Business and Economic Horizons
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ISSN (Print) 1804-1205 - ISSN (Online) 1804-5006
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- Toward of the spatiality of the Information and Communication Technologies
sector: Case study from the Slovak Republic
Abstract: Title: Toward of the spatiality of the Information and Communication Technologies sector: Case study from the Slovak Republic
Authors : Madudova, Emilia
: Rapid diffusion of ICT has produced significant changes in the way and place for the production of goods and provides services. This implies that ICT had an impact on the industrial structure and geographical location of regions. The ICT industry in the Slovak Republic has been one of few industries in which the employment has continuously grown and this sector has the lowest unemployment rate of all sectors of the economy and permanently grows. All these findings have caused the author to measure the concentration of ICT sector in the Slovak Republic at the regional level. The aim of this paper is to map the regional disparities in the ICT sector in the Slovak republic. The analyses developed for this manuscript are based on two main methodologies: regional and cluster analyses. The existence of disparities between regions is indisputable. All the characteristics and calculations confirmed large disparities in the ICT sector in individual regions. As finding showed, the ICT sector is the driving force of the Slovak economy and economic development. The results call for greater attention to regional disparities in ICT sector in the Slovak Republic.
- Culture, religion and productivity: Evidence from European regions
Abstract: Title: Culture, religion and productivity: Evidence from European regions
Authors : Kaasa, Anneli
: This study investigates how a region’s labour productivity could be influenced by cultural dimensions and religion - factors that have not received much attention in the previous literature. As another novelty, regional-level data (78 regions of 22 European countries) were analysed. Correlation and regression analysis was performed. The results showed individualism to be positively and masculinity and power distance to be negatively related to labour productivity. When cultural dimensions were included, both general religiosity and the achievement motivation indicator capturing the values of a strong work ethic turned out to be insignificant.
- Attitudes and decisions of the motor insurance buyers in Poland
Abstract: Title: Attitudes and decisions of the motor insurance buyers in Poland
Authors : Borda, Marta; Jędrzychowska, Anna
: Motor insurance constitutes the most popular type of insurance products purchased in Poland and consequently the largest part of non-life insurance sector. In this paper the selected results of the questionnaire survey concerning attitudes and choices of the motor insurance buyers on the Polish market are presented. First, the current situation on the Polish motor insurance market is discussed. Next, the scope of the motor insurance held by respondents, their forms and used distribution channels are analysed. The stress is put on the level of the customers` loyalty to the current insurer, as well as the factors influencing the choice of a specific insurance company and its offer. Finally, the analysis concerning the statistical interdependencies between selected characteristics of the respondents is carried out. The conducted research can be useful for the insurance companies, interested in improving their motor insurance offer, as well as the insurance intermediaries serving individual customers.
- Studying the effect of assets return rate on stock price of the companies
accepted in Tehran stock exchange
Abstract: Title: Studying the effect of assets return rate on stock price of the companies accepted in Tehran stock exchange
Authors : Saeidi, Parviz; Okhli, Abolghasem
: One of the criteria to evaluate management ability of a company to gain return is assets return rate, with regard to existing resources. Management is expected to use the current assets so that the maximum return is gained. The present study aims at investigating assets return rate impact on stock prices of the companies accepted in Tehran stock exchange. In this research, assets return rate is considered as independent variable, and stock price as dependent variable, and company size, company age, and beta coefficient as control variables from 2001 to 2010. Research method is correlation in terms of hypothesis testing, and through multi-variable regression statistic analysis has been done. The research findings indicate strong impact and relationship between independent and dependent variables, and the research hypothesis has been accepted.
- Point forecasts based on the limits of the forecast intervals to improve
the SPF predictions
Abstract: Title: Point forecasts based on the limits of the forecast intervals to improve the SPF predictions
Authors : Bratu (Simionescu), Mihaela
: Many researchers are interested in making predictions for macroeconomic variables, but few of them studied the accuracy of their forecasts. The problem is essential, especially in crisis periods, because from many forecasts made for the same indicator only one or few are the most accurate. In this research, some alternative forecasts for the annual rate of change for the HICP for EU were developed. Their accuracy was evaluated and compared with the accuracy of SPF predictions. All the proposed predictions for January 2010-May 2012 (those based on a random walk developed for 1997-2009, combined forecasts, the median and the mean of forecasts, predictions based on different econometric models that take into account the previous SPF forecasts) were not more accurate than the naïve forecasts or SPF ones. A considerably improvement of the accuracy was gotten for predictions based on mean error of SPF expectations for 1997-2009 and the previous registered value. This empirical strategy of building more accurate forecasts was better than the classical theoretical approaches from literature, but it is still less accurate than the naïve forecasts that could be made for UE inflation rate. The point forecasts based on the lower limit of intervals built using root mean squared indicator generated an improvement in accuracy, outperforming the SPF predictions and also the naïve forecasts.
- The impact of working capital on the value of the company in light of
differing size, growth, and debt
Abstract: Title: The impact of working capital on the value of the company in light of differing size, growth, and debt
Authors : Sabri, Tamer Bahjat
: This study investigates the potential effect of the working capital management on the value of the industrial companies in Jordan, by studying determinants (company size, company growth, leverage) that affect company value measured by Tobin's Q (TQ). Also it uses an improved methodology to produce three indexes (benchmarks) that can present the suitable information for mangers and investors. To achieve the objectives of the study, a sample constituted by forty-one (41) industrial companies was studied. The study covered the period from 2000 to 2007. Regression analysis and Mann-Whitney-U Test were used to test the hypotheses of the study. The results shows that R2 for small size companies is higher than big size companies. And it is noted that the average TQ for companies with big size is higher than the average for small-sized companies.
- The impact of real exchange rate volatility on economic growth: Kenyan
Abstract: Title: The impact of real exchange rate volatility on economic growth: Kenyan evidence
Authors : Musyoki, Danson; Pokhariyal, Ganesh P.; Pundo, Moses
: This paper examines the impact of real exchange rate volatility on economic growth in Kenyan. The study employed the Generalized Autoregressive Condition of Heteroscedasticity (GARCH) and computation of the unconditional standard deviation of the changes to measure volatility and Generalized Method Moments (GMM) to assess the impact of the real exchange rate volatility on economic growth for the period January 1993 to December 2009. Data for the study was collected from Kenya National Bureau of Statistics, Central Bank of Kenya and International Monetary Fund Data Base by taking monthly frequency. The study found that RER was very volatility for the entire study period. Kenya’s RER generally exhibited a appreciating and volatility trend, implying that in general, the country’s international competitiveness deteriorated over the study period. The RER Volatility reflected a negative impact on economic growth of Kenya.
- Accountability and sustainability of Estonian local governments: An
analysis of legal acts
Abstract: Title: Accountability and sustainability of Estonian local governments: An analysis of legal acts
Authors : Roostalu, Lea
: This case study examines the challenges of the legal area of Estonia in supporting the corporate social responsibility and sustainability of local government by analyzing the main legal acts regulating the activities of this level of government. Both qualitative and quantitative content analyses were used. As a result of the study an original model describing sustainability orientation within the bodies of legal acts was designed. Taken together, the findings of the study suggest an actual and ever-growing role for public sector management in fostering social capital and promoting sustainability reporting within private, public and third sector organizations.
- Determiners of enterprise risk management applications in Turkey: An
empirical study with logistic regression model on the companies included
in ISE (Istanbul Stock Exchange)
Abstract: Title: Determiners of enterprise risk management applications in Turkey: An empirical study with logistic regression model on the companies included in ISE (Istanbul Stock Exchange)
Authors : Önder, Serife; Ergin, Hüseyin
: Enterprise risk management (ERM), which came along with the change in the understanding of risk management in companies, refers to evaluation of all the risks as a whole and managing them in line with the targets of the company. This study aims at determining the ERM application levels of the companies included in the Istanbul Stock Exchange and the factors that affect these applications. Existence of ERM in the companies was related with having senior manager in charge of risk management. In order to explain ERM applications with profitability, leverage and company size a Logistic Regression model was established. As a result of the analysis it was determined that about half of the financial sector companies within the ISE employed a chief risk officer (CRO), which means a culture of risk management has been founded within these companies. Moreover, it was determined that profitability of the companies do not have any significance in ERM applications while the most important factors that affect the applications were found to be leverage and company size.
- CEO emotional bias and dividend policy: Bayesian network method
Abstract: Title: CEO emotional bias and dividend policy: Bayesian network method
Authors : Ali, Azouzi Mohamed; Anis, Jarboui
: This paper assumes that managers, investors, or both behave irrationally. In addition, even though scholars have investigated behavioral irrationality from three angles, investor sentiment, investor biases and managerial biases, we focus on the relationship between one of the managerial biases, overconfidence and dividend policy. Previous research investigating the relationship between overconfidence and financial decisions has studied investment, financing decisions and firm values. However, there are only a few exceptions to examine how a managerial emotional bias (optimism, loss aversion and overconfidence) affects dividend policies. This stream of research contends whether to distribute dividends or not depends on how managers perceive of the company’s future. We will use Bayesian network method to examine this relation. Emotional bias has been measured by means of a questionnaire comprising several items. As for the selected sample, it has been composed of some 100 Tunisian executives. Our results have revealed that leader affected by behavioral biases (optimism, loss aversion, and overconfidence) adjusts its dividend policy choices based on their ability to assess alternatives (optimism and overconfidence) and risk perception (loss aversion) to create of shareholder value and ensure its place at the head of the management team.
- Medical savings accounts – in search of an alternative method of health
care financing in European countries
Abstract: Title: Medical savings accounts – in search of an alternative method of health care financing in European countries
Authors : Borda, Marta
: In times of increasing health care expenditure and insufficient cover provided by publicly financed health systems additional, alternative methods of health care financing become more and more considerable. The purpose of the paper is to present the concept of Medical Savings Accounts (MSAs) and possibilities of their application in the health care systems of European countries. First, the author describes the idea of MSAs and reviews positive and negative findings about the effects of implementing this method into the health systems. Next, two main approaches to the application of MSAs in health care financing are considered. In the last part of the paper, the possibilities of introducing MSAs into health care systems in European countries are discussed. The author takes into consideration the existing health care financing conditions and other specific institutional, socio-economic and cultural factors as the main determinants for successful designing and implementation of the MSA scheme in a given country.
- Estimation of import and export demand functions using bilateral trade
data: The case of Pakistan
Abstract: Title: Estimation of import and export demand functions using bilateral trade data: The case of Pakistan
Authors : Haider, Jahanzaib; Afzal, Muhammad; Riaz, Farah
: We estimated the import and export elasticities of Pakistan trade with traditional trade partners and some Asian countries to see the dynamics of Pakistan trade from 1973 to 2008. OLS results suggest that income is the principal determinant of exports and imports. Pakistan exports are cointegrated with Japan and USA while the imports are cointegrated with UAE and USA. Pakistan imports and exports are cointegrated with Bangladesh and Sri Lanka but not with India and China. Income and exchange rate are both important determinants of foreign trade. Continuing its trade with traditional partners and making efforts for greater market access to USA and EU, Pakistan should make efforts to increase its trade with Asian countries notably China and India because both are fast growing economies and have huge market.
- Theoretical and empirical applications of petroleum production function
framework for analysis of the Phenomenon of Plenty
Abstract: Title: Theoretical and empirical applications of petroleum production function framework for analysis of the Phenomenon of Plenty
Authors : Uzhegov, Sergey
: The current study examines how analysis of the Phenomenon of Plenty, paradox of economic underperformance of resource-rich nations, could benefit from theoretical and empirical application of suggested petroleum production function framework, basing on sample oil-abundant countries of the Commonwealth of Independent States, in particular Russia, Azerbaijan, and Kazakhstan. Proposed approach displays capacity of oil-economy production function to shed light on larger scope of theoretical issues. Empirical testing of suggested theoretical framework exhibited ability of proxied components of devised production function, capturing main metrics of the Phenomenon of Plenty and additionally factoring in corruption, to exert a strong impact on the majority of twelve principal macroeconomic indicators monitored by CIS supra-national institutions: with most pronounced influence on gross domestic product, industrial production, capital investments, and export to CIS countries.
- Strategic quality management on business to business market in Bosnia and
Abstract: Title: Strategic quality management on business to business market in Bosnia and Herzegovina
Authors : Rahimic, Zijada; Ustovic, Kenan
: Product and service quality has increasingly seen as a crucial factor of competitiveness, not only for individual companies, but for entire industries too. Using specific resources and capabilities companies can take a chance to delight their customers. This paper presents new sales model developed by authors, which includes all necessary steps related to sales process. Customer-Oriented Sales (COS) Model considers opportunity that company differentiates itself and become market leader. This paper includes research about companies engaged in B2B sale in Bosnia and Herzegovina and their willingness to use quality as differentiation tool. As a method of research we used data collection questionnaire. It is important to notice that the quality is not the purpose of itself. Investments in quality without recognition of customer needs can also be ineffective. Taking into account all anticipated results, we will make a conclusion about possibilities that companies’ incorporate COS Model in their business system.
- Factors of cash flow in farms
Abstract: Title: Factors of cash flow in farms
Authors : Wasilewski, Mirosław
: The study presents the determinants of the balance of cash flow from operating activities in the farms participating in the PL FADN. The effects of multiple independent variables on the balance of cash flow from operating activities were measured using the robust linear regression model. Statistically significant impact on the balance of cash flow from operating activities was from the family farm income. The agricultural type and the year of measurement had a significant impact on the development of the balance of cash flow from operating activities.
- Volunteers in public benefit organizations in Poland and the UK - do the
organizations’ financial results depend on the number of volunteers?
Abstract: Title: Volunteers in public benefit organizations in Poland and the UK - do the organizations’ financial results depend on the number of volunteers?
Authors : Waniak-Michalak, Halina
: Many private institutions serving public purposes use volunteer work that they must disclose in their reports. In this paper, 315 public benefit organizations in Poland (PBOs) and 315 charities in the UK are analyzed using statistical methods. Differences in the level of disclosure and the degree to which PBOs’ financial results depend on the number of volunteers are also described. The conclusion the research has offered is that UK PBOs operate on a wider scale and use volunteer work more frequently and that the Polish. Moreover, UK PBOs are not significantly different than Polish regarding the relationship between their financial results and the number of volunteers supporting their activities.
- Prize-linked savings mechanism in the portfolio selection framework
Abstract: Title: Prize-linked savings mechanism in the portfolio selection framework
Authors : Kaliciak, Anna
: Prize-linked savings (PLS) instruments implement the lottery-like component into the structure of traditional financial products. Following existing research based on both real and experimental data, such programs appeared highly successful in raising the overall savings rates within the given environments. PLS accounts seem to be treated by decision-makers as substitutes to ordinary lotteries, but this does not hold when comparing PLS with traditional interest-bearing savings products. This paper explains such empirical observations in a framework of portfolio selection problem. For that purpose, two models have been presented and used for deriving optimal portfolios in a presence of PLS, lottery and savings products. As shown in the analysis, the standard mean-variance model does not allow for a PLS instrument to be of optimum choice, whereas in the case of behavioural portfolio model allocating all disposable income to PLS can be in fact the best decision under certain individual conditions.
- What determines investment rate of Polish large-sized farms?
Abstract: Title: What determines investment rate of Polish large-sized farms?
Authors : Soliwoda, Michal
: There is a set of various factors affecting farm investment behavior (in result, IR) inter alia economic variables (factor markets and public policy), farmer’s attitudes and socio-demographic features. The paper aims to identify determinants of IR of Polish large-sized farms (>100 hectares of arable area). The empirical studies based on a random sample of large-scale farms surveyed annually by IAFE-NRI (the processed research sample consisted of 25 entities annually). The research period covered years 2007-2011 because of data availability. First, we used panel models (both REM and FEM) with explanatory variables (proposed in the literature, including lagged variables) including investment subsidies. Then, we switched form unsatisfactory panel models to a GLS model approach. Our results indicated that a shift toward a strong specialization may weaken the propensity to invest at large-scale farms. The effect of EU investment subsidies was particularly evident after 1 year. The importance of diversification from the standpoint of market-oriented large-sized farms should not be neglected. The accumulated experience and knowledge of farm operators may stimulate the investment activity. The significance of farm operator’s characteristics should be a prerequisite for life-long education.
- Working capital management as a routine: An action based access to the
Abstract: Title: Working capital management as a routine: An action based access to the topic
Authors : Kroflin, Petra; Kratz, Norbert
: In times of unstable capital markets on the one side and historically low interests on the other, working capital management must be discussed from different perspectives. Limited sources of liquidity, and the high refinancing risk of lending companies, make the reduction of current assets and liabilities an even more important management task than before. On the other hand, low interest rates raise the need for defining the optimum level for working capital. Little research and empirical evidence exists when it comes to lifting working capital targets to create value. The objective of the present paper is to give evidence on whether German companies adapt their behavior in terms of handling working capital in the actual economic environment and to describe which practices have been established to perform this adaptation. The given analysis is based on a qualitative study. The data used have been gathered in 2014 and 2015 during semi structured interviews with CFOs or financial executives of 15 German and Austrian industrial firms. Our study suggests that adaptation is realized rather by moderating management attention and focus to the topic of capital cost but not by adjusting the financial targets themselves. This is because working capital reduction as become a management routine.
- The main categories of disclosures concerning control over financial
reporting: The practice of companies listed on the Warsaw Stock Exchange
Abstract: Title: The main categories of disclosures concerning control over financial reporting: The practice of companies listed on the Warsaw Stock Exchange
Authors : Gad, Jacek
: The aim of this paper is to answer the question whether, and, if so, to what extent, control over financial reporting is exercised in practice. An attempt was made to measure the control by analysing the disclosures regarding the control over financial reporting which were included in the annual reports and statements on corporate governance. The annual reports of the companies listed on the WSE were the subject of the research. The research problems presented in this article with regard to the disclosures about the control over financial reporting have only been discussed to a limited extent in the literature. It seems that the list of disclosures is an important part of this paper. It can serve as a reference point for the development of a disclosure index and, additionally, provide a basis for a verification of research questions that may be posed in the future. The results of the study indicate that there was no single form of disclosing the information on internal control and risk management systems in relation to financial reporting in the reporting practices of the public companies listed on the Warsaw Stock Exchange in 2011. The disclosures were different both in terms of the degree of detail and the content. The companies listed on the WSE presented the information on control over financial reporting within 13 major categories of disclosures identified in the study.