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The article studies loans in the Bulgarian banking system in the period 2011 – 2015. The overall levels of loans, especially “problematic” loans over 90 days expiration, are analyzed. The publication focused on the problems of credit risk assessment, including the provision (depreciation) of assets.Key words: banks, loans, credit risk, provisioning (depreciation).
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The new EU members after 2004, generates two unmistakable trends: first, the trend of increasing the size of the Union in the direction of population, territory, cultural diversity and block GDP, and second, trend of decrease in the average level of income in the EU, measured per capita. The latter is mostly due to the inclusion in the European Union of countries which have strong net needs for resources to support the process of convergence, leading to a levelling of standards for labour productivity and income. This article aims, from aposition of convergence process, to assess problems, results and trends of EU membership in the enlargement process and the post crisis economic recovery. The article is structured into five separate components, supplemented by closing with key conclusions and recommendations.
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The current analysis is based on servicing impaired loans, which produce adverse effects on the country’s economic development and banking system. An impaired loan is also known as “bad loan”. By definition this is a loan in which the value of the collateral is less than the borrower’s outstanding principal cashflow; the borrower’s business is in decline, therefore it is insufficient for servicing principal or interest. These occur either in periods of economic depression or in areas hit by natural disasters.
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Since the beginning of the economic crisis, the employment growth of small and medium-sized enterprises in the trade sector in Bulgaria has been strongly affected. For the period 2008–2016, micro-enterprises accounted for almost half of the employed in the sector. The share of workers in trade in the Southwest region of the country is high, and the outflow of personnel resources from the Northwest and the North Central Region is getting worse over time. In the survey, female jobseekers are more than men, and this tendency is opposed to the development of the gender structure in enterprises from other economic activities.Empirical data on employed persons allocated to businesses in the commerce sector for the period 2008–2016 shows a slight degree of change in their structure on a chain and on a permanent basis. The territorial structure of those employed in the trade for the same period is not very volatile. More significant is the change in the age structure of the employed in the trade within the survey period.
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Nowadays, significant transformations are observed in the sphere of finance as a system of specific relations, policy, and scientific field. This research is focused on the impact of the dynamic concept of sustainable development in finance. The purpose is to examine the changes occurring in finance in their different aspects under the influence of the sustainability paradigm, and to present the author’s vision of their nature, scope, and contemporary challenges. To achieve this goal, a critical analysis has been carried out of supranational strategic documents and agreements, scientific publications, business regulations and practices. It has been proven that sustainable finance is not a separate field or element of finance, but a new stage in the development of the financial system, policy, and science.
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Following the conflict of Ukraine, global trade has faced a double whammy: a confidence shock in demand, as well as increasingly high price pressures. High energy prices, geopolitical tensions, and increased transportation bottlenecks rank among the basic concerns for the existence of business in Eastern European countries. These challenges will tighten financing and will exacerbate interfirm debt problems, resulting in a number of insolvencies that will continue to increase in the coming quarters. In this complex political, financial, and economic environment, with constantly emerging new crises and risks, business may only survive if it restructures itself and properly adapts to the new reality.
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There is no doubt that technology occupies a very important part of our daily lives today, and that the Fourth Industrial Revolution covers all industries. The financial sector is one of the sectors that has also been greatly influenced by Industry 4.0. Banking. Accounting, insurance, the tax function, cash management, control, and many others are developing thanks to the use of digital technologies and the automation of financial processes. Fintech companies, the use of mobile devices in banking, the crypto-banking system based on the blockchain technology, as well as the open banking systems are developing so dynamically that they have drastically transformed the financial sector in recent years.
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Empirical evidence on the relationship between corporate social responsibility (CSR) and corporate financial performance (CFP) remains contentious in terms of both its direction and causality. The presented study explores the intervening roles of stakeholder heterogeneity and the time dimension in the CSR–CFP relationship. We posit that there is a positive relationship between CSR activities towards market stakeholders (employees, customers, competitors) and future CFP and a negative relationship between CSR activities towards non-market stakeholders (NGOs, society, natural environment) and future CFP. A conceptual model is analysed using a sample of 115 Croatian companies. Countering expectations, a positive relationship is observed for all stakeholder groups considered (market and non-market), showing that CSR is a coherent construct regardless of the stakeholder group being studied. The key managerial implication is that socially responsible action is also in a company's economic interest.
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The observable impact that inflation has on the course of economic processes makes it necessary to consider the emerging legal and economic challenges. The purpose of the article is to define the legal and economic environment of the public procurement market under conditions of high inflation. The considerations are limited to the Polish economy and the Polish legal system (taking into account the sources of EU law). This limitation is due to the complexity of national legal regulations and the specific economic situation of the country, as well as the scale of the problem. The literature review showed that the process of increasing the average price level reduces the efficiency of public procurement, and, as its dynamics increase, its impact increases as well. The legal environment should allow market players to adapt to inflationary conditions. It is worth noting that it is possible to consider inflation as an economic effect of the war in Ukraine, which can be the basis for applying the valorization of project cost estimates and price rates for their implementation. Price increases affect all sectors of the economy on average, and this may lead to the need to valorize many contracts and, consequently, to a significant burden on the budget of the contracting institution by which the urgency of the implementation of all contracts is verified. Furthermore, allowing for valorization does not fully resolve the negative impact of high inflation on the procurement process, as the issue of contractor reporting remains. The values presented in financial statements are reported nominally, therefore comparability from period to period is disturbed.
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Although many competitors have always coexisted in the wealth management business, large banks are usually the dominant market player. It is difficult to refute this claim today, but it is a fact that in the last decade there has been a serious shift in the industry. An additional catalyst for this proccess is the Covid-19 pandemic. This change is mainly embodied by the renaissance of the business models of some of the traditional market participants (boutique private banks and family offices) and the emergence of new competitors (WealthTech companies). The aim of the author of this article is to present the competitive landscape in the segment "Private Banking and Wealth Management", focusing on the drivers of its gradual transformation, as well as the strengths and weaknesses of leading market participants.
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The aim of this study is analyzing the effects of Economic Value Added (EVA) and Cash Value Added (CVA) on firm performance, also analyzing whether COVID-19 pandemic affected the firm performance of listed healthcare companies in South-east Asia countries significantly. The objective of this study is to see if healthcare sectors company are really a better option for investors in this time, especially because of the emergence of COVID-19. The firm performance in this study was measured with Market Value Added (MVA). This study took samples of listed healthcare companies from three South-east Asia countries, Indonesia, Malaysia, and Singapore. The study samples included 16 samples from 16 Indonesian Healthcare companies listed in the Indonesia Stock Exchange (IDX), 13 samples from 19 Malaysian Healthcare companies listed in the Bursa Malaysia, and 23 samples from 33 Singaporean Healthcare companies listed in the Singapore Stock Exchange (SGX), the total samples used were of 150 companies. The samples used in this study are from selected companies representing the whole segment. All samples were based on the informations provided in their annual report ended per 31 December. Multi regression analysis method was applied in this study to determine the effects of COVID-19 pandemic on the listed healthcare companies’ performance. Based on the tests conducted for this study, it is found that EVA and CVA have a positive significant effect on MVA. However, there was no significant difference found between MVA before and during COVID-19 pandemic.
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Since the 2010s cryptocurrencies have started to acquire a popularity never seen before, influencing the way the general population, investors, and governments treat investments. It is no surprise that central banks are pursuing their own digital currency in order to boost the security of transactions and reduce counterfeiting. Throughout this paper, we are going to analyze and compare the market valuation of the ten most valuable cryptocurrencies and explain if it is possible that one of them could become a viable and widely used currency in the future. Additionally, we are going to examine the central banks that will pursue their own digital currency and the reasons as of why they chose to venture into this new uncharted technology.
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The concept of corporate governance of public entities is evolving. Corporate governance in public institutions, as a method of management and control, requires clear rules and principles of integrity, transparency and accountability, well-defined risk management and control mechanisms, elements that are essential for achieving public entities’ goal, which means meeting public needs. Corporate governance is a process through which management monitors and maintains a corporation’s compliance with laws and regulations. Is it necessary to use corporate governance in public entities? Can it reduce expenditure or budget deficits, ensuring an efficient use of public funds? Can it eliminate corruption and improve the performance of public entities? The purpose of this study is to carry out an academic analysis of the evolution of the corporate governance in public entities and to highlight its effectiveness, through principles that encourage better decision-making and resource efficiency. The applied methodology involves focusing on the in-depth study of the subject using the analytical method. Moreover, the study draws comparisons of different models on the aspects researched, using comparative analysis. In conclusion, good corporate governance is essential for any organization to ensure the sustainability of its resources and operations, with a direct effect on the entity’s performance.
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In general, sustainable economic growth is highly dependent on technological progress, managerial knowledge, and money supply in the economy. Globally, the COVID-19 pandemic has caused structural shocks to economic systems by increasing high economic uncertainty. For this reason, policymakers are exploring alternative measures to stimulate economic growth. And among these alternative measures we also find foreign direct investment, which represents an instrument widely used worldwide. There is a trend among foreign investors that they increasingly focus on the quality of institutions, especially on FDI policies in domestic countries. For this reason, governments of developing countries are increasingly adopting soft policies to attract FDI. Generally, the policies provide substantial taxation provisions. Thus, by stimulating foreign direct investment in global economic operations, short- and long-term growth is achieved. The beneficial effects of FDI are given by their unprecedented impact on achieving sustainability worldwide. The motivation of this study is to scale the effects of environmental quality and good governance on FDI inflows in European Union member countries for the period 2002-2021. We used the estimation of autoregressive distributed lag and error correction models to investigate the association and elasticity of explanatory variables on FDI inflows in EU member countries. Thus, as independent variables we use CO2 emissions from solid fuel consumption and the sum of exports and imports of goods and services. Environmental degradation comes from the depletion of resources by human activity, and ultimately this leads to increased costs and depletion of capital. As a result, environmental quality is crucial to the health of both people and businesses. In the recent economic booms, international trade needs serious attention to form new policies to invite more foreign investors. And as control variables we introduce Government effectiveness index and Gross capital formation. We introduce these variables because it is believed that weak institutional capacity can have a negative impact on economies. The study results suggest that government efficiency and a less regulated environmentally concerned economy drive capital transfer decisions.
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This paper reviews Nigeria’s experience with economic reforms and outlines major policy measures that have been implemented. The paper also addresses three main issues in the public sector of the Nigeria economy, namely, problems in the management of public expenditure, constraints in the implementation of policy reforms to overcome the management problems and prospects of successful implementation of policy reforms, it concludes that given the level of performance of the reform effort, its success may depend on the reform of the public sector financial reporting system by adopting an accounting system that is suitable for measuring performance.
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Research subject: This study is designed to analyze the evolution of the return-on equity from 2017 to 2020 for a number of 44 Romanian companies which activate in the energy, mining and manufacturing industries. These companies are listed on the Bucharest Stock Exchange at the following categories: Premium, Standard and Ae RO.Research motivation: As the identification of the optimal capital structure represents a dilemma even for the listed companies, we wanted to reflect in our study the manner in which different levels of equity and debt influence the variation of ROE, an indicator that is crucial for performance evaluation.Purpose of research: Through this study, we wanted to find an answer to the following question „Which financing method will ensure the greatest profit - equity or debts represented by loans?”. In this perspective, we analysed the economic indicators that incorporate equity and debt elements and are impactful for the variation of ROE.Database: The evaluation was conducted individually for each economic period,using the financial data extracted from the annual statements available on the Bucharest Stock Exchange official website.Research tools: In order to achieve a proper evaluation of the phenomenon, we elaborate a linear regression to measure the variation of the return-of-equity, based on the previously determined economic indicators.Research results: The results we obtained by using the regression model accentuate the fact that both equity and debt highly had a noticeable effect on the dimension of ROE
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In some recent cases heard by the Romanian courts, the international financial sanctions were in the light. In fact, some companies have been struck with such sanctions under Regulation (EU) no. 269/2004 based on an alleged provision of funds to natural persons sanctioned by the same Regulation. However, the reasoning of such decisions to sanction raised a number of legal issues, particularly since the documentation of national competent authorities consisted merely of information from open sources (Internet). The authors analyze in depth, referring to a decided case at national level, the legal force of open sources and the standard of proof in such cases, based on the relevant case‑law of the Court of Justice of the European Union.
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Public finances are a constant presence in the life of human society, which is in a permanent process of evolution. The socialist finances constituted a system of formation and planned distribution of the money funds in the national economy, in order to develop the production of goods. Thus, they included the existing monetary relations between the socialist society as a whole, and enterprises, organizations, and population on the other, as well as the monetary relations of the enterprises and organizations between them. Therefore, the socialist finances referred to the state budget, the finances of the state-owned enterprises, the craft and consumer cooperation, the state social insurance, the state insurance for goods and persons, the various forms of credit. Within the socialist financial system, the state budget occupies the main place. It was the main form of constitution and distribution of the centralized fund of state money resources, in order to ensure the fulfillment of the plans of the national economy.
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Purpose –The study aims at exposing any possible impact of COVID-19 on short-run and long-run financial integration among five emerging Asian economies viz., China, South Korea, India, Indonesia and Taiwan. Research methodology – Daily closing indices of selected countries have been analyzed from January 2010 – September 2021. The integration among the selected economies has been examined for long-run and short-run through Johansan co-integration and Granger causality tests respectively. Findings – The analysis revealed that coronavirus weakened integration among nations. The absence of long-run integration was observed after the onset of COVID-19. During pre-covid period, unidirectional as well as bi-directional causal relations were present, but after the outbreak of COVID-19, only South Korea and China reported short-term linkage. Research limitations – The results are subject to the limitation of limited data and reference period. Further, daily returns of different stock markets are subject to domestic shock which has not been analyzed in the present study. Practical implications – Since the absence of integration indicates an ample opportunity for risk minimization through international diversification of the portfolio, the results are expected to be very useful for investors, researchers and regulators. Originality/Value – In present times, researchers are showing keen interest to know the possible impact of COVID-19 on linkages of international financial markets. However in spite of being rapidly growing economies, countries selected in the present study have not been explored much. The present study aims to bridge this research gap.
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Financial modeling under uncertainty is an intelligent methodology for examining accounting information. It is developed in connection with the lack of accuracy in the quantitative description of objects in the real economy; reflects the uncertainty, ambiguity and high dynamics of the change of factor influences on the characteristics of the company. By validating conventional means of addiction assessment and analysis, it foregrounds approaches and methods that have the ability to reproduce intelligence. The theoretical and methodological framework of financial modeling under uncertainty is formed by the knowledge of fuzzy sets and related fuzzy quantities, fuzzy mathematics and fuzzy logic. Functionally, it implements the three-stage algorithm for working with controlled approximation – fuzzification the input information, evaluating the complex performance and defuzzification the result. At the same time, the accounting indicators of the company are interpreted according to the characteristics of human thinking, individual/group experience, subjective intuition, preferences. Decision-making is extended to those objects and relationships that are not subject to precise evaluation. Financial management as a whole gains increased utility, ability to emulate human thinking, flexibility, speed, efficiency and easy modifiability.
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