Abstract: Comparisons of financial development across
countries are central to answering many of the questions on factors
leading to economic development. For this reason this study analyzes
the implications of financial system’s development on country’s
economic development. The aim of the article: to analyze the impact
of financial system’s development on economic development. The
following research methods were used: systemic, logical and
comparative analysis of scientific literature, analysis of statistical
data, time series model (Autoregressive Distributed Lag (ARDL)
Model). The empirical results suggest about positive short and long
term effect of stock market development on GDP per capita.
Abstract: The decision-making process is theoretically clearly
defined. Generally, it includes the problem identification and
analysis, data gathering, goals and criteria setting, alternatives
development and optimal alternative choice and its implementation.
In practice however, various modifications of the theoretical
decision-making process can occur. The managers can consider some
of the phases to be too complicated or unfeasible and thus they do not
carry them out and conversely some of the steps can be
overestimated.
The aim of the paper is to reveal and characterize the perception of
the individual phases of decision-making process by the managers.
The research is concerned with managers in the military environment
– commanders. Quantitative survey is focused cross-sectionally in the
individual levels of management of the Ministry of Defence of the
Czech Republic. On the total number of 135 respondents the analysis
focuses on which of the decision-making process phases are
problematic or not carried out in practice and which are again
perceived to be the easiest. Then it is examined the reasons of the
findings.
Abstract: Constructing a portfolio of investments is one of the
most significant financial decisions facing individuals and
institutions. In accordance with the modern portfolio theory
maximization of return at minimal risk should be the investment goal
of any successful investor. In addition, the costs incurred when
setting up a new portfolio or rebalancing an existing portfolio must
be included in any realistic analysis.
In this paper rebalancing an investment portfolio in the presence of
transaction costs on the Croatian capital market is analyzed. The
model applied in the paper is an extension of the standard portfolio
mean-variance optimization model in which transaction costs are
incurred to rebalance an investment portfolio. This model allows
different costs for different securities, and different costs for buying
and selling. In order to find efficient portfolio, using this model, first,
the solution of quadratic programming problem of similar size to the
Markowitz model, and then the solution of a linear programming
problem have to be found. Furthermore, in the paper the impact of
transaction costs on the efficient frontier is investigated. Moreover, it
is shown that global minimum variance portfolio on the efficient
frontier always has the same level of the risk regardless of the amount
of transaction costs. Although efficient frontier position depends of
both transaction costs amount and initial portfolio it can be concluded
that extreme right portfolio on the efficient frontier always contains
only one stock with the highest expected return and the highest risk.
Abstract: Standard processes, similar and limited production
lines, the production of high direct costs will be more accurate than
the use of parts of the traditional cost systems in the literature.
However, direct costs, overhead expenses, in turn, decrease the
burden of increasingly sophisticated production facilities, a situation
that led the researchers to look for the cost of traditional systems of
alternative techniques. Variety cost management approaches for
example Total quality management (TQM), just-in-time (JIT),
benchmarking, kaizen costing, targeting cost, life cycle costs (LLC),
activity-based costing (ABC) value engineering have been
introduced. Management and cost applications have changed over the
past decade and will continue to change. Modern cost systems can
provide relevant and accurate cost information. These methods
provide the decisions about customer, product and process
improvement. The aim of study is to describe and explain the
adoption and application of costing systems in SME. This purpose
reports on a survey conducted during 2014 small and medium sized
enterprises (SME) in Ankara. The survey results were evaluated
using SPSS18 package program.
Abstract: Established objective and subjective preconditions for
entrepreneurship, forming the business organically related whole, are
the necessary condition of successful entrepreneurial activities.
Objective preconditions for entrepreneurship are developed by
market economy that should stimulate entrepreneurship by allowing
the use of economic opportunities for all those who want to do
business in respective field while providing guarantees to all owners
and creating a stable business environment for entrepreneurs.
Subjective preconditions of entrepreneurship are formed primarily by
personal characteristics of the entrepreneur. These are his properties,
abilities, skills, physiological and psychological preconditions which
may be inherited, inborn or sequentially developed and obtained
during his life on the basis of education and influences of
surrounding environment. The paper is dealing with issues of
objective and subjective preconditions for entrepreneurship and
provides their analysis in view of the current situation in Slovakia. It
presents risks of the business environment in Slovakia that the Slovak
managers considered the most significant in 2014 and defines the
dominant attributes of the entrepreneur in the current business
environment in Slovakia.
Abstract: This paper deals with current strategic challenges
related to the reshaping of the basic conditions of corporate operations.
Through the experimental analysis of some domestic corporations, it
presents how and to what extent Hungarian corporations are prepared
for the current strategic challenges. The study examines how strategic
directions and answer opportunities have changed in the following
interrelated areas in the past five years: economic globalization,
corporate sustainability, IT applications, labor force diversity and
ethical competences. The conclusions of the empirical survey give a
reliable basis on which economic organizations and enterprises can
formulate their strategy.
Abstract: The aim of this study is to analyze the role and
effectiveness of internal mechanism (audit committee) of corporate
governance on credit institutions performance in Croatia. Based on
research objective, sample of 78 credit institutions listed on Zagreb
Stock Exchange, from 2007 to 2012, has been collected and
efficiency index of audit committee (EIAC) has been created. Based
on the sample and created EIAC, conclusions are as follows: audit
committees of credit institutions have medium efficiency, based on
EIAC measurement; there is a significant difference in audit
committee effectiveness, in observed period; there is no positive
relationship between audit committee effectiveness and credit
institution performance; there is a significant difference between
level of audit committee effectiveness and audit firm type. Future
research should contain increased number of elements in EIAC
creation and increased sample, for all obligators who need to
establish audit committee.
Abstract: Nowadays, it is a globalization era which social media
plays an important role to the lifestyle as an information source, tools
to connect people together and etc. This research is object to find out
about the significant level of the social media as a distribution
channel to the agriculture product of Thailand. In this research, the
agriculture product is the Rice Berry which is the cross-bred unmilled
rice producing dark violet grain, is a combination of Hom Nin Rice
and Thai Jasmine/ Fragrant Rice 105. Rice Berry has a very high
nutrition and nice aroma so the product is in the growth stage of the
product cycle. The problem for the Rice Berry product in Thailand is
the production and the distribution channel. This study is to confirm
that the social media is another option as the distribution channel for
the product which is not a mass production product. This will be the
role model for the other niche market product to select the
distribution channel.
Abstract: The impact of Special Economic Zones (SEZs) has
been analyzed for many years by researchers. There are lot of
theoretical studies proving the SEZs importance for regional
development, however, there is lack of empirical studies (and they
are mainly focused on China market) that are based on available data.
The theoretical studies indicate the various impacts of enterprises
operating within SEZs on the economy. The article proves that, in
case of Poland, locating SEZs in municipalities is an important part
of increasing municipalities’ income. Therefore SEZs have a positive
impact on regional development. Municipality income is understood
as taxes paid by taxpayers who depend on SEZ companies’
performance. The analysis includes the Corporate Income Tax (CIT),
Personal Income Tax (PIT) and real estate tax. The effects of SEZs
on regional development were narrowed to a few variables that are
most significant for the financial system. The analysis indicates the
significant impact of SEZs on the amount of taxes influencing the
municipality budget.
Abstract: Internet financial reporting and corporate governance
issues are in the focus of academic and professional studies due to
their attributed importance by stakeholders of corporations. Major
aim of this study is to reveal the relationship between internet
financial reporting which is held as dependent variable and some
indicators of corporate governance such as the ratio of managerial
ownership, blockholder ownership, number of independent members
in the board of directors, frequency of meetings by audit committee
and education level of audit committee members which are held as
independent variables. Main purpose is to reveal the effect of
corporate governance on the voluntary efforts of Internet Financial
reporting. The scope of the research is limited to the Turkish
Corporations listed in Borsa Istanbul (Istanbul Stock Exchange) and
findings which are generated by means of SPSS software are revealed
in results section and interpreted in conclusions.
Abstract: Housing loans play an important role in CEE
countries’ economies. This fact is based on their share in total loans
to households and their importance for economic activity and growth
in CEE countries. Therefore, it is important to find out key
determinants of housing loans demand in these countries. The aim of
this study is to research and analyze the determinants of the demand
for housing loans in Croatia. In this regard, the effect of economic
activity, loan terms and real estate prices were analyzed. Also, the
aim of this study is to find out what motivates people to take housing
loans. Therefore, primarily empirical study was conducted among the
Croatian residents. The results show that demand for housing loans is
positively affected by economic growth, higher personal income and
flexible loan terms, while it is negatively affected by interest rate rise.
Abstract: The aim of this paper is to select the most accurate
forecasting method for predicting the future values of the
unemployment rate in selected European countries. In order to do so,
several forecasting techniques adequate for forecasting time series
with trend component, were selected, namely: double exponential
smoothing (also known as Holt`s method) and Holt-Winters` method
which accounts for trend and seasonality. The results of the empirical
analysis showed that the optimal model for forecasting
unemployment rate in Greece was Holt-Winters` additive method. In
the case of Spain, according to MAPE, the optimal model was double
exponential smoothing model. Furthermore, for Croatia and Italy the
best forecasting model for unemployment rate was Holt-Winters`
multiplicative model, whereas in the case of Portugal the best model
to forecast unemployment rate was Double exponential smoothing
model. Our findings are in line with European Commission
unemployment rate estimates.
Abstract: Planning of infrastructure and processes in logistic
center within the frame of various kinds of logistic hubs and
technological activities in them represent quite complex problem.
The main goal is to design appropriate layout, which enables to
realize expected operation on the desired levels. The simulation
software represents progressive contemporary experimental
technique, which can support complex processes of infrastructure
planning and all of activities on it. It means that simulation
experiments, reflecting various planned infrastructure variants,
investigate and verify their eligibilities in relation with corresponding
expected operation. The inducted approach enables to make qualified
decisions about infrastructure investments or measures, which derive
benefit from simulation-based verifications. The paper represents
simulation software for simulation infrastructural layout and
technological activities in marshalling yard, intermodal terminal,
warehouse and combination between them as the parts of logistic
center.
Abstract: The paper deals with behaviour of the segment 50+ in
the financial market in the Czech Republic. This segment could be
said as the strong market power and it can be a crucial business
potential for financial business units. The main defined objective of
this paper is analysis of the customers´ behaviour of the segment 50-
60 years in the financial market in the Czech Republic and proposal
making of the suitable marketing approach to satisfy their demands in
the area of product, price, distribution and marketing communication
policy. This paper is based on data from one part of primary
marketing research. Paper determinates the basic problem areas as
well as definition of financial services marketing, defining the
primary research problem, hypothesis and primary research
methodology. Finally suitable marketing approach to selected sub
segment at age of 50-60 years is proposed according to marketing
research findings.
Abstract: In this study, we compare the profiles of transitory
hybrid entrepreneurs and persistent hybrid entrepreneurs to determine
how they differ. Hybrid entrepreneurs (HEs) represent a significant
share of entrepreneurial activity yet little is known about them. We
define HEs as individuals who are active as entrepreneurs but do no
support themselves primarily by their enterprise. Persistent HEs
(PHEs) are not planning to transition to fulltime entrepreneurship
whereas transitory HEs (THEs) consider it probable. Our results
show that THEs and PHEs are quite similar in background. THEs are
more interested in increasing their turnover than PHEs, as expected,
but also emphasize self-fulfillment as a motive for entrepreneurship
more than PHEs. The clearest differences between THEs and PHEs
are found in their views on how well their immediate circle supports
full-time entrepreneurship, and their views of their own
entrepreneurial abilities and the market potential of their firm. Our
results support earlier arguments that hybrids should be considered
separately in research on entrepreneurial entry and self-employment.
Abstract: Presently, it is necessary to ensure the sustainable
development of passenger and freight transport. Increasing
performance of road freight has had a negative impact to environment
and society. It is therefore necessary to increase the competitiveness
of intermodal transport, which is more environmentally friendly. The
study describes the effectiveness of logistical centers realization for
companies and society and research how the partial internalization of
external costs reflected in the efficient use of these centers and
increase the competitiveness of intermodal transport to road freight.
In our research, we use the method of comparative analysis and
market research to describe the advantages of logistic centers for their
users as well as for society as a whole. Method normal costing is used
for calculation infrastructure and total costs, method of conversion
costing for determine the external costs. We modelled total society
costs for road freight transport and inter modal transport chain (we
assumed that most of the traffic is carried by rail) with different
loading schemes for condition in the Slovak Republic. Our research
has shown that higher utilization of inter modal transport chain do
good not only for society, but for companies providing freight
services too. Increase in use of inter modal transport chain can bring
many benefits to society that do not bring direct immediate financial
return. They often bring the multiplier effects, such as greater use of
environmentally friendly transport mode and reduce the total society
costs.
Abstract: In the paper, information on economic development
trends in developed countries are analyzed. The current status of
information society and economy of the country is reviewed and
some recommendations are given for future development.
The problems of Information Society and establishment of its
innovative economy are studied. In this turn, development trends
information economy in developed countries are analyzed.
Abstract: Previous studies on financial distress prediction choose
the conventional failing and non-failing dichotomy; however, the
distressed extent differs substantially among different financial
distress events. To solve the problem, “non-distressed”, “slightlydistressed”
and “reorganization and bankruptcy” are used in our article
to approximate the continuum of corporate financial health. This paper
explains different financial distress events using the two-stage method.
First, this investigation adopts firm-specific financial ratios, corporate
governance and market factors to measure the probability of various
financial distress events based on multinomial logit models.
Specifically, the bootstrapping simulation is performed to examine the
difference of estimated misclassifying cost (EMC). Second, this work
further applies macroeconomic factors to establish the credit cycle
index and determines the distressed cut-off indicator of the two-stage
models using such index. Two different models, one-stage and
two-stage prediction models are developed to forecast financial
distress, and the results acquired from different models are compared
with each other, and with the collected data. The findings show that the
one-stage model has the lower misclassification error rate than the
two-stage model. The one-stage model is more accurate than the
two-stage model.
Abstract: The Malaysian government had consistently revived
its campaign for “Buy Malaysian Goods” from time to time. The
purpose of the campaign is to remind consumers to be ethnocentric
and patriotic when purchasing product and services. This is necessary
to ensure high demand for local products and services compared to
foreign products. However, the decline of domestic investment in
2012 has triggered concern for the Malaysian economy. Hence, this
study attempts to determine the drivers of actual purchasing behavior,
intention to purchase domestic products and ethnocentrism. The
study employs the cross-sectional primary data, self-administered on
household, selected using stratified random sampling in four
Malaysian regions. A nine factor driver of actual domestic purchasing
behavior (culture openness, conservatism, collectivism, patriotism,
control belief, interest in foreign travel, attitude, ethnocentrism and
intention) were measured utilizing 60 items, using 7-point Likertscale.
From 1000 questionnaires distributed, a sample of 486 were
returned representing 48.6 percent response rate. From the fit
generated structural model (SEM analysis), it was found that the
drivers of actual purchase behavior are collectivism, cultural
openness and patriotism; the drivers of intention to purchase
domestic product are attitude, control belief, collectivism and
conservatism; and drivers of ethnocentrism are cultural openness,
control belief, foreign travel and patriotism. It also shows that
Malaysian consumers scored high in ethnocentrism and patriotism.
The findings are discussed in the perspective of its implication to
Malaysian National Agenda.
Abstract: One of the best examples, in evolution of the public
procurement, from post-soviet countries are reforms carried out in
Georgia, which brought them close to international standards of
procurement. In Georgia, public procurement legislation started
functioning short after gaining independence. The reform has passed
several stages and came in the form as it is today. It should also be
noted, that countries with economy in transition, including Georgia,
implemented all the reforms in public procurement based on
recommendations and support of World Bank, the United Nations
and other international organizations.
The aim of first adopted law was regulation of the procurement
process of budget-organizations, transparency and creation of
competitive environment for private companies to access state funds
legally. The priorities were identified quite clearly in the wording of
the law, but operation/function of this law could not be reached on its
level, because of some objective and subjective reasons. The high
level of corruption in all levels of governance can be considered as a
main obstacle reason and of course, it is natural, that it had direct
impact on the procurement process, as well as on transparency and
rational use of state funds. These circumstances were the reasons that
reforms in this sphere continued, to improve procurement process, in
particular, the first wave of reforms began after several years. Public
procurement agency carried out reform with World Bank with main
purpose of smartening the procurement legislation and its
harmonization with international treaties and agreements. Also with
the support of World Bank various activities were carried out to raise
awareness of participants involved in procurement system.
Further major changes in the legislation were filed bit later, which
was also directed towards the improvement and smarten of the
procurement process. The third wave of the reform more or less
guaranteed the transparency of the procurement process, which later
became the basis for the rational spending of state funds. The reform
of the procurement system completely changed the procedures.
Carried out reform in Georgia resulted in introducing new
electronic tendering system, which benefit the transparency of the
process, after this became the basis for the further development of a
competitive environment, which become a prerequisite for the state
rational spending. Increased number of supplier organizations
participating in the procurement process resulted in reduction of the
estimated cost and the actual cost.
Assessment of the reforms in Georgia in the field of public
procurement can be concluded, that proper regulation of the sector
and relevant policy may proceed to rational and transparent spending
of the budget from country’s state institutions. Also, the business
sector has the opportunity to work in competitive market conditions
and to make a preliminary analysis, which is a prerequisite for future
strategy and development.