<abstract><title style='display:none'>Abstract</title>The concept of an efficient financial market, in literature known as efficient market hypothesis (EMH), has had a long and difficult development path from the idea itself to its final conception, as one of the central paradigms in modern finance. It has been tested and critically reviewed for decades, and the two basic types of problems it has encountered are theoretical paradoxes and market anomalies. The aim of the paper is to examine the validity of EMH through various financial market efficiency tests and the results of previous research. The intention is to answer the question of whether, despite theoretical paradoxes and market anomalies, the notion of validity can be attributed to the concept of an efficient financial market. In this regard, the paper presents plenty of evidence for and against the validity of weak, semi-strong, and strong form of EMH, to conclude that, even after more than half a century of research, financial literature has not reached a consensus on the presence or absence of the validity of this hypothesis.</abstract>

Evidence for and Against the Validity of Efficient Market Hypothesis

<abstract><title style='display:none'>Abstract</title>This paper examines the relationship between employee engagement and job satisfaction. People spend most of their time at work, and their motivation is considered to be an important factor for job performance. Enthusiastic employees, who focus their efforts on achieving their companies′ goals are a key competitive advantage in the modern world. The effect of employee engagement on business performance has been studied by various experts. They found out the similar conclusion: “the more enthusiastic the workers are, the better operating results they achieve for the company”. An occasional sample of 594 respondents who are employed in the public and non-public sector in Slovenia was used for the purpose of this study. The main goal of the research is to determine whether (and how) the employee engagement influences job satisfaction. A written survey was conducted from 4 January 2016 to 14 March 2016. IBM SPSS 20 was used for the statistical analysis. The results confirm that the relationship between employee engagement and job satisfaction is positive and statistically significant (5 % significance level), based on the linear regression F (1, 583) =296.14, p-value = 0.000, R-square = 0.337. The results also show that there is no statistically significant difference between employee engagement and gender and there is no statistically significant difference between job satisfaction and gender.</abstract>

An Analysis of the Relationship Between Job Satisfaction and Employee Engagement

<abstract><title style='display:none'>Abstract</title> The aim of the research in this paper is to analyse the issue of the treatment of the category of technological changes within the main aspects of economic growth theory. The analysis of the key positions of neoclassical theory (Solow), endogenous approach (Romer), and evolutionary growth theory (Freeman) advocates has pointed to the conclusion that these approaches agree on the fact that the category of technological changes is a key generator of economic growth. Neoclassicists were the first to explicitly analyse the category of technological changes in growth theory. They exerted a strong influence on a large number of governments to allocate significant funds for scientific and research development, to stimulate the creation and diffusion of innovation. Supporters of endogenous theory also see the category of technological changes as a key driver of economic growth. Unlike neoclassicists, they emphasise the importance of externalities, in the form of technological spillover and research and development activities, for the creation and diffusion of innovation. Finally, evolutionary and institutional economists explore the category of technological changes inseparably from the economic and social environment in which they are created and diffused. Recommendations of this research can be of particular use to economic growth and development policy makers in the knowledge economy, whose basic and substantial feature is the so-called fourth industrial revolution</abstract>

Business School of Applied Studies in Valjevo

University of Nis, Faculty of Economics, Republic of Serbia

Technological Changes in Economic Growth Theory: Neoclassical, Endogenous, and Evolutionary-Institutional Approach

<abstract><title style='display:none'>Abstract</title>The aim of this paper is to explore the development of the compensation practice in the context of human resource management (HRM) in Serbia. The objectives are to detect the extent of the usage of different elements in the compensation packages, the level of negotiation during the determination of the basic pay, the responsibility for decision making process regarding basic pay, the extent of the usage of different types of benefits, and to explore the differences between these data in the two research periods, 2008-2010 and 2014-2016. The methodology in this paper includes the theoretical analysis of the compensation systems, as well as the comparative analysis of the data on compensation in Serbia based on the Cranet research. The sample of the study consisted of 210 organisations from Serbia, 50 organisations in the 2008-2010 period and 160 organisations in the 2014-2016 period. This paper brings new insights to the development of comparative compensation management since it points to the development/changes of the compensation practice (in years) in Serbian HRM.</abstract>

The Development of Compensation System in Serbia: A Comparison of Two Successive Cranet Research Rounds

<abstract><title style='display:none'>Abstract</title>The goal of the paper is to present the intervention strategies used by central banks in order to influence the value of the domestic currency, transparency versus discretion when it comes to publishing data about FX intervention and the cost and effectiveness of intervention. It is rarely that nowadays countries allow for an exchange rate to be formed on the market basis through the effects of supply and demand for foreign exchange on the foreign exchange market. The central bank buys or sells a foreign currency in the foreign exchange market in order to increase or decrease the value of its national currency in comparison to the foreign currency. The reasons for the intervention are the reduction of short-term oscillations of the exchange rate, the impact at the level of foreign exchange reserves, as well as the maintaining the price and financial stability as the ultimate goal of most central banks. The paper will present intervention strategies on foreign exchange market, which involves the implementation of interventions in the market of options, forward, foreign currency repo and foreign currency swaps. Then, on the spot market, interventions using an auction, as well as the application of foreign currency indexed certificates.</abstract>

Intervention Strategies in Foreign Exchange Market

<abstract><title style='display:none'>Abstract</title>Despite increasing income per capita, the EU candidate and potential candidate countries remain confronted with high levels of income inequality. The purpose of our paper is to identify the main determinants of income inequality among the EU candidate countries. In addition to macroeconomic factors, we also analyze the impact of demographic variables to provide more reliable estimates. Using panel data analysis with fixed effects in the period 2005-2017 for three EU candidate countries (North Macedonia, Serbia and Turkey) we find that the unemployment rate, the level of economic development and the investment rate are the main determinants whose increase leads to a bigger income differentiation in the analyzed countries. The government indebtedness has also a statistically significant, but a negative impact on income inequality. The other two macroeconomic variables in the model – the terms of trade and inflation are statistically insignificant. Among the demographic factors, population growth and education significantly affect income inequality among the EU candidate countries. The obtained results suggest that a sustainable economic growth combined with active measures in the labor market and the improvement of education level of the population could lead to more equal income distribution.</abstract>

Determinants of Income Inequality in EU Candidate Countries: A Panel Analysis

<abstract><title style='display:none'>Abstract</title>
The number of users of digital banking services has grown in recent decade, since digital banking services are being done easier, faster and at lower cost than banking services performed in a traditional face-to-face manner. Banks should work on enhancing their digital services according to their demand and conveniently improve customer experience especially for unbanked younger generations. The aim of this paper is to reveal student’s perception of digital banking services in Serbia. Research has been conducted via empirical survey in the form of an online questionnaire, with the descriptive statistics applied. The results showed diverse pattern of digital banking engagement with the largest proportion of students specifying that they use DBS at least once per week. When they did use banking services, most often they used them for money transfer and paying bills, emphasizing the vital role of digital platforms in facilitating financial transactions. Overall students’ satisfaction with DBS is on the high level, and students appreciate technologies development of banking offerings. The results of this research could be used by banks to reveal students’ perception on digital banking service, and to help them create adequate digital services and pivot their business models in that direction.
</abstract>

sladjana.barjaktarovic.rakocevic@fon.bg.ac.rs

Digital Banking Services – Students’ Perspective

<abstract><title style='display:none'>Abstract</title>
Theoretical literature indicates that foreign direct investment can bring about major changes in host economies, especially in developing countries, because of its advantages in financing, transferring modern technology, contributing to the development of human capital, contributing to inventions through research and development activities, contributing to the openness of the host economy on the global markets, and other accompanying advantages, but these advantages cannot be benefited from unless certain conditions are met in the host economy. In this context, this paper sought to investigate the impact of inflow foreign direct investment on economic growth in the Arab countries region between 1990 and 2000, using ARDL bounds testing approach. The results showed that there was a very weak effect of foreign direct investment on economic growth in the long run, but in the short run there was no effect. The reasons for this are mainly due to the lack of appropriate and necessary conditions that attract and incubate foreign direct investments in most Arab countries.
</abstract>

Impact of Foreign Direct Investment on Economic Growth: Evidence from Arab Region

<abstract><title style='display:none'>Abstract</title>
The company’s digital transformation requires the optimization and automation of processes through Industry 4.0 technology, leading to a new business model. Along with technology, effective human resource management (HRM) is crucial for this model. HRM and Industry 4.0 technology are interdependent. Technologies require new HR operating models, and HR, through organizational management strategies such as change management, agile organizations, and talent management, influences the provision of a workforce capable of implementing these disruptive technologies. This paper focuses on HR's role in digital transformation and the resulting changes in HRM and HR practices. It presents use cases of Industry 4.0 technology and their benefits. The study presented in this paper examines the impact of HR practices on operational, financial, and employee performance in relation to the use of disruptive technologies. A survey questionnaire was used to examine this impact on 11 large and medium-sized companies in Serbia, using statistical methods of descriptive statistics and correlation analysis through SPSS 23 software to analyze the results. The research showed that the use of artificial intelligence and machine learning (AI/ML) in HR processes has a positive effect on employee performance, as well as operational and financial performance. Other hypotheses were only partially proven. The research also revealed the lack of training for HR employees regarding the use of digital technologies in HR processes and digital skills compared to other sectors in the company. The recommendation is that HR managers begin training on the digitization of HRM as soon as possible.
</abstract>

HR Practices Through the Lens of Technology and Digital Transformation

<abstract><title style='display:none'>Abstract</title>
Making financial decisions under risk and uncertainty has become part of everyday life. Traditional finance explores the objective side of risk, analysing the decisions made by perfectly rational individuals in efficient market conditions. Behavioural finance seeks to connect theory with practice by combining elements of behavioural psychology with finance. The centre of interest of this theory is an individual with limited cognitive abilities and the tendency to make rational choices. The paper presents the risk component of financial and investment decisions from behaviour finance view point. In addition to precise “objective” measures, when expressing risk, subjective elements should be considered – investors’ risk perception and risk attitudes. This paper aims to highlight the key characteristics of the subjective elements of risk to obtain a full picture of the outcomes of financial decision-making. Based on the analysis of theoretical and empirical studies, we define challenges, as well as recommendations to individual investors regarding the influence of psychological factors when making investment decisions.
</abstract>

Traditional and Behavioural Approach to Risk in Finance

<abstract><title style='display:none'>Abstract</title>
It is generally accepted that within nations devoid of significant limitations on administrative capacity, all products and services should be subject to a uniform value-added tax (VAT). If compliance is impeccable, the c-efficiency of VAT in these countries, which measures actual revenue over prospective revenue, should be one. The establishment of a proficient VAT administration, characterized by streamlined processes and procedures, is advantageous for many stakeholders. This includes national administrations as well as individual taxpayers and citizens. The study used primary data sources to identify the relationship between tax administration and the performance of VAT. This paper offers an assessment of tax administration effectiveness in Serbia in the period from 2005 to 2022. The investigation aims to accumulate empirical information regarding administrative components that affect the c-efficiency ratio through careful observation and data collection. The study assured that tax administration significantly affects the performance of VAT. The outcome variable, the c-efficiency ratio is highly affected by the effectiveness of tax administrators.
</abstract>

What Drives the Performance of Value-Added Tax? Investigating the Effectiveness of Tax Administration in Serbia

<abstract><title style='display:none'>Abstract</title>
Intellectual capital (IC) is one of the core determinants of the value of companies, and value creation for stakeholders as well as improvement of the competitiveness of the companies. Effective management of all visible and invisible elements of the total IC is extremely important for business success, since the effective providing, creating, developing and efficient use of intellectual resources affects various business performances, such as income, market share, net profit, and profitability of the company quantified by various performance measures of Return on assets (ROA) and Return on equity (ROE). One part of the total IC is disclosed and visible in the assets side of the balance sheet (Intellectual assets and Goodwill - Iag), while the other, is undisclosed and invisible (Human capital - Hc and Structural and relational capital - SRc). Efficiency in the usage of all these elements of IC has an impact on profitability. The purpose of this research (based on 12 leading companies in the automotive industry from 2010 to 2019) is to examine the interdependence, as well as the influence, of the Efficiency in the use of Intangible assets and goodwill (Eiag) on various rations of ROA and ROE using the EIC (the Efficiency of Intellectual Capital) model for calculation of the Eiag indicator. Although there are numerous studies that use the VAIC methodology to research the interdependence and impact of the efficiency of certain elements of IC on business performance, as well as, in particular, on profitability, the originality of this paper is based on an investigation of the interdependence and influence of Eiag on profitability (ROA and ROE), which is not the case with the studies of other researchers so far, because Pulić’s VAIC methodology does not separate the visible IC component i.e. Iag. The outcomes of this study confirm a positive relationship between the efficiency in the use of intangible assets and goodwill (Eiag) and profitability (ROA and ROE), as well as the growing impact of Eiag on profitability indicators (ROA and ROE). The findings imply the extreme importance of effective and efficient management of all elements of intellectual assets that are visible on the assets side of the balance sheet, taking into account the evident impact on profitability.
</abstract>

Does The Efficient Use of Visible Intellectual Capital Determine the Profitability in the Automotive Industry?

<abstract><title style='display:none'>Abstract</title> Technological advancement across human activities has brought about accelerated generation of huge amounts of data. Consequently, researchers are faced with the problem how to determine adequate ways of turning the available data mass into useful knowledge. Data analysis adapted to these changes when data mining was developed as an approach to data analysis from different perspectives which reveals significant hidden regularities. This paper presents conceptual characteristics of decision tree, an important data mining method which is, due to its explorative nature, exceptionally suitable for detection of data structure when analysing various problem situations. The empirical section of the paper demonstrates applicative characteristics of this method using CHAID algorithm in leadership studies: an interdependence of selected personal characteristics and the manager’s leadership style has been investigated. The aim of the paper is to develop a classification model for identification of the dominant leadership style. The study was conducted on the sample of 417 managers of privately owned small-sized enterprises in Serbia, using a specially designed questionnaire. The classification model identified the set of six statistically significant personal characteristics as predictors of dominant leadership style.</abstract>

Faculty of Economics, University of Kragujevac,

CHAID Decision Tree: Methodological Frame and Application

<abstract><title style='display:none'>Abstract</title> The aim of this paper is to analyse and estimate the efficiency of health information systems in the provision of health care services. The evaluation of health information systems is conducted in the case of three most widely used softwares in the electronic health care. This evaluation is based on multi-criteria analysis of the health information systems efficiency using the AHP-TOPSIS method. This method, based on common attributes and their respective values for all three software solutions, individually determines the best rated software solution. Top rated software solution of electronic health care is not necessarily the best for the implementation and development, given the fact that each health care organisation has its own characteristics. Functional and evolutionary-minded hardware and software applicative infrastructure contributes to the consistency of electronic health concept that all system users provides a comfortable software solutions, which ultimately leads to the timely and quick medical services in real time.</abstract>

Integrated AHP-TOPSIS Method for the Assessment of Health Management Information Systems Efficiency

<abstract><title style='display:none'>Abstract</title>An ethical dilemma is a situation of making a choice between two or more alternatives. An agent is in unpleasant and difficult situation because he/she often needs to make a choice between ethical and unethical alternatives, and when it comes to the ethical alternatives, he/she should choose the best one. Selection reflects to a large number of principals, so this situation causes conflicts between different levels of ethical dilemmas, but also the conflicts within the same level. These conflicts can be solved by applying the hierarchy and priority rules which are incorporated in the procedure and, in particular,in the strategy for solving the ethical dilemmas. Through many case studies this paper points out the importance of an ethical dilemma in making business decisions, the so-called business ethical dilemma. It is the result of the incompatibilities between altruism, egoism and the common good. Neglecting the need for establishing the compatibility not only creates an ethical dilemma, but it becomes deeper, which is firstly manifested through the loss of reputation of the company, then through decreasing the financial results, and, in the worst case, in closing the company. Therefore, an ethical dilemma must be continuously managed.</abstract>

Managing an Ethical Dilemma

<abstract><title style='display:none'>Abstract</title>The organic food market in Serbia is in its initial phase of development and can be considered a developing market. A deeper understanding of consumer motivation is possible through an adequate marketing approach which will provide increased organic food purchasing per capita and the quicker development of the national market. This paper presents a selection of the most important findings, which the author obtained from a quantitative study carried out in Serbia. We studied and analyzed the main reasons why people purchase organic food and the obstacles to buying these products, as well as the willingness of consumers to pay a higher price for organic products in comparison to the alternative products obtained from conventional food production systems. The presented results support the theoretical conclusions acquired from numerous previous studies carried out in various countries. Starting from the obtained research results, the conclusion offers a recommendation for the implementation of successful strategies of the marketing mix instruments.</abstract>

A Study of the Consumer Motives which Influence the Purchase of Organic Food in Serbia

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Economic Themes

 The Faculty of Economics in Niš publishes the journal Economic Themes within the Center for Publishing. According to the categorization of the Ministry of Education and Science of...

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 The Faculty of Economics in Niš publishes the journal Economic Themes within the Center for Publishing. According to the categorization of...