-356. Aaker, J.L., Benet-Martinez, V., &Garolera, J. (2001). Consumption of symbols as carriers of culture: A study of Japanese and Spanish brand personality constructs. Journal of Personality and Social Psychology, 81(September), pp. 492-508. Aaker, D., and Joachimsthaler, E. (2000).Brand leadership.New York: Free Press. Aaker, J.L. (1997). Dimensions of brand personality.Journal of Marketing Research, 34(August), pp. 347-356. Aaker, J.L. (1997). Dimensions of brand personality.Journal of Marketing Research, 34(August), pp. 347-356. Brown, H. E., Shivashanker, R., &Brucker, R. W. (1989).Requirements driven market segmentation. Industrial Marketing Management, 18(2), pp. 105–112. Costa, P.T., & McCrae, R.R. (1992).Revised NEO Personality Inventory (NEO-PI-R) and NEO Five-Factor Inventory (NEO-FFI): Professional manual. Odessa: Psychological Assessment Resources. De Pelsmacker, P., Geuens, M., & Van den Bergh, J. (2007).Marketing Communications (3rd ed.), London: Pearson Education. Geuens, M, Weijters, B, Wulf, K. (2008) “A New Measure of Brand Personality”, Decembe, Universiteit Gent, FaculteitEconomie En Bedrijfskunde, D. 2008/7012/54. Goldberg, L.R. (1993). “The structure of phenotypic personality traits.”American Psychologist, 48(1), pp. 26-34. Hankinson,G.(2006).The management of destination brands: Five guiding principles based on recent developments in corporate branding theory. Brand Mangagement,Vol.14, No.3, pp. 240-254. John, O.P., &Srivastava, S. (1999). “The Big Five trait taxonomy: history, measurement and theoretical perspectives”. In L.A. Pervin, & O.P. John (Ed.), Handbook of Personality (pp. 102-138). New York/London: The Guilford Press. Kapferer, J.N. (2008). The new strategic brand management (4th edition). London: Kogan Page. Kavaratzis,M.(2005). Branding the City through Culture and Entertainement.AESOP 05, Vienna, 2005. Kavaratsiz, M. and Ashoworth, G. J. (2005).City Branding: An Effective Assertion of Identity or a Transitory Marketing Trick”TijdschriftvorEconomische en SocialeGeografie, Vol. 96, No. 5, pp. 506–514. Keller, K.L. (2008), Strategic Brand Management. Building, Measuring, and Managing Brand Equity (3rd edition).Upper Saddle River, NJ: Prentice Hall. 178 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Kotler, P. and Gertner, D. ( 2002 ).Country as a brand, product and beyond: A place marketing and brand management perspective, Journal of Brand Management , Vol. 9 , No. 4 – 5 , pp. 249 – 261. Lynch, K.(1960). The Image of the City. Cambridge: MIT pres. McCrae, R.R., & Costa, P.T. (1997).Personality trait structure as a human universal.American Psychologist, 52(May), pp. 509-516. Mervielde, I. (1992). The B5BBS-25: “A flemish set of bipolar markers for the big-five personality factors”. PsychologicaBelgica, 32(2), pp. 195-210. Sanz, J., Gil, F., Garcia-Vera, M.P., &Barrasa, A. (2008). Needs and cognition/behavior patterns at work and the Big Five : an assessment of the personality and preference inventory-normative (PAPI-N) from the perspective of the five-factor model. International Journal of Selection and Assessment, 16(1), pp. 46-58. Saucier, G. (1994).Mini-markers: A brief version of Goldberg's unipolar big-five markers. Journal of Personality Assessment, 63(December), pp. 506-516. Sipahi, B., Yurtkoru, S.E. veÇinko, M. (2008). SosyalBilimlerdeSPSS‟leVeriAnalizi, Beta Yayınevi, 2. Baskı. 179 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1567 Title A name given to the resource The Measurement of Brand Personality in the City Brand: a case of Kayseri Author Author EMIRZA, Emin SERI, Idris Abstract A summary of the resource. Cities all over the world use several conduits to promote themselves to relevant audiences such as investors, visitors and residents and in their efforts they commonly include striking logos and captivating slogans that feature in welcoming websites and advertising campaigns in national and international media. Because of those, city branding has in recent years become a prevailing activity within city management. Also brand personality component is major component of city brand identity. In this context, the main subject of the study is to evaluate brand personality dimensions of Kayseri city. This paper first describes the rise of city branding and the essentials of brand personality of city brand. Afterwards developed brand personality scale for products and service has been adapted to city branding. Sample of the study has been conducted at the universities in Kayseri. Data were collected via an online survey and face to face survey. Findings have been analyzed by factor and one way ANOVA analysis using SPSS 16 Program. Keywords: City Brand, Brand Personality, Brand Identity. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/3f2aca1042424a84adcbf6138728ba5e.pdf bba49af165e5255f75816d0c31ea9195 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Morality and Ethics of Accounting Cemal Elitaş Yalova University, Yalova, Turkey cemalelitas@gmail.com Çetin Yurt International Burch University, Sarajevo, Bosnia and Herzegovina yurtcetin@gmail.com In our present day, even though morality and ethics are used interchangeably in most cases, what they refer to is usually different. Accounting morality may vary according to time and space, however, when the ethics in accounting is mentioned, what is usually observed is whether the methods employed by accounting to achieve its goals are righteous or unrighteous. This rectitude is not relative but absolute righteousness. This study aims to analyze the concept of ethics in the profession of accountancy, how these codes of ethics are formed, and the influence of both public administration and business circles on these codes and how individuals currently employed in the accountancy business interpret these codes. The implementation difficulties of codes of ethics which the employed in the profession need to conform to for the social benefits, welfare, and professional dignity, the measures taken by the chambers and joint work groups, and the suggestions provided by the professionals that will contribute to the process will be given at the end of the study. Keywords: Morality in Accounting, Ethics, Ethics in Accounting, Business Ethics. 75 � https://omeka.ibu.edu.ba/files/original/bdc2c96bdc7dcfd95527e102f1e83471.docx 670ed75029009f2ef2bc3587089b31a3 https://omeka.ibu.edu.ba/files/original/0424205f6895c0db53632e7d0a263f8f.pdf f246807d7cee081941ac93e4bedf876b PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Morality and Ethics of Accounting Cemal Elitaş Yalova University, Yalova, Turkey cemalelitas@gmail.com Çetin Yurt International Burch University, Sarajevo, Bosnia and Herzegovina yurtcetin@gmail.com Abstract In our present day, even though morality and ethics are used interchangeably in most cases, what they refer to is usually different. Accounting morality may vary according to time and space, however, when the ethics in accounting is mentioned, what is usually observed is whether the methods employed by accounting to achieve its goals are righteous or unrighteous. This rectitude is not relative but absolute righteousness. This study aims to analyze the concept of ethics in the profession of accountancy, how these codes of ethics are formed, and the influence of both public administration and business circles on these codes and how individuals currently employed in the accountancy business interpret these codes. The implementation difficulties of codes of ethics which the employed in the profession need to conform to for the social benefits, welfare, and professional dignity, the measures taken by the chambers and joint work groups, and the suggestions provided by the professionals that will contribute to the process will be given at the end of the study. Keywords: Morality in Accounting, Ethics, Ethics in Accounting, Business Ethics. Introduction Morality means good qualities and good habits. Another definition of morality is the rules of behavior adopted by people in the community to which they are obliged to comply (Çalışır & Şefkatlı, 2003). It could be spoken of personal morality when this behavior and way of life has personal nature, social morality when it has social nature and professional ethics when it is about a particular occupational group respectively. Established at the end of a given period, these rules vary from person to person and society to society. This variability of moral values in time and space do not apply to ethics because ethics is a philosophical concept which attempts to determine what is right and what is wrong in conjunction with the way to behave in order to achieve the truth. In all aspects of life throughout the history, morality and ethics were concepts of integrity, honesty and good faith and have been discussed and given much importance to. As a result of this, for the science of accounting whose historical depth stretches beyond BC, accounting ethics is not a new concept. Similarly, the concepts and rules of business ethics have also always been important. As the world economy having the features of closed economy in general until the last century, the rules of accounting had the characteristics usually in the form of tax records and the government accounting, and as a result, each country had its own specific accounting rules. 117 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo In the last century, and in particular after the Second World War with the impact of globalization and disappearance of economic boundaries, the accounting rules began to be determined at international dimensions. That the accounting being determined at international dimensions has paved the way to the emergence of internationally recognized accounting principles of ethics. Accounting ethics, in simplest terms, can be summarized as providing the most accurate information for the addressee through financial statements in accordance with accounting rules. In the context of accounting ethics, "the codes of ethics applicable to all accountants," which were identified by the International Federation of Accountants (IFAC), and comprise 7 principals, are elaborated in this study. General Concepts Of Morality and Ethics Human beings are exposed to various influences, trained from birth onward, and as a result of these trainings, the experience they gain is reflected to the outside world, for these behaviors, they are considered as an asset by the surroundings. As people individually vary in terms of their thought, life styles, these differences decrease in their families, societies and the inhabitants of the country in which they reside. In this perspective, we can come to the conclusion that people, by living together, may give similar or even same reactions to some issues. These behaviors over time develop into a set of rules, which must be complied with, if differently treated, unwelcome by masses, and (whose sanctioning is in moral nature). Thus, the righteous behavior formed through a certain period of time is called morality. It means ethics, and righteous values. In different sources, it can be possible to meet in different definitions of morality. Moral means good quality and good habits. According to another definition, morality is the rules and the forms of behavior that are adopted by people and obliged to comply (Çalışır & Şefkatlı, 2003). Morality is presented to us not to postpone in the fluency of life and has sometimes formed sum of the values that repaired and all of them. People in the community that is told "moral" or "immoral", or is mentioned "exemplary moral values" has been drawn attention behind the person's behavior to the values (Çotuksöken, 2003). The explanation of variance between morality and ethnics is reaction to the face of situations when the people give reacts. In other words, individual decides which one is right or wrong in a condition in daily or professional life. That is for individual „what is valuable‟ or „what is the right or the questions what valuable behavior is‟ as an action questions as the qualitative one such as ethics, good, duty, necessity, permitted takes place in the concepts of morality; namely, morality is a phenomenon stepped in decision-making in the concept of ethnics (Tepe, 1999). The concept of ethics and morality in the field of philosophical ethics as a discipline is possible to handle. Ethics is shown how to behave with common sense and refers to the duties. It concerns about the ability to discriminate between right and wrong and the truth 118 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo that the tendency to carry out the truth (Sözbilir, 2000). For example, when accounting ethics mentioned how the financial statements prepared in accordance with the purpose of accounting for the preparation and the presentation that determine to be right, is the best suited to apply as morality. If some approaches are from the outset of nature, ethics deal with as a branch of philosophy. If some approaches are in the daily use, it is similar with morality. If some approaches get morality contented; in this way, the question of “What are the approaches in morality?” determines the answer to the question form. In the pursuit of these determinations rightly, it is called as the directions of ethnics‟ job that are followed. Here is the way that will be followed; ethics are seen as morality-behavior and their determinant that is related to information carried to the thinking of direction (Çotuksöken, 2003). Work Ethics Work Ethics is the sum of principles and rules that base on beliefs about what is right or what is wrong what is fair or unfair related to the conduct of business right (Şan & Sevgi, 2002). A job that is proper for the ethics is the job that is done by showing the necessary attention in the best way. Businesses as the institutions operating in certain environmental conditions are affected not only by their environments in the decisions that they give; they also affect their environments by their decisions and actions. Businesses‟ understanding the impact of their actions on society and taking these effects into consideration while taking decision and applying to them are related to the sense of social responsibility. Adam Smith, the father of Liberalism says: "the economic life is buried into the depths of social life. Habits of the society in which it operates, their morals and customs cannot be seen differently; in other words, the economy as alone cannot be separated from culture and discussed apart from others (Francis, 1998, p. 27). Business ethics that dominates a society is closely related to the personal ethics of individuals that make up that society. The things that determine individuals' personal morals are usually traditions, religious values and people who are taken as model figures and adopted thoughts. The historical development of business ethics dates back to ancient times. Writers and philosophers of Ancient Greek and Rome were not looking business and commercial activities well. Because they regarded this kind of activities involve with only ambitions of moneymaking and lies. They also thought that their civilizations would be degenerated by the corruptions that will be contaminated by these communities as a result of their relationship with barbaric traders (Arslan, 2001). Despite these negative attitudes of ancient Greece and Rome, this negative attitude towards commercial activities in ancient times was not the same in every society (Sözbilir, 2000). Religion‟s "rules that have to be accepted without any questioning" has been the most important factor on transmission of business and professional ethics that this religion has placed in the essence of societies from generation to generation. 119 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo For instance, Judaism views wealth as a gift of God and accepts a person‟s success as a heavenly occasion (Sözbilir, 2000). In addition, in holy books of Judaism, there are details regarding the regulations in business and vocational life. It would be fair to say, the most important factor behind the success of Jewish people who lead the economy in the whole world, and, in a way, holds the world economy under control is religious regulations. On one hand, we can claim that in the course of history, religion plays a determining role in constitution of moral values, on the other; we can say that since the 19th century it loses ground. The biggest reason for this the downfall of theocratic states and the existence of anti-religious factors in moral system. Then, the religious rules “which should be accepted without questioning” turn into rules questioned and Emile Durkheim puts it “secular morality” starts to rule over societies. This change in the morality of societies is unsurprisingly reflected in business morality. Moreover, till the last century, the economies of countries are closed economies and if people want to start unions, which can be possible in the borders of the country. Since the economies were closed, and were run on the base of the state control, it lead to the business morality changing from region to region in the same country and changing from country to country in the global sense. Up to now, the economical borders have been disappeared with the effects of globalization; business and vocational regulations gained an “above-the-place” status. In this way, national and international vocational organizations were established and the legal regulations serving to the needs of the particular occupations have been decided by independent organizations and are rationalized for public authorities. Accounting Ethics Since the beginning of life, people have expressed goods of economic value with financial instruments and felt the need to record them for different purposes. While the first records kept in this way are not known exactly, many instances of registers dated to BC have been seen as a result of current investigations today. There are some research results showing these records under certain conditions by Persians around 500 BC, by Greeks around 1400 and by many other similar civilizations. Given that, accounting in essence is a recording process subject to certain conditions; in other words, it could be said that these records kept by different societies in different formats are the first accounting examples. The first accounting records in the flow of history, Encyclopedia Diderot defines accounting accordingly: “Recording goods and money in the book and keeping their account.” These first accounting records were dissimilar in different societies as a natural result of working ethics mentioned above, affecting each society. These different forms of record keeping were expressed in different ways to the contemporary society and its economic life and in time it resulted in accounting values‟ being understood in diverse forms in different communities. A new economic order was created after the WWII in particular and new regulations started to be recognized at an international level in the field of accounting. The countries started to adapt to accounting rules recognized by international associations instead of their 120 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo own so as to be able to adapt to the new world order and keep pace at the market economy. Thus, despite some differences, when considered in the essence, principles of accounting ethics have become universally determined and applied, being cleared from international variances. The principles of accounting ethics has taken written form now like Declaration of Human Rights which in turn has increased the cooperation and the effectiveness of the jobs done between the accountants and the ones benefiting from accounting records. “Code of Ethics for Professional Accountants” has been published by International Federation of Accountants for which there is 156 members of occupational organizations from 114 countries and it has been translated into our language by TÜRMOB. Seven parts of this Code of Ethics for Professional Accountants, which has totally 18 parts, can be applied to all accountants, seven parts of it can be applied to self-employed accountants, and four parts can be applied to the accountants who work dependently (Uyar, 2005). We think that it would be sufficient in terms of the boundaries of the subject to examine the following rules of ethics, which are applicable to all accountants. 1. Accuracy and Impartiality The principle of accuracy is having the work done within the framework of justice rather than it‟s being right. Each transaction, which matches with laws and accounting regulations, is not accepted as correct. The moral side of accounting emerges here. Doing the job right is not the same thing with doing it in conformity with the principles of morality. Accounting transactions, which are in accordance with the relevant laws but are unethical, are called “Creative Accounting” and there is a lot of work on this subject. 2. Resolution of Moral Conflicts In market economy, everyone does procedures to ensure the maximization of benefit. Naturally this situation gives rise to conflicts of interest between parties. Conflicts of interest cause the accountant to be exposed to repression by their counterparts in both familial and personal relationship. An accountant who faces with such cases should implement the ethical policy of the institution on which he/she is dependent if that institution has one. If the moral conflict cannot be resolved in this way, the accountant should apply to the nearest supervisor. If he/she cannot still find a solution, he/should apply to a top administration. In addition, an accountant may take an appropriate idea or suggestion for the resolution of this conflict from an independent accountant or accounting institution in a confidential way. If a solution cannot be reached as a result of testing of internal investigation of all possibilities the accountant should resign as a last resort. 3. Professional Competency Accountants should reflect themselves as if they had mastery or experience that they don‟t have. Professional competency is gained through the theoretical education at the university, then special training, courses and work experience. Gaining professional competency necessities that one had worked for the first time at public or private companies at a certain period of time (trial period) at the status of a candidate and then the appointment as a principal on condition of fulfilling the requirements. 121 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo It is more probable to act as illegally. Particularly, one exam and one interview based on professional competency and mastery are required to be employed at state and private institutions. As a result of that evaluation, employment of a person lacking necessary knowledge and competency is unethical at all and means encouragement of unethical accounting action. Having academic career and knowledge of mastery is insufficient even it is a necessity. Ongoing economical changes and related national and international arrangements should be followed and updated. 4. Privacy Accountants have to keep the information about the costumers or employers secret. That privacy continues after the work between accountant and costumer ends as well. However, that privacy is not an absolute one. On condition of judiciary case or mandatory situation to reveal it, it is proper not to keep it, but to reveal is ethical. 5. Tax Application Companies have to pay certain taxes relevant to their income to the state. Accountants keep records of their income. Hereby, accountants have to detect basic income correctly. In case of an exposure to the pressure to reduce the income or extracting totally, accountants should act according to the article 2 rules with the title “resolution of unethical conflicts”. In addition, in the event of an error, it is the duty of accountant to correct the errors if declarations prepared in accordance with the performance of any other tax liability within the period specified by law. 6. Cross-Border Activities Moral requirements of cross-border activities may be encountered when dealing with different situations. For example, an accountant offering their services in a country other than the country in terms of the requirements of morality, providing that there are differences between the two countries, the following conditions must be met: a) The IFAC code of ethics offered in the country should be applied where the law is less stringent than the IFAC requirements of morality. b) Service presented the country's moral requirements, IFAC cases where more stringent ethical requirements of that country apply. c) Citizen in the host country requirements of morality, if necessary during the implementation of the services provided in a foreign country, and to be more stringent in case of IFAC, the citizen in the host country should be the requirements of morality. 7. Promotion Accountants in marketing and promotion of their own professions: a) Tools should not be implemented that undermine the dignity of the profession b) To offer the services themselves, they should not make exaggerated claims about the qualifications or experience they gained; c) They should not make false claims of other accountants Morality or ethical behavior defined by an internationally renowned psychologist needs to be implemented for the following four criteria (Sözbilir, 2000). Consider these criteria in terms of an accountant: 122 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo 1) The behaviors need to be identified about who will be affected: An accountant needs to understand who would be affected by the reports financial reports prepared by himself. 2) What is ethical behavior should be agreed on: An accountant‟s job is to determine which behavior is ethical. 3) Moral and ethical values should be above personal values: to be understood by their counterparts in financial statements correctly, a report prepared by an accountant needs to be within the framework of vocational ethics and should contain the correct information. 4) Accountant must find the strength of ethical decision and the application of the act itself: Accountant must find the strength of the application of the three the rules laid down in first Article. Accounting Ethics We have mentioned that ethics is a responsibility how should be treated. Ethical behavior, however, is not only legal responsibilities. An act that is not a matter of legality may be a non-issue of ethics. An ethical issue may not be included in the legislation. For this reason, ethics should be addressed within the framework of a concept and understanding (Gözener, 2008). Dignity of a profession plays an important role in the code of ethics. For the healthy functioning of the economic and commercial life, on the other hand, the code of ethics of the accounting profession needs to be established. Between the interests of the public and taxpayers, however, remain in the profession on the one hand, on the other hand it increases the pressure on the profession as it is related to monetary transactions (Ergun & Gül, 2005). In addition, professionals, if not show due diligence to ethical principles, it is believed that they are the most adversely affected by the situation. One of the most important tasks of accounting is to provide accurate and reliable information to people. If accurate and reliable financial information is not presented, providers of this information cannot take sound decisions. As mentioned before, if such a situation exists, it is the proof as it ethical terms are violated in terms of accounting. Accounting of Code of Ethics Implementation Issues There are three problems that harm the nature of accounting profession today. The first one is the increasing commercialization. This problem causes accountants to remain between their own interests and the service they offer to customers. The second problem is that there is confusion growing in business life. Finally, the changes in moral values and standards lead to the emergence of problems in terms of profession (Neu, Friesen, & Everett, 2003). İşgüden and Çabuk (2006) Investigated the effect of the concept of professional ethics and rules of professional life. Despite best efforts of professional organizations, they do not comply with the rules of professional ethics by giving priority to personal interests, and escaping from professional liability and legal liabilities, it is concluded that the most important reason is the lack of adequate legal and financial audit. Güney and Çınar (2012), found on the study of professional ethics perceptions that 123 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo accountants are aware of the importance of the ethical principles of the profession, they do not approve of the behavior contrary to them, but in practice they think there is unethical behavior and they demand more training support from ethical professional organizations. In addition, they concluded that there is in direct proportion to the level of income and adherence to ethical principles and the level of education. Accounting functions as a bridge between different interest groups and business and used by large segments, information provided by them directly affect their decisions. In this regard, the ethical accounting practices become an important issue. On the other hand, recent accounting scandals that emerged proves that the relevant laws, professional ethics and social values are paid adequate attention. Bayraktar (2007) stated in his study that accounting tricks in Turkey are conducted for two purposes. The first of these is to show business better, second, to show that business is worse. As a result of the study, the most common events include the following: tax evasion, embezzlement and corruption, concealment, document fraud (fake invoice), informal processes, using fictitious accounts. This kind of unethical behavior damaging the profession of accountancy in all aspects of society may have only one explanation; the person or entity want to hold their customers. In a study conducted by Kirik (2007) the accounting error and fraud is intense, on the basis that not only accountants are accountable but also particularly taxpayers, government policies, tax practices, professional organizations and the factors such as social structure as well. Demands and pressures to cheat, especially by taxpayers, put professional members in difficult situations such as conflicts between the public interest and professionals live. In addition, the lack of adequate financial control, legal gaps and member of the professions dependent on taxpayers in terms of money (source of income), causes this pressure to increase. Because when some taxpayers pay accountants fees, it is like to be for “paying less tax”. Again Aymankuy & Sarıoğlan, (2005) work, directly or indirectly, the reason in the professional members to conduct non-ethical behaviors is that taxpayers come first and legislation second. Members of the profession, believes that the most important factor that pushes an error is "constantly changing legislation”. In addition, the most important factor preventing unethical behavior is found to be the subsequent commitment to the state and the other factors are listed as conscience, a sense of shame and fear of punishment. Ethical and unethical behavior in today's world the most important behavior is cited as an example the act of bribe taking and giving. Accountants and trying to hide its own erroneous records to bribe government officials on behalf of the company are to gain unfair. Prohibited by the laws of all states to prevent this corruption and appealed to a certain criminal proceedings. However, the United Kingdom put into effect July 1, 2011 in the United Kingdom Anti-Bribery Act, with great interest. The most important reason for this interest is to be processed within the jurisdiction of the law of bribery offenses, the United Kingdom is that the nature of a law. In other words, the offense of bribery was committed, regardless of which country or countries in which the guilty party regardless of nationality law offense of bribery occurred processed the conditions considered and the United Kingdom courts shall be competent to judge. If you have a company or the employee's close links with the United Kingdom (residence, citizenship, participation, partnership) will be covered under this law (The Bribery Act 2010, 2010). 124 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo While doing their jobs in and intensive competitive environment, another factor directing professional accountants to act unethically in a matter of professional is the collection of fees. Accountants who cannot get value for their work, or at least who cannot get timely processing of their fees do not show too much sensitivity in their jobs. On the contrary, in the fear of losing the company, the ethical rules may be ignored in the name of a company that pays their fees on time. As a proposal to support other initiatives, training activities of other professional organizations, increasing the effectiveness of the controls, as well as the organization of responsibilities can be counted. Problems from the frequent changes in legislation often emerge as a very wide subject area of professional competence. The methods of profession selections come up as another factor of violating ethical codes. In fact, after a challenging training and examination system, members of the profession, professional members put aside training and remain inadequate to keep pace with developments and regulations. We believe that it would be beneficial that they are subjected to compulsory education at certain periods as well as training of ethics. Conclusion The concept of morality changes from person to person and from one society. It allows us to realize, however, that the relativity of the concept of ethics. Morality is a concept which shapes in a considerably long period of living together in societies brought a set of values, a common approach and to show differences between communities. The concept of ethics, however, involves the concept of morality in the field, and a universal approach to philosophical ethics, which also categorizes morality. These two concepts taken for accounting purposes, which is a branch of science, of course, this distinction will manifest themselves. While investigating the distinction between the concepts of ethics and morality, the distinction needs to highlighted and even emphasized. Written in different languages, especially on moral and ethical articles, essays and books should be well-read and translated into as correctly as possible. Otherwise, a lot of concept confusion is unavoidable. Especially, when investigating the concept of "morality" from dictionaries, "ethical" and appears to be in the same sense. Naturally, this situation results in the reflection of scientific studies of these two concepts in a wrong way. In order to prevent such usage that is far from scientific values, the distinction between morality and ethics is emphasized in many places. Works to base the same principles of accounting rules throughout the world has been continuing for many years. The different economic structures of the countries are making the standardization very difficult. Since economies have a different structure, it brings variety in business morality and in professional morality. Of all countries in the world, economic structure and the accounting principles used in parallel with the same characteristics as much as, if we ignore the effect of moral values of individual professional accountants, accounting ethics - reconcile the concepts of ethics in accounting. 125 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo References İşgüden, B., & Çabuk, A. (2006). Meslek Etiği ve Meslek Etiğinin Meslek Yaşamı Üzerindeki Etkileri. Balıkesir Üniversitesi Sosyal Bilimler Dergisi , 59-86. Şan, Ö., & Sevgi, Ö. A. (2002). Genel İşletme. Eskişehir, Turkey: Anadolu Üniversitesi Yayınları. Çalışır, A., & Şefkatlı, M. (2003). Beşeri Münasebetler. Ankara, Turkey: Tutibay Yayınları. Çotuksöken, B. (2003). Felsefe Açısından Etik: Tanımla-Sınırlar. (423), 13. Arslan, M. (2001). İş ve Meslek Ahlakı. Ankara, Turkey: Nobel Yayınevi. Aymankuy, Y., & Sarıoğlan, M. (2005). Muhasebe Mensuplarının Meslek Etiğine Yaklaşımları ve Balıkesir İl Merkezinde Bir Uygulama. Balıkesir Üniversitesi Sosyal Bilimler Dergisi , 8-14. Bayraktar, A. (2007). Türkiye'de Muhasebe Hileleri Tarihi. Trakya Üniversitesi Sosyal Bilimler Enstitüsü Yayınlanmış Yüksek Lisans Tezi . Tekirdağ. Ergun, H., & Gül, K. (2005). Muhasebe Mesleği Etik Kuralları ve Bu Kuralların Meslek Mensuplarınca Algılanışı. MUFAD Muhasebe ve Finansman Dergisi (25), 147-149. Francis, F. (1998). Güven. Ankara, Turkey: Türkiye İş Bankası Yayınları. Gözener, E. (2008). Etik ve İşletme Etiği Üzerine. Eğitişim Dergisi (18). Güney, S., & Çınar, O. (2012). Serbest Muhasebeci Mali Müşavirlerin (SMMM) Etik Algıları: Erzurum Örneği. Atatürk Üniversitesi İktisadi ve İdari Bilimler Dergisi, 26 (2). Kirik, Z. (2007, September). Muhasebe Hata ve Hileleri ile Muhasebe Mesleğinde Etik Afyonkarahisar'da Muhasebeciler Üzerine Bir Araştırma. Yayınlanmamış Yüksek Lisans Tezi . Eskişehir, Turkey: Anadolu Üniversitesi Sosyal Bilimler Enstitüsü. Neu, D., Friesen, C., & Everett, J. (2003). The Changing Internal Market for Ethical Discourse in the Canadian CA Profession. Accounting, Auditing and Accountability Journal, 16 (1), 91-94. Sözbilir, N. (2000). Türkiye'de Muhasebe Uygulamalarında Etiksel Boyutlar. Afyon, Turkey: Afyon Kocatepe Üniversitesi Yayınları. Tepe, H. (1999). Bir Felfese Dalı Olarak Etik. Doğu Batı Düşünce Dergisi (4), 12-14. The Bribery Act 2010. (2010). Ministiry Of Justice. Retrieved March 10, 2013, from justice.gov.uk: www.justice.gov.uk/downloads/legislation/bribery-act-2010guidance.pdf Uyar, S. (2005, July 12). Makaleler. Retrieved Jun 23, 2011, from muhasebetr: www.muhasebetr.com/yazarlarimiz/suleyman/001/ 126 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1543 Title A name given to the resource Morality and Ethics of Accounting Author Author ELITAS, Cemal YURT, Çetin Abstract A summary of the resource. In our present day, even though morality and ethics are used interchangeably in most cases, what they refer to is usually different. Accounting morality may vary according to time and space, however, when the ethics in accounting is mentioned, what is usually observed is whether the methods employed by accounting to achieve its goals are righteous or unrighteous. This rectitude is not relative but absolute righteousness. This study aims to analyze the concept of ethics in the profession of accountancy, how these codes of ethics are formed, and the influence of both public administration and business circles on these codes and how individuals currently employed in the accountancy business interpret these codes. The implementation difficulties of codes of ethics which the employed in the profession need to conform to for the social benefits, welfare, and professional dignity, the measures taken by the chambers and joint work groups, and the suggestions provided by the professionals that will contribute to the process will be given at the end of the study. Keywords: Morality in Accounting, Ethics, Ethics in Accounting, Business Ethics. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/de33e2093aa5674ad93725da831de728.pdf acfb1c9a9cbdc76c4ad1ba77f9660638 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo How to Overcome the Crisis in Relations between the European Union and Turkey Haydar Efe Kafkas University, Kars, Turkey efehaydar@gmail.com There has been a slowdown in the accession negotiations due to the blockage of negotiations chapters since 2006. EU affairs have lost their past lure in Turkey. And, Turkey decided to freeze its relations with the Presidency of the Council of the EU during the second half of 2012 and not to attend meetings chaired by the Cyprus EU Presidency. But despite these negative developments, the enhanced political dialogue between the EU and Turkey has continued. In this framework, the European Union has proposed a new positive agenda in order to enhance Turkey-EU relations and promote reforms in Turkey. The aim of this process is to keep the accession process of Turkey alive and bring a new momentum into TurkeyEU relations. In addition to, the new government in France gives signals it could reconsider its position with regard to the negotiation chapters that had blocked in 2007. Therefore, at present, serious efforts are needed to revive the negotiation process with a new impetus. Keywords: international relations, the European Union 155 � https://omeka.ibu.edu.ba/files/original/e777142c3a89f1309c5cc61edfb245ca.docx 0abd3909a39155fa05ec57c8cdbc4d7f https://omeka.ibu.edu.ba/files/original/9feaa234826324b1cbd85a034bba50a9.pdf 7e7008ad39e13bb0eef21247229cb0ff PDF Text Text International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo How to Overcome the Crisis in Relations between the European Union and Turkey Haydar Efe Kafkas University, Kars, Turkey efehaydar@gmail.com Abstract There has been a slowdown in the accession negotiations due to the blockage of negotiations chapters by the European Council since 2006. EU bid have lost its past lure in Turkey. And, Turkey decided to freeze its relations with the Presidency of the Council of the EU during the second half of 2012 and not to attend meetings chaired by the Southern Cyprus EU Presidency. But this problem is not sole problem between Turkey and the EU, there are many problems especially relating to the Customs Union. Although, the Customs Union makes significant contributions to the Turkish economy, but it has causes many problems in the EUTurkey relations. Main purpose of this study was to demonstrate the problems within the scope of the EU-Turkey Customs Union and to propose solutions to these problems. Despite these negative developments, the enhanced political dialogue between the EU and Turkey has continued. In this framework,the European Union hasinitialized a new positive agenda in order to enhance Turkey-EU relations and promote reforms in Turkey. The aim of this process is to keep the accession process of Turkey alive and bring a new momentum into Turkey-EU relations. But, at present, serious efforts are needed to revive the negotiation process with a new impetus and overcome many problems between Turkey and the EU which are faced. Keywords: Turkey-EU relations, accession negotiations, European Union, Customs Union Introduction Turkey‘s relations with the EU/EC started in 1959. This year is the 50th year of Turkey‘s signing Ankara Agreement with the Union. Since then Turkey has carried out many reforms, raised the standards of its democracy, despite the shortfalls and fulfilled the Copenhagen criteria. Indeed, Turkey‘s goal of the EU membership provides an incentive to undertake comprehensive reforms in Turkey. In this context, advances in the fields of democracy and human rights in Turkey are closely related to its EU accession process. Turkey‘s accession process has contributed to overall improvement of democratic standards of Turkey. Turkey share same values and principles such as democracy, human rights and free market. With the strong economic potential and important geostrategic location Turkey is an indispensable country for the EU. But, it is difficult to say that there is a common vision and integrated approach about the enlargement of the European Union. Also, the European Union is not only going through a serious crisis but also is an enlargement fatigue. Currently, Turkey‘s EU accession negotiations have been restrained by the Cyprus issue. But this reason is apparentreason; real reason is a lack of consensus among members of the European Union. In this context, there is not a consensus about Turkey‘s EU membership. They are divided regarding on whether Turkey belongs to Europe. Italy, Spain, United 1 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Kingdom and Sweden support Turkey‘s membership. On the other hand, Germany, Sarkozy‘s France and Austria oppose Turkey‘s EU membership. Because, with a population of seventy five million will be greater representation in the EU institutions than many big countries such as France, United Kingdom and Spain. Sarkozy and Merkel are opponent of Turkey‘s full membership and they propose ―privilegedmembership‖ i.e. partnership but not full membership. They see the EU as a Christian club and see Turkey as all Middle Eastern. France‘s former president Nicolas Sarkozy has proposed that Turkey be included in the creation of a ―Mediterranean Union‖ but not part of the EU. At the same time, Turkey has strengthened its economy, nowadays it is a sixth largest economy in Europe. But, liberalization and rapid progress in Turkish economy are also closely related in Turkey‘s EU bid. Turkish accession process and the Customs Union have also contributed to the economic development of Turkey and have positively affected Turkish economy. Besides, especially, the Customs Union has also contributed the reinforcement of Turkish industry. In recent decade, Customs Union has given the competitiveness to Turkish economy in the competition with the rival countries. But, many problems in Turkey-EU relations within the scope of Customs Union also originate due to the lack of an integrated approach in the EU. Currently, these problems affect Turkish economy negatively therefore they must be solved. Firstly, CustomsUnion must be based on four freedoms: Free movement of goods; freedom of movement for workers; freedom of provide services and free movement of capital. But, Turkey- EU Customs Union does not cover agriculture, services and public procurement. Turkish workers could not circulate freely in the EU. More importantly, nonexistence of the free circulation of Turkish businesspersons in Europe is a big problem. Besides, according to Customs Union Agreement, Turkey has to accept all decisions of the European Union in other words, it has no right to reject these decisions because Turkey is not a member state of the EU; therefore, it does not have a vote in the EU‘s decision making mechanism. For example, Turkey has to accept all acquits related to Customs Union and decisions of the Courth of Justice of the European Union that there is not any judge from Turkey. Furthermore, Turkey has to accept the EU‘s Free Trade Agreements signed with third countries. The EU does not include Turkey to EU‘s FTA‘s signed with third countries. But, these countries do not want to sign FTA‘s with Turkey. Besides, the EU authorities conducted anti-dumping investigating to Turkish exporters. Another important problem is a transport quota which constitutes barriers to Turkish export goods. These afore mentioned problems and others which we are faced are serious and they must be solved immediately. The Problems within the Scope of the Customs Union between Turkey and the EU Although, the Customs Union makes significant contributions to the Turkish economy and has contributed to the reinforcement of Turkish industry which is capable of competing in global markets? Thanks to the Customs Union, open economy principle has become Turkey‘s economic model. Currently, the EU is Turkey‘s first import and export partner, on the other hand, Turkey ranks 7th in the EU‘s import and 5th in the export markets. Turkey‘s export to the EU are mostly manufactured goods, machinery and transport equipment. Currently, there are many important problems which originated from the Turkey-EU Customs Union. Customs Union is based on Association Agreement also known as Ankara Agreement between Turkey and the EU. Ankara Agreement was signed on 12 September 1963 in Ankara and came into effect 1 December 1964. Since then Turkey has been an associate member of the European Union. In Ankara Agreement, article 2 said that “A Custom Union shall be progressively established” in order toattain the objectives of the Ankara Agreement. Also, Association 2 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo shall comprise a predatory stage; a transitional stage (in these two stage the EU/EC has already eliminated tariffs on Turkish industrial products) and a final stage. “Final stage shall be based on the customs union and shall entail closer coordination of the economic policies of the Contracting Parties” (Ankara Agreement, 2013). After, in November 1970, in order to initialize the second stage (transitional stage) an Additional Protocol was signed and it came into effect 1 January 1973. Its aim was establish a timetable for abolition of tariffs and quotas on Turkish industrial goods traded between Turkey and the EU/EC. After end of the transitional stage which lasted 22 years, since on 1.1.1996, the completion of Customs Union Agreement between Turkey and the European Union, final stage which was planned in Ankara Agreement, began. It is a milestone in Turkey-EU relations and integration of the Turkish economy with EU. Turkey agreed to implement Common Customs Tariff (CCT) which applies to the import of goods across the external borders of the EU. Import and export duties and charges having equivalent affectwholly abolishedbetween the Community and Turkey on date of entry into force of this decision. The Community and Turkey agreed to introduce no new customs duties on imports and exports or any chargeshaving effect from that date (Article 4). More over quantitative restrictions on imports and export and all measures havingequivalent effect shall be prohibited between the Community and Turkey (article 5 and 6). (Decision No 1/95 The EC-Turkey Association Council, www.avrupa.info.tr , 2013) Customs Union Agreement was planned and presented by the EU on a large scale and Turkey signed this agreement without negotiating advantage and disadvantages carefully. But, it contained many liabilities for Turkey than classic Customs Union agreement. Turkey is a sole country in the Customs Union with the EU without being a member of the EU. For this reason, Turkey cannot attend decision mechanisms of the European Union. Besides, Customs Union Agreement gave Turkey many liabilities. In this context, Turkey shall align its commercial policy with the EU‘s common commercial policy and has to carry out to the EU‘s Common Trade Policy completely and it also has to adopt every decision of the European Union in the field of Common Trade Policy. Member states of the EU couldn‘t negotiate trade agreements with third countries by itself. Therefore, the European Commission negotiates Free Trade Agreements with many third countries on behalf of the EU. ―Turkey also accepted the EU‘s trade regime as it was, and was not able to persuade the EU to include a clause that would force the EU to consult with Turkey before signing FTA‘s with third countries. The EU negotiated andsigned FTA‘s with third countries without any involvement of Turkey‖ (Yılmaz, 2011: 242). For this reason, although Turkey has successfully implemented the EU-Turkey Customs Union more than 17 years, there are many problems related to Customs Union. Currently, most serious problem between Turkey and the European Union in the field of Customs Union is non-inclusion of Turkey to the EU‘s Free Trade Agreements. The EU‘s negotiations with Canada, India, Malaysia, Deep and Free Trade Area as a part of Association Agreements Georgia, Armenia and Moldova, Economic Partnership Agreements with African, Caribbean and Pacific countries (ACP) continue currently. On the other hand, the EU‘s finished but not entered into force free trade agreements are with Singapore, Columbia, Costa Rica, El Salvador, Guetamala, Honduras, Nicaragua and Panama, Ukraine, Cote d‘Ivoire, Cameroon, Southern African Development Community, Ghana Eastern African Community. (―The EU‘s free trade agreements – where are we?‖ http://europa.eu ,2013) Besides, it also signed many Free Trade Agreements (FTAs) already in force with Turkey‘s rival countries such as South Korea (2011), Peru (2013), Mexico (2000), South Africa (2000) and Chile (2003). (―The EU‘s free trade agreements – 3 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo where are we?‖, http://europa.eu/rapid/press-release_MEMO-13-282_en.htm, 2013 ) The EU does not include Turkey in these free trade agreements with third countries. Therefore, Turkey has to negotiate on its own with these third countries. Moreoer, most of these countries which signed agreement with the EU, are not eager to conclude same Free Trade Agreements with Turkey. Because,these countries are Turkey‘s economic competitors. So, Turkey has disadvantage to compete with these states and this situation has had a negative impact on Turkey‘s trade interests. ―Goods of these third countries are subjected to tariffs by one party but not by the other part of this customs union‖. This situation creates unfair competition and put Turkish industry disadvantageous position ( Dedeoğlu, 2010). Furthermore, the European Union also plans to negotiate a FTA (Transatlantic Trade and Investments Partnership) with the USA which is the fourth country in Turkey‘s import. ―A trade pact between the USA and the European Union would encompass half the world‘s economic output and a third of world trade, be most ambitious trade accord since the 1995 formation of the World Trade Organization (―France threaten to block start of EU/US free trade talks‖, http://www.reuters.com, 2013). It is an important opportunity for both sides. But, Turkey worried about this plan. If the EU will sign this agreement with the USA which does not be included Turkey, Turkey will become disadvantage completely. In this situation, unfair competition created by these FTA‘s will affect adversely Turkey‘s foreign trade gap (Onaner, 2013: 25). In this context, Herman Van Rompuy, President of the European Council, touched upon this free trade deal which negotiate between the EU and the USA and its negative effects to the Turkish economy. He said ―For Turkey, since you are part of the Customs Union with the EU. This trade deal (EU-USA FTA) will have important consequences too. That‘s why the European Union is looking into the best way to keep Turkey involved in the process‖ (Speech by President of the European Council Herman Van Rompuy, http://www.abhaber.com , 24 May, 2013). Another important problem within the scope of the Customs Union is the free movement of Turkish workers in the EU. The European Union has not fulfill its obligations stemming from Ankara Agreement and Additional Protocol toward Turkey. In addition to the free movement of goods, the Ankara Agreement also includes progressively securing the free movement of workers “Contracting Parties agreed to be guided by Articles 48, 49 and 50 the Treaty establishing the Community for the purpose of abolishing restrictions on freedom of establishment between them” (article 12), the abolition of restrictions on freedom of establishment between them (article 13) and the abolition of restrictions on freedom to provide services between them (article 14) (Ankara Agreement, 2013). The Additional Protocol, signed in 1970 and entered into force on 1 January 1973, Article 36, titled ―Workers‖ provided ―Freedom of movement for workers between Member States of the Community and Turkey shall be secured by progressive stages in accordance with the principles set out in Article 12 of the Agreement Association between the end of the twelfth (1976) and the twenty second (1986) year after the entry in to force of that agreement‖ (Additional Protocol, 1977). According to the Additional Protocol, Association Council would decide the rules of free movement of Turkish workers in the EU/EC. (Article 36) In this context, Association Council agreed on three decisions on more detailed rules on the status of the Turkish workers in the EU/EC: In the Association Council decisions no 2/76, no 1/80 and no 3/80 (Karluk, 2007: 490). The Association Council Decision No 1/80, Article 8 provides if a job offered by the Community, was not be able to provide for by citizens of the member states, the Community would make an effort recognize the Turkish workers‘ rights of second priority ( 1/80 Ortaklık Konseyi, Kararı, 1980). But, this decision has not fulfilled by the EU and Turkish workers has not been granted the right of second priority which apply for a 4 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo job if the EU citizens do not apply. Finally free movement of Turkish workers has not been materialized in 1986. Within the context of freedom to provide services of Turkish citizens, principle of standstill is very important. The article 41 of the Additional Protocol ―provided for a standstill clause: The contracting parties shall refrain from introducing between themselves any new restriction on the freedom of establishment and the freedom to provide services‖ (Groenendijk and Guild, 2012: 11). So far, all EU member states have not implemented this principle fully in spite of a decision of the European Union Court of Justice. One of the main problems is visa for Turkish citizens within the scope of Customs Union. But, recently, Turkey has become transit gate for illegal human migration. Especially, Turkish-Greek border (Meriç River) is the main gateway to the EU for illegal migrants. Turkey is a transit country for migrants from Asia and ports of Africa such as Afgans, Pakistanis, Bangladeshis, Algerians and Moroccans. In 2010, according to Frontex, approximately 80 percent detected illegal crossings in to the EU, took place by the Turkish-Greek border (Stiglmayer, 2012: 101). This situation causes concerns to EU members and they do not accept the lifting of visa restrictions. But, ―this visa restrictions and requirements have been an important problem for Turkish citizens since 1980 and create unfair competition‖. Especially, because of the long visa procedures, most adversely affected group is Turkish businessmen. Turkish goods can freely circulate in the Custom Union, but their producers or owners cannot goto EU freely. For this reason, they have lost many business contacts. Visa restrictions ―constitutes not only a technical barrier but also a psychological obstacle for foreign trade‖ (―Visa exemption ‗accelerated‘ Turkish exports‖ www.hurriyetdailynews.com , 2013) Moreover, current visa requirements violate Turkey-EU Customs Union Agreement and the principle of free movement of goods as it is declared in the Association Council Decision 1/95 as well as the Article 41 of Additional Protocol (Yazıcı, 2012: 37). There should be progress in talks oneasing visa restrictions for Turkish citizens travelling to the EU. The EU has been using visa liberalization as a tool for influencing reforms in the neighboring countries instead of enlargement (Özler, 2012: 122-123). After granting visafreedom to the Western Balkan Countries – Serbia, Macedonia, Montenegro, Albenia the EU wants to give visa-free travel for Georgia, Moldova, Ukraine, Armenia, Azerbaycan and Belarus (Özler, 2012: 127). But, ―same political support does not exist in the case of Turkey. Turkey remains the only state without an official EU roadmap towards visa-free travel among all the candidate and potential candidate countries‖. According to Özler, ―Visa liberalization for Turkey has been presented by European officials as a threat to the EU‘s internal security since it would increase the crime rate in the EU countries‖ (Özler, 2012: 122-123). On the other hand, ‗Imposition of visa requirements for Turkish nationals violates the Additional Protocol. ―As from entry into force of that protocol of a requirement that Turkish nationals must have visa to enter the territory of a member state in order to provide services there on behalf of an undertaking established in Turkey, since, on that date, such a visa was not required. In this context, Germany‘s visa practice was deemed unlawful given that, starting from July 1980, Germany introduced a visa requirement for all Turkish national seeking entry in to Germany‖ (Özler, 2012: 123-124). The European Union Court of Justice has played an important role in interpreting rules based on the Association Agreement. Soysal Case of the European Court of Justice (2009) has been a milestone in the field of visa liberalization of Turkish citizens. TwoTurkish lorry drivers Mr Soysal and Mr Savatlı who were refused visas in order to drive to 5 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo Germany. They appealed against the refusal to the administrative court in Berlin on the basis of that under the agreement it was unlawfull for Germany to require them to obtain visas to travel to Germany at all (Groenendijk and Guild, 2012: 11). In this Case, German authorities claimed that ―visa requirement for Turkish service providers was a requirement of EU law as Turkey is on the black list of the EU‘s Visa regulation 539/2001‖. European Union Court of Justice confirmed its constant jurisprudence that international agreements of the EU take priority over secondary Community legislation. According to the European Union Court of Justice, visa requirements for Turkish service providers restrict economic freedoms and Additional Protocol must be applied and the Visa Regulation dis applied as regards Turkish service providers. Finally, ―Soysal judgment gives a personal right to any Turkish national who wishes to come to the EU to provide services to enjoy access to the territory of any member states on the basis of same conditions which applied either in 1973 or on the date when the relevant member state joined the EU‖ (Groenendijk and Guild, 2012: 18). For this reason, German authorities changed the mandatory visa requirement to reflect the position as it was in 1973. Some of the groups of Turkish nationals such as lorry drivers, worker servicing installations, important artists, researchers and sportsman who were not subject to the visa requirement then were removed from the visa list. (Groenendijk and Guild, 2012: 33-36). In addition to, the European Commission announced it would life visa requirement for Turkish citizens who provide service to Germany, the Netherlands and Denmark asking that the booklet handed out to border officials in those countries be changed accordingly. The new change allows for Turkish citizens providing service to stay for two months in Germany and three months in Netherlands and Denmark without holding a visa. According to this Commission statement the visa exemption for Turkish citizens applies only to Germany, Netherlands and Denmark among the 26 Schengen countries (―EU lifts visa for Turkish…‖www.hurriyetdailynews.com , 2013). European Union officials are reluctant to sign agreement and stipulate to sign the readmission agreement in order to sign visa exemption agreement with Turkey. In this context, Filori said that ―as soon as Turkey signs the readmission agreement, the visa liberalization dialogue would be started by the European Commission but did not give any date for visa free travel‖. In June, 2012 Council authorized the European Commission, to begin talks with Turkey on visa liberalization. The Commission presented a roadmap to Turkey for a visa free regime at the end of November 2012. ―The roadmap outlines specific areas where Turkey should implement a series of reforms, laws and directives such as security, migration management, public order and fundamental rights. Moreover, the progress on the roadmap will be monitored by the Commission‖ (―EU won‘t ask Turkey to…‖, www.todayszaman.com, 2013). Turkish authorities said that it will not ratify the readmission agreement that it sees practical visa facilitation measures for Turkish citizens. Because, Turkey is worried that the agreement will impose a heavy burden on Turkey when it has to take back a large number of irregular immigrants from third countries that use Turkey as a transit point to enter the EU ( ―EU won‘t ask Turkey to…‖, www.todayszaman.com , 2013). In the latest development in this regard,President of the European Council Herman Van Rompuy was in Ankara in 23 May 2013 and held meetings with Turkish officials. Rompuy said on visa at the meeting “I trust that an early signature by Turkey of a so called readmission agreement with the European Union would allow us to advance quickly through the 6 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo roadmap, progress can be swift. Visa free travel would give our relationship a new impetus.”(Speech by President of the European Council Herman Van Rompuy, http://www.abhaber.com , 2013) As a conclusion, visa liberalization process would improve EU-Turkey relations, adding new momentum to the accession negotiations and increase the EU‘s soft power in the international arena. Another important problem is that Turkey-EU Customs Union does not cover agricultural products. Customs Union covers only industrial goods and processedagricultural products. Therefore, Turkish farmers cannot exporttheir agricultural products to the EU. So, Customs Union must include agricultural products. On the other hand, Turkish exporters were affected adversely from the EU‘s anti-dumping investigations and to Turkish products. Besides, transport quotas to Turkish transport sector that have been imposed by the EU must be removed. Finally, the Customs Union envisioned that Turkey received assistance from the EU, but the EU did not allocate support as much as Turkey expects (Yazıcı, 2012: 32-35). All in all, Bureaucratic and administrative obstacles continue and Turkish firms have not had equal opportunities as EU firms. The EU‘s goods and services come to Turkey more easily than Turkish goods and services go to Europe. In this framework, Turkish economy minister Zafer Çağlayan said that ―If the current situation continues, we may have to put the Customs Union with the EU on the table for reassessment as it is now working against Turkey‖ (Minister says Turkey to ―reconsider‖ EU Customs Union, http://www.todayszaman.com , 25 March 2013) Cyprus Issue Another important problem in the Turkey-EU relations is a Cyprus Problem. This issue affects negatively not only Turkey‘s whole accession negotiations, but also affect the Customs Union with the EU. But, according to Dedeoğlu, Cyprus problem is an apperent reason within the context of Customs Union issue. Customs Union issue must not only be understood as a side effect of the Cyprus problem. This problem is bigger than this (Dedeoğlu, 13 March 2010) Wrong policies implemented by the European Union have because Cyprus Issue becomes more complex. On the referandum of Annan Plan, aims to reunite the divided island in April 2004, Turkish Cypriots said ―yes‖ but Greek Cypriots said ―no‖ with large majority. The European Union accepted a part of a divided island as a sole representative of the island, member state to the EU. On the other hand, isolation on Turkish Cypriots who want to a solution to the Cyprus Issue and said ―yes‖ to the Annan referendum. Since 3 October 2005, Turkey and the EU has begun the accession negotiations for Turkey‘s EU membership, so far, the EU could opened with Turkey only 13 of the 35 chapters and has only completed one chapter. Main reason of slow pace of accession negotiations is suspension of many chapters at the Turkey‘s accession negotiations due to the Cyprus issue. After Greek Administration of Southern Cyprus‘s become EU member, the European Union demand to extend Additional Protocol of the Ankara Agreement and Customs Union to 10 new members which joined the EU in 1 May 2004. But Turkey refused to open its ports and air space to Greek Cypriots‘s vessels and airplanes. At this point, ―the EU sent mixed signals, extending its one hand the carrot of accession talks and waving a stick in the other hand warning that negotiations could be suspended at any time‖ (Patton, 2007: 344). In 2006, the EU Council froze the Turkey‘s accession negotiations in eight chapters. These chapters are free movements of goods (1), right of establishmentand freedom to provide 7 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo service (3), agricultural and rural development (11), fisheries (13), transport policy (14), Customs Union (29) and external relations (30). In 2007, France has declared that it will not allow the opening of5 chapters as they are directly related with full membership. These chapters are Agriculture and rural development (11) (this chapter already blocked in 2006), economic and monetary policy (17), regional policy and coordination of structural instruments (22), financial and budgetary provisions (33), and instructions (34). And in December 2009, Greek Administration Southern Cyprus blocked six chapters of Turkish accession negotiations. These chapters are freedom of movement of workers (2), energy (15), judiciary and fundamental right (23), justice, freedom and security (24), education and culture (26), foreign security and defense policy(31)(Turkey-EU relations, mfa.gov.tr, 2013). As can be seen above many chapters are related Customs Union in addition to the Customs Union chapter(29). Therefore, in order to solving the problems in the field of Customs Union and related subjects such as free movements of goods, freedom of movement of workers and right of establishment and freedom provide service, accession negotiations must be alive as soon as possible. Especially, in order to solve the problems within the scope of Customs Union, accession negotiations should be started. Therefore, opening new chapters in Turkey‘s accession process will be a strong and a clear signal demonstrating that the process is moving forward. Last year, Southern Cyprus took up EU presidency, during the Greek Cypriots‘ presidency, Turkey refused to have anything to do with a country it does not recognize. Turkey froze diplomatic relations with the Greek Cypriot‘s presidency but not EU‘s other institutions such as Commission and High Commissioner for For Foreign Policy. One of the main reasons for the introduction of the ― positive agenda‖ was to overcome this issue. Turkish Foreign Minister said that if any EU country will break the embargo on Turkish Cypriots, as promised before the 2004 referendum, then Turkey will open its ports and airspace to Greek Cypriot vessels which is the apparent reason behind blocking EU accession negotiations (Yetkin, 2013). In this context, Turkey demands the EU to lift the isolation of Turkish Repuclic of Northern Cyprus (TRNC) as it promised to in April 2004 before Ankara will open its ports to Greek Cypriot vessels and its air space to Greek airplanes. In this framework, there is a positive signal that Anastasiades won the election in the Southern Cyprus who backed a 2004 UN plan to reunite the island. Turkey welcomed the election of Nicos Anastasiades but his first priority their ongoing economic crisis. Therefore, he had not met with the Turkish counterpart Derviş Eroğlu (Paul, 2013). Despite being frozen Turkey-EU relations, today Turkey continues to see EU membership as a strategic goal. Turkey‘s goal of the EU membership provides a win-win situation for the two sides. Because, Turkey and the European Union needs each other. As expressed by Egemen Bağış ―A European Union without Turkey is poor, plain and simple one…the sun of Europe rises from İstanbul every morning‖ (―Europe‘s sun rises from İstanbul‖, hurriyetdailynews.com). The Importance of the Negotiation Process to Revive Accession negotiations are the main subject in the Turkey-EU relations. Turkey‘s recent progress in the direction of democratic consolidation must also be counted as a important achievement of the EU‘s policy of enlargement (Zucconi, 2006:94). Because ―the EU enlargement process continues to offer an instrument by which non-democratic and other negative tendencies can be checked. It also continues to act as an ―anchor‖ and a ―disciplining factor‖ so that instable Turkey would affect EU‘s European 8 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo NeighborhoodPolicy‖. Eventually, there is not any progress in the Turkey-EU relations will reduce EU‘s influence Turkey and would undermine the EU‘s international credibility in the eyes of other countries aspiring to membership(Alessandri, 2010: 97). Turkey‘s embassador to the EU said that ― in the absence of any clear perspective of accession, there is no reason why Turkey should align its legislation toward narrow EU standarts. To put it simply the EU has lost its leverage on Turkey‖ ( ―EU has lost its leverage on Turkey‖, http://euobserver.com , 2013). The quest for EU membership acted as a disciplining factor on Turkey. The ―EU anchor‖ also fostered democratization and supported Turkey‘s reforms undertaken in the 1990s to gain candidate country status (Alessandri, 2010: 88). One reason of the European Union‘s win the Nobel Peace Prize is the EU‘s contributions to the human rights and democracy standards in Turkey. In this context, in 2006, Turkey-EU negotiation process stalled thereafter pace of reforms achieving the EU standards slowed down considerably. The reform process has never fully regained momentum since then support for EU membership has declined among the public (Alessandri, 2010: 91). But, Turkey‘s accession process remain deadlocked for last five term Council Presidency consequently . Since, June 2010, no chapter has been opened. In this context, in Turkey‘s Accession Process 17 chapters are blocked. However, it becomes very positive developments recently. The European Parliament‘s General Assembly adopted a 2012 progress report on Turkey providing a potential catalyst for the opening of new chapters for Turkey after years of deadlock between Turkey and the EU. Member of the European Parliament called on the European Council to open negotiations on the judiciary, fundamental rights and home affairs( justice, freedom and security) to accelerate the reform process (―New EU Chapters to give pace to Turkish reforms‖, hurriyetdailynews.com). On the other hand, Finland‘s foreign minister said that Finland regrets the political blockade that has been applied to Turkey for Ankara‘s EU accession process. He also said they thought Turkey‘s negotiations should proceed normally and ―there will be some chapters opened‖ (―Finland regrets block on Turkish bid‖, hurriyetdailynews.com). In France, Sarkozy, staunch opponent of Turkey‘s EU membership lost the election and François Hollande who have more favorable view of Turkey‘s EU membership. After Hollande become president, France‘s foreign policy towards Turkey will change likely. France‘s new government give signals it could reconsider its position with regard to the negotiation chapters that had blocked in 2007. After Sarkozy, France‘s new president François Holland decided to let one of five chapters that it had blocked under Sarkozy term. The recent decision by France to lift its blockage on 22. chapter, ―Regional Policy and Coordination of Structural Instruments‖ is a promising first step. France‘s blockage on the remaining four chapters should be also come to end in the near future. According to Flautre, lifting the block on chapter 22 is just the first stage showing France‘s positivity towards Turkish membership and signals that French government may lift their block of other chapters. She emphasized opening of chapter 23 ―Judiciary and fundamental rights‖ and chapter 24 ―Justice, freedom and security‖ are also very important for Turkish democracy (Donat, 2013). On the other hand, Turkey is seen as a model country by the Muslim nations. Turkey‘s long lasting ties with the EU and the USA, secular state structure, especially, Turkey‘s experience with secularism and bid of EU membership are very important (Kahraman, 2010: 704). So Turkey is the unique country which compatible of Islam and democracy. Therefore, peoples of the Arab countries aspires to the lifestyle in Turkey. At the same time, Arab countries also take as an example Turkey‘s liberal economy. Turkish economy has grown and become more open continuously since 1980‘s. Its liberal economy is a 9 �International Conference on Economic and Social Studies (ICESoS’13), 10-11 May, 2013, Sarajevo good model for development for Arab countries. Therefore, with European Neighborhood Policy, the European Union, who want to create democratic and economically strong countries in its vicinity, needs Turkey as an unique partner with its positive image in the Middle East (Kahraman, 2010: 708). For this reason, starting accession negotiations again will make a positive impact not only Turkey-EU relations but also relations between Turkey and Muslim countries. Positive Agenda In order to overcome this impasse at the accession negotiations, the EU tries to finding a new way to regain momentum to the Turkey-EU relations: ―positive agenda‖. It started of the talks on 17 May 2012. Main aim of the ―positive agenda‖ process is to keep the accession process alive and make progress in the field of Turkey‘s accession negotiations which seventeen chapters have been blocked by the European Council because of the Cyprus dispute. Positive agenda process is new way of work to support Turkey‘s accession process to the EU, but it is not alternative to the accession process. ―It covers a broad range of areas such as intensified dialogue and cooperation on political reforms, visa, mobility and migration , energy, fight against terrorism, further participation of Turkey in EU programmersas well as Customs Union and trade in the negotiations and free trade agreements‖ (Enlargement Strategy 2011-2012, 2011: 19). Conclusion There are many problems in the relations between Turkey and the EU and future of relations between the EU and Turkey looks very unclear. At first, there is no consensus about Turkey‘s membership to the EU and accession negotiations are stalled. Therefore, there are a lot of problems such as the EU‘s FTA‘s with third countries and visa exemption of Turkish citizens within the scope of Customs Union. These problems should be solved and all trade obstacles should be removed. For this reason, accession negotiations should be initiated as soon as possible. Chapter of the Customs Union is one of the most successful subjects in the accession negotiations. Because, Turkey has 17 years of experience in this field. Progress achieved in the accession negotiations in the framework of the Customs Union chapter, will contributes to Turkey-EU relations and affects all accession negotiations positively. If the EU wants to be global actor and economically competitive power in the changing world, in the near future, after three years without any significant progress in the Turkey‘s accession negotiations should pay attention and resume Turkey‘s accession negotiations and improving ties with Turkey in the coming period. In this context, Turkey‘s membership of the EU should be accepted. Not to accept Turkey‘s membership to the EU is contrast to the principles founded on the Union. Turkey hopes for the opening of one chapter in the accession negotiations and open a new page in TurkeyEU relations during the Irish rotating presidency of the European Union. Therefore accession negotiations must go on. Because, Turkey‘s EU membership will add dynamism to the European Union. 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Yetkin Murat ―Can Cyprus solve the Turkey-EU http://www.hurriyetdailynews.com/can-cyprus-solve-the-turkey-eudeadlock.aspx?pageID=42796&NewsCatID=409 , (28.04.2013) deadlock?‖, Yılmaz, Kamil (2011) ―The EU-Turkey Customs Union Fifteen Years Later: Better, Yet not the Best Alternative‖, South European Society and Politics, Vol.16, No.2, June 2011, pp. 235-249. What is the Common Customs Tariff? http://ec.europa.eu/taxation_customs/customs/customs_duties/tariff_aspects/ (28.04.2013) , Zucconi, Mario (2006) ―Turkey‘s Vital and Turbulent Road to the European Union‖, The International Spectator: Journal of International Affairs”, 1/2006, p.83-94. 13 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1616 Title A name given to the resource How to Overcome the Crisis in Relations between the European Union and Turkey Author Author EFE, Haydar Abstract A summary of the resource. There has been a slowdown in the accession negotiations due to the blockage of negotiations chapters since 2006. EU affairs have lost their past lure in Turkey. And, Turkey decided to freeze its relations with the Presidency of the Council of the EU during the second half of 2012 and not to attend meetings chaired by the Cyprus EU Presidency. But despite these negative developments, the enhanced political dialogue between the EU and Turkey has continued. In this framework, the European Union has proposed a new positive agenda in order to enhance Turkey-EU relations and promote reforms in Turkey. The aim of this process is to keep the accession process of Turkey alive and bring a new momentum into Turkey- EU relations. In addition to, the new government in France gives signals it could reconsider its position with regard to the negotiation chapters that had blocked in 2007. Therefore, at present, serious efforts are needed to revive the negotiation process with a new impetus. Keywords: international relations, the European Union Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3 https://omeka.ibu.edu.ba/files/original/94d891fe63bcb145924616b09b31a983.pdf 1728c70dcf2ee734196724627dc216e0 PDF Text Text International Conference on Economic and Social Studies, 10-11 May, 2013, Sarajevo Correlation of Change in Fundamental Indicators and Stock Price Movements on Sarajevo Stock Exchange Enis Dzanic University of Bihac, Bosnia and Herzegovina enis.dzanic@bih.net.ba Fundamental analysis is regarded as one of the key tools in evaluating securities by examining intrinsic value of the business, trough primarily the analysis of its financial statements. Although in the short run, various factors might influence investment sentiment and thus stock price movements, in the long run fundamentals should determine stock price performance. Sarajevo Stock Exchange is a pioneering enterprise in the development of a capital market in Bosnian transition economy. Upon examining stock price movements and trade volumes over its ten year history, it is difficult to argue that high volatility in both factors can be attributed to changes in corporate fundamentals. We can thus argue that irrational or speculative determinants are at play; a discouraging prospect for a developing capital market. In order to investigate the correlation between the change in fundamental indicators and stock price movements, ten major companies listed on the exchange were selected using pre-defined criteria, and key fundamental indicators, as well as stock price volatility was examined for a five year period during which Sarajevo Stock Exchange had highest trade volumes. The results indicate that ratios that are price-independent have volatility ten times lower than ratios that are price-determined. Additionally, stock price analysis indicates high standard deviation; a traditionally accepted measure of volatility and intrayear stock price spreads often reach hundreds of percent. Furthermore, when selected indicators are correlated with stock price movements, the research determined that correlation coefficients are low, sometimes negative, suggesting no linear relationship between the change in fundamental indicators and the change in the price of the security. The result of high-risk high-volatility market situation was a significant decline in value of securities listed on the exchange. This decline led to a loss of confidence of individual investors in the exchange which can be illustrated by low trading volumes in the last few years, usually in the region of 1% to 3% of 2007 levels. The exchange thus is incapable of serving most of functions traditionally associated with the business. Keywords: Stock Price Volatility, Fundamental Analysis, Sarajevo Stock Exchange. 101 � https://omeka.ibu.edu.ba/files/original/25dec529bce68d83cbf2a4c8ff005d54.docx 331b359c8b86a59e15773f92f8bf300c https://omeka.ibu.edu.ba/files/original/8d28e06a6bbe074a38b64c5c545fd54a.pdf 7a2032150164b93e47e8c1071188d54a PDF Text Text International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Correlation of Change in FundamentalIndicators and Stock Price Movements on Sarajevo Stock Exchange EnisDzanic University of Bihac, Bosnia and Herzegovina enis.dzanic@bih.net.ba Abstract Fundamental analysis is regarded as one of the key tools in evaluating securities by examining intrinsic value of the business, trough primarily the analysis of its financial statements. Although in the short run, various factors might influence investment sentiment and thus stock price movements, in the long run fundamentals should determine stock price performance. Sarajevo Stock Exchange is a pioneering enterprise in the development of a capital market in Bosnian transition economy. Upon examining stock price movements and trade volumes over its ten year history, it is difficult to argue that high volatility in both factors can be attributed to changes in corporate fundamentals. We can thus argue that irrational or speculative determinants are at play; a discouraging prospect for a developing capital market. In order to investigate the correlation between the change in fundamental indicators and stock price movements, ten major companies listed on the exchange were selected using pre-defined criteria, and key fundamental indicators, as well as stock price volatility was examined for a five year period during which Sarajevo Stock Exchange had highest trade volumes. The results indicate that ratios that are price-independent have volatility ten times lower than ratios that are price-determined. Additionally, stock price analysis indicates high standard deviation; a traditionally accepted measure of volatility and intra-year stock price spreads often reach hundreds of percent. Furthermore, when selected indicators are correlated with stock price movements, the research determined that correlation coefficients are low, sometimes negative, suggesting no linear relationship between the change in fundamental indicators and the change in the price of the security. The result of high-risk high-volatility market situation was a significant decline in value of securities listed on the exchange. This decline led to a loss of confidence of individual investors in the exchange which can be illustrated by low trading volumes in the last few years, usually in the region of 1% to 3% of 2007 levels. The exchange thus is incapable of serving most of functions traditionally associated with the business. Keywords: Stock Price Volatility, Fundamental Analysis, Sarajevo Stock Exchange. Introduction Analysis of financial statements using fundamental analysis helps us determine intrinsic value of the business, and help us determine the value of stocks issued by publicly traded companies. In the short run, there might be a number of factors that influence supply and demand for a particular stock, however in the long run; fundamental indicators are a primary determinant of a market capitalization of a business, and thus its share price. Thus, some authors like Banz (1981) or Fama (1970) suggest that companies with low P/BV ratio (price to book value) achieved significantly better results compared to companies with high P/BV ratio. Their research indicates that companies in the bottom tenth of the P/BV ratios have outperformed on average by one percent per month in terms of stock price change, 180 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo companies that were in the top ten percentile of value of P/BV ratios. One explanation for this situation is that companies with high P/BV ratio were overpriced and thus provided little return on investment. Some research (Michaely et al., 1995) shows that although initial market reaction is slow, the market does react significantly to the company's earnings information as represented by some fundamental indicators such as EPS (earnings per share). Other authors have demonstrated that the use of fundamental analysis can be used to determine stock price movement in the future, and thus achieve extraordinary returns, significantly higher than market average. Thus Ou and Penman (1989) used multivariate analysis of financial ratios; and by using statistical tools derived a composite indicator that predicts a change in the company's earnings and thus the movement of its stock. Other authors reached similar conclusions (Lev and Thiagarajan, 1993), while Abarbanell and Bushy (1998) as well as Piotrski (2000) successfully determined which companies will have above average stock returns as well as those that will underperform the market, by using financial statements and fundamental indicators. The purpose of this paper is to examine whether stock price of companies quoted on Sarajevo Stock Exchange is truly determined by the performance of the issuers, or we have other stock price determinants, such as speculative trading, being the driving force behind the change in value of securities. This is a critical issue to examine since small and relatively new exchanges such as Sarajevo Stock Exchange (SASE), are particularly vulnerable, and in a country with underdeveloped investor protection mechanisms and infrastructure, might lead to a loss of confidence in capital markets, thus perverting the purpose of those markets in a first place and reducing them to a forum for secondary exchange of securities. Events after 2007 peaks on Sarajevo Stock Exchange, and in particular its low trading volume, suggest that this might be taking place at the time. Methodology In order to determine whether the performance of a business is reflected in the stock price change on Sarajevo Stock Exchange we will analyze financial reports of selected companies, determine fundamental indicators, and examine if there is a correlation between a change in fundamental indicators and corresponding share price traded on SASE. The following selection criteria were used to select 10 companies examined in this paper: corporate shares were traded during the entire period examined in the paper, that is from 2003 to 2008; during this period, shares were traded during at least 250 trading days; at least 10% of the total shared issued by the company changed owners during that period, excluding the initial registration of shares; the company was listed in year 2002; market capitalization is over KM 30,000,000.00 in 2008; the companies were registered at least five years prior to being listed on SASE. Using the above mentioned criteria, I selected the following 10 companies for the research sample: Bosnalijekdd, BH Telecom dd, Hidrogradnjadd, ElektroprivredaBiHdd, Elektroprivreda HZ HB dd, Klasdd, Vranicadd, Vispakdd, Šipad Commerce ddand BihaćkaPivovara dd. The selected companies are the leaders in their industry sector in Bosnia, significantly exceed the selection criteria, are well known and established in the region in various industries such as construction, telecommunications, food industry, timber industry and the energy sector. 181 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Fundamental indicators will be calculated, for a period from 2003 to 2008, as well as their mean, standard deviation and percentage deviation. The indicators will be divided in two groups, those that are share price independent and those that are share price dependent. The first group of ratios consists of ROE (return on equity), ROA (return on assets), BVPS (book value per share), EPS (Earnings per share) as well as asset (ATO) and equity turnover (ETO) ratios. The second group of indicators consists of MkCap (market capitalisation in absolute terms), P/Bv (price over book value, P/S (price over sales) and P/E (price over earnings) ratios. This will enable us to have a set of ratios whose percentage deviation should be correlated between two sets, if share price change is correlated with fundamental indicator change, that is with the corporate performance. The indicators will be indexed, with year 2003 being a base year with index 1. The next step is to calculate correlation index between a set of indicators and stock price change, in order to determine if there is a linear relationship between the change in fundamental indicators and share price change: High correlation index would suggest causal relationship between the stock price change and a change in fundamental ratios, which represent corporate performance. Results Since this analysis has generated a significant amount of data, which would consume significant amount of space, only relevant derived data will be presented. 182 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo P dependent P independent P dependent P independent P dependent P independent P dependent P independent Table 1: Indices of price dependent and price independent ratio change in a period of 2003-2008, with 2003 being a base year, for selected publicly traded companies on SASE ROE ROA BVPS EPS ETO ATO MkCa p Bosnalijekd.d. StDev Mean 0.088 0.953 0.106 0.831 0.165 1.234 0.136 1.170 0.060 1.067 0.081 0.930 % Dev 9.29% 12.73% 13.33% 11.65% 5.58% 8.73% BH Telecom d.d. StDev Mean 0.087 0.962 0.076 0.898 0.084 1.139 0.071 1.091 0.043 0.951 0.065 0.889 % Dev 9.00% 8.51% 7.36% 6.54% 4.57% 7.33% Vispakd.d. StDev Mean 0.784 -0.110 0.732 -0.082 0.020 0.979 0.769 -0.101 0.117 1.080 0.040 0.972 % Dev -712.52% -895.41% 1.99% -759.15% 10.80% 4.16% 3.030 4.692 64.59% 1.476 2.781 53.09% 2.107 3.420 61.62% P/Bv 1.996 3.443 57.96% 1.199 2.396 50.03% 2.210 3.519 62.82% P/S 1.937 3.231 59.94% 1.267 2.537 49.96% 1.817 3.194 56.88% P/E 2.320 3.717 62.41% 1.370 2.550 53.74% 23.269 15.642 148.76% ROE ROA BVPS EPS ETO ATO MkCa p JP ElektroprivredaBiHd.d. 0.896 -0.275 -326.05% 0.863 -0.274 -315.50% 0.049 0.924 5.33% 0.841 -0.283 -296.53% 0.317 1.374 23.04% 0.300 1.348 22.26% Elektorprivreda HZHB d.d. 0.629 -0.497 -126.65% 0.640 -0.514 -124.55% 0.253 1.236 20.50% 0.760 -0.627 -121.23% 0.227 1.227 18.49% 0.199 1.227 16.23% SipadKomercd.d. 62.823 -25.282 55.505 -22.079 93.295 86.254 49.764 -18.475 0.545 0.444 0.503 0.506 -248.49% -251.40% 108.16% -269.35% 122.61% 99.51% 1.540 2.174 70.84% 2.664 3.351 79.50% 6.249 5.843 106.94% P/Bv 1.812 2.424 74.75% 2.161 2.709 79.78% 1.070 0.864 123.82% P/S 1.102 1.684 65.47% 1.540 2.149 71.64% 6.131 6.874 89.19% P/E 15.053 8.494 177.22% 12.064 -1.752 -688.58% 2.813 2.740 102.65% Hidrogradnjad.d. 1.394 -0.343 2.195 -0.731 0.006 0.991 1.377 -0.337 0.192 0.695 0.240 0.945 -406.50% -300.36% 0.58% -409.14% 27.59% 25.43% BihackaPivovarad.d. 0.492 1.376 35.79% 0.597 1.449 41.19% 0.192 1.257 15.27% 0.773 1.752 44.11% 0.094 1.095 8.55% 0.099 1.140 8.71% Vranicad.d. 29.729 -10.014 41.478 -13.905 1.047 1.942 73.219 -26.027 0.423 0.785 0.313 0.962 -296.88% -298.30% 53.92% -281.32% 53.88% 32.50% ROE ROA BVPS EPS ETO ATO MkCa p 2.184 2.870 76.09% 0.977 2.212 44.19% 10.569 8.457 124.97% P/Bv 2.212 2.901 76.24% 0.552 1.703 32.40% 3.243 3.316 97.78% P/S 4.545 5.006 90.79% 0.592 1.576 37.60% 8.831 7.062 125.05% P/E 9.394 7.546 124.49% 0.507 1.310 38.71% 1.358 1.141 119.05% Klasd.d. 0.409 0.404 0.025 0.418 0.113 0.103 0.486 0.448 1.020 0.497 1.091 0.927 84.09% 90.29% 2.46% 84.08% 10.38% 11.13% ROE ROA BVPS EPS ETO ATO MkCa p 0.839 1.900 44.17% P/Bv 0.785 1.854 42.36% P/S 0.681 1.696 40.17% P/E 7.215 7.992 90.28% 183 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Correl Net income 0.552 ATO -0.604 ROE -0.493 ROA -0.774 Net income ATO ROE 0.072 -0.311 -0.517 ROA Net income ATO ROE ROA 0.426 Net income ATO ROE -0.428 0.466 -0.408 ROA -0.414 Net income 0.254 ATO -0.684 ROE 0.255 ROA 0.297 BihackaPivovarad. d. Correl Net income 0.474 ATO -0.132 ROE 0.254 ROA 0.266 Net income ATO ROE -0.363 -0.319 -0.380 -0.653 ROA -0.445 0.434 0.325 0.419 Vranicad.d. Ratio Net income ATO ROE -0.226 -0.552 -0.248 ROA -0.230 Net income ATO ROE -0.332 0.201 -0.326 ROA -0.348 Net income 0.296 ATO -0.696 ROE 0.284 ROA 0.283 Klasd.d. Ratio SipadKomercd Vispakd.d. .d. JP JP Hidrogradnja BH Telecom Elektroprivred Elektroprivred d. d. d.d. a HZHB d.d. aBiHd.d. Bosnalijekd.d. Table 2: Correlation between selected fundamental indicators and stock price change for a period of 2003-2008 Discussion In the observed time period, six out of ten companies observed in this study, suffered net loss for the period of 2003-2008, which was covered by the reduction in the capital. Yet at the same time corporate share prices have risen dramatically, with mean value for the period ranging between 190% of the index year mean price (year 2003) up to 846% for a company Vranicad.d., as an example. Other companies enjoyed similar growth in share value, and the growth was most notable in 2005 – 2007 period, despite poor and declining fundamentals. Only BihackaPivovarad.d. demonstrated same level of change of price dependent vs. price independent ratios; in the case of this company, corporate performance parameters grew proportionally to the share price, and this is a rare case of share price growth substantiated by the growth in corporate intrinsic value. Volatility of the market at the time was very high. Previous research by author (Dzanic et al., 2010) indicated that volatility of SASE index SASX-10 was about ten times larger than Dow Jones Industrial Average. At the same time, correlation between those two indices was -0.38474, and SASE-10 index grew by 57% in the first half of the year. This is an indication of relative independence of SASE from major capital markets, when those markets are relatively stable. With the onset of 2007 recession, volatility increased in the United States, and capital markets started to mount losses. In 2007-2008 and with increasing volatility and losses in the US capital markets, SASE quoted shares started to lose value, especially in 2008. During that year, correlation between SASE and NYSE indices was 0.84775 in sharp contrast to 2005, which is an indication of a crisis spillover effect, as demonstrated by other authors(Longin and Solnik 2001), in other emerging markets (King and Wadhwani 1990). 184 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo In terms of correlation of share price with fundamental indicators, seven out of ten companies had correlation coefficient for net income in a range less than 0.4, indicating no linear relationship between share price movement and change in corporate earnings. One company even had a strong negative correlation coefficient for net earnings (Elekroprivreda HZHB) indicating that as earnings dropped over the period, and the company netted a loss, share price war growing. The results of the research suggest that fundamental indicators are not a driving force behind a change in share price of companies quoted on SASE, as demonstrated in seven out of ten companies examined in this study. Only one company had magnitude of change of fundamental indicators correlated to share price performance, while the other two demonstrated direction, and not necessarily the magnitude. Conclusion The research determined that fundamentals do not determine share price in the examined period. We can thus argue that irrational or speculative determinants are at play; a discouraging prospect for a developing capital market. The result of high-risk highvolatility market situation was a significant decline in value of securities listed on the exchange. This decline led to a loss of confidence of individual investors in the exchange which can be illustrated by low trading volumes in the last few years, usually in the region of 1% to 3% of 2007 levels. The exchange thus is incapable of serving most of functions traditionally associated with the business. In order to discourage speculative activities, authorities must learn to cope with the problem and legislation as well as oversight has to be improved, if confidence is to return to the Sarajevo Stock Exchange, together with the lost trading volumes. References Abarbanell, J. &Bushee, B.(1998). Abnormal returns to a fundamental analysis strategy. The Accounting Review73, 19-45 Banz, R.(1981). The relationship between return and market value of common stocks.Journal of Financial Economics 9, 3-18 Džanić E., Grozdanić E., Đug D. SvjetskaberzanskakretanjakaodeterminantakretanjanaSarajevskojberzi. PerspektiveekonomskograzvojaBiH (2010) Fama, E. F. (1970) Efficient capital market:A review of theory and emprical work. Journal of finance 25, No. 2. King M. A. &Wadhwani, S. (1990) Transmission of volatility between stock markets. The Review of Financial Studies 3/1, Lev, B. &Thiagarajan, R.(1993). Fundamental information analysis.Journal of Accounting Research 31, 190-215 185 �International Conference on EconomicandSocialStudies (ICESoS’13), 10-11 May, 2013, Sarajevo Longin, F. M. &Solnik B.(2001) Extreme correlations of international equity markets during extremely volatile periods. Journal of Finance 56, Michaely, R., Thaler, R., Womack, K. (1995) Price reactions to dividend initiations and omissions: overreaction or drift. Journal of Finance 50, 997-997 Ou, J., Penman, S.(1989) Financial statement analysis and the prediction of stock returns. Journal of Accounting & Economics 11, 295-329 Piotroski, J. (2000) Value investing: The use of historical financial statement information to separate winners from losers.Journal of Accounting Research 186 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 1512 Title A name given to the resource Correlation of Change in Fundamental Indicators and Stock Price Movements on Sarajevo Stock Exchange Author Author DŽANIĆ, Enis Abstract A summary of the resource. Fundamental analysis is regarded as one of the key tools in evaluating securities by examining intrinsic value of the business, trough primarily the analysis of its financial statements. Although in the short run, various factors might influence investment sentiment and thus stock price movements, in the long run fundamentals should determine stock price performance. Sarajevo Stock Exchange is a pioneering enterprise in the development of a capital market in Bosnian transition economy. Upon examining stock price movements and trade volumes over its ten year history, it is difficult to argue that high volatility in both factors can be attributed to changes in corporate fundamentals. We can thus argue that irrational or speculative determinants are at play; a discouraging prospect for a developing capital market. In order to investigate the correlation between the change in fundamental indicators and stock price movements, ten major companies listed on the exchange were selected using pre-defined criteria, and key fundamental indicators, as well as stock price volatility was examined for a five year period during which Sarajevo Stock Exchange had highest trade volumes. The results indicate that ratios that are price-independent have volatility ten times lower than ratios that are price-determined. Additionally, stock price analysis indicates high standard deviation; a traditionally accepted measure of volatility and intrayear stock price spreads often reach hundreds of percent. Furthermore, when selected indicators are correlated with stock price movements, the research determined that correlation coefficients are low, sometimes negative, suggesting no linear relationship between the change in fundamental indicators and the change in the price of the security. The result of high-risk high-volatility market situation was a significant decline in value of securities listed on the exchange. This decline led to a loss of confidence of individual investors in the exchange which can be illustrated by low trading volumes in the last few years, usually in the region of 1% to 3% of 2007 levels. The exchange thus is incapable of serving most of functions traditionally associated with the business. Keywords: Stock Price Volatility, Fundamental Analysis, Sarajevo Stock Exchange. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2013-05-10 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 978-9958-834-23-3