FINANCIAL DETERMINANTS OF SMEs GROWTH IN THE TIME OF ECONOMIC

Author(s): Marina Jeger,Nataša Šarlija,Ana Bilandžić / Language(s): English Issue: 2/2016

The importance of high-growth enterprises in national economies has been widely substantiated by economic research in recent years. There are a small number of papers that investigate determinants of growth in the time of economic downturn. This paper is focused on finding financial ratios that are determinants of growth in small and medium-sized enterprises (SMEs) which operate in downturn economies. The assumption of this study is that the time of economic downturn sets new challenges to SMEs and that fact should be reflected in their financial statements as well as in the growth prediction model. Our hypotheses have been tested on the sample of 1492 SMEs from Croatia over the period 2008-2013 in the time of economic downturn. Using logistic regression, a growth prediction model has been developed and tested. Results have shown that in the time of economic downturn, growth potential of SMEs increases with the increase of liquidity, turnover and profitability and with the decrease of leverage.

JOINING OF ECONOMIC ENTITIES AS A POSSIBILITY OF SURVIVAL ON THE MODERN MARKET

Author(s): Nikolina Pavičić Rešetar,Zdravko Tolušić,Zrinka Tolušić / Language(s): English Issue: 2/2016

In today's global market, a major challenge for every economic entity is to be competitive and achieve its objectives. The method of survival shows that those companies with the lowest costs will survive and remain on the market. G. J. Stigler explained this technique on the market share of different sized companies in the steel industry in the United States. In his method he groups enterprises by size (small, medium and large). Historically, it is known that economic entities have been joining together since the Middle Ages. At that time, traders who formed associations were not engaged only in trade, but also in transportation and monetary activity. Economic entities are still joining together today, mostly in the form of a cooperative, cluster, cooperation, public private partnership or holding. The reason for that lies in the reduction of costs, risks and competition and the possibility of increasing the capacity of economic entities. Also, it should be noted that there is a synergy effect when economic entities join together. We are witnesses of many failed businesses, which did not respond to the economic crisis and the needs of the market. The aim of this paper is to try to connect the technique of survival and joining of economic entities and show how a merger is one of the survival models that in conditions of economic crisis provides options to business entities. Only companies with the lowest costs and high-quality technology can survive and compete in today's market.

EUROPSKI EFOS TJEDAN 6. – 8. SVIBNJA 2015.

Author(s): Anita Frajman Ivković / Language(s): Croatian Issue: 1/2015

CONSUMER CONFIDENCE IN THE USE OF E-COMMERCE

Author(s): Margita Majerčáková / Language(s): English Issue: 1/1/2016

E-Commerce is the object of attention for all of the important regional and global organisations. Development of the global e-commerce (within the Europe and worldwide) is engaged mostly by the WTO (World Trade Organisation). Organisations research broader aspects of the e-commerce, such as economic and social consequences of the use of new technologies and impacts at a specific field of the study, such as trade policy, taxation, electronic authenticity, consumer protection, privacy, and security. Consumers of the commercial transactions must have guaranteed security and trustworthiness of the executed transactions. The increase in the trustworthiness in the e-commerce increases the number of the customers, who use this form of shopping.

THE ROLE OF THE BRAND IN THE DEVELOPMENT OF CZECH ADVERTISING IN THE FIRST HALF ON THE 20TH CENTURY

Author(s): Dušan Pavlů / Language(s): English Issue: 1/2/2016

The brand in history of advertising as an institutionalized commercial communication activity in the territory of the Czech lands from the beginning of the 20th century; it was advertising performed as a systematic, deliberate and goal-orientated communication activity that played an important role inidentifying the manufacturing company, entrepreneur and his production. It was, and still is, an etalon for the particular quality of a product and offered service, a guarantee for trustworthy practices of the business person and symbol of value. The paper – on the basis of the specialized literature and opinions of advertising creative professionals or theoreticians of that time – describes the gradual evolution in opinion of the brand and its function in advertising communicates and advertising as a more global, socio-economic phenomenon.

CONSUMERS’ PERCEPTION OF THE BRAND IN THE CAUSE-RELATED MARKETING

Author(s): Zdenka Musová,Zuzana Huliaková,Hussam Musa / Language(s): English Issue: 1/1/2016

When doing business, organizations should not only take into account their own interests, but the interests of all stakeholders and the whole society as well. If the organizations want to remain competitive, they need to behave in a more responsible way within their business activities, including the marketing ones. Responsible marketing approach is cause-related marketing – partnership of profitable and non-profitable subjects and the consumers who will fulfil their aims by engaging incause-related marketing projects. These subjects altogether support good cause or contribute to the solution of a social problem. Although cause-related marketing is a new term in our geographical location, in our research we have found out that consumers are highly willing to join cause-related marketing campaigns. One of the prerequisites for success of a cause-related marketing project is the positive approach from the consumers to the supported brand. Credibility of the organization, good reputation, connection with a partner non-profit organization, connection between the organization and the supported cause, and transparency of the whole cause-related marketing campaign are also important.

AWARENESS OF ENTREPRENEURIAL ORGANIZATION’ S BRAND BUILDING AMONG EMPLOYEES OF THE MUNICIPAL COUNCIL

Author(s): Zbigniew Widera,Wiktor Widera,Ewa Dudzic / Language(s): English Issue: 1/1/2016

Presented article is the result of research work in the field of awareness of entrepreneurial organization’s brand building among the employees of municipal council. The concept of brand, already well established, has recently moved far beyond the original link with product and services. Municipal council, managed by mayor and, on their behalf, the office staff, is an organization that provides public services. Due to the increased need of public for the quality and choice of services, as well as limited funding available to local governments, the latter face the challenge of transition from the bureaucratic to entrepreneurial system. It can be achieved by building an entrepreneurial organization’s brand of a public service organization. Accordingly, brand building should be associated with the awareness of organization management goals, and the way of their implementation.

Between Entrepreneurship and Law - Direct Action in the Matter of Contractor Agreement in the New Romanian Civil Code

Author(s): Manuel Cristian Firică / Language(s): English Issue: 37/2015

The phrase direct action is the product of case law. If in the old Romanian Civil Code of 1864 there was no article of law to make reference to this expression, but only two derogations in articles 1488 and 1798 pointed out, the new Romanian Civil Code- entered into force on 1 October 2011 and considered one of the significant milestones of the legislative reform unparalleled in Romania's juridical history of the past twenty- five years, after the fall of communism- allots the notion two articles- no. 1856 and 2023 and, moreover, article 1807 stipulates the actions that may be taken against a subtenant. Apart from the fact that the concept is defined according to the old Romanian Civil Code, with some references to the old Romanian Civil Code, and compared with other countries’ way of considering the institution of direct action, the paper approaches a case of its practical application allowed by Romanian law- direct action in the matter of contractor agreement.

Influence of Socio-Economic Profile and Agents on Awareness Levels of Health Insurance Plans in Punjab. A Study

Author(s): Hari Babu,Gurpreet Kaur / Language(s): English Issue: 36/2015

Health insurance is the type of financial tool to finance the health care expenditures of the individuals. Since the financial year 2011- 12 the health insurance industry consistently registered around 17% growth rate, yet it is less than the growth of life insurance industry. Various reasons are attributed to the lower penetration of health insurance in India such as ignorance and lack of awareness, not sure of timing of availing policies, preference to earn profits and considering investment in insurance as tax – saving instrument. The present study is an attempt to know the influence of socio- economic profile and agents on bringing awareness about health insurance among the people of Punjab. The study was conducted based on the primary data collected from 356 respondents using a questionnaire during February- April, 2014. For the purpose of analysis, inferential statistics such as multiple regression and independent Sample t- test were applied. The results explains the positive influence of employment, annual income and education on level of awareness while gender, age, type of family and number of dependents explains the negative influence on the level of awareness. The role of agents has significant influence on the bringing the awareness and motivating the individuals to subscribe the health insurance plans.

Integration of Industrial and Educational Sphere in Modernization of Economic Relations

Author(s): Eduard Aleksandrovich Osadchy,Elvir Akhmetshin / Language(s): English Issue: 35/2015

The scientific article is devoted to the questions of developing the relevance of a human potential in modernization of an economic society system. The role of human fund in the system of new economic relations of an innovational industry is studied by the author. The influence of institutional changes to developing of economic relations is investigated in the article. The level of health, qualification, skills of using knowledge, competence nowadays is considered to be the main parts that make new economic relations of innovational industry. Based on the data of the concepts of long- term social- economic development of the Russian Federation from this time till 2020, may come to conclusion that Russia drops behind from other countries with the level of economic development though it has high educational potential. It can be explained with ineffective using of human fund and irrational investment into it. Having investigated, the authors classify into several groups: scientific cente↔r entity customer ↔ state. The main advantage of the innovational system is communicative skills and possibilities of organization. The practical importance consists in possibility of application of the theoretical provisions and practical recommendations stated in the research by bodies of legislative and executive power during the developing and implementation of federal and regional programs of support of the production and educational sphere by them in the conditions of modernization of system of the economic relations. The conclusions received in the course of research can form a methodological basis of creation of comprehensive programs of support of the production and educational sphere by means of efficiency of use of the available intellectual capital.

Inward Foreign Capital Flows and Economic Growth in African Countries

Author(s): Muhammad Azam,Laura Gavrilă (Ștefănescu) / Language(s): English Issue: 33/2015

The broad objective of the present study is to investigate empirically the impact of inward foreign capital flow along with some other explanatory variables namely gross capital formation, trade and human capital on economic growth using a balanced panel data spanning from 1977- 2013 for 10 African countries. The Hausman’s test suggests the use of randomeffects model is preferable to fixed- effects model. The panel data estimates reveal that role of foreign capital inflows in the forms of FDI inflows and remittance are growth encouraging, whereas, the role of external debt is growth discouraging for African countries. In the same way, gross capital formation and human capital are positively related to economic growth. The empirical findings of the study suggest that policy makers should formulate a healthy and conducive business environment that stimulates both foreign and domestic investors in the host countries. Along with intensive and sincere efforts are also required to develop human capacity through sufficient educational funding across all levels and countries.

Modern Russian Practice of Investing in Human Capital Assets

Author(s): Olga Aleksandrovna Vorotilova,Larisa Victorovna Obyedkova,Tatiana Vladimirovna Opeykina / Language(s): English Issue: 33/2015

The article analyzes issues related to forming human capital assets. It is established that human capital assets are a strategic resource of both a specific organization and a country, in general. This article gives the definition, characteristics and evolution of the “human capital assets” category. The article determines that in spite of the multistructurality of the agricultural sector of our country, the consumer cooperation system continues holding a special place in it. Basic areas of investing in human capital assets are determined. The topicality of research these problematic for enterprises of the agricultural sector under the current conditions is stipulated. It is determined that to a large extent the efficiency of agricultural organizations and consumer cooperation functioning depends on investing in human capital assets. This article reveals the current state of staff training and shows the system of education of staff for agricultural sector. Methodological basis included dialectical methods of research: analysis, forecasting, and synthesis.

Central Bank Interventions and Foreign Exchange Rate Volatility in India: Before and After the 2008 Global Financial Crisis

Author(s): P. Sakthivel,K. Veerakumar,B. Sumathisri / Language(s): English Issue: 33/2015

The study empirically investigates the dynamic inter- relationship between central bank interventions and volatility of the Indian rupee – US dollar exchange rate during before and after the 2008 global financial crisis. It also examines the factors influencing the volatility of exchange rate by employing GJR GARCH framework. For analysis, the study has divided data into two periods: pre- crisis (from April 01, 2002 to January, 30 2008) and post- crisis (from February 01, 2008 to March 30, 2012). The following data was used by the study: monthly data on Indian rupee - US dollar bilateral exchange rate, net FII inflows, net dollar purchases and sales of RBI and inflation differentials between USA and India. The empirical results show that RBI interventions are effective in reducing the volatility of the Indian rupee – US dollar exchange rate during the pre crisis period. However, RBI interventions seem to increases exchange rate volatility during post crisis. Finally the results suggest that higher FII inflows caused the Indian rupee to appreciate vis- a- vis the US dollar but this appreciation was accompanied by an increased volatility in the exchange rate.

Estimation of banking efficiency determinants in the Czech Republic

Author(s): Iveta Palečková / Language(s): English Issue: 32/2015

The aim of this paper is to estimate the banking efficiency determinants of the Czech commercial banks during the period 2001-2013. For estimation of banking efficiency we applied the Data Envelopment Analysis on data of the Czech commercial banks. We simultaneously use two alternative specifications of Data Envelopment Analysis approach, specifically CCR model and BCC model that differ in returns to scale assumption. The determinants of banking efficiency were estimated using the panel data analysis. The results of the paper show that the level of capitalization, credit risk, liquidity risk and riskiness of portfolio had a positive impact on banking efficiency. Gross domestic product per capita had a negative impact on banking efficiency. We found that in BCC model, the liquidity risk and riskiness of portfolio had a positive impact on efficiency in the Czech banking sector. Other determinants were not statistical significant in this model. Banks with a higher ratio of loans to deposit, ratio of loans to assets, higher ratio of equity to total assets were more efficient than other commercial banks in the Czech banking sector. The impact of the ownership structure was not statistical significant during the analyzed period.

The Czech innovative enterprise

Author(s): Jindra Peterková,Zuzana Wozniaková / Language(s): English Issue: 32/2015

Contemporary the Czech government support own innovative solutions of the Czech entrepreneurs instead of accepting developed technology of foreign owners. One of the possibility of own innovative solution is establishing of start-ups and spin-offs such as selected innovative form of enterprise. These entities are mostly small and medium sized enterprises that realize their activities in the field of information and communication technologies. Starting this enterprise is difficult and to reach their viability there is necessary to support their beginning by innovative institutions. Research and technology centers and business incubators are contributing to this. The aim of this paper is to evaluate entrepreneurship of start-ups and spin-offs, including business incubators in the Czech Republic through real empirical investigation and also to find differences between Czech start-up entrepreneurs and Israeli businessmen. Final part of the paper is focused on determining the basic characteristics of these firms, possibility of financing and ways of evaluating the success.

Nowcasting credit demand in Turkey with Google Trends data

Author(s): Ömer Zeybek,Erginbay Uğurlu / Language(s): English Issue: 32/2015

Age of Big Data and internet has brought variety of opportunities for social researchers on identifying on-going social trends instantly. As internet user base grew exponentially, major internet content search companies have begun to offer data mining products which could extract attitude of on-going trends and identify new trends on web as well. Since 2009, as a pioneer on these web analytics solutions Google has launched Google Trends service, which enables to researchers to examine change of trend on specific keywords. We use weekly Google Trends Index of “General Purpose Loan” (GT) and total out-standing volume of Turkish banking system from the data period of first week of March 2011 to second week of September 2014. In this paper we test whether the Google Analytics search index series can be used as a consistent forecaster of national general purpose loan (GPL) demand in Turkey. We show how to use search engine data to forecast Turkish GPL demand. The results show that Google search query data is successful at nowcasting GPL demand.

Comparison of countries by the systems of health insurance

Author(s): Renata Nesporkova,Jan Sidor / Language(s): English Issue: 32/2015

Health care systems are different in different countries. Although there are significant differences among them, in particular with regard to methods of financing, regulation, management and organization, their common feature are ambitions to achieve the primary objective in terms of improving the health status of the population in the country and therefore solve the daily question of prioritization of satisfying health needs. The reasons for the rising costs in the health care systems are multi-dimensional. We can mention in particular deterioration of the general condition of the human environment, way of life and raising the level of human medicine, which requires expensive equipment by medical technique, medications, highly qualified personnel, etc. The submitted article provides a macro view to the issue of efficiency of health care systems, public health and its main objective was the evaluation and classification of countries ranking according to used health insurance system. Reported outcomes constitute a valuable analytical platform for the design hypotheses in the issue of health care systems effectiveness, as well as subsequent research in this area.

Žmogiškųjų išteklių formavimo, pritaikymo galimybės versle

Author(s): Loreta Rupeikienė,Daiva Viningienė,Laura Šaltytė,Jūratė Martinkienė / Language(s): Lithuanian Issue: 1/2010

History of human development confirms the close link between education and economic development levels. Successful economic development depends more on what will be investment in human and intellectual potential of conservation and development, it means, human capital. The concept of human capital is widely used to justify investment in secondary and third education, training and retreat into the production process. Human capital theory is a new concept of modern economic theory, which deals with the formation of labour and quality problems. Although this theory is observed manifestations of the twentieth century, economists work, but as a separate theory developed in the late sixth-early seventh. They are the pioneers of American Scientists: S, Becker, B. Weisbrood D. Mince, Chansen T. Schultz. Object of the article - the human capital. The article is to reveal the concept of human capital and investment in human capital significance. Methods: scientific literature and analysis of quantitative survey (questionnaire) methods: 24 respondents were interviewed: students at the University of Klaipeda, Klaipeda Business School-33, West Lithuania Business College -36 and College of Social Sciences -32 extended studies graduate courses in management and economics students. 35,5 percent of General population of andragog students were interviewed. Respondents were selected by random sampling. Statistical data were analyzed by statistical package SPSS. Error does not exceed 5 percent. The survey revealed how respondents evaluate the adequacy of knowledge and competence in professional activity. The available expertise and knowledge sufficient for 31.5 percent responded. Respondents denial of knowledge and expertise was evaluated 6.2 percent, took part in the study 46.9 percent. Respondents recognize that the knowledge and competence sufficient extent. We conclude that very often in standard work situations there are no possibilities to demonstrate certain skills or they are identified as redundant. The obtained results shows that most important for respondents is to improve their skills upgrade existing knowledge and update skills on professionalism, security and work activities, etc. The least important - suggestion form employers and colleagues to learn and gaps from previous education

Įmonių konkurencingumo vertinimo pasienio regione specifika

Author(s): Akvilė Čibinskienė,Jūratė Pridotkienė / Language(s): Lithuanian Issue: 1/2011

Every country, as an economic-social system, consists of subsystems, i.e. regions. The fact is that economy of the whole country is directly dependent on an economic and social viability of regions and their ability to be competitive. If factors of competitiveness are not completely used, the region will lose its competitive position among others and will make a negative influence upon national competitiveness. Aiming at the avoidance of these consequences, the present competitiveness of a region should be measured and factors of complex competitive advantage should be differentiated. Recently, more attention is paid to cross-border cooperation and business development. It is defined, that the cross-border region is a territorial unit consisting of two or more adjacent territories of different countries. Cross border regions of small countries often can be characterized by low competitiveness, because most of business concentrates in the largest cities. In order to implement business development strategies in the cross-border region, it is necessary to assess the firm competitiveness of the crossborder region. It is necessary to distinguish the specific features of firm competitiveness assessment in the crossborder region. For the assessment of the firm competitiveness, the system of indicators or synthesis rates can be used. Theoretically the well-chosen system of quantitative and qualitative indicators may well describe the strategic and financial position, its competitive strength. Competitiveness can be examined at various levels, i.e. according to business activity (industry) or territory (region, country). The crossborder region in respect of this evaluation is a separate territorial unit and we can assess the firm competitiveness in this region. However, the specificity of the cross-border region is the fact that this region comprises two distinct areas of neighbouring countries and the assessment of the firm competitiveness in this region gives rise to a specificity that in the scientific literature has not yet been widely explored. The object of the research. Firm competitiveness indicators in the cross-border region. The aim of the research. To distinguish the specific features of the firm competitiveness evaluation in the crossborder region after the theoretical analysis of the crossborder region and firm competitiveness indicators. The tasks of the research: 1. To define the notion and specifics of the crossborder region; 2. To explore the features of firm competitiveness; 3. To distinguish the firm competitiveness indicators; 4. To identify the features of firm competitiveness evaluation in cross-border region. The cross- border region is defined as a territorial unit consisting of two or more neighbouring countries, territories, and it describes the specificity of it in a state regional context. The firm competitiveness include the various aspects of the firm activities, both in local and in foreign markets, it is associated with the company’s a competitive advantage and changes over time. For the assessment of the firm competitiveness, the system of indicators or synthesis rates can be used. Firm competitiveness indicators are grouped into foreign trade, market share, financial, productivity, marketing and development indicators. For the assessment of firm competitiveness the following indicators were identified: productivity, labour force quality, number of employees, employee income, the GDP of value added per employee, the direct foreign investments, capital investment, market share, sales growth, profit growth, gross margin, productivity growth export index, index of new products, innovation and information technology. They not only demonstrate a company's existing competitive advantage, but also its future development potential. For the evaluation of firm competitiveness in the crossborder region the indicators should be calculated separately by country and in general. Thereby the differences between the regional companies in different countries can be assessed.

Corporate identity of Latvian commercial banks

Author(s): Ilmars Purins,Didzis Rutitis / Language(s): English Issue: 2/2011

Latvian banking industry has followed the path of rapid development like entire Latvian economy did in the last 20 years. Along with expansion and provision of financial services by Latvian banks to non-resident customers from foreign countries, each individual commercial bank has established specific positioning and corporate image within the local and international markets. Also, some banks have gone through corporate strategy and visual identity changes in order to adjust to the volatile market conditions and implemented up-to-date adjustments to their marketing communications with the target audience and markets in general. Corporate identity framework developed by Melewar and Jenkins (2002) is used as benchmark model to analyze the corporate identity formation of four largest Latvian commercial banks in terms of their assets (Latvian Association of Commercial Banks, 2011) – Swedbank, SEB, Nordea, Dnb Nord. Paper contains 5 figures. Hypothesis: there exist specific factors, which contribute to corporate identity formation within banking industry and which should be common for major commercial banking industry participants. Aim of the research: to explore the corporate identity formation in commercial bank industry by surveying commercial bank representatives. In order to test the research hypothesis the research has been split in several consecutive tasks: 1. Selected literature analysis on the corporate identity concept – review of corporate identity definitions and the latest research papers regarding corporate identity concept and related issues; 2. Semi-structured expert interviews with bank representatives to determine differences and similarities of different corporate identity formation based on corporate identity framework by Melewar and Jenkins. 3. Analysis of possible reasons that explain differences of corporate identity formation for the selected commercial banks. Research results show that main corporate identity dimensions are common for all researched Latvian commercial banks. However, the difference is in relative importance or the extent to which each of the dimensions is relevant for the respective bank.