The role of the AFA coefficient as a new criterion in the long-run liaison between corporate liquidity and bank credit: Evidence from Turkey

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dc.authorid, Nick/0000-0002-0375-2457
dc.authoridAcikgoz, Ali Faruk/0000-0002-6426-983X
dc.contributor.authorAçıkgöz, Ali Faruk
dc.contributor.authorApak, Sudi
dc.contributor.authorApergis, Nicholas
dc.contributor.authorUzunoglu, Sadi
dc.date.accessioned2025-03-26T17:34:57Z
dc.date.available2025-03-26T17:34:57Z
dc.date.issued2018
dc.departmentİstanbul Esenyurt Üniversitesi, Fakülteler, Mühendislik ve Mimarlık Fakültesi, Endüstri Mühendisliği Bölümü
dc.description.abstractPurpose This paper aims to focus on the absence of a direct criterion for the ideal level of net working capital (NWC) for which Acikgoz (2014) theoretically demonstrates that this NWC can be treated in a manner that allows the assessment of repayments. The study presents and discusses a new multiplier (i.e. the afa coefficient), defined as the ratio of cash equivalents ratio to NWC, measured as the percentage of short-term liabilities (Acikgoz, 2014). In other words, the study explores whether NWC could be an indicator of the ratios of corporate short-term bank credit to STL and of bank credit to total assets. Design/methodology/approach Sectoral panel regressions are used in the case of Turkey, spanning the period 1996-2013, on data obtained from the Central Bank of Turkey. Through second-generation panel unit root tests for cross-section dependence and panel cointegration methodologies, the results illustrate the statistical significance of the CD statistics, indicating the presence of cross dependence, the presence of non-stationary variables and the presence of a long-run association for the variables under study. Findings The findings document that a transformed variable of NWC is more substantive than the explicatory quality of the current ratio and may potentially be used in the prediction of bank credit in corporate liabilities. Originality/value The afa coefficient shows the ratio of liquid assets to NWC as a percentage of STL. The results illustrate that this coefficient plays a significant role for corporate bank credit usage in the case of the Turkish sectoral analysis.
dc.identifier.doi10.1108/JFRA-01-2017-0001
dc.identifier.endpage291
dc.identifier.issn1985-2517
dc.identifier.issn2042-5856
dc.identifier.issue2
dc.identifier.scopus2-s2.0-85061910325
dc.identifier.scopusqualityQ1
dc.identifier.startpage274
dc.identifier.urihttps://doi.org/10.1108/JFRA-01-2017-0001
dc.identifier.urihttps://hdl.handle.net/20.500.14704/968
dc.identifier.volume16
dc.identifier.wosWOS:000432933300001
dc.identifier.wosqualityN/A
dc.indekslendigikaynakWeb of Science
dc.indekslendigikaynakScopus
dc.language.isoen
dc.publisherEmerald Group Publishing Ltd
dc.relation.ispartofJournal of Financial Reporting and Accounting
dc.relation.publicationcategoryMakale - Uluslararası Hakemli Dergi - Kurum Öğretim Elemanı
dc.rightsinfo:eu-repo/semantics/closedAccess
dc.snmzKA_WOS_20250326
dc.subjectBank credit; afa coefficient; Corporate liquidity; Net working capital
dc.titleThe role of the AFA coefficient as a new criterion in the long-run liaison between corporate liquidity and bank credit: Evidence from Turkey
dc.typeArticle

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