Determining the effects' of business specific features on the level of the fair value usage: An application in BIST enterprises

Today, the cost method used in financial reporting has begun to rapidly leave its place to the fair value method, which is a market-based measurement. For this reason, in recent years, it is of great importance for many individuals and institutions such as financial information users, business managers, investors to display assets or liabilities at fair value in financial reporting. With the emergence of TFRS 13 Fair Value standard, studies on this subject have started to increase. In this study, two different analyzes related to the fair value method are included. First, by using the content analysis method, the level of using the fair value method in the assets included in the financial statements of 164 companies in the manufacturing sector traded in Borsa Istanbul between the years 2013-2017 was revealed. As a result of the content analysis performed, the first four assets in which fair value is used the most were determined as derivative instruments, investment properties, biologial assets and financial investments, respectively. In the other part of the study, by applying logistic regression analysis, analyzes were made about whether business-specific factors (auditor type, business size and operating profitability) were effective in the use of fair value in 9 different asset types in the financial statements of 164 manufacturing enterprises between 2013-2017. According to the results of this analysis; it has been concluded that the business size variable, which is a business-specific factor, is effective in tangible assets and operating profitability is effective in financial investments. Keywords: Istanbul Stock Exchange, fair value, logistic regression, content analysis, level of use.