Year 2019, Volume 7 , Issue 1, Pages 74 - 94 2019-07-15

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

Ali Faruk AÇIKGÖZ [1] , Celal DEMİRKOL [2] , Umut TAÇ [3]


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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Primary Language en
Subjects Social
Published Date YAZ
Journal Section ARTICLES
Authors

Orcid: 0000-0002-6426-983X
Author: Ali Faruk AÇIKGÖZ (Primary Author)
Institution: NAMIK KEMAL UNIVERSITY
Country: Turkey


Orcid: 0000-0002-8598-3557
Author: Celal DEMİRKOL
Institution: NAMIK KEMAL UNIVERSITY
Country: Turkey


Orcid: 0000-0002-8452-2708
Author: Umut TAÇ
Institution: NAMIK KEMAL UNIVERSITY
Country: Turkey


Dates

Publication Date : July 15, 2019

Bibtex @research article { iremjournal536367, journal = {International Review of Economics and Management}, issn = {2148-3493}, address = {}, publisher = {Gökhan ÖZER}, year = {2019}, volume = {7}, pages = {74 - 94}, doi = {10.18825/iremjournal.536367}, title = {THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY}, key = {cite}, author = {AÇIKGÖZ, Ali Faruk and DEMİRKOL, Celal and TAÇ, Umut} }
APA AÇIKGÖZ, A , DEMİRKOL, C , TAÇ, U . (2019). THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY. International Review of Economics and Management , 7 (1) , 74-94 . DOI: 10.18825/iremjournal.536367
MLA AÇIKGÖZ, A , DEMİRKOL, C , TAÇ, U . "THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY". International Review of Economics and Management 7 (2019 ): 74-94 <https://dergipark.org.tr/en/pub/iremjournal/issue/43337/536367>
Chicago AÇIKGÖZ, A , DEMİRKOL, C , TAÇ, U . "THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY". International Review of Economics and Management 7 (2019 ): 74-94
RIS TY - JOUR T1 - THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY AU - Ali Faruk AÇIKGÖZ , Celal DEMİRKOL , Umut TAÇ Y1 - 2019 PY - 2019 N1 - doi: 10.18825/iremjournal.536367 DO - 10.18825/iremjournal.536367 T2 - International Review of Economics and Management JF - Journal JO - JOR SP - 74 EP - 94 VL - 7 IS - 1 SN - 2148-3493- M3 - doi: 10.18825/iremjournal.536367 UR - https://doi.org/10.18825/iremjournal.536367 Y2 - 2019 ER -
EndNote %0 International Review of Economics and Management THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY %A Ali Faruk AÇIKGÖZ , Celal DEMİRKOL , Umut TAÇ %T THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY %D 2019 %J International Review of Economics and Management %P 2148-3493- %V 7 %N 1 %R doi: 10.18825/iremjournal.536367 %U 10.18825/iremjournal.536367
ISNAD AÇIKGÖZ, Ali Faruk , DEMİRKOL, Celal , TAÇ, Umut . "THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY". International Review of Economics and Management 7 / 1 (July 2019): 74-94 . https://doi.org/10.18825/iremjournal.536367
AMA AÇIKGÖZ A , DEMİRKOL C , TAÇ U . THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY. International Review of Economics and Management. 2019; 7(1): 74-94.
Vancouver AÇIKGÖZ A , DEMİRKOL C , TAÇ U . THE EFFECTS OF EQUITY-FINANCED LONG-TERM ASSETS ON LIQUIDITY IN THE AGRICULTURE SECTOR OF TURKEY. International Review of Economics and Management. 2019; 7(1): 94-74.