Abstract: In this paper real money demand function is analyzed
within multivariate time-series framework. Cointegration approach is
used (Johansen procedure) assuming interdependence between
money demand determinants, which are nonstationary variables. This
will help us to understand the behavior of money demand in Croatia,
revealing the significant influence between endogenous variables in
vector autoregrression system (VAR), i.e. vector error correction
model (VECM). Exogeneity of the explanatory variables is tested.
Long-run money demand function is estimated indicating slow speed
of adjustment of removing the disequilibrium. Empirical results
provide the evidence that real industrial production and exchange
rate explains the most variations of money demand in the long-run,
while interest rate is significant only in short-run.
Abstract: Study investigates the level and extent of voluntary disclosure practice in Croatia. The research was conducted on the sample of 130 medium and large companies. Findings indicate that two thirds of the companies analyzed disclose below-average number of additional information. The explanatory analyses has shown that firm size, listing status and industrial sector significantly and positively affect the level and extent of voluntary disclosure in the annual report of Croatian companies. On the other hand, profitability and ownership structure were found statistically insignificant. Unlike previous studies, this paper deals with level of voluntary disclosure of medium and large companies, as well as companies whose shares are not listed on the organized capital market, which can be found as our contribution. Also, the research makes contribution by providing the insights into voluntary disclosure practices in Croatia, as a case of macro-oriented accounting system economy, i.e. bank oriented economy with an emerging capital market.
Abstract: According to the interaction of inflation and
unemployment, expectation of the rate of inflation in Croatia is
estimated. The interaction between inflation and unemployment is
shown by model based on three first-order differential i.e. difference
equations: Phillips relation, adaptive expectations equation and
monetary-policy equation. The resulting equation is second order
differential i.e. difference equation which describes the time path of
inflation. The data of the rate of inflation and the rate of
unemployment are used for parameters estimation. On the basis of
the estimated time paths, the stability and convergence analysis is
done for the rate of inflation.
Abstract: Continuous innovation is becoming a necessity if
firms want to stay competitive. Different factors influence the rate of
innovation in a firm, among which corporate culture has often been
recognized among the most important factors. In this paper we argue
that the development of corporate culture that will support and foster
innovation must be accompanied with an appropriate reward system.
A research conducted among Croatian firms showed that a
statistically significant relationship exists among corporate culture
that supports innovations and reward system features.
Abstract: In this paper usefulness of quasi-Newton iteration
procedure in parameters estimation of the conditional variance
equation within BHHH algorithm is presented. Analytical solution of
maximization of the likelihood function using first and second
derivatives is too complex when the variance is time-varying. The
advantage of BHHH algorithm in comparison to the other
optimization algorithms is that requires no third derivatives with
assured convergence. To simplify optimization procedure BHHH
algorithm uses the approximation of the matrix of second derivatives
according to information identity. However, parameters estimation in
a/symmetric GARCH(1,1) model assuming normal distribution of
returns is not that simple, i.e. it is difficult to solve it analytically.
Maximum of the likelihood function can be founded by iteration
procedure until no further increase can be found. Because the
solutions of the numerical optimization are very sensitive to the
initial values, GARCH(1,1) model starting parameters are defined.
The number of iterations can be reduced using starting values close
to the global maximum. Optimization procedure will be illustrated in
framework of modeling volatility on daily basis of the most liquid
stocks on Croatian capital market: Podravka stocks (food industry),
Petrokemija stocks (fertilizer industry) and Ericsson Nikola Tesla
stocks (information-s-communications industry).
Abstract: The subject of the paper is comparative analysis of the hotel guest-s contractual liability for breaching the obligation for non-payment of hotel services in the hotel-keeper-s contract. The paper is methodologically conceived of six chapters (1. introduction, 2. comparative law sources of the hotel-keeper-s contract, 3. the guest-s obligation for payment of hotel services, 4. hotel guest's liability for non-payment, 5. the hotel-keeper-s rights due to nonpayment and 6. conclusion), which analyzes the guest-s liability for non-payment of hotel services through the international law, European law, euro-continental national laws (France, Germany, Italy, Croatia) and Anglo-American national laws (UK, USA). The paper-s results are the synthesis of answers to the set hypothesis and comparative review of hotel guest-s contractual liability for nonpayment of hotel services provided. In conclusion, it is necessary to adopt an international convention on the hotel-keeper-s contract, which would unify the institute of the hotel guest-s contractual liability for non-payment of hotel services at the international level.
Abstract: This paper deals with e-government issues at several
levels. Initially we look at the concept of e-government itself in order
to give it a sound framework. Than we look at the e-government
issues at three levels, first we analyse it at the global level, second we
analyse it at the level of transition economies, and finally we take a
closer look on developments in Croatia. The analysis includes actual
progress being made in selected transition economies given the Euro
area averages, along with e-government potential in future
demanding period.
Abstract: The aim of this paper is to investigate the influence of
market share and diversification on the nonlife insurers- performance.
The underlying relationships have been investigated in different
industries and different disciplines (economics, management...), still,
no consistency exists either in the magnitude or statistical
significance of the relationship between market share (and
diversification as well) on one side and companies- performance on
the other side. Moreover, the direction of the relationship is also
somewhat questionable. While some authors find this relationship to
be positive, the others reveal its negative association. In order to test
the influence of market share and diversification on companies-
performance in Croatian nonlife insurance industry for the period
from 1999 to 2009, we designed an empirical model in which we
included the following independent variables: firms- profitability
from previous years, market share, diversification and control
variables (i.e. ownership, industrial concentration, GDP per capita,
inflation). Using the two-step generalized method of moments
(GMM) estimator we found evidence of a positive and statistically
significant influence of both, market share and diversification, on
insurers- profitability.
Abstract: Using data of listed Croatian firms from the Zagreb
Stock Exchange we analyze the relationship between firm ownership
(ownership concentration and type) and performance (ROA).
Empirical research was conducted for the period 2003-2010, yielding
with the total of 1,430 observations. Empirical findings based on
dynamic panel analysis indicate that ownership concentration
variable - CR4 is negatively related with performance, i.e. listed firms
with dispersed ownership perform better than firms with concentrated
ownership. Also, the research indicated that foreign controlled listed
firms perform better than domestically controlled firms. Majority
state owned firms perform worse than privately held firms but
dummy variable for privately controlled firms was not statistically
significant in the estimated panel model.
Abstract: Location-based services (LBS) exploit the known
location of a user to provide services dependent on their geographic
context and personalized needs [1].
The development and arrival of broadband mobile data networks
supported with mobile terminals equipped with new location
technologies like GPS have finally created opportunities for
implementation of LBS applications. But, from the other side,
collecting location information data in general raises privacy
concerns.
This paper presents results from two surveys of LBS acceptance in
Croatia. The first survey was administered on 181 students, and the
second extended survey involved pattern of 180 Croatian citizens.
We developed questionnaire which consists of descriptions of 15
different applications with scale which measures perceptions and
attitudes of users towards these applications.
We report the results to identify potential commercial applications
for LBS in B2C segment. Our findings suggest that some types of
applications like emergency&safety services and navigation have
significantly higher rate of acceptance than other types.
Abstract: The paper provides a discussion of the most relevant
aspects of yield curve modeling. Two classes of models are
considered: stochastic and parsimonious function based, through the
approaches developed by Vasicek (1977) and Nelson and Siegel
(1987). Yield curve estimates for Croatia are presented and their
dynamics analyzed and finally, a comparative analysis of models is
conducted.
Abstract: Given that entrepreneurship is a very significant factor of regional development, it is necessary to approach systematically the development with measures of regional politics. According to international classification The Nomenclature of Territorial Units for Statistics (NUTS II), there are three regions in Croatia. The indicators of entrepreneurial activities on the national level of Croatia are analyzed in the paper, taking into consideration the results of referent research. The level of regional development is shown based on the analysis of entrepreneurs- operations. The results of the analysis show a very unfavorable situation in entrepreneurial activities on the national level of Croatia. The origin of this situation is to be found in the surroundings with an expressed inequality of regional development, which is caused by the non-existence of a strategically directed regional policy. In this paper recommendations which could contribute to the reduction of regional inequality in Croatia, have been made.
Abstract: The paper presents an analysis of linkages and
structures of co-operation and their intensity like the potential for the
establishment of clusters in the Central and Eastern (Pannonian)
Croatian. Starting from the theoretical elaboration of the need for
entrepreneurs to organize through the cluster model and the terms of
their self-actualization, related to the importance of traditional values
in terms of benefits, social capital and assess where the company now
is, in order to prove the need to create their own identity in terms of
clustering. The institutional dimensions of social capital where the
public sector has the best role in creating the social structure of
clusters, and social dimensions of social capital in terms of trust,
cooperation and networking will be analyzed to what extent the trust
and coherency are present between companies in the Brod posavina
and Pozega slavonia County, expressed through the readiness of
inclusion in clusters in the NUTS II region - Central and Eastern
(Pannonian) Croatia, as a homogeneous economic entity, with
emphasis on limiting factors that stand in the way of greater
competitiveness.
Abstract: Business process management (BPM) has become
widely accepted within business community as a means for
improving business performance. However, it is of the highest
importance to incorporate BPM as part of the curriculum at the
university level education in order to achieve the appropriate
acceptance of the method. Goal of the paper is to determine the
current state of education in business process management (BPM) at
the Croatian universities and abroad. It investigates the applied forms
of instruction and teaching methods and gives several proposals for
BPM courses improvement. Since majority of undergraduate and
postgraduate students have limited understanding of business
processes and lack of any practical experience, there is a need for
introducing new teaching approaches. Therefore, we offer some
suggestions for further improvement, among which the introduction
of simulation games environment in BPM education is strongly
recommended.
Abstract: This paper begins with formal defining of human rights and freedoms, and the basic document regarding the said subject is undoubtedly French Declaration of the Rights of Man and of the Citizen from 789. This paper furthermore parses legal sources relevant for the workers' rights in legal system of the Republic of Croatia, international contracts and the Labour Act, which is also a master bill regarding workers' rights The authors are also dealing with issues of Constitutional Court of the Republic of Croatia and its' position in judicial system of the Republic of Croatia, as well as with the specifics of Constitutional Complaint, and the crucial part of the paper is based on the research conducted with an aim to determine implementation of rights and liberties guaranteed by the articles 54. and 55. of the Constitution of the Republic of Croatia by means of Constitutional Complaint.
Abstract: This paper provides an analysis of corporate income
tax (CIT) incentives in the Western Balkan countries: Slovenia,
Croatia, Serbia, Montenegro, Macedonia and Albania. Western
Balkan countries, as other transition and developing countries, use
large number of the corporate income tax incentives (CIT) to attract
foreign investments and to stimulate economic activity. The main
goal of this paper is to investigate how often these countries use CIT
incentives and provide review of existing tax incentives in Western
Balkan countries. Paper will focus on reduced CIT rates, tax
holidays, and other investment incentives which imply incentives
like accelerated depreciation, tax allowances and tax credits.
Abstract: Online auctions are not very popular in Croatia. The
main reason for this is a very limited number of services which can
be used by Croatian users. Until recent times, even selling through
the most popular online auction site eBay wasn't possible because
PayPal services could not make payment to bank or debit card
accounts in Croatia. Furthermore, many foreign sellers do not offer
delivery of their products to Croatia which means that large
quantities of goods initially offered on such sites are not available.
With that in mind, it is necessary to analyze the buying and selling
habits of Croatian users and existing online auction sites, both
Croatian and foreign, and create a model for new domestic site. This
site will have to exploit every positive aspect of existing models and
neutralize every negative perception indicated by users in the survey
so that, hopefully, it would attract new users.