Addressing the Threat of Fraud and Corruption in Public Procurement: Review of State of the Art Approaches

Author(s): Author Not Specified / Language(s): English

The present compendium of selected best practices addresses the threat of fraud and corruption from multiple perspectives, with the underlying purpose of providing practitioners from Romania and Greece with a set of state of the art approaches for addressing the threat of fraud and corruption in the complex multi-layered national public procurement systems. This publication is based on ideas presented at the international seminar EU's Financial Interests under Threat: New Approaches in Assessing the Risks from Public Procurement and EU Funds Fraud, organised on 31 October – 1 November 2013 in Sofia, with the support of the European AntiFraud Office (OLAF).

The Kremlin Playbook: Understanding Russian Influence in Central and Eastern Europe

Author(s): Heather A. Conley,Ruslan Stefanov,Martin Vladimirov,James Mina / Language(s): English

There was a deeply held assumption that, when the countries of Central and Eastern Europe joined NATO and the European Union in 2004, these countries would continue their positive democratic and economic transformation. Yet more than a decade later, the region has experienced a steady decline in democratic standards and governance practices at the same time that Russia’s economic engagement with the region expanded significantly. Regional political movements and figures have increasingly sought to align themselves with the Kremlin and with illiberalism. Central European governments have adopted ambiguous—if not outright pro-Russian—policy stances that have raised questions about their transatlantic orientation and produced tensions within Western institutions. The Center for the Study of Democracy, in partnership with the Washington-based Center for Strategic and International Studies (CSIS), recently concluded a 16-month study to understand the nature of Russian influence in five case countries: Hungary, Slovakia, Bulgaria, Latvia, and Serbia. This research determined the extent of the Russian economic footprint in the domestic economy, which has ranged between 11% and 22% on average from 2004 to 2014. The report also presented evidence of how Russia has leveraged its economic presence to cultivate an opaque web of economic and political patronage across the region that the Kremlin uses to influence and direct decisionmaking. This web resembles a network-flow model—or “unvirtuous circle”—which the Kremlin can use to influence (if not control) critical state institutions, bodies, and economies, as well as shape national policies and decisions that serve its interests while actively discrediting the Western liberal democratic system. To exploit the governance loopholes, Russia’s strategy has been to capture powerful local brokers through providing them with government sponsored business opportunities at premium returns infiltrating them in state-owned companies, national agencies including in the security sector. Another common way is to use former security officials with significant influence over parties, businesses and institutions to act as intermediaries boosting Moscow’s interests where necessary. The reverse has also been happening in the region when local powerful economic groups use their Russian links to secure capital and political backing to acquire assets and invest in large projects. Sometimes domestic interests have vied for and received the economic and political support from Russian companies or politicians to engage in rent seeking with the local government, exploiting lack of oversight and lack rule of law. In exchange for providing their brand name or capital, Russian companies have taken nominal share in lucrative domestic businesses, gained access to a strategic asset in telecommunications, finance and most often in energy.

Вистинската цена на евтината работна сила. Политики за привлекување на странски директни инвестиции во Македонија, 2007-2015 (second revised edition)

Author(s): Branimir Jovanović / Language(s): Macedonian

Innovation Management, Entrepreneurship and Sustainability (IMES 2018)

Author(s): / Language(s): English

The 6th International Conference Innovation Management, Entrepreneurship and Sustainability (IMES 2018) took place on May 31 – June 1, 2018 at the University of Economics, Prague. The conference was organised by the Department of Entrepreneurship of the University of Economics, Prague, Czech Republic in cooperation with other partners. Sound keynote speakers – Roy Thurik (Erasmus University Rotterdam), Ute Stephan (Aston Business School), Michael Fritsch (Friedrich Schiller University Jena), Stefan Schaltegger (Leuphana University Lüneburg), Marina Dabič (University of Zagreb and Nottingham Trent University), Martin Srholec (CERGE-EI) and Jiří Hnilica (University of Economics, Prague), discussed the trends in the fields of innovation management, entrepreneurship and sustainability. The conference aimed to achieve academic excellence in a regional context and to establish a platform for mutual collaboration, exchange and dissemination of ideas among researchers and professionals. These conference proceedings contain contributions of the conference participants presented during both days of the conference. Authors of papers come from 30 countries all over the world, namely from Australia, Bangladesh, Belgium, Brazil, Bulgaria, Croatia, Czech Republic, Denmark, France, Germany, Ghana, Hungary, India, Indonesia, Iran, Italy, Netherlands, Paraguay, Poland, Romania, Russia, Serbia, Slovakia, Spain, Sweden, Switzerland, Taiwan, Turkey, USA, Vietnam. All these contributions have successfully passed the doubleblind peer-review process.

THE STAKEHOLDERS: A COMPARISON BETWEEN IAS/IFRS AND ITALIAN OIC STANDARDS FOR FINANCIAL REPORTING

Author(s): Annalisa Baldissera / Language(s): English Publication Year: 0

The scope of this paper is to analyze – from a critical point of view – the financial statements, with particular regard to their main recipients and to their effective adequacy in satisfying the information needs of stakeholders. The paper aims to contribute to the current debate on the ability of financial reporting to be really useful and effective for stakeholders. It is important to note that in the last ten years the external information has increased considerably, moving from mere accounting and financial information towards several profiles, as sociality, environment, sustainability, corporate governance, risk policies and, more generally, non-financial data. This new direction highlights the growing need for information that the recipients of financial statements express, so that it is extremely important to verify if this need is really satisfied. In addition, given that the Italian accounting standards, settled by OIC (Italian Accounting Body), are very different from the International IAS/IFRS, the paper uses a comparative method, based on the reconstruction, for each of them: a) of the type of information provided; b) of the type of recipients to whom they are addressed. The comparison is made through the analysis of the conceptual framework of the two groups of principles, considering that the main difference between IAS/IFRS and OIC standards is that the former are mostly derived from practice and use a problem-solving approach, typical of Anglo-Saxon empiricism; while the latter are based on an opposite view, namely on the construction of an accounting theory aimed at guiding the practice. According to the majority doctrine, there is a typical and well-known difference between the two groups of principles: the IAS/IFRS standards are based on fair value and are mainly investor-oriented, while the OIC standards are based on historical cost and are mainly creditor-oriented. In addition to this distinction, the paper proposes a further one, based on the differentiation between informational effects and management effects. In particular, the accounting conservatism typical of prudent countries, like Italy, produces, above all, management effects due to the fact that it prevents the distribution of unrealized earnings, so protecting company’s capital. On the contrary, an opposite effect is produced by IAS/ IFRS, since the use of fair value can provoke the emersion of presumed but not effective profits, in some cases distributable.

IMPACT OF NON-LINEAR VOLATILITY IN STOCK-SPECIFIC RISK ON THE TURNOVER OF ACTIVELY MANAGED PORTFOLIOS

Author(s): Plamen Patev,Kaloyan Petkov / Language(s): English Publication Year: 0

Active investment has been established as one attractive approach for portfolio management. In order to achieve additional return – alpha, it requires investors to rebalance their portfolios often and to apply it for broader set of assets. However, as a result of such strategy portfolios could be exposed to an enormous turnover which leads to higher transaction costs. In many cases models with proven high-quality fail to provide the projected alpha because of alpha decaying caused by transaction costs of high turnover. Our paper is aimed to give more details about influence of stock-specific risk on turnover of active investments. We find that the ratio between target tracking error of the portfolio and stock-specific risk of an important factor in establishing the optimum turnover (and transaction costs). We investigate how this ratio is related with the turnover and how it influences the portfolio optimization process. We prove that changes in stock-specific risk causes managers to rebalance their portfolios in order to achieve their target tracking error. It is shown that these changes occur due to the non-linearity of stock volatility. We use GARCH model to measure the impact of short-term volatility shocks on the turnover of portfolio. Our findings confirm the importance of non-linear volatility for active portfolio turnover. Furthermore, we present empirical example for keeping turnover in desired level by adjusting the target tracking error of the factor portfolio.

IMPACT OF BANK LENDING ON DEVELOPMENT OF THE AGRICULTURAL SECTOR IN BULGARIA

Author(s): Damyan Kirechev / Language(s): English Publication Year: 0

The aim of the article is to analyze the role of bank lending for the development of the agrarian sector and to assess the impact of subsidies on bank lending, on the example of Bulgaria. The survey period is 2007-2018 – after the country joined the European Union. The correlation between the bank credit and the production generated in the sector is analyzed. Data from the Bulgarian National Bank and the Ministry of Agriculture and Food of Bulgaria were used. There is a correlation between the bank credit for agriculture and the production produced in the sector. The importance of credit for agrarian development is increasing. Improvements in credit conditions for agricultural holdings are observed. Bank loans are analyzed by type and term. The relationship between bank lending and agricultural subsidies for various scale producers has been studied. Small farms are more likely to use subsidies to secure short-term loans, and large farms prefer long-term loans. Subsidies typically have a push-out effect on short-term loans for large farms and on long-term loans for small farms. There is a positive causal effect of subsidies on bank loans for the agrarian sector. Recommendations are proposed to improve access to credit for farmers as a prerequisite for sector growth.

CRYPTOCURRENCIES: PERSPECTIVES OF A DIGITAL-ECONOMIC PHENOMENON

Author(s): Armin Kovači,Slaven Ljolje / Language(s): English Publication Year: 0

Cryptocurrencies are a digital-economic phenomenon that appeared in the last 6-7 years and attracted considerable attention. From the seemingly worthless concept of so-called „cryptocurrencies”, they gained tremendous value and thus challenged some of the fundamental settings of the ruling economy. Their value is not determined by some monetary institution as it is with the euro, the dollar or some other currency. However, the seemingly stable value of the cryptocurrency has, over the period of its existence, been substantially oscillated several times, suggesting certain elements of risk in terms of future investment in them. The trend of the cryptocurrency value is currently unfavorable. Does this mean that a complete concept of cryptocurrencies will come to an end? What is the perspective? Can we expect the re-increase of the value of the cryptocurrency? Will the cryptocurrencies replace the existing money in recent time? This and many other issues are awaiting their answers in the upcoming period. This paper seeks to provide some guidelines based on the analysis of the previous trend of cryptocurrency value and to provide answers to some of these questions.

ИКОНОМИЧЕСКА НАУКА, ОБРАЗОВАНИЕ И РЕАЛНА ИКОНОМИКА: РАЗВИТИЕ И ВЗАИМОДЕЙСТВИЯ В ДИГИТАЛНАТА ЕПОХА - ТОМ I

Author(s): / Language(s): English,Bulgarian,Russian

The Jubilee International Scientific Conference on the "Economic Science, Education and the Real Economy: Development and Interactions in the Digital Age", held on 11 – 12 May 2020, is dedicated to the 100th anniversary оf the University of Economics-Varna. Against the background of the cultural and economic rise from the end of the XIX and the beginning of the XX century, on May 14, 1920 the Chamber of Commerce and Industry of Varna decides to open a Higher School of Commerce in the city. This marks the beginning of higher economics education in the country. For the period of its existence the university has trained over 155,000 specialists with successful self-realization in the country and abroad. Today, more than 8,000 Bachelors, Masters and Doctorates from 52 countries study in 27 Bachelor's, 29 Master's and 16 Doctor‟s programs. One hundred years for a Bulgarian university is a remarkable anniversary. Some European universities have a much longer history, but when we give assessments, we must always consider the historical context. From this point of view and within the post-liberation period, 100 years of existence, for a Bulgarian university, is a remarkable achievement. The University of Economics – Varna is one of the oldest universities in Bulgaria and the university is rightly proud of its history. The Jubilee International Scientific Conference is focused on digitalization and all those profound transformations it causes in the economy and society. The theme of the conference has been chosen in the period preceding the outbreak of the global coronary virus pandemic. This is important to note because the current economic situation has changed dramatically. As a result of the state of emergency and the imposed social isolation, the economies all over the world have entered a recession. The business, our social and cultural lives have come to a standstill. The economic crisis that has begun is unprecedented both in its cause and most likely in its scale and scope, and it is currently confronting us with specific economic problems. But we believe in science and medicine, in the human mind and intelligence, and we have no doubt that the epidemic will be brought under control and sooner or later the world will return to normal. Then the fundamental determinants of economic activity shall start to operate, one of which is the ongoing process of digitalization. The present economic situation has confronted us with specific economic problems, but it has also shown in a clear and unequivocal way how important new technologies are in modern life, in particular in the conditions of emergency and social distance. It is in these conditions that all our communication, the opportunity for public institutions to continue with their work, online university and school education, etc. rest on digital technologies today. This conference has also been made possible by modern technology. The crisis, from a certain point of view, has given a new impetus to the digitalization of society. In the context of current events and the explanations given above, the topic of the conference is focused on the long term development of the economy and society as a whole. The scientific event aroused considerable interest. The conference was attended by 340 scientists, researchers, lecturers, PhD students and students from 23 Bulgarian and 15 foreign universities and research organizations from Germany, Lebanon, Lithuania, Poland, Portugal, Romania, Russia, Slovakia, Serbia, Croatia and Ukraine, as well as representatives of business and various institutions. Plenary reports of the conference have been presented by: Prof. Evgeni Stanimirov PhD - Rector of the University of Economics – Varna, "Quo vadis, education?", Prof. Daniela Bobeva PhD, Institute for Economic Research at BAS, "Costs and Benfits of Euro Adoption in Bulgaria: lessons Learned from the Long Path of Bulgaria to the Euro' Mr. Plamen Rusev PhD, one of the successful alumni of the University of Economics-Varna, Executive Chairman of the Webit Foundation and a member of the Board of Directors of Endeavor Bulgaria, addressed the plenary session with a speech on "Bulgaria – a platform for creating global initiatives." The proceedings covers 263 reports, in 4 volumes. The range of prob lems in the reports is wide, in line with the idea of the scientific forum: to analyze the manifestation of digitalization not only in business and econo my, but its social, institutional and legal aspects, as well. A very important part of the conference is the reports that examine the impact of digitalization on education and science.

Accounting challenges for sustainability and innovations

Author(s): / Language(s): English

The aim of this e-book is to present the most important aspects related to sustainability, corporate social responsibility and innovation from an accounting perspective. The book contains parts that deal with accounting aspects of sustainability and innovations. The book consists of ten chapters devoted to relevant and topical issues of sustainability and innovations. Chapter 1 'Sustainability and Corporate Social Responsibility in accounting' is an introduction to further considerations and deals with the essence of sustainable development, corporate social responsibility and their recognition in accounting. Chapter 2 'Social responsibility reporting standards' presents the most important reporting guidance such as GRI, OECD, United Nations Global Compact, International Organization for Standardization. Chapter 3 'Narrative reporting' focuses on descriptions and explanations in accounting reports. The chapter presents the links between accounting and language, the development of accounting narratives and the factors determining the use of narratives. Chapter 4 'Integrated reporting' discusses the motivations, objectives and the process of preparing an integrated report. Integrated reporting can prove to be an effective tool for businesses looking to shift their reporting focus from annual financial performance to long-term shareholder value creation. Chapter 5 'Non-financial reporting' in selected European countries presents the experience of Croatia, the Czech Republic and Poland in the field of preparing non-financial reports. A significant contribution to promoting the importance of sustainability reporting was made by the Non-Financial Reporting Directive (2014/95/EU). Chapter 6 'Socially responsible investments' discusses the essence of socially responsible investing and socially responsible investment. Socially responsible investing (SRI) is a decision making process concerning the allocation of free financial resources, where the investor aims at maximization of profit and minimization of risk on one part and includes the socio-ethical and environmental-ecological considerations on the other. Chapter 7 'External costs – accounting perspective' describes costs connected with using goods such as air, soil, water, silence or the aesthetics of the surroundings. One of the biggest problems for accounting in the future will be measuring the volume of using these goods or measuring the size of reduction in the quality of public goods suffered and assigning the decrease to particular companies. Chapter 8 'Derivatives in accounting' is devoted to financial instruments and presents two different approaches to accounting of derivatives: general model and hedge accounting. Derivatives are used to protect the enterprise against financial risk related to changes in prices on the markets, changes in the exchange rate or changes in interest rates, as well as for commercial purposes. Chapter 9 'Costs of research and development' shows the company's activity in the field of research and development and the related costs. R&D constitute an increasingly important element of the functioning of enterprises. Chapter 10 'Cryptoassets – nature, valuation and disclosures in accounting' focuses on cryptocurrencies (e.g. Bitcoin, Ethereum etc.) and digital tokens which are specific rights or values representatives. As a result of the transformation on the financial market, we are currently dealing with cryptoassets, which are a creation of blockchain technologies and the changing habits of the digital society. One of areas that there are a lot of doubts regarding these new technological solutions is accounting.

15. MEĐUNARODNI SIMPOZIJUM O KORPORATIVNOM UPRAVLJANJU

Author(s): / Language(s): Serbian

POSSIBILITY OF RAPID CHANGES IN SMALL ECONOMIES IN CONDITIONS OF THE CORONAVIRUS PANDEMIC

A PERSPECTIVE OF MONETARY POLICIES WITHIN CHINA AND EU TOWARDS COVID-19

Author(s): Yuanxin Li / Language(s): English Publication Year: 0

COVID-19 has shut down the real economy since its outbreak by assaulting the society and its system, which was affected directly or indirectly, including the significant decrease of demand, huge shock of supplies, highly nervous and volatile of the financial market and the overall deterioration of the economic index. With the spread of the epidemic around the world, major economies have continuously introduced extraordinary economic policies to respond. This paper attempts to systematically sort out and analyze the characteristics and development of the epidemic, its impact mechanism, transmission path and actual impact on the global economy, as well as the response models, main goals and measures of macroeconomic policies of EU and China. It compares the macroeconomic policies by China and EU fighting against the COVID-19 and promoting the economy horizontally and vertically.

RESEARCH OF THE ROLE OF FINANCIAL INSTITUTIONS IN THE COMMUNITY ECONOMIC DEVELOPMENT IN ONE OF THE WORLD’S LEADING COUNTRIES

Author(s): Svitlana Turchina,Kateryna Turchina,Liudmyla Dashutina / Language(s): English Publication Year: 0

The article addressed the community as the smallest unit in geography scope, which unites individuals, companies, and government. The role of each one is significant and irreplaceable. For this paper, the community is as a synergy between group of individuals, institutions, and a government that live and (or) operate within geographical, political, social, and economic boundaries. This article focuses on banks, as a link between individuals and government in the development process. In particular, the supply and retention of financial and human capital. The authors try to prove financial companies and banks play a key role in the community and economic development because they deliver financial capital to individuals and businesses. This research allows concluding that the Finance & Insurance industry contributes toward the development of both national and local levels with the high share and positive mix and competitive components.

The 2020 Oil Price War Has Increased Integration Between G7 Stock Markets and Crude Oil WTI

Author(s): Rui Dias,Paulo Alexandre,Paula Heliodoro,Hortense Santos,Ana Rita Farinha,C. Marcia Santos / Language(s): English Publication Year: 0

This paper aims to examine whether the oil price war between Saudi Arabia and Russia has increased integration between the Crude Oil WTI Spot oil index and the G7 stock markets, namely France (CAC 40), Germany (DAX 30), USA (DOW JONES), UK (FTSE 100), Italy (FTSE MID), Japan (Nikkei 225), Canada (S&P TSX), from January 2018 to January 2021. The results show that in the period before the oil price war, the G7 stock markets and the WTI index had 29 integrations (out of 56 possible). The WTI index is integrated with the UK stock markets (FTSE 100), and Japan (NIKKEI 225), and is integrated into the Japanese market. In the period of the oil price war, the G7’s stock markets and the Crude Oil WTI Spot index had 43 integrations (out of 56 possible), namely the WTI, Dow Jones, and Nikkei 225 indexes, with all their peers (7 out of 7 possible). When comparing the period before and during the 2020 oil crash, we found that integrations increased significantly from 29 to 43 (out of 56 possible); we also found that the Crude Oil WTI Spot index is no longer a safe haven for portfolio diversification in G7 stock markets. These findings validate our research issue, i.e., the oil price war between Saudi Arabia and Russia had increased integrations, and this evidence could question portfolio diversification.

Long-range Dependencies of Euronext Capital Markets: A Dynamic Detrended Analysis

Author(s): Rui Dias,Paula Heliodoro,Hortense Santos,Ana Rita Farinha,Marcia R.C. Santos,Paulo Alexandre / Language(s): English Publication Year: 0

This paper aims to test efficiency, in its weak form, in the capital markets of the Netherlands (AEX), Belgium (BEL 20), France (CAC 40), Ireland (ISEQ 20), Norway (OSEBX), Portugal (PSI 20), in the period from April 4, 2019 to April 1, 2021. The sample was partitioned into two subperiods, the first and second wave of the global pandemic: April 4, 2019 to April 30, 2020; May 4, 2020 to April 1, 2021. To carry out this analysis, different approaches were undertaken to analyze whether: (i) Euronext’s stock markets have more significant long memories in the first or second wave of the global pandemic? The results show the presence of sharp long memories during the first wave of the global pandemic, particularly in the stock indices OSEBX (0.67), PSI 20 (0.67), AEX (0.66), BEL 20 (0.64), CAC 40 (0.62), ISEQ 20 (0.61), which implies that the yields are autocorrelated in time and, there is a reversal of the average, in all indexes. Regarding the second wave of the global pandemic, we found that most Euronext stock markets don’t reject the random walk hypothesis, with the exception of the Norwegian (0.56) and Portugal (0.55) stock markets. These findings show that the impact of the Covid-19 pandemic was accentuated during the first wave, but from May 2020 the markets adjusted and showed balance. The authors believe that the results achieved will be a benefit to international investors seeking efficient diversification into their portfolios.

Foreign Direct Investment (FDI) or Remittances? Which Contributes the Most to the Albanian Economy?

Author(s): Alban Korbi,Blisard Zani / Language(s): English Publication Year: 0

Foreign direct investment (FDI) and remittances entering an economy often play a very important role in the development and growth of economies year after year. Especially for economies with similar typologies and characteristics like that of Albania, both of these elements promote economic development and serve as financial incentives. This paper aims to assess the contribution of remittances and foreign direct investment in the Albanian economy in the last three decades, through a multifactorial econometric model. The model uses three endogenous variables, the value of remittances, the value of a foreign direct investment and the value of gross domestic product for the time series 1992 - 2019. As it results from the analysis of the econometric model, both remittances and foreign direct investment payments have a positive impact on economic growth and the value of gross domestic product. It is also evident that remittances are the ones that affect the gross domestic product more compared to foreign direct investment.

The Standard & Poor’s 500 Index and The Chaotic Growth Model

Author(s): Vesna Jablanović / Language(s): English Publication Year: 0

Standard & Poor’s 500 Index (the S&P 500) includes the stocks of 500 of the most widely traded stocks in the U.S. It represents about 80% of the total value of U.S. stock markets. The basic aims of this paper are: firstly, to create the simple chaotic stock market index growth model that is capable of generating stable equilibrium, cycles, or chaos; secondly, to analyze the local stability of the S&P 500 index movements in the period 1932-1982; thirdly, to analyze the local stability of the S&P 500 index movements in the period 1982-2009; and fourthly, to discover the equilibrium levels of the S&P 500 index in the observed periods. This paper confirms the existence of the stable convergent fluctuations of the S&P 500 index in the observed periods. Further, two Elliot wave patterns were identified in the period 1932-2009. Also, the golden ratio can be used to define the equilibrium level of the S&P 500 index in the presented chaotic model.

Impact of Russia’s Invasion of Ukraine on Central and Eastern European Capital Markets

Author(s): Rui Dias,Catarina Revez,Nicole Horta,Paula Heliodoro,Paulo Alexandre / Language(s): English Publication Year: 0

On February 24th, 2022, Russia launched a full-scale military invasion against Ukraine, marking a sharp escalation to a conflict that began in 2014. Several analysts have called the invasion the largest military invasion in Europe since World War II. Considering these events this paper aims to test the efficient market hypothesis, in its weak form, in the capital markets of Hungary (BUX), Croatia (CROBEX), Russia (IMOEX), the Czech Republic (PX PRAGUE), Slovenia (SBITOP), and Poland (WIG) over the period from April 25th, 2017, to April 22nd, 2022. The results show that the random walk hypothesis is not supported by the analyzed financial markets in this period with the occurrence of the 2020 global pandemic and the Russian invasion of Ukraine. The values of the variance ratios are less than unity, implying that the returns are autocorrelated over time and mean-reverting, and no differences between the financial markets have been identified. This has implications for investors, since some returns may be expected, creating arbitrage opportunities and abnormal returns, contrary to the assumptions of random walk and informational efficiency. In conclusion, we believe that investors should eventually exercise some caution, at least while this uncertainty persists, and invest in less risky markets to mitigate risk and improve the efficiency of their portfolios.

Sustainable Development Goals and FDI – Case of Albania

Author(s): Edmira Cakrani,Dimitrios A. Karras,Gjergji Shqau / Language(s): English Publication Year: 0

Sustainable Development Goals were adopted by countries in 2016, as a way to fight poverty, protect the planet and ensure sustainable development, while Foreign Direct Investments are inflows of investments that are very important for host countries, especially those in development. They enable the transfer of technology, create new jobs, provide inflows of foreign currency, etc. Their impact on the economic development of the host countries is very large and can also affect the realization of the SDGs. The purpose of this article is to analyze the impact of FDI on some SDGs in Albania. For this purpose, the ARDL model with data for the period 1999-2021 will be used. There are relatively few studies that have analyzed this relationship, and this article completes the existing literature on this topic. The results of the study can help in the design of policies regarding FDI that enhance rather than compromise the fulfillment of the SDGs.

Financial Performance and Large Sustainable Companies: What Relationships in the Italian Blue Chips of the MIB ESG Index?

Author(s): Annalisa Baldissera / Language(s): English Publication Year: 0

This study aims to analyze the relationship between financial performance and ESG performance with particular reference to a market segment characterized by high liquidity. The research concerns, in fact, the Italian blue chips that make up the MIB ESG index, that is, the first forty companies among the best sixties. The methodology used is based on a sample of the top ten companies in the index and uses regression analysis, assuming liquidity ratio, debt ratio, ROE and ROA as independent variables, while dependent variables are ESG scores. The results show that relationships between variables are mostly positive. However, they are still rather weak and therefore have room for improvement. The study helps to deepen the knowledge of a market segment still little studied in the literature.