THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS  ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY

Ali Faruk AÇIKGÖZ; Celal DEMİRKOL; Umut TAÇ

doi:https://doi.org/10.18825/iremjournal.536367

Article Details

THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY

Authors:

Ali Faruk AÇIKGÖZ | Celal DEMİRKOL | Umut TAÇ

Publisher:

Gökhan ÖZER

Main Topics:

Sociology and anthropology

Journal:

International Review of Economics and Management 2019 Vol.7 Issue 1, pp.74-94

Document Type:

Article

Publication Date:

7/2019

Document Language:

English

Document ID (Org No.):

2000477643

Frequency:

Bi-Annual

pISSN:

2148-3493

DOI:

https://doi.org/10.18825/iremjournal.536367

Abstract:

 

This study aims to conduct a typical regression
methodology on the long-term data of the agriculture sector in Turkey. The regressive
model represents current ratio as the dependent variable, and it uses the
ratios of short-term liabilities on total liabilities, bank credits payable in
the short-term on short-term liabilities, bank credits payable in the long-term
on total assets, and long-term assets on (shareholders’) equities as the
independent variables. The tests are executed by using the averages of
aggregate totals of the businesses from all scales in the sector in three years’
averages from 1998 until 2016. The findings statistically ensure and depict
that the framework indicator of liquidity or the famous current ratio depends
not only on the bank credit used or the level of short-term liabilities, which
is not surprising, but also on the ratio of long-term assets on equities. If
the businesses enrich their equities level in financing of long-term assets,
the liquidity favors. The independent variable of long-term assets to equities
ratio, which rather reflects the long-term movement of current ratio better
than the other variables, deeply affects the level of better liquidity as
significantly as other control variables of the study. As a conclusion, better
liquidity could profoundly be a lagging result of better equity-type financing
of the total assets. The outcomes of the study will expectedly signal the
decisions and policies of agriculture sector in Turkey by the long-term
evidence presented here.

 


This study aims to conduct a typical regression
methodology on the long-term data of the agriculture sector in Turkey. The regressive
model represents current ratio as the dependent variable, and it uses the
ratios of short-term liabilities on total liabilities, bank credits payable in
the short-term on short-term liabilities, bank credits payable in the long-term
on total assets, and long-term assets on (shareholders’) equities as the
independent variables. The tests are executed by using the averages of
aggregate totals of the businesses from all scales in the sector in three years’
averages from 1998 until 2016. The findings statistically ensure and depict
that the framework indicator of liquidity or the famous current ratio depends
not only on the bank credit used or the level of short-term liabilities, which
is not surprising, but also on the ratio of long-term assets on equities. If
the businesses enrich their equities level in financing of long-term assets,
the liquidity favors. The independent variable of long-term assets to equities
ratio, which rather reflects the long-term movement of current ratio better
than the other variables, deeply affects the level of better liquidity as
significantly as other control variables of the study. As a conclusion, better
liquidity could profoundly be a lagging result of better equity-type financing
of the total assets. The outcomes of the study will expectedly signal the
decisions and policies of agriculture sector in Turkey by the long-term
evidence presented here.


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Article Details

THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY

Authors: Ali Faruk AÇIKGÖZ | Celal DEMİRKOL | Umut TAÇ

Publisher: Gökhan ÖZER

Main Topics: Sociology and anthropology

Journal: International Review of Economics and Management 2019 Vol.7 Issue 1, pp.74-94

Document Type: Article

Publication Date: 7/2019

Document Language: English

Document ID (Org No.): 2000477643

Frequency: Bi-Annual

pISSN: 2148-3493

DOI: https://doi.org/10.18825/iremjournal.536367

Issues

Authors:

Ali Faruk AÇIKGÖZ | Celal DEMİRKOL | Umut TAÇ

Publisher:

Gökhan ÖZER

Main Topics:

Sociology and anthropology

Journal:

International Review of Economics and Management 2019 Vol.7 Issue 1, pp.74-94

Document Type:

Article

Publication Date:

7/2019

Document Language:

English

Document ID (Org No.):

2000477643

Frequency:

Bi-Annual

pISSN:

2148-3493

DOI:

https://doi.org/10.18825/iremjournal.536367