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The Real Exchange Rate Volatility Comovements and Spillovers in Thailand’s International Trade: A Multivariate Garch Approach

Author(s): Tanattrin Bunnag / Language(s): English / Issue: 30/2014

This paper examined the real exchange rate volatility comovements and spillovers among major currencies in Thailand’s international trade against the Thai baht including the USA dollar (USD), the British pound (GBP), the Japanese yen (JPY) and the Malaysian ringgit (MYR). The data used in this study was the monthly data from 1985 to 2013. The three Multivariate GARCH models, namely the diagonal VECH, the diagonal BEKK and the CCC, were employed. The empirical results overall for monthly data showed that the ARCH and GARCH estimates of the conditional variance between the real exchange rate returns were statistically significant in case of RGBP and RJPY. The conditional correlation between volatility of the real exchange rate returns was statistically significant in case of RGBP with RJPY as well. Finally, we would choose the best model by considering the value of log-likelihood, AIC, SIC and HQ. We found that the best model in volatility analysis was the CCC model.

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The Realities and Illusions of the XXIst Century Social Contract

Author(s): Miron Wolnicki,Ryszard Piasecki / Language(s): English / Issue: 2/2015

Purpose – The paper aims to clarify the relationship between the rise of the sovereign debt in the G20 and the relative underpayment of labor versus capital. Design/methodology/approach – The historic analysis of successes and failures of demand management in the leading market economies. Provide data to support andillustrate the claims made in the paper. Findings – The argument presented in the paper is that the root cause of the rapidly rising sovereign debt lies in the demand deficiency originating in the cumulative effect of lagging labor compensation relative to productivity gains. Developed market democracies desperately need policies to mend the failing social contract between labor and capital.The real solution of the debt is to address demand deficiency, increase labor participation and wages, or basically, introduce a new social contract between labor and capital. Research limitations/implications – The detailed analysis of demand management policies would have to be country specific which goes beyond the scope of the paper. Practical implications – The paper implies that G20 policies go into a wrong direction and increase the risk of chain debt defaults in the leading market economies. Originality/value – This paper fulfils an identified need to study the root cause of the demand deficiency syndrome and the need to introduce long term policies needed to restore growth in the market economies.

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The reasons for managers – expatriates’ failure and their problems at work

Author(s): Sylwia Przytuła / Language(s): English / Issue: 2/2009

The growing dynamics of direct investment makes the international companies to take advantage of expatriate managers. It concerns greenfield investments, which mean establishinga new plant or subsidiary in the host country. Then, sending managers-expatriates makessense due to the know-how that should be implemented in the new subsidiary and due totaking control of investment plans that should be realized in the host country.The purpose of this article is to present various factors determining problems and failures inexpatriate work. It is a study based on foreign literature and research findings.

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The recruitment process of Generation Z in the context of demographical changes in the labor market

Author(s): Joanna Ratajczak / Language(s): English / Issue: 8_EN/2018

Current demographic changes, such as population aging and population decline, constitute a challenge for contemporary organizations. The objective of this article is to assess cross-generational management in terms of recruiting Generation Z employees as a response to the current demographic changes. The case study method was used to illustrate the cooperation between organizations and secondary schools, which is one of the forms of boosting the attractiveness of the organization as an employer.

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The Reengineering of the Processes in the Typography Industry

Author(s): Irina Olimpia Susanu,Adriana Olaru,Nicoleta Cristache,Viorel Susanu / Language(s): English / Issue: S1/2009

The Reengineering of processes is starting to be considered a concept with an increased degree of incidence among Romanian Companies. There are arguments that a real request of this concept is starting to take shape also in Romania. The increase in the efficiency of the use of material resources is determined by two key factors: the use of the color management systems for the color information exchange between the different equipments and software from a typographic flow chart; the use of performance printing technologies in the integration of typographical flow software. This fact inevitably leads to a reduction of the used material resources and consequently to the increase in the efficiency of their use. The objective of this paper is to highlight the importance and the impact of the reengineering of the processes based upon two fundamental values. In the first place the study will concentrate on obtaining results, on practice and not on theory thus trying to identify the problem that an organization confronts itself with at a given time and to find a real solution; to analyze the dilemma and to take a decision. The other value refers to the fact that the reengineering of the processes works in almost any case: small or large business, production or NGO. Well defined processes represent the key to success for an organization that wishes to adapt to the actual business environment, governed by an increasingly tight competition.

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THE REFERENCE POINT METHOD APPLIED TO DECISION SELECTION IN THE PROCESS OF BILATERAL NEGOTIATIONS

Author(s): Andrzej Łodziński / Language(s): English / Issue: 2/2014

The paper presents a method of supporting the decision selection in the process of bilateral negotiations. The negotiation process is modeled as using a multi-criteria optimization. The method of finding solutions is the interactive selection process of some proposals. The parties shall submit their proposals to the subjects of the negotiations. These proposals are parameters of the multi-criteria optimization tasks. Selection of solutions is accomplished by solving the optimization task with parameters that define the aspirations of each party involved in the negotiations. Finally, evaluation of the solutions obtained by the parties is done.

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The regional allocation of labor resources in the context of economic restructuring and renewal: using a case from Russia

Author(s): Galina Khmeleva,Nicholay Tyukavkin,Olga Bulavko,Alina Prosvetova,Kristina Egorova / Language(s): English / Issue: 3/2017

The purpose of the article is to reveal the influence of the state policy of economic restructuring and renewal on the allocation of labor resources in regions and cities of the country. The state policy has an impact on the allocation of labor resources, but causes, at times, conflicting effects. This is especially true during the economic restructuring and renewal period. As a scientific and methodological basis, the analysis of the economic structure and the four-factor shift-share analysis, adapted by the authors in earlier works, were used. The use of statistical data of 98 cities in five federal districts of Russia in 2009–2015 allowed the authors to reveal the ambiguous influence of the state policy of economic restructuring and renewal on the allocation of labor resources by regions and cities of the country. It has been confirmed that the restructuring and renewal policy of the Russian economy, as well as in other countries, is accompanied by changes in the allocation of labor resources. As a positive effect, it can be noted that economic restructuring and renewal contribute to a balance in the spatial allocation of labor resources. As negative effects of economic restructuring and renewal, the authors of the article note the inertial nature of the economic structure (the extractive sector retains a leading position in terms of employment indicators) and a reduction in the labor potential of peripheral cities, which does not correspond to the stated goals of the economic restructuring and renewal policy. It is shown that the city authorities are able to exert a greater influence on changes in the economic structure than it is generally assumed. The authors believe that the states implementing the restructuring and renewal policy should take into account changes in the allocation of labor resources by regions and cities in order to observe the balance in regions’ development and not to fall into a trap in which economic growth of regions attracting labor resources will be achieved at the expense of other regions.

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The regulation of number porting services in the EU: Are the principles set out by the ECJ in the recent PTC decision reconcilable with the practical consequences of the earlier Mobistar judgment?

Case comment to the preliminary ruling of the Court of Justice of 1 July 2010 Polska Telefonia Cyfrowa v President of Office of Electronic Communications (Case C-99/09)

Author(s): Cathal Flynn / Language(s): English / Issue: 5/2011

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THE REGULATION OF REAL ESTATE INVESTMENT TRUSTS (REIT) IN SOME EUROPEAN COUNTRIES AND ITS EFFECT ON THE IFRS FINANCIAL STATEMENTS

Author(s): Ildikó Dékán Tamásné ORBÁN,Nóra Vivien MURÁNYI,Ágota KISS / Language(s): English / Issue: 20/2019

Real estate investment trusts or REITs are ”companies that own or finance income-producing real estate across a range of property sectors (including offices, apartment buildings, warehouses, retail centers, medical facilities, data centers, cell towers, infrastructure and hotels). These real estate companies have to meet a number of requirements to qualify as REITs. Most REITs trade in major stock exchanges, and they offer a number of benefits to investors.” (REIT, 2019). REITs operate worldwide from the USA to Hungary. The article focuses on the REIT-regulation in some European countries, mainly in the United Kingdom and in Hungary. As REITs are listed on stock exchanges, they have to prepare their financial statements based on International Financial Reporting Standards (IFRS). The paper looks at the presentation and specificities of the REIT status in the IFRS financial statements.

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The Regulatory Consumer in EU and National Law? Case Study of the Normative Concept of the Consumer in Hungary and Poland

Author(s): Katalin J. Cseres / Language(s): English / Issue: 13/2016

This paper analyzes the question how EU and national laws implemented and how courts and regulatory authorities apply two opposing regulatory approaches and the corresponding legally defined images of consumers in market regulation: the active and responsible consumer concept on the one side along with the more protective concept of vulnerable consumers on the other side. The paper examines the normative concept of the consumer from a broad perspective of market regulation by focussing on unfair commercial practices as this is a horizontal instrument involving a broad range of transactions in various markets and because the Unfair Commercial practices Directive 2005/29 specifically lays down the normative concept of the consumer (both ‘average’ and ‘vulnerable’) in its provisions. The analysis proceeds on the basis of the normative standard as developed in the ECJ’s jurisprudence on free movement rules and further provides a case study of two Central and Eastern European Member States – Hungary and Poland. It examines how EU law and national laws implemented, and how the ECJ and national courts and regulatory authorities interpret the normative concepts of the consumer (both ‘average’ and ‘vulnerable’). The specific questions the paper analyzes are: Do the existing normative notions of the ‘average’ consumer and the definition of consumers in EU and national law correspond to public policy discourse on consumers’ active role in regulating markets? How do these laws address the vulnerability of consumers? How do the EU and national law notions conceptually link to each other? And most importantly how do courts and regulatory authorities interpret these notions? The paper finds that while there are clear normative concepts of the consumer in the legislation and EU free movement jurisprudence, their application in other fields of EU consumer law, as well as in national law, demonstrate a more nuanced image of the consumer. The paper argues that the legal rules and the envisaged concepts of the consumer need to be enriched by insights from law enforcement. Moreover, both law and law enforcement must be informed both of how markets evolve and how the role of consumers changes as well as enriched by the results from other social sciences, most notably behavioural economics studying consumer behaviour.

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The relation between management fees and the mutual funds` performance in Poland in 2015

Author(s): Alicja Fraś / Language(s): English / Issue: 2/2018

Research background: The investor`s expectation of better performance in the case of more expensive mutual funds seems natural and fully justified. However, the rise of passive funds and their surprisingly good results, especially when taking into account their low fees, triggered the discussion. Recent years have brought more and more studies, conducted mostly for the American market, discrediting high-charging, aggressive funds. First analyses in Poland also indicate that the level of fees is not always linked with the fund’s performance. Purpose of the article: The purpose of the study is to investigate the relation between the fees imposed by the mutual funds and the funds` performance. The idea is to verify, whether higher management fees are associated with top performance and whether it is rational to pay more for capital management. Methods: In the first step of the study, linearity and direction of the dependency was explored, using scatterplots and correlation analysis. In the second part, the linear regression was created to verify the strength of the relation. One-factor models have been built with the rate of return and standard deviation as independent variables for 1-, 3- and 5-year time horizons. Moreover, two-factor models, including both rate of return and risk has been created, to compare the significance of return and risk factor. Findings & Value added: The results indicated that more expensive Polish mutual funds in 2015 tended to perform worse in all tested time horizons — both in terms of lower rates of return and higher risk. Especially unexpected are the results of rates of return regression analysis — it turns out that within a sample 1% higher fee implied over 0.6% lower rate of return before fees (in yearly period). Nonetheless, the risk turned out to be more important, explaining the charges variability much better than the rate of return. Another interesting finding of the study is that merely two simple factors (return and risk) explain even as much as 60% of the management fee variability.

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THE RELATION BETWEEN MULTINATIONAL COMPANIES AND THE REPUBLIC OF SERBIA: INCOME TAXATION CONTEXT

Author(s): Stefan Vržina,Nenad Janković / Language(s): English / Issue: 4/2019

ost countries, especially developing countries, often grant tax incentives in order to attract foreign capital of multinational companies (MNCs), expecting positive effects of foreign direct investments on their economic development. Also, there is an opinion dominant in the literature that MNCs have enough power to achieve considerable tax incentives in negotiations with host country. Considering that one MNC was granted considerable tax incentives from the Republic of Serbia (RS), the paper examines whether subsidiaries of MNCs have more favorable tax treatment of recorded income than domestic companies in the RS. Statistical analysis outcomes show that subsidiaries of MNCs do not have significantly lower income tax burden than domestic companies suggesting that tax incentives granted to MNCs from the RS are an exception rather than a rule. In addition, research showed that subsidiaries of MNCs primarily use tax incentives that are equally available to domestic companies, such as tax incentives for investment in fixed assets. Research results are robust to changes of income tax burden measures.

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The relation between the economic growth and stock market performance–Empirical evidence from Romania

Author(s): Mariana Ducu / Language(s): Romanian / Issue: 8/2019

This research paper aims to investigate the relationship between the Romanian economic growth and stock market returns for companies listed on Bucharest Stock Exchange and included in the Bucharest Exchange Trading index during the period 2000-2017. The economic growth of Romania will be measured using the Gross Domestic Product (GDP) on an annual basis and as proxy for the stock market development the Bucharest Exchange Trading index (BET) will be used. The GDP will be considered at market prices in order to reflect more accurately the effect of the stock market on its value. The statistical methods employed to analyze this relationship will be the Least Squares Regression Model using the logarithmic values of the variables and Johansen Cointegration test.

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The Relational Benefits and the Quality of Services in Tourism

Author(s): Edyta Gołąb-Andrzejak / Language(s): English / Issue: 6/2017

In a very competitive environment, it is highly mportant to identify the in-dicators that exert a major influence on customer satisfaction and loyalty. Based on the current relationship marketing concept of relational benefits (Gwinner, Gremler, Bitner, 1998; Hennig-Thurau, Gwinner, Gremler, 2002) and destination quality (Blazquez-Resino, Molina, Esteban-Talaya, 2015), a conceptual model was built.The present paper aims to analyse empirically the model that reflects three different types of relational benefits perceived by tourists as well as the benefits obtained by the tourist destination in term of satisfaction and loyalty. This study tries to identify whether relational benefits have a more important effect on sat-isfaction and loyalty than quality. As a result, we observe the role of relational benefits as an antecedent of customer satisfaction and the effect of the latter on tourist loyalty.

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The Relations Between Unemployment and Entrepreneurship in Turkey: Schumpeter or Refugee Effect?

Author(s): Şükrü Apaydin / Language(s): English / Issue: 2/2018

The main purpose of this study is to determine the relations between unemployment and entrepreneurship in Turkey. Thus, it is empirically investigated whether the effects of Schumpeter and Refugee are valid or not. In the study, the Autoregressive Distributed Lag – ARDL method was adopted and Turkey’s 2000-2016 period data were used. The results of estimation show that there is an inverse relationship between entrepreneurship and unemployment. Accordingly, when the rate of entrepreneurship increases, unemployment decreases or vice versa. Causality is from entrepreneurship to unemployment. In other words, the while the Schumpeter effect is valid, it is concluded that the refugee effect is invalid.

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THE RELATIONS OF UNEMPLOYMENT RATE AND INFLATION IN THE EUROPEAN UNION

Author(s): Róbert Magda,Bálint Horváth / Language(s): English / Issue: 1/2018

The aim of the present study is to examine the relation between unemployment and inflation through the example of the Member States of the European Union. According to the traditional economic perception there was a highly significant relationship between these two indicators. Initially, this statistical connection – known as the Phillips-curve – showed an inverse direction regarding the movements of these measures but after the phenomenon called “stagflation” economists experienced positive correlation within them. Since the 1990’s this observed connection continuously started to fade away and nowadays the curve has become flat. It means that even in a low inflationary period there is a possibility for the unemployment rate to remain low as well. Even though in the present experts use a reformed Phillips-curve which examines the relations of the economic performance and the inflation, this research focuses on the linkage between unemployment and inflation. Thus, it analyses the economic development of the EU member states in the past 25 years to find out the reasons for the disappearance of the Phillips’ logic.

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The relations unshadowing in business activities: the economic and legal factors of security at the macroeconomic level

Author(s): Anatoliy N. KULISH,Mykola Petrushenko,Oleg N. REZNIK,Elena Kiselyova / Language(s): English / Issue: 1/2018

The paper analyzes the current state of the shadow relations in business activities in Ukraine. The purpose of the article is to investigate the current state of the shadow relations in business activity in Ukraine and abroad; find out the essence of the term “the relations unshadowing in business activity”, develop the suggestions, which are aimed at improving the scientific approaches to the economic and legal principles of the relations unshadowing in business activity as a factor of an influence at the macroeconomic level. The issue of sensitive motivation system creating is actualized for the purpose of the economic activities unshadowing. It is proved that it is impossible now to accurately assess the extent of the shadow economy. The economic and legal ways of improving the business unshadowing are proposed, as well as the integration of the relations unshadowing in the business activities into a system of safety factors at the macroeconomic level. Namely, the institutional and structural factors, including: an influence on the structural policy and mechanism of its implementation, possible changes in the structure of the public ad¬ministration, institutional changes, management of the state corporate rights, as well as a new stage of denationalization of the property and the privatization; programmatic and strategic factors: the economic development strategy, targeted state programs, as well as the state programs of the social and economic development; financial, investment, com¬petition, and innovation factors: the competition policy and its implementation, the state investment policy and its implementation, innovation policy and its implementation, as well as the impact on financial and economic processes in the state. Based on the research, the ways to improve the economic unshadowing issue are proposed, in particular through the introduction of changes to the existing regulatory legislation.

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The Relationship Between Auditors Positions and Electronic Transformation in Auditors' Effectiveness

Author(s): Tuba Derya Baskan / Language(s): English / Issue: 1/2019

Purpose – Information users who are able to reach the firms’ information want the reports to be accountable and complete, to quickly access the information that is needed, and to be transparent and clear. For this reason, the results of independent audit reports are crucial for the information users. On the other hand, auditing firms would also aim to reach transparent and quick information by using electronic transformation elements. Supervisors can also use e-transformation elements to access information that is quick and easy to control. Design/methodology/approach – A survey was applied to the independent audit firms in Ankara and Anova and Turkey tests were conducted. Findings – At the end of the study, a meaningful relationship was found between the title of employees in the audit body and the elements of e-transformation in audit activity. Discussion – Electronic transformation elements that are important in every company in both the public and private sectors are also important in audit firms and their necessity is increasing.

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The Relationship between Authentic Leadership and Employees' Virtual Loafing and Cynic Behaviors

Author(s): Halil Özcan Özdemir,Hakan Vahit Erkutlu / Language(s): English / Issue: 1/2018

The main purpose of this study is to investigate whether the managers’ authentic leadership styles affect employees’ organizational cynicism and virtual loafing behavior. The sample of the study consists of 208 administrative staff at Ahi Evran University. According to the results of the study, it is clear that the authentic leadership reduces organizational cynicism and does not reduce the virtual loafing; and organizational cynicism behaviors have an increasing effect on virtual loafing. Sample of the research consists of administrative personnel working at Ahi Evran University located in Kırşehir. First of all, descriptive statistics, correlation, and hierarchical regression analyses were conducted related to the hypotheses tests. The results of these analyses revealed that a negative relationship existed between authentic leadership and organizational cynism, while there was a positive relationship between organizational cynism and virtual loafing. Moreover, no negative relation was found between authentic leadership and virtual loafing, which was one of the hypotheses of the research.

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The relationship between balanced organizational values and organizational effectiveness: Evidence from business practice

Author(s): Ivan Malbašić / Language(s): English / Issue: 2/2020

Organizational values are a part of the core ideology of any organization; therefore, managing organizational values is one of the preconditions for achieving business success. However, the question arises of how to manage organizational values to increase overall business success. The main research question asked in this paper is whether organizations with balanced values, i.e., those with an equal representation of values from different categories with a common focus, are more effective than those with imbalanced values. To test the research question, a study of 24 Croatian companies was conducted. The level of balanced values was measured with the Mission-based model of organizational values, distinguishing between four basic value categories—business values, relational values, development values, and contribution values. In addition to researching the impact of balanced organizational values on the overall level of organizational effectiveness, the impact of that balance was also investigated for the five different perspectives of organizational effectiveness based on the Balanced Scorecard approach. The findings indicate that organizations with balanced organizational values are, in general, more effective than organizations with imbalanced values. This paper therefore contributes to a better understanding of the role of organizational values in modern business and particularly to an understanding of the importance and role of balanced organizational values.

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