Abstract:

With the development of technology and globalization, a competitive environment in the financial markets has been formed. The acceleration of international fund flows, the increased integration of financial systems along with technology, has led companies to take a series of measures. In a global competitive environment, some companies have begun to adopt corporate, quality audit or conservative accounting practices to gain confidence and reputation. On the other hand, the decision makers who manage the financial systems have also begun to create and implement a set of standards to regulate the corporate and audit activities of the companies. In this study, the impact of the conservative accounting applications of the companies involved in the banking sector on the profitability of the companies was studied. In this regard, the data of companies in the Banking and Private Financial Institutions Sector between 2009 and 2017 were studied by the regression analysis method. The study found that conservative accounting practices and corporate management practices increased the profitability of companies in the Banking and Private Financial Institutions Sector.

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Abstract:

With the development of technology and globalization, an international competition environment has developed in financial markets. The acceleration of international fund flows, the increasing integration of financial systems with technology, have led companies to take some measures. In a global competitive environment, some companies have begun to adopt institutionalization, quality auditing or conservative accounting practices to gain trust and reputation. On the other hand, decision-makers who manage financial systems have started to establish and implement a set of standards that will regulate the institutionalization and audit activities of companies. In this study, the effect of conservative accounting practices of firms in the banking sector on the profitability of firms is examined. In this respect, the data of the firms in the Banks and Special Finance Institutions Sector between 2009-2017 were analyzed by the regression analysis method. As a result of the study, it was determined that the conservative accounting practices and corporate management practices increased the profitability of the companies in the Banking Sector.