Revista y Edición

Volumen 17 (2022): Edición 1 (April 2022)

Volumen 16 (2021): Edición 3 (December 2021)

Volumen 16 (2021): Edición 2 (August 2021)

Volumen 16 (2021): Edición 1 (April 2021)

Volumen 15 (2020): Edición 3 (December 2020)

Volumen 15 (2020): Edición 2 (August 2020)

Volumen 15 (2020): Edición 1 (April 2020)

Volumen 14 (2019): Edición 3 (December 2019)

Volumen 14 (2019): Edición 2 (August 2019)

Volumen 14 (2019): Edición 1 (April 2019)

Volumen 13 (2018): Edición 3 (December 2018)

Volumen 13 (2018): Edición 2 (August 2018)

Volumen 13 (2018): Edición 1 (April 2018)

Volumen 12 (2017): Edición 3 (December 2017)

Volumen 12 (2017): Edición 2 (August 2017)

Volumen 12 (2017): Edición 1 (April 2017)

Volumen 11 (2016): Edición 3 (December 2016)

Volumen 11 (2016): Edición 2 (August 2016)

Volumen 11 (2016): Edición 1 (April 2016)

Volumen 10 (2015): Edición 3 (December 2015)

Volumen 10 (2015): Edición 2 (August 2015)

Volumen 10 (2015): Edición 1 (April 2015)

Detalles de la revista
Formato
Revista
eISSN
2344-5416
Publicado por primera vez
06 Mar 2015
Periodo de publicación
3 veces al año
Idiomas
Inglés

Buscar

Volumen 16 (2021): Edición 1 (April 2021)

Detalles de la revista
Formato
Revista
eISSN
2344-5416
Publicado por primera vez
06 Mar 2015
Periodo de publicación
3 veces al año
Idiomas
Inglés

Buscar

20 Artículos
Acceso abierto

The Impact of Legal Systems on Dividend Payments

Publicado en línea: 26 May 2021
Páginas: 5 - 11

Resumen

Abstract

This paper focuses on the amount of dividends paid to shareholders by companies in different countries and examines whether being in a country where the legal system offers weak shareholder protection affects dividend payments distributed to shareholders. The sample used for this study comprises 8,045 companies from 46 countries. Seven individual factors affecting shareholder protection were examined. Out of the seven factors, only two of them provide a significant relationship with dividend payments, and more specifically, the mechanisms put in place by companies to protect oppressed minority shareholders as well as minimum percentage share of capital in order for the shareholders to be eligible to call an extraordinary shareholder meeting.

Palabras clave

  • Dividend Payments
  • Shareholder Protection
  • Legal System
  • Corporate Governance
  • Minority Shareholders
Acceso abierto

Current Account Balance in Emerging Asia

Publicado en línea: 26 May 2021
Páginas: 12 - 25

Resumen

Abstract

The current account balance is an important indicator which reveals information on a country’s economic situation such as investments, capital flows, and indebtedness. The main purpose of this study is to examine the current account balance conditions in emerging Asian countries. In this respect, the long-run and causality relationship between current account balance, economic growth, government expenditure, real interest rates, and foreign direct investment was examined. The panel data analysis was applied using the data dated 1986 to 2015. Our results revealed a causal effect from economic growth and government expenditure to current account balance mainly dependent on saving tendency.

Palabras clave

  • Current account balance
  • emerging Asia
  • panel co-integration
  • panel causality
Acceso abierto

Market Structure and Determinants of Firm Profitability on General Insurance Industry in Indonesia

Publicado en línea: 26 May 2021
Páginas: 26 - 41

Resumen

Abstract

The purpose of this study is to analyze the market structure of the general insurance industry in Indonesia and the effect of market share, operating expenses to operating income (OEOI), and debt ratio(DR) on profitability measured by return on assets (ROA). This study uses panel data regression analysis with the Chow and Hausman test to determine the best model. This analysis uses a combination of cross-section data, which consists of 11 companies, and time-series data, which consists of five years. The results showed that the Indonesian general insurance industry in 2014-2018 took the form of a tight oligopoly with a high concentration level after being analyzed through the four-firm concentration ratio (CR4) and Herfindahl-Hirschman Index (HHI). The average CR4 ratio is 84.77%, while the value of HHI is 3,374.19. Meanwhile, the results showed that based on panel data analysis, the OEOI variable has a significant negative effect on firm profitability. Also, the debt ratio variable has a significant negative effect on the profitability of general insurance firms in Indonesia. The firm efficiency can be able to increase profits rather than mastery of market share.

Palabras clave

  • market structure
  • market share
  • four-firm concentration ratio
  • Herfindahl-Hirschman index
  • oligopoly
Acceso abierto

Supervisory Board’s Contribution to Corporate Strategy: Evidence from Croatian Companies

Publicado en línea: 26 May 2021
Páginas: 42 - 50

Resumen

Abstract

The main objective of this paper is to expand understanding of how supervisory boards contribute to corporate strategy. Using a sample of supervisory boards of Croatian listed companies, in this paper we investigate: (1) the overall level of supervisory boards involvement in corporate strategy, and (2) how are supervisory board’s structural attributes related to the intensity of strategic involvement. Our results indicate that supervisory boards indeed have an active role in shaping and supporting the corporate strategy. Strategic activities that supervisory boards most often execute are authorizing strategic decisions proposed by the management board and crisis management activities.

Palabras clave

  • corporate governance
  • supervisory board
  • strategy
Acceso abierto

Macroeconomic Determinants of Interest Rates in Bricst, Mint, and Fragile Five Countries: Evidence from Quantile Regression Analysis

Publicado en línea: 26 May 2021
Páginas: 51 - 67

Resumen

Abstract

As a substantially important indicator for economies, interest rates are influenced by a variety of macroeconomic factors. Considering this fact, the study aims to determine the influential macroeconomic determinants on deposit interest rates in emerging countries by using 12 independent macroeconomic determinants, yearly data between 1980 and 2018, and quantile regression method, which is applied for the first time to analyze interest rates. The empirical results show that influential determinants and their effects on the interest rate are differentiating for countries. The findings reveal that the most important factor in the interest rate is the consumer price index (CPI) in Turkey and Mexico; unemployment in Russia and China; total reserves in Nigeria; GDP in Indonesia; imports of goods and services in Brazil and South Africa. The results of the analysis emphasize the importance of macroeconomic indicators on the interest rates in each quantile. Taking measures by considering the findings of the study, which shows the role and importance of each macroeconomic indicator in quantiles, is essential to promote economic growth via ensuring low-level deposit interest rates and hence providing credit growth in emerging countries.

Palabras clave

  • Interest Rate
  • Macroeconomic Factors
  • Quantile Regression
  • BRICST
  • MINT
  • Fragile Five
Acceso abierto

Changes in Brand-Related Consumer Loyalty in the Current Pandemic Context

Publicado en línea: 26 May 2021
Páginas: 68 - 80

Resumen

Abstract

The current medical crisis and, implicitly, the economic one, generated by the Covid-19 pandemic have brought increased attention to the issue of brand-related consumer loyalty, as loyal consumers are the safest and most stable source of profit in the current economic and social context. It is well-known that there is no equality between the notions of consumer satisfaction and loyalty. The two notions are not synonymous, as consumer satisfaction is only a relative, but not sufficient condition to obtain consumer loyalty. This paper aims to take a systemic approach in discussing the issue of brand-related consumer loyalty, starting from the inputs, respectively the favorable factors that lead to consumer attraction, retention and, finally, to the desired output, respectively to their loyalty. The whole approach will be supported by the use of secondary data sources that will be used in order to pinpoint some essential aspects of the changes that took place in 2020 in what regards the consumer’s attachment to the brand.

Palabras clave

  • relational marketing
  • consumer satisfaction
  • brand equity
  • brand loyalty
Acceso abierto

GST and its Impact on Small and Medium Scale Enterprises - A Study of Peenya Industrial Area in Bangalore, Karnataka

Publicado en línea: 26 May 2021
Páginas: 81 - 94

Resumen

Abstract

The introduction of Goods and Services Tax (GST) on 1st July 2017 has revamped the tax structure carving a new path for the Indian economy. The new tax regime was envisioned to be free of problems of the previous tax system but since its proposal, it has received mixed reviews from industries, academia, and others. With extensive changes aimed at One Nation One Tax, it has left a massive impact on Small and Medium Scale Enterprises. The paper critically analyses impact of GST on Small Scale Enterprises specifically in Karnataka. Existing literature says GST shall reduce the cost of doing business, increase transparency, decrease the price of products, improve tax compliance and ease of doing business. This paper proves these assertions through primary data research and further identifies the need for reforms concerning job work, penalties for non-payment of GST, dual administration, and issues pending from previous tax regime. It has also clearly established that the composition scheme has been a non-performer and the reverse charge mechanism must be re-introduced later or revamped to balance its costs and benefits. Thus the study has implications for policymakers, industries, and academia and also provides a better understanding of the new tax system.

Palabras clave

  • Taxation
  • Goods and Service Tax and Medium and Small Scale Industries
Acceso abierto

Using Neural Networks to Predict Wages Based on Worker Skills

Publicado en línea: 26 May 2021
Páginas: 95 - 108

Resumen

Abstract

This paper describes the results of our Neural Network (NN) models that predict annual wages based on the combination and levels of 35 different skills possessed by wage earners. These models can estimate the value of skills for skill-based compensation systems. They can be used by employers to determine how much to compensate different combinations of skills and by employees to estimate what they should be paid. Finally, governments can use the models to support the development and analysis of labor policies. We collect and integrate official U.S. Government data on 35 general job skills with the annual wage data for over 900 standard occupations. The skills data is then used as inputs to train an artificial intelligence (Al) neural network (NN) models. The resulting NN models train to above 70 percent accuracy in predicting annual wage levels based on the combination and levels of 35 different skills. This research makes use of authoritative U.S. Government data in new ways that can be used to better understand the connections between general skills and their relationships to wages. The need for these types of analytical tools is all the more important as changes in the job market have been severely impacted by the COVID 19 pandemic and are increasingly at risk of being replaced by automation.

Palabras clave

  • Neural Networks
  • Occupational Skills
  • Skill-based Pay
  • Salary Prediction
Acceso abierto

Financial Bubbles for Economic Development: Implications Regarding ICOs

Publicado en línea: 26 May 2021
Páginas: 109 - 119

Resumen

Abstract

Most people consider financial bubbles as the result of speculations and manipulations, and that less of them will make a market economy more efficient. While speculative bubbles no doubt increase the risks and uncertainties of investors, there are many episodes in human civilization where financial bubbles are commensurate with real positive contribution to real development of an economy. This paper analyzes this issue from theoretical perspectives and in the context of recent new financial instruments created from the technology of blockchain.

Palabras clave

  • Financial bubbles
  • economic development
  • ICOs
Acceso abierto

Study on the Reputation of the (MASS) Media in Romania

Publicado en línea: 26 May 2021
Páginas: 120 - 135

Resumen

Abstract

Part of a bigger research project conducted by Media Reputation Lab (Media REP Lab) on the reputation of media in Europe, the study explores the reputation of media among informed population in Romania. A sample of 100 cases was involved in the online survey taking place in December 2019. The results provide a description of the country’s media reputation (media in general: radio, print, digital and television). For each one of these media, the valuation obtained by each of the reputational attributes (credibility, rigor, impartiality, willingness to rectify) by the informed population would be indicated. Moreover, insights on the knowledge and use, as well as on the reputation (overall and by category, considering ten key reputation aspects) - of twelve selected media - would be provided.

Palabras clave

  • Key Reputation Aspects
  • Mass Media
  • Reputation
  • Reputational Attributes
  • Romania
Acceso abierto

How Intellectual Capital is Made?

Publicado en línea: 26 May 2021
Páginas: 136 - 146

Resumen

Abstract

Worldwide organizations are compelled by global competition to achieve notable, inimitable results. In order to achieve this organizations must differentiate themselves from their competitors by using intangible resources that can get the long-term competitive advantage. This can be accomplished by identifying and managing the important elements of performance more effectively and efficiently. Consequently, organizations have to be aware and understand the connection between valuing intellectual capital and their performance. This article enhances the relationship between intellectual capital indicators and the measures to be taken in order to become strong innovators at european level. By identifying the key indicators taken into consideration at European level an national analysis was made in order to identify the weak points that made a gap between Romania and the other european countries.

Palabras clave

  • intellectual capital
  • innovation strategies
  • innovative skills
Acceso abierto

Online Marketing Research - Roles in Generating Customer Insights

Publicado en línea: 26 May 2021
Páginas: 147 - 161

Resumen

Abstract

Companies cannot take decisions without the availability of proper information. So, marketers need to have the latest information about the target market. Marketers achieve this by collecting information based on traditional data collection methods and online marketing research. The study discusses the various aspects of conducting online marketing research, role of the internet in online marketing research, strategies followed by companies for online marketing research, the ways in which companies communicate and act on the information generated from the research, and the advantages and the disadvantages of conducting online marketing research. The study suggests that companies should conduct online marketing research not only to collect information about customers but also to utilize the insights generated to formulate better strategies and to develop better relationships with customers.

Palabras clave

  • Data Collection
  • Quantitative Research
  • Qualitative Research
  • Online Survey
  • Focus Group
  • Internet
  • Data Security
  • Data Privacy
Acceso abierto

Romanian Equity Investments and Currency Risk: A Euro-Based Perspective

Publicado en línea: 26 May 2021
Páginas: 162 - 176

Resumen

Abstract

This paper assesses the benefits and risks of international investments made on the Romanian stock market, from the perspective of euro-based investors. We investigate the contribution of exchange rate volatility to the total risk of these investments over a period of nine years, between January 2011 and December 2019, by using monthly values for the exchange rate between the Romanian leu and Euro and monthly values of the Romanian stock index. Our findings indicate that, on average, Romanian leu depreciated against euro, causing currency losses for the euro-based investor, counterbalanced by the Romanian index mean return, higher than euro countries index mean return during the period under analysis. However, comparing the exchange rate volatility with the volatility of the local index market, we find that that exchange rate returns have lower standard deviations values, which may suggest that the exchange rate volatility does not seem to be an additional factor to the total volatility of the Romanian stock market returns denominated in euro. This conclusion is supported by the values obtained for lambda, a synthetic indicator which measures the proportion of the volatility attributable to exchange rate fluctuations from the total volatility of the euro-based investor returns. Combined, these results imply that currency risk has only a moderate and controllable influence on international investments made by a euro-based investor on the Romanian stock market

Palabras clave

  • international investments
  • currency risk
  • Romanian stock market
Acceso abierto

Measuring Performance in the Luxury Industry: Is there a Difference in Performance Between the top and Bottom Players in the Industry?

Publicado en línea: 26 May 2021
Páginas: 177 - 186

Resumen

Abstract

This paper presents a methodology that consists of a Z-score function applied on a set of indicators for the luxury industry and then standardized to obtain a ranking of the companies on a scale between 10 and 100. To measure the performance for the top 5 LVMH, Estee Lauder, Richemont, Kering, Essilor Luxottica, and bottom 5 Aeffe, Tribhovandas, Van de Velde, Mulberry, Trinity companies (based on Deloitte global ranking in 2019) in the luxury industry and to unveil which are the performance drivers. By applying this methodology it can be made a comparison in performance between the top and the bottom companies in the luxury industry. The performance score is calculated for ten years (2010 - 2019) on public companies from the luxury industry.

Palabras clave

  • Luxury industry
  • Performance
  • Z-score
  • Ratio Analysis
Acceso abierto

Marginal Utility and Cournot Stability Under Market Entry

Publicado en línea: 26 May 2021
Páginas: 187 - 197

Resumen

Abstract

This paper introduces into the discussion of the stability of quantity-oligopoly equilibrium, the role that the slope of the marginal utility curve and of market entry in shaping the equilibrium and its stability. It does so by considering inverse multivariate linear demand functions and the notion of stability related to multivariate mean value theorem. The equilibrium cluster of Cournot sellers is determined by the stability dictated by this theorem and the rate of decline of the marginal utility of the product under consideration. Strategic complementarity is found to be the case under product heterogeneity, while the strategic substitutability associated with product homogeneity, induces a modification of Cournot limit theorem.

Palabras clave

  • Cournot equilibrium stability
  • General quantity oligopoly
  • Quasilinear quadratic utility
  • Mean value theorem
Acceso abierto

The Impact of Intellectual Capital on the SMEs Performance: A Study of the Romanian Central Region SMEs

Publicado en línea: 26 May 2021
Páginas: 198 - 209

Resumen

Abstract

The 21st century is the century of change and maybe one of the most important changes in the organizations’ life is the transition from focusing on the development of the tangible assets to the development of the intangible assets and the interest for attracting human resources capable to generate performance. The survival of many companies depends on their willingness and capacity to adapt to such changes. (Abdulaali, 2018) In this dynamic and complex economic system, the intangible assets of organizations become primary, being decisive for the organizations’ performance. In the new economic competition, intangible assets provide a sustainable competitive advantage, intellectual capital and intangible assets representing the key factor in company profitability and success. In the knowledge based society, intellectual capital has more value for organizations than tangible assets and knowledge becomes a permanent source of competitiveness (Bhatti, Zaheer, 2014). It is considered by specialists a valuable and strategic resource, since the success of organizations depends on creating, discovering, storing, disseminating, measuring and developing knowledge. The main objective of the research presented in this paper is to offer an overview on the specific problems and needs of the entrepreneurs financed through the Romania Start-up Plus programme, part of Start-UP Hub: The Entrepreneurs Laboratory Cod SIMS: 105648. A primary target of this research is to examine the components of intellectual capital and the way in which the intellectual capital influences the small business performance. The majority of the researchers agree that intellectual capital is directly connected to the performance of the SMEs sector. The results of our analysis shows the fact that intangible assets influence business development in various ways, such as increasing competitive advantage, expanding employee competency and improving organizational performance.

Palabras clave

  • intellectual capital
  • intangible asset
  • SMEs performance
  • structural capital
  • relational capital
Acceso abierto

The Corporate Governance Models for Banks: A Comparative Study

Publicado en línea: 26 May 2021
Páginas: 210 - 220

Resumen

Abstract

An effective corporate governance system is vital in modern-day economics and firms. It can help to specify the distribution of roles, responsibilities, and resources among various stakeholders of an organization or society. The enhanced role of the banks in various economic systems demands a higher level of corporate bank governance for a stable and sustainable financial system. In this paper; four major corporate governance models of banks are compared and the financial outcomes of each model are analyzed to assess their alignment with expectations of an effective corporate governance system. The Continental corporate governance model found to be closer to the expectations of an effective corporate governance system compared to the Anglo- Saxon, Chinese, and Islamic banking. Banks under the Continental model charge lower margin to its customers, use bank resources more efficiently and create relative balance in the distribution of resources among all stakeholders compared to the other three models. Banks under the Anglo- Saxon model are charging higher margin to its customer, Chinese banks are under-utilizing the banks’ resources, and Islamic banks are more favoring their shareholders and are riskier among banks of all selected models. Higher involvement of the more stakeholders in the decision-making process of the banks is key to effective corporate governance and sustainable banking system. Reforms in all corporate governance models are recommended while keeping in mind the prior research on corporate governance especially the Sir Adrian Cadbury report.

Palabras clave

  • Corporate Governance
  • Islamic Banking
  • Anglo-Saxon
  • Continental
  • Stakeholders
Acceso abierto

Banking and Money in an Extended Solow-Uzawa’s Neoclassical Growth Model

Publicado en línea: 26 May 2021
Páginas: 221 - 243

Resumen

Abstract

This study deals with interactions between economic growth and structural change with banking. The study is influenced by the growth model of money and banking by Chang et al. (2007). It deviates from Chang et al.’ model with regard to the monetary authority behavior, economic structure, and modeling behavior of household. The model deals with dynamic interactions between money, banking, economic structural change and growth in a perfectly competitive economy. The economic system consists of one capital goods sector, one consumer goods sector, and one banking sector. The two goods sectors are based on the Solow-Uzawa growth model. The motion is described by a set of differential equations. For illustration, we simulate the motion of the economic system. We identify the existence of a stable equilibrium point. We carry out comparative dynamic analysis. The comparative analyses provide some insights into the complexity of economic growth with banking.

Palabras clave

  • money
  • banking
  • neoclassical growth theory
  • propensity to save
  • reserve requirement
Acceso abierto

Bowman’s Risk-Return Paradox: Evidence From Eastern Countries

Publicado en línea: 26 May 2021
Páginas: 244 - 254

Resumen

Abstract

While conventional wisdom has stated that greater risks typically bring greater rewards, many studies have shown that this is not generally true for the financial state of firms. This paradox, known as Bowman’s paradox has motivated studies to examine this relationship across different industries, periods, and nations. However, most of these studies have focused on Western countries such as Belgium and the United States of America. Therefore, this paper contributes to the literature by investigating the generalizability of Bowman’s paradox and prospect theory across three distinct Eastern countries. Data is collected from 10,623 firms located in China, Japan, and Vietnam. Cross- sectional and longitudinal associations between risk and return provided general support for Bowman’s paradox and prospect theory for the three Eastern countries. The results indicate that there is a general negative risk-return relationship for firms in these countries. Further analyses show that this relationship is stronger for firms performing below the industry median. This might suggest that firms that are in trouble usually take more risks. This relationship is strongest for firms in Japan, followed by firms in China and Vietnam, respectively.

Palabras clave

  • Risk-return
  • Bowman’s Paradox
  • Prospect Theory
Acceso abierto

On the Impact of Dividend Payments on Stock Prices - an Empirical Analysis of the German Stock Market

Publicado en línea: 26 May 2021
Páginas: 255 - 269

Resumen

Abstract

This paper examines the relation between dividend payments and stock prices of all firms in the German prime standard DAX 30 in the time period from 2012 to 2019. The irrelevance theory introduced by Miller and Modigliani states that dividend payments must not have an impact on stock prices in a perfect market. In contrast, the signaling theory and the dividend puzzle indicate that dividend payments are likely to have a profound impact on the stock price. According to our findings the ex-dividend decrease of stock prices was significantly smaller than the dividend payment. Nevertheless, the results support the impact of the dividend payment on the share price. Firstly, the existence of the ex-dividend markdown is a proof that dividend payments cause share price losses. Secondly, the study explains in particular that high dividend payments result in high share prices over the examined period. Thirdly, our analysis demonstrates a positive correlation between the dividend and the stock price development according to the signaling theory. Considering the above- mentioned results, we can conclude that the share price of a company is highly affected by the decision making of the company regarding the dividend policy.

Palabras clave

  • Payout Policy
  • Dividend Payments
  • Stock Price
  • Market Efficiency
20 Artículos
Acceso abierto

The Impact of Legal Systems on Dividend Payments

Publicado en línea: 26 May 2021
Páginas: 5 - 11

Resumen

Abstract

This paper focuses on the amount of dividends paid to shareholders by companies in different countries and examines whether being in a country where the legal system offers weak shareholder protection affects dividend payments distributed to shareholders. The sample used for this study comprises 8,045 companies from 46 countries. Seven individual factors affecting shareholder protection were examined. Out of the seven factors, only two of them provide a significant relationship with dividend payments, and more specifically, the mechanisms put in place by companies to protect oppressed minority shareholders as well as minimum percentage share of capital in order for the shareholders to be eligible to call an extraordinary shareholder meeting.

Palabras clave

  • Dividend Payments
  • Shareholder Protection
  • Legal System
  • Corporate Governance
  • Minority Shareholders
Acceso abierto

Current Account Balance in Emerging Asia

Publicado en línea: 26 May 2021
Páginas: 12 - 25

Resumen

Abstract

The current account balance is an important indicator which reveals information on a country’s economic situation such as investments, capital flows, and indebtedness. The main purpose of this study is to examine the current account balance conditions in emerging Asian countries. In this respect, the long-run and causality relationship between current account balance, economic growth, government expenditure, real interest rates, and foreign direct investment was examined. The panel data analysis was applied using the data dated 1986 to 2015. Our results revealed a causal effect from economic growth and government expenditure to current account balance mainly dependent on saving tendency.

Palabras clave

  • Current account balance
  • emerging Asia
  • panel co-integration
  • panel causality
Acceso abierto

Market Structure and Determinants of Firm Profitability on General Insurance Industry in Indonesia

Publicado en línea: 26 May 2021
Páginas: 26 - 41

Resumen

Abstract

The purpose of this study is to analyze the market structure of the general insurance industry in Indonesia and the effect of market share, operating expenses to operating income (OEOI), and debt ratio(DR) on profitability measured by return on assets (ROA). This study uses panel data regression analysis with the Chow and Hausman test to determine the best model. This analysis uses a combination of cross-section data, which consists of 11 companies, and time-series data, which consists of five years. The results showed that the Indonesian general insurance industry in 2014-2018 took the form of a tight oligopoly with a high concentration level after being analyzed through the four-firm concentration ratio (CR4) and Herfindahl-Hirschman Index (HHI). The average CR4 ratio is 84.77%, while the value of HHI is 3,374.19. Meanwhile, the results showed that based on panel data analysis, the OEOI variable has a significant negative effect on firm profitability. Also, the debt ratio variable has a significant negative effect on the profitability of general insurance firms in Indonesia. The firm efficiency can be able to increase profits rather than mastery of market share.

Palabras clave

  • market structure
  • market share
  • four-firm concentration ratio
  • Herfindahl-Hirschman index
  • oligopoly
Acceso abierto

Supervisory Board’s Contribution to Corporate Strategy: Evidence from Croatian Companies

Publicado en línea: 26 May 2021
Páginas: 42 - 50

Resumen

Abstract

The main objective of this paper is to expand understanding of how supervisory boards contribute to corporate strategy. Using a sample of supervisory boards of Croatian listed companies, in this paper we investigate: (1) the overall level of supervisory boards involvement in corporate strategy, and (2) how are supervisory board’s structural attributes related to the intensity of strategic involvement. Our results indicate that supervisory boards indeed have an active role in shaping and supporting the corporate strategy. Strategic activities that supervisory boards most often execute are authorizing strategic decisions proposed by the management board and crisis management activities.

Palabras clave

  • corporate governance
  • supervisory board
  • strategy
Acceso abierto

Macroeconomic Determinants of Interest Rates in Bricst, Mint, and Fragile Five Countries: Evidence from Quantile Regression Analysis

Publicado en línea: 26 May 2021
Páginas: 51 - 67

Resumen

Abstract

As a substantially important indicator for economies, interest rates are influenced by a variety of macroeconomic factors. Considering this fact, the study aims to determine the influential macroeconomic determinants on deposit interest rates in emerging countries by using 12 independent macroeconomic determinants, yearly data between 1980 and 2018, and quantile regression method, which is applied for the first time to analyze interest rates. The empirical results show that influential determinants and their effects on the interest rate are differentiating for countries. The findings reveal that the most important factor in the interest rate is the consumer price index (CPI) in Turkey and Mexico; unemployment in Russia and China; total reserves in Nigeria; GDP in Indonesia; imports of goods and services in Brazil and South Africa. The results of the analysis emphasize the importance of macroeconomic indicators on the interest rates in each quantile. Taking measures by considering the findings of the study, which shows the role and importance of each macroeconomic indicator in quantiles, is essential to promote economic growth via ensuring low-level deposit interest rates and hence providing credit growth in emerging countries.

Palabras clave

  • Interest Rate
  • Macroeconomic Factors
  • Quantile Regression
  • BRICST
  • MINT
  • Fragile Five
Acceso abierto

Changes in Brand-Related Consumer Loyalty in the Current Pandemic Context

Publicado en línea: 26 May 2021
Páginas: 68 - 80

Resumen

Abstract

The current medical crisis and, implicitly, the economic one, generated by the Covid-19 pandemic have brought increased attention to the issue of brand-related consumer loyalty, as loyal consumers are the safest and most stable source of profit in the current economic and social context. It is well-known that there is no equality between the notions of consumer satisfaction and loyalty. The two notions are not synonymous, as consumer satisfaction is only a relative, but not sufficient condition to obtain consumer loyalty. This paper aims to take a systemic approach in discussing the issue of brand-related consumer loyalty, starting from the inputs, respectively the favorable factors that lead to consumer attraction, retention and, finally, to the desired output, respectively to their loyalty. The whole approach will be supported by the use of secondary data sources that will be used in order to pinpoint some essential aspects of the changes that took place in 2020 in what regards the consumer’s attachment to the brand.

Palabras clave

  • relational marketing
  • consumer satisfaction
  • brand equity
  • brand loyalty
Acceso abierto

GST and its Impact on Small and Medium Scale Enterprises - A Study of Peenya Industrial Area in Bangalore, Karnataka

Publicado en línea: 26 May 2021
Páginas: 81 - 94

Resumen

Abstract

The introduction of Goods and Services Tax (GST) on 1st July 2017 has revamped the tax structure carving a new path for the Indian economy. The new tax regime was envisioned to be free of problems of the previous tax system but since its proposal, it has received mixed reviews from industries, academia, and others. With extensive changes aimed at One Nation One Tax, it has left a massive impact on Small and Medium Scale Enterprises. The paper critically analyses impact of GST on Small Scale Enterprises specifically in Karnataka. Existing literature says GST shall reduce the cost of doing business, increase transparency, decrease the price of products, improve tax compliance and ease of doing business. This paper proves these assertions through primary data research and further identifies the need for reforms concerning job work, penalties for non-payment of GST, dual administration, and issues pending from previous tax regime. It has also clearly established that the composition scheme has been a non-performer and the reverse charge mechanism must be re-introduced later or revamped to balance its costs and benefits. Thus the study has implications for policymakers, industries, and academia and also provides a better understanding of the new tax system.

Palabras clave

  • Taxation
  • Goods and Service Tax and Medium and Small Scale Industries
Acceso abierto

Using Neural Networks to Predict Wages Based on Worker Skills

Publicado en línea: 26 May 2021
Páginas: 95 - 108

Resumen

Abstract

This paper describes the results of our Neural Network (NN) models that predict annual wages based on the combination and levels of 35 different skills possessed by wage earners. These models can estimate the value of skills for skill-based compensation systems. They can be used by employers to determine how much to compensate different combinations of skills and by employees to estimate what they should be paid. Finally, governments can use the models to support the development and analysis of labor policies. We collect and integrate official U.S. Government data on 35 general job skills with the annual wage data for over 900 standard occupations. The skills data is then used as inputs to train an artificial intelligence (Al) neural network (NN) models. The resulting NN models train to above 70 percent accuracy in predicting annual wage levels based on the combination and levels of 35 different skills. This research makes use of authoritative U.S. Government data in new ways that can be used to better understand the connections between general skills and their relationships to wages. The need for these types of analytical tools is all the more important as changes in the job market have been severely impacted by the COVID 19 pandemic and are increasingly at risk of being replaced by automation.

Palabras clave

  • Neural Networks
  • Occupational Skills
  • Skill-based Pay
  • Salary Prediction
Acceso abierto

Financial Bubbles for Economic Development: Implications Regarding ICOs

Publicado en línea: 26 May 2021
Páginas: 109 - 119

Resumen

Abstract

Most people consider financial bubbles as the result of speculations and manipulations, and that less of them will make a market economy more efficient. While speculative bubbles no doubt increase the risks and uncertainties of investors, there are many episodes in human civilization where financial bubbles are commensurate with real positive contribution to real development of an economy. This paper analyzes this issue from theoretical perspectives and in the context of recent new financial instruments created from the technology of blockchain.

Palabras clave

  • Financial bubbles
  • economic development
  • ICOs
Acceso abierto

Study on the Reputation of the (MASS) Media in Romania

Publicado en línea: 26 May 2021
Páginas: 120 - 135

Resumen

Abstract

Part of a bigger research project conducted by Media Reputation Lab (Media REP Lab) on the reputation of media in Europe, the study explores the reputation of media among informed population in Romania. A sample of 100 cases was involved in the online survey taking place in December 2019. The results provide a description of the country’s media reputation (media in general: radio, print, digital and television). For each one of these media, the valuation obtained by each of the reputational attributes (credibility, rigor, impartiality, willingness to rectify) by the informed population would be indicated. Moreover, insights on the knowledge and use, as well as on the reputation (overall and by category, considering ten key reputation aspects) - of twelve selected media - would be provided.

Palabras clave

  • Key Reputation Aspects
  • Mass Media
  • Reputation
  • Reputational Attributes
  • Romania
Acceso abierto

How Intellectual Capital is Made?

Publicado en línea: 26 May 2021
Páginas: 136 - 146

Resumen

Abstract

Worldwide organizations are compelled by global competition to achieve notable, inimitable results. In order to achieve this organizations must differentiate themselves from their competitors by using intangible resources that can get the long-term competitive advantage. This can be accomplished by identifying and managing the important elements of performance more effectively and efficiently. Consequently, organizations have to be aware and understand the connection between valuing intellectual capital and their performance. This article enhances the relationship between intellectual capital indicators and the measures to be taken in order to become strong innovators at european level. By identifying the key indicators taken into consideration at European level an national analysis was made in order to identify the weak points that made a gap between Romania and the other european countries.

Palabras clave

  • intellectual capital
  • innovation strategies
  • innovative skills
Acceso abierto

Online Marketing Research - Roles in Generating Customer Insights

Publicado en línea: 26 May 2021
Páginas: 147 - 161

Resumen

Abstract

Companies cannot take decisions without the availability of proper information. So, marketers need to have the latest information about the target market. Marketers achieve this by collecting information based on traditional data collection methods and online marketing research. The study discusses the various aspects of conducting online marketing research, role of the internet in online marketing research, strategies followed by companies for online marketing research, the ways in which companies communicate and act on the information generated from the research, and the advantages and the disadvantages of conducting online marketing research. The study suggests that companies should conduct online marketing research not only to collect information about customers but also to utilize the insights generated to formulate better strategies and to develop better relationships with customers.

Palabras clave

  • Data Collection
  • Quantitative Research
  • Qualitative Research
  • Online Survey
  • Focus Group
  • Internet
  • Data Security
  • Data Privacy
Acceso abierto

Romanian Equity Investments and Currency Risk: A Euro-Based Perspective

Publicado en línea: 26 May 2021
Páginas: 162 - 176

Resumen

Abstract

This paper assesses the benefits and risks of international investments made on the Romanian stock market, from the perspective of euro-based investors. We investigate the contribution of exchange rate volatility to the total risk of these investments over a period of nine years, between January 2011 and December 2019, by using monthly values for the exchange rate between the Romanian leu and Euro and monthly values of the Romanian stock index. Our findings indicate that, on average, Romanian leu depreciated against euro, causing currency losses for the euro-based investor, counterbalanced by the Romanian index mean return, higher than euro countries index mean return during the period under analysis. However, comparing the exchange rate volatility with the volatility of the local index market, we find that that exchange rate returns have lower standard deviations values, which may suggest that the exchange rate volatility does not seem to be an additional factor to the total volatility of the Romanian stock market returns denominated in euro. This conclusion is supported by the values obtained for lambda, a synthetic indicator which measures the proportion of the volatility attributable to exchange rate fluctuations from the total volatility of the euro-based investor returns. Combined, these results imply that currency risk has only a moderate and controllable influence on international investments made by a euro-based investor on the Romanian stock market

Palabras clave

  • international investments
  • currency risk
  • Romanian stock market
Acceso abierto

Measuring Performance in the Luxury Industry: Is there a Difference in Performance Between the top and Bottom Players in the Industry?

Publicado en línea: 26 May 2021
Páginas: 177 - 186

Resumen

Abstract

This paper presents a methodology that consists of a Z-score function applied on a set of indicators for the luxury industry and then standardized to obtain a ranking of the companies on a scale between 10 and 100. To measure the performance for the top 5 LVMH, Estee Lauder, Richemont, Kering, Essilor Luxottica, and bottom 5 Aeffe, Tribhovandas, Van de Velde, Mulberry, Trinity companies (based on Deloitte global ranking in 2019) in the luxury industry and to unveil which are the performance drivers. By applying this methodology it can be made a comparison in performance between the top and the bottom companies in the luxury industry. The performance score is calculated for ten years (2010 - 2019) on public companies from the luxury industry.

Palabras clave

  • Luxury industry
  • Performance
  • Z-score
  • Ratio Analysis
Acceso abierto

Marginal Utility and Cournot Stability Under Market Entry

Publicado en línea: 26 May 2021
Páginas: 187 - 197

Resumen

Abstract

This paper introduces into the discussion of the stability of quantity-oligopoly equilibrium, the role that the slope of the marginal utility curve and of market entry in shaping the equilibrium and its stability. It does so by considering inverse multivariate linear demand functions and the notion of stability related to multivariate mean value theorem. The equilibrium cluster of Cournot sellers is determined by the stability dictated by this theorem and the rate of decline of the marginal utility of the product under consideration. Strategic complementarity is found to be the case under product heterogeneity, while the strategic substitutability associated with product homogeneity, induces a modification of Cournot limit theorem.

Palabras clave

  • Cournot equilibrium stability
  • General quantity oligopoly
  • Quasilinear quadratic utility
  • Mean value theorem
Acceso abierto

The Impact of Intellectual Capital on the SMEs Performance: A Study of the Romanian Central Region SMEs

Publicado en línea: 26 May 2021
Páginas: 198 - 209

Resumen

Abstract

The 21st century is the century of change and maybe one of the most important changes in the organizations’ life is the transition from focusing on the development of the tangible assets to the development of the intangible assets and the interest for attracting human resources capable to generate performance. The survival of many companies depends on their willingness and capacity to adapt to such changes. (Abdulaali, 2018) In this dynamic and complex economic system, the intangible assets of organizations become primary, being decisive for the organizations’ performance. In the new economic competition, intangible assets provide a sustainable competitive advantage, intellectual capital and intangible assets representing the key factor in company profitability and success. In the knowledge based society, intellectual capital has more value for organizations than tangible assets and knowledge becomes a permanent source of competitiveness (Bhatti, Zaheer, 2014). It is considered by specialists a valuable and strategic resource, since the success of organizations depends on creating, discovering, storing, disseminating, measuring and developing knowledge. The main objective of the research presented in this paper is to offer an overview on the specific problems and needs of the entrepreneurs financed through the Romania Start-up Plus programme, part of Start-UP Hub: The Entrepreneurs Laboratory Cod SIMS: 105648. A primary target of this research is to examine the components of intellectual capital and the way in which the intellectual capital influences the small business performance. The majority of the researchers agree that intellectual capital is directly connected to the performance of the SMEs sector. The results of our analysis shows the fact that intangible assets influence business development in various ways, such as increasing competitive advantage, expanding employee competency and improving organizational performance.

Palabras clave

  • intellectual capital
  • intangible asset
  • SMEs performance
  • structural capital
  • relational capital
Acceso abierto

The Corporate Governance Models for Banks: A Comparative Study

Publicado en línea: 26 May 2021
Páginas: 210 - 220

Resumen

Abstract

An effective corporate governance system is vital in modern-day economics and firms. It can help to specify the distribution of roles, responsibilities, and resources among various stakeholders of an organization or society. The enhanced role of the banks in various economic systems demands a higher level of corporate bank governance for a stable and sustainable financial system. In this paper; four major corporate governance models of banks are compared and the financial outcomes of each model are analyzed to assess their alignment with expectations of an effective corporate governance system. The Continental corporate governance model found to be closer to the expectations of an effective corporate governance system compared to the Anglo- Saxon, Chinese, and Islamic banking. Banks under the Continental model charge lower margin to its customers, use bank resources more efficiently and create relative balance in the distribution of resources among all stakeholders compared to the other three models. Banks under the Anglo- Saxon model are charging higher margin to its customer, Chinese banks are under-utilizing the banks’ resources, and Islamic banks are more favoring their shareholders and are riskier among banks of all selected models. Higher involvement of the more stakeholders in the decision-making process of the banks is key to effective corporate governance and sustainable banking system. Reforms in all corporate governance models are recommended while keeping in mind the prior research on corporate governance especially the Sir Adrian Cadbury report.

Palabras clave

  • Corporate Governance
  • Islamic Banking
  • Anglo-Saxon
  • Continental
  • Stakeholders
Acceso abierto

Banking and Money in an Extended Solow-Uzawa’s Neoclassical Growth Model

Publicado en línea: 26 May 2021
Páginas: 221 - 243

Resumen

Abstract

This study deals with interactions between economic growth and structural change with banking. The study is influenced by the growth model of money and banking by Chang et al. (2007). It deviates from Chang et al.’ model with regard to the monetary authority behavior, economic structure, and modeling behavior of household. The model deals with dynamic interactions between money, banking, economic structural change and growth in a perfectly competitive economy. The economic system consists of one capital goods sector, one consumer goods sector, and one banking sector. The two goods sectors are based on the Solow-Uzawa growth model. The motion is described by a set of differential equations. For illustration, we simulate the motion of the economic system. We identify the existence of a stable equilibrium point. We carry out comparative dynamic analysis. The comparative analyses provide some insights into the complexity of economic growth with banking.

Palabras clave

  • money
  • banking
  • neoclassical growth theory
  • propensity to save
  • reserve requirement
Acceso abierto

Bowman’s Risk-Return Paradox: Evidence From Eastern Countries

Publicado en línea: 26 May 2021
Páginas: 244 - 254

Resumen

Abstract

While conventional wisdom has stated that greater risks typically bring greater rewards, many studies have shown that this is not generally true for the financial state of firms. This paradox, known as Bowman’s paradox has motivated studies to examine this relationship across different industries, periods, and nations. However, most of these studies have focused on Western countries such as Belgium and the United States of America. Therefore, this paper contributes to the literature by investigating the generalizability of Bowman’s paradox and prospect theory across three distinct Eastern countries. Data is collected from 10,623 firms located in China, Japan, and Vietnam. Cross- sectional and longitudinal associations between risk and return provided general support for Bowman’s paradox and prospect theory for the three Eastern countries. The results indicate that there is a general negative risk-return relationship for firms in these countries. Further analyses show that this relationship is stronger for firms performing below the industry median. This might suggest that firms that are in trouble usually take more risks. This relationship is strongest for firms in Japan, followed by firms in China and Vietnam, respectively.

Palabras clave

  • Risk-return
  • Bowman’s Paradox
  • Prospect Theory
Acceso abierto

On the Impact of Dividend Payments on Stock Prices - an Empirical Analysis of the German Stock Market

Publicado en línea: 26 May 2021
Páginas: 255 - 269

Resumen

Abstract

This paper examines the relation between dividend payments and stock prices of all firms in the German prime standard DAX 30 in the time period from 2012 to 2019. The irrelevance theory introduced by Miller and Modigliani states that dividend payments must not have an impact on stock prices in a perfect market. In contrast, the signaling theory and the dividend puzzle indicate that dividend payments are likely to have a profound impact on the stock price. According to our findings the ex-dividend decrease of stock prices was significantly smaller than the dividend payment. Nevertheless, the results support the impact of the dividend payment on the share price. Firstly, the existence of the ex-dividend markdown is a proof that dividend payments cause share price losses. Secondly, the study explains in particular that high dividend payments result in high share prices over the examined period. Thirdly, our analysis demonstrates a positive correlation between the dividend and the stock price development according to the signaling theory. Considering the above- mentioned results, we can conclude that the share price of a company is highly affected by the decision making of the company regarding the dividend policy.

Palabras clave

  • Payout Policy
  • Dividend Payments
  • Stock Price
  • Market Efficiency

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