Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.si.21
The aim of this paper is to point to the specificities of economic and political transformations in Bosnia and Herzegovina (B&H) and the Western Balkan in the context of economic and political changes in the global environment that can significantly affect the EU accession process. An analysis of the position of B&H in the group of Western Balkans countries and the perspective of economic growth was conducted by focusing on the political and economic criteria as well as on the current obstacles these countries are facing, specifically, based on their political and economic background and in conditions where external risks are growing. All these countries are commited to implementing structural reforms because the commitment of all the countries towards Europe, which means convergence towards the European countries and a reduction in the size of the GDP per capita. In order to achieve such long-term goals, it is necessary to implement structural reforms that will result in stimulating production, trade, financial flows and reforming the labor market and the public sector. That is why growth of investment and exports is the main determinant of long-term growth. This paper gives an overview of the basic economic features of B&H compared with the other countries that belong to Western Balkan region, as well as projections on the certain macroeconomic indicators in the forthcoming period.
{"title":"EU PROSPECTS FOR BOSNIA AND HERZEGOVINA: BETWEEN STAGNATION AND GROWTH","authors":"","doi":"10.46458/27121097.2018.si.21","DOIUrl":"https://doi.org/10.46458/27121097.2018.si.21","url":null,"abstract":"The aim of this paper is to point to the specificities of economic and political transformations in Bosnia and Herzegovina (B&H) and the Western Balkan in the context of economic and political changes in the global environment that can significantly affect the EU accession process. An analysis of the position of B&H in the group of Western Balkans countries and the perspective of economic growth was conducted by focusing on the political and economic criteria as well as on the current obstacles these countries are facing, specifically, based on their political and economic background and in conditions where external risks are growing.\u0000\u0000All these countries are commited to implementing structural reforms because the commitment of all the countries towards Europe, which means convergence towards the European countries and a reduction in the size of the GDP per capita. In order to achieve such long-term goals, it is necessary to implement structural reforms that will result in stimulating production, trade, financial flows and reforming the labor market and the public sector. That is why growth of investment and exports is the main determinant of long-term growth. This paper gives an overview of the basic economic features of B&H compared with the other countries that belong to Western Balkan region, as well as projections on the certain macroeconomic indicators in the forthcoming period.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115181407","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2020.26.70
Igor Ivašković
The article examines the problem of ambiguities in the process of measuring the performance in non-profit sports clubs which is one of the main causes for disputes between various stakeholders in the process of determining organizational strategies and strategic objectives. The first objective is to use the non-profit basketball clubs as an example, to describe their specifics from the aspect of organizational performance and to reveal what exactly, beside the financial and sports results, is necessary to take into account for the performance evaluation in these organizations. The second objective is to disclose non-profit sport clubs’ actual strategic orientations. The explorative factor analysis performed on performance estimations of 15 organizational goals was obtained on a sample of 73 non-profit basketball clubs from four South-Eastern European countries. The results indicate two basic strategic orientations of non-profit basketball clubs, namely financial-competitive and non-financial-recreational orientation. The findings may be helpful to clubs’ managements in the process of defining missions and hierarchy of strategic goals for their organizations.
{"title":"THE PROBLEM OF DEFINING »PERFORMANCE« IN NON-PROFIT SPORT ORGANIZATIONS: THE CASE OF BASKETBALL CLUBS FROM SOUTH-EASTERN EUROPE","authors":"Igor Ivašković","doi":"10.46458/27121097.2020.26.70","DOIUrl":"https://doi.org/10.46458/27121097.2020.26.70","url":null,"abstract":"The article examines the problem of ambiguities in the process of measuring the performance in non-profit sports clubs which is one of the main causes for disputes between various stakeholders in the process of determining organizational strategies and strategic objectives. The first objective is to use the non-profit basketball clubs as an example, to describe their specifics from the aspect of organizational performance and to reveal what exactly, beside the financial and sports results, is necessary to take into account for the performance evaluation in these organizations. The second objective is to disclose non-profit sport clubs’ actual strategic orientations. \u0000\u0000The explorative factor analysis performed on performance estimations of 15 organizational goals was obtained on a sample of 73 non-profit basketball clubs from four South-Eastern European countries. The results indicate two basic strategic orientations of non-profit basketball clubs, namely financial-competitive and non-financial-recreational orientation. The findings may be helpful to clubs’ managements in the process of defining missions and hierarchy of strategic goals for their organizations.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"17 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126504028","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.si.356
Globalization has enabled "joining" the rest of the modernity project. Expressive values such as knowledge, information, symbols and communication have become an imperative. Planetary power has encouraged the movement of free international capital in the global village. Digital economy and networked politics are responsible for the freedom of movement of capital that has become the part of financial globalization. From the range of stimulating factors to the free movement of international capital, the thrust of foreign investment plays an important role. The intricacy of neoclassical theory and the neoliberal political economy have enabled stronger interconnectedness and deeper integration of national economies. Consequently, there have been changes in the way of thinking of the ruling elites in terms of importance of foreign direct investment (FDI). Such awareness has also come through to the ruling elites of the Republic of Croatia who apply the strategy of attracting FDI based on pragmatic nationalism. FDIs are incorporated into the "national box" in the Republic of Croatia as one of the tools to gain advantages. In the perspective of advantages and disadvantages, the work is focused on the employment category from the perspective of the Republic of Croatia as the recipient of FDI or political foreign direct investment (PFDI). Given the importance of attracting FDI in the Republic of Croatia, the subject of the research includes consideration of the essence of Croatian FDI and employment in the Republic of Croatia in terms of identifying the attracted investments and the correlation with the growth or decline in employment. The aim of the research is to identify and deepen the topic of FDI in Croatia and its impact on employment in the Republic of Croatia. In addition, the aim is to explore and identify key FDI providers and employment impacts.
{"title":"IMPACT OF FOREIGN DIRECT INVESTMENTS ON EMPLOYMENT IN THE REPUBLIC OF CROATIA","authors":"","doi":"10.46458/27121097.2018.si.356","DOIUrl":"https://doi.org/10.46458/27121097.2018.si.356","url":null,"abstract":"Globalization has enabled \"joining\" the rest of the modernity project. Expressive values such as knowledge, information, symbols and communication have become an imperative. Planetary power has encouraged the movement of free international capital in the global village. Digital economy and networked politics are responsible for the freedom of movement of capital that has become the part of financial globalization. From the range of stimulating factors to the free movement of international capital, the thrust of foreign investment plays an important role. The intricacy of neoclassical theory and the neoliberal political economy have enabled stronger interconnectedness and deeper integration of national economies. Consequently, there have been changes in the way of thinking of the ruling elites in terms of importance of foreign direct investment (FDI). Such awareness has also come through to the ruling elites of the Republic of Croatia who apply the strategy of attracting FDI based on pragmatic nationalism. FDIs are incorporated into the \"national box\" in the Republic of Croatia as one of the tools to gain advantages. In the perspective of advantages and disadvantages, the work is focused on the employment category from the perspective of the Republic of Croatia as the recipient of FDI or political foreign direct investment (PFDI). Given the importance of attracting FDI in the Republic of Croatia, the subject of the research includes consideration of the essence of Croatian FDI and employment in the Republic of Croatia in terms of identifying the attracted investments and the correlation with the growth or decline in employment. The aim of the research is to identify and deepen the topic of FDI in Croatia and its impact on employment in the Republic of Croatia. In addition, the aim is to explore and identify key FDI providers and employment impacts.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129635311","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.si.228
The more competitive external economic environment and challenges brought by a long-term growth can only be solved by investment in research and development, innovations and human capital. Developed countries try to stimulate research and development in all important fields by forming special institutions and organizations, adopting clear policies and concrete measures. The European Union has made smart specialization strategy as platform to focus on development investments in area where Europe has critical mass of knowledge, capacities and competencies that are innovative potential for maintaining the highest positions of competitiveness at world markets. One of the most important tools in implementation of strategy are Centres of competences aimed to increase of small and medium entrepreneurship capacities that are in lack of own capacities for research and development. This paperwork will analyse how much countries are aware of importance and readiness to create national strategy of smart specialization. How ready they are to start transformation of national economies through forming and strengthening innovation chain of value i.e. how ready they are to be lead by the principle: ”Research is transformation of money in knowledge, and innovation is transformation of knowledge in money.” What is current condition and how are perspectives in Bosnia and Herzegovina regarding incentives for innovation and technology development, creating better business conditions of new and growing companies, promoting partnership and synergy in order to create value chains, ensuring continuous modernization of industry and solving social and regional competitiveness that are the main challenges of the EU. Encouragement of growth and competitiveness for economic development and goals of the Europe 2020 Strategy belongs to the most important priorities of the Commission and the EU member countries after crisis. The Europe 2020 Strategy is focused on solving structural disabilities of existing growth models by creating conditions for smart, sustainable and inclusive growth.
{"title":"SMART SPECIALIZATION OF THE EU IN THE FUNCTION OF INCREASING NATIONAL COMPETITIVENESS LEVEL","authors":"","doi":"10.46458/27121097.2018.si.228","DOIUrl":"https://doi.org/10.46458/27121097.2018.si.228","url":null,"abstract":"The more competitive external economic environment and challenges brought by a long-term growth can only be solved by investment in research and development, innovations and human capital. Developed countries try to stimulate research and development in all important fields by forming special institutions and organizations, adopting clear policies and concrete measures. The European Union has made smart specialization strategy as platform to focus on development investments in area where Europe has critical mass of knowledge, capacities and competencies that are innovative potential for maintaining the highest positions of competitiveness at world markets. One of the most important tools in implementation of strategy are Centres of competences aimed to increase of small and medium entrepreneurship capacities that are in lack of own capacities for research and development. This paperwork will analyse how much countries are aware of importance and readiness to create national strategy of smart specialization. How ready they are to start transformation of national economies through forming and strengthening innovation chain of value i.e. how ready they are to be lead by the principle: ”Research is transformation of money in knowledge, and innovation is transformation of knowledge in money.” What is current condition and how are perspectives in Bosnia and Herzegovina regarding incentives for innovation and technology development, creating better business conditions of new and growing companies, promoting partnership and synergy in order to create value chains, ensuring continuous modernization of industry and solving social and regional competitiveness that are the main challenges of the EU. Encouragement of growth and competitiveness for economic development and goals of the Europe 2020 Strategy belongs to the most important priorities of the Commission and the EU member countries after crisis. The Europe 2020 Strategy is focused on solving structural disabilities of existing growth models by creating conditions for smart, sustainable and inclusive growth.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"237 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116400082","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.SI.250
Gordana Kordić
Important aspect of ongoing discussions on the choice of exchange rate regime is its reaction to crisis as a strong and unexpected external shock; such was the case of Great Recession from 2008.-onwards. It is generally accepted that pegged exchange rate regimes are more sensitive to external shocks that might cause their long-term destabilization. Still, the soft pegged regimes (also entitled intermediate regimes) have fewer limits, with rules that allow more maneuver space for national strategy. The group of soft pegged regimes is wider, both in structure and scope, then those of hard pegged regimes. While countries with more flexible regimes might use exchange rate fluctuations as automatic stabilisator, (hard and/or soft) pegs impose some limitations. In the first place, there is stability goal that, in combination with strict regulatory rules, limits the monetary and exchange rate policy, demanding the use of other strategies, such is the internal devaluation. Secondly, these countries do not use wide scope of instruments and their crisis strategy is more rigid than those of other regimes. Finally, there are dilemmas on the optimality of exchange rate strategy during the pre-eurozone membership period, including the euro introduction strategy. These dilemmas deepen in terms of crisis. This paper focuses on comparison of hard and soft pegged regimes (the latter also entitled intermediate regimes) in selected European union accession countries, using „de facto“classification scale developed by International Monetary Fund. Despite the crisis, there have not been dramatic turbulences in terms of exchange rate policy in observed countries, but the general economic indicators clearly show the real depth of crisis and slow recovery. The question open for further discussion is whether such regimes should be obtained or abandoned during the crisis and what is their contribution to national economy. Furthermore, there are pros and cons of possible strategies, considering the European integration process.
{"title":"USE OF (HARD AND SOFT) PEGGED EXCHANGE RATE REGIMES ON THE PATH TO EUROPEAN INTEGRATIONS IN TERMS OF CRISIS","authors":"Gordana Kordić","doi":"10.46458/27121097.2018.SI.250","DOIUrl":"https://doi.org/10.46458/27121097.2018.SI.250","url":null,"abstract":"Important aspect of ongoing discussions on the choice of exchange rate regime is its reaction to crisis as a strong and unexpected external shock; such was the case of Great Recession from 2008.-onwards. It is generally accepted that pegged exchange rate regimes are more sensitive to external shocks that might cause their long-term destabilization. Still, the soft pegged regimes (also entitled intermediate regimes) have fewer limits, with rules that allow more maneuver space for national strategy. The group of soft pegged regimes is wider, both in structure and scope, then those of hard pegged regimes. While countries with more flexible regimes might use exchange rate fluctuations as automatic stabilisator, (hard and/or soft) pegs impose some limitations. In the first place, there is stability goal that, in combination with strict regulatory rules, limits the monetary and exchange rate policy, demanding the use of other strategies, such is the internal devaluation. Secondly, these countries do not use wide scope of instruments and their crisis strategy is more rigid than those of other regimes. Finally, there are dilemmas on the optimality of exchange rate strategy during the pre-eurozone membership period, including the euro introduction strategy. These dilemmas deepen in terms of crisis. \u0000\u0000This paper focuses on comparison of hard and soft pegged regimes (the latter also entitled intermediate regimes) in selected European union accession countries, using „de facto“classification scale developed by International Monetary Fund. Despite the crisis, there have not been dramatic turbulences in terms of exchange rate policy in observed countries, but the general economic indicators clearly show the real depth of crisis and slow recovery. The question open for further discussion is whether such regimes should be obtained or abandoned during the crisis and what is their contribution to national economy. Furthermore, there are pros and cons of possible strategies, considering the European integration process.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130583131","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.si.214
D. Galinec, Tomislav Kandžija
Surveillance of government deficit and debt data is a very important issue from the point of view of national policy makers, as well as international financial and statistical organizations. Deficit and debt developments in EU member states has been regularly (twice a year) monitored by Eurostat, which collects and publishes so called excessive deficit procedure (EDP) statistics on government deficit and debt. The European Commission uses the EDP statistics to assess whether EU Member States' government deficits and debt levels comply with the relevant EU legislation (according to the Maastricht Treaty criteria, government deficit should be less or equal to 3% and government debt less or equal to 60%) of GDP. Deficit and debt data are published mostly in relative terms, i.e. compared with the nominal GDP and compiled according to the ESA2010 methodology. In simplified theory, annual government deficit/surplus should be equal to change in the level of government debt at the end of the actual year and at the end of the previous year. In reality, this is not true due to the impact of the stock-flow adjustments (SFA), which explains the difference between the change in government debt and the government deficit/surplus for a given year. Main aim of this paper is to identify the main factors contributing the changes in government debt other than deficit/surplus (SFA) in Croatia during the period 2010-2017. Those factors are divided into three main categories: net acquisition of financial assets (further broken down by financial instruments), adjustments (for coverage, valuation and exchange rate changes) and statistical discrepancies (reflects differences arising from the use of various data sources). Second, not less important aim of paper is to identify size and impact of the particular SFA factors on changes in debt level during the observed period in Croatia, and based on results obtained, short recommendations for Croatian policymakers will be outlined.
{"title":"THE IMPACT OF STOCK-FLOW ADJUSTMENTS ON CHANGES IN CROATIAN GENERAL GOVERNMENT DEBT LEVEL","authors":"D. Galinec, Tomislav Kandžija","doi":"10.46458/27121097.2018.si.214","DOIUrl":"https://doi.org/10.46458/27121097.2018.si.214","url":null,"abstract":"Surveillance of government deficit and debt data is a very important issue from the point of view of national policy makers, as well as international financial and statistical organizations. Deficit and debt developments in EU member states has been regularly (twice a year) monitored by Eurostat, which collects and publishes so called excessive deficit procedure (EDP) statistics on government deficit and debt. The European Commission uses the EDP statistics to assess whether EU Member States' government deficits and debt levels comply with the relevant EU legislation (according to the Maastricht Treaty criteria, government deficit should be less or equal to 3% and government debt less or equal to 60%) of GDP. Deficit and debt data are published mostly in relative terms, i.e. compared with the nominal GDP and compiled according to the ESA2010 methodology. In simplified theory, annual government deficit/surplus should be equal to change in the level of government debt at the end of the actual year and at the end of the previous year. In reality, this is not true due to the impact of the stock-flow adjustments (SFA), which explains the difference between the change in government debt and the government deficit/surplus for a given year. Main aim of this paper is to identify the main factors contributing the changes in government debt other than deficit/surplus (SFA) in Croatia during the period 2010-2017. Those factors are divided into three main categories: net acquisition of financial assets (further broken down by financial instruments), adjustments (for coverage, valuation and exchange rate changes) and statistical discrepancies (reflects differences arising from the use of various data sources). Second, not less important aim of paper is to identify size and impact of the particular SFA factors on changes in debt level during the observed period in Croatia, and based on results obtained, short recommendations for Croatian policymakers will be outlined.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127086088","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.SI.186
Vladimira Ivandić, I. Tolić, N. Miljanić
European integration is largely seen as a process that has delivered stability and peace, as well as the economic prosperity of the Member States of the European Union (EU). It has helped to raise standards of living and build an internal market. But, there are more and more arguments that the EU decision-making system is not effective and the governance model is obsolete. Some are pointing out increasingly rising divergence on crucial EU policy matters. Others are arguing that the EU has been confronted with the challenge of heterogeneity, stressing the issue of immigration as the one of the most contentious policy matters currently facing the EU. Besides those controversial issues inside EU and different positions among member states there is Brexit. The paper analyses in particular the issue of EU economic governance and one of its main pillars – the European Semester. The Country Specific Recommendations, as the integral part of the economic governance model are presented in a view of the new framework envisaged to tighten budgetary coordination and keep the deficit and debt levels in accordance to the EU rules.
{"title":"EUROPEAN INTEGRATION AND GOVERNANCE – \u0000CHALLENGES AND PERSPECTIVES","authors":"Vladimira Ivandić, I. Tolić, N. Miljanić","doi":"10.46458/27121097.2018.SI.186","DOIUrl":"https://doi.org/10.46458/27121097.2018.SI.186","url":null,"abstract":"European integration is largely seen as a process that has delivered stability and peace, as well as the economic prosperity of the Member States of the European Union (EU). It has helped to raise standards of living and build an internal market. But, there are more and more arguments that the EU decision-making system is not effective and the governance model is obsolete. Some are pointing out increasingly rising divergence on crucial EU policy matters. Others are arguing that the EU has been confronted with the challenge of heterogeneity, stressing the issue of immigration as the one of the most contentious policy matters currently facing the EU. Besides those controversial issues inside EU and different positions among member states there is Brexit. \u0000\u0000The paper analyses in particular the issue of EU economic governance and one of its main pillars – the European Semester. The Country Specific Recommendations, as the integral part of the economic governance model are presented in a view of the new framework envisaged to tighten budgetary coordination and keep the deficit and debt levels in accordance to the EU rules.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"70 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129634828","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.SI.90
Ante Džidić, S. Orsag
This paper deals with probabilities of dividend changes for a given change in earnings. This so-called sensitivity of dividends to earnings changes was analyzed on a sample of Advanced economies and Emerging and developing economies, according to International Monetary Fund classification. The main goal of the research is to empirically verify the assumption that companies are generally reluctant to cut or reduce dividends regardless of the stage of economic development of the country. In addition, the probabilities of dividend changes for a given change in earnings in characteristic groups of countries - Baltic countries and former Yugoslavia countries - have been analyzed. Research results show that earnings are significant dividend factor in all sample countries, that companies are generally reluctant to cut or decrease dividends and that dividends are less sensitive to earnings changes in Advanced economies, compared to Emerging and developing economies. Research has also shown that dividends are less responsive to earnings changes in former Yugoslavia countries compared to Baltic countries. These findings are in line with Lintner (1956) who has shown that reduction in earnings is not necessarily followed by reduction in dividends. Such behavior of dividends can be explained even by prospect theory created by Kahneman and Tversky (1979). They have shown that investors are more sensitive to negative events than to positive events and that investors do not make decisions in relation to the overall wealth but in relation to a particular reference point, which is usually the status quo. If this is the case, the previous dividends represent a specific reference point in relation to which investors make decisions. Having in mind asymmetric reaction of the investing public to dividend increases and dividend decreases (or dividend cuts), companies are reluctant to cut or decrease dividends because they are trying to avoid negative market reaction.
{"title":"SENSITIVITY OF DIVIDENDS TO EARNINGS CHANGES","authors":"Ante Džidić, S. Orsag","doi":"10.46458/27121097.2018.SI.90","DOIUrl":"https://doi.org/10.46458/27121097.2018.SI.90","url":null,"abstract":"This paper deals with probabilities of dividend changes for a given change in earnings. This so-called sensitivity of dividends to earnings changes was analyzed on a sample of Advanced economies and Emerging and developing economies, according to International Monetary Fund classification. The main goal of the research is to empirically verify the assumption that companies are generally reluctant to cut or reduce dividends regardless of the stage of economic development of the country. In addition, the probabilities of dividend changes for a given change in earnings in characteristic groups of countries - Baltic countries and former Yugoslavia countries - have been analyzed. Research results show that earnings are significant dividend factor in all sample countries, that companies are generally reluctant to cut or decrease dividends and that dividends are less sensitive to earnings changes in Advanced economies, compared to Emerging and developing economies. Research has also shown that dividends are less responsive to earnings changes in former Yugoslavia countries compared to Baltic countries. These findings are in line with Lintner (1956) who has shown that reduction in earnings is not necessarily followed by reduction in dividends. Such behavior of dividends can be explained even by prospect theory created by Kahneman and Tversky (1979). They have shown that investors are more sensitive to negative events than to positive events and that investors do not make decisions in relation to the overall wealth but in relation to a particular reference point, which is usually the status quo. If this is the case, the previous dividends represent a specific reference point in relation to which investors make decisions. Having in mind asymmetric reaction of the investing public to dividend increases and dividend decreases (or dividend cuts), companies are reluctant to cut or decrease dividends because they are trying to avoid negative market reaction.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"11 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128081295","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.si.105
Andrej Kumar
Regional Trade Agreements (RTAs), are Treaties between two or more states to liberalize mutual trade or other economic relations. Among such RTAs the European Union is the largest one and most complex, including 28 member states with developed high levels of trade, monetary and economic cooperation in 2018. Generally RTAs follow the idea that more free trade and more liberal environment for other economic cooperation activities among the integrated states create an environment enabling additional and accelerated economic growth of member states, together with some other positive structural and economic gains. After1992 the number of newly registered RTAs with GATT and later with WTO started to increase very fast in comparison to the entire period after the WW II. In May 2018 all WTO registered active RTAs reached the number of 287. The number of active RTA evidently exceeds the number of all world’s states. The number of 287 active RTAs suggests that at least some states participate in more than one form of RTA. Such fact further strongly suggests that at least before 2017 there was globally developed an intensive interest among states to join or create one or another form of the RTA. The growth of registered and active RTAs in the last 25 or so years confirms realization of the theoretically predicted positive economic impacts of the RTAs on the member states economic achievements. However Mr. Trump, as the actual President of the USA, started to question expected positive economic gains of the existing RTAs. The policy of unilateral increases of USA’simport tariffs introduced by new USA administration presents open violation of the WTO trading rules. The USA’s discriminatory trade policy has been further extended by the decided that USA has to exit from its existing RTAs. USA’s decision of dismantling of the existing RTAs creates questions about their real economic efficiency and generally about the future of such international trade agreements. The process and actions after the dismantling and renegotiating of the USA’s RTA with Mexico and Canada, known as North American Free Trade Agreement (NAFTA, established Jan.1, 1994) produce some insight into the weaknesses and into the potential changes of the future RTAs. In the paper we analyse expected economic gains and eventual disadvantages of the RTAs for the member states. The expected end of NAFTA and creation of a new trade agreement between USA, Mexico and Canada are analysed with the purpose to develop insights into the probable future existence and reforms of the RTAs in the global economy.
{"title":"IS THERE STILL A FUTURE TO THE REGIONAL TRADE AGREEMENTS?","authors":"Andrej Kumar","doi":"10.46458/27121097.2018.si.105","DOIUrl":"https://doi.org/10.46458/27121097.2018.si.105","url":null,"abstract":"Regional Trade Agreements (RTAs), are Treaties between two or more states to liberalize mutual trade or other economic relations. Among such RTAs the European Union is the largest one and most complex, including 28 member states with developed high levels of trade, monetary and economic cooperation in 2018. Generally RTAs follow the idea that more free trade and more liberal environment for other economic cooperation activities among the integrated states create an environment enabling additional and accelerated economic growth of member states, together with some other positive structural and economic gains. After1992 the number of newly registered RTAs with GATT and later with WTO started to increase very fast in comparison to the entire period after the WW II. In May 2018 all WTO registered active RTAs reached the number of 287. The number of active RTA evidently exceeds the number of all world’s states. The number of 287 active RTAs suggests that at least some states participate in more than one form of RTA. Such fact further strongly suggests that at least before 2017 there was globally developed an intensive interest among states to join or create one or another form of the RTA. The growth of registered and active RTAs in the last 25 or so years confirms realization of the theoretically predicted positive economic impacts of the RTAs on the member states economic achievements. However Mr. Trump, as the actual President of the USA, started to question expected positive economic gains of the existing RTAs. The policy of unilateral increases of USA’simport tariffs introduced by new USA administration presents open violation of the WTO trading rules. The USA’s discriminatory trade policy has been further extended by the decided that USA has to exit from its existing RTAs. USA’s decision of dismantling of the existing RTAs creates questions about their real economic efficiency and generally about the future of such international trade agreements. The process and actions after the dismantling and renegotiating of the USA’s RTA with Mexico and Canada, known as North American Free Trade Agreement (NAFTA, established Jan.1, 1994) produce some insight into the weaknesses and into the potential changes of the future RTAs.\u0000\u0000In the paper we analyse expected economic gains and eventual disadvantages of the RTAs for the member states. The expected end of NAFTA and creation of a new trade agreement between USA, Mexico and Canada are analysed with the purpose to develop insights into the probable future existence and reforms of the RTAs in the global economy.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"2 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123718181","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 1900-01-01DOI: 10.46458/27121097.2018.si.322
N. Alfirević, Darko Rendulić
It is often assumed that modern information technology (IT) is a source of performance improvement. Empirical research has not univocally confirmed this assumption, since complex, extensive and resource demanding IT tools require extensive organizational restructuring, in order to be properly and successfully implemented. This generates the need to create and use business intelligence and key performance indicators (KPI) to obtain a high quality basis for making decisions in real time. In this paper, authors analyze the existence of a potential relationship between the methodological approach to defining business intelligence (BI)-related KPIs and achieving business process performance, as well as the overall organizational performance. The methodological determinants of the process, in which the KPIs are defined, are empirically analyzed and associated with the two discussed aspects of performance. The empirical analysis is conducted for the case of e-government development, with the special emphasis on countries from Central, East and South-East Europe. The E-Government development is measured by two KPIs, which have been defined, by strictly following the recommended BI methodology. The two KPIs are related to a business process, performed by the public administration, which can be greatly facilitated by the introduction of E-Government. This is the process of opening a new enterprise, which can be also viewed as one of key measures of the national economic and entrepreneurial development. The public administration performance in serving the needs of new entrepreneurs for company registration is, therefore, considered in terms of E-Government performance. Two KPIs used measure the procedural complexity and costs for opening a new enterprise in a sample, consisting of 28 European Union member-states. The statistical analysis uses secondary data, available from the official Eurostat Web pages. The empirical results confirm the existence of the hypothesized relationship between the methodological procedures for developing KPIs and the process performance, which affirms the need to develop both E-Government, as well as other processes in public administration, by using solid planning and methodological approaches.
{"title":"KEY PERFORMANCE INDICATORS FOR E-GOVERNMENT: METHODOLOGICAL APPROACH TO INDICATOR DEVELOPMENT","authors":"N. Alfirević, Darko Rendulić","doi":"10.46458/27121097.2018.si.322","DOIUrl":"https://doi.org/10.46458/27121097.2018.si.322","url":null,"abstract":"It is often assumed that modern information technology (IT) is a source of performance improvement. Empirical research has not univocally confirmed this assumption, since complex, extensive and resource demanding IT tools require extensive organizational restructuring, in order to be properly and successfully implemented. This generates the need to create and use business intelligence and key performance indicators (KPI) to obtain a high quality basis for making decisions in real time. In this paper, authors analyze the existence of a potential relationship between the methodological approach to defining business intelligence (BI)-related KPIs and achieving business process performance, as well as the overall organizational performance. The methodological determinants of the process, in which the KPIs are defined, are empirically analyzed and associated with the two discussed aspects of performance.\u0000\u0000The empirical analysis is conducted for the case of e-government development, with the special emphasis on countries from Central, East and South-East Europe. The E-Government development is measured by two KPIs, which have been defined, by strictly following the recommended BI methodology. The two KPIs are related to a business process, performed by the public administration, which can be greatly facilitated by the introduction of E-Government. This is the process of opening a new enterprise, which can be also viewed as one of key measures of the national economic and entrepreneurial development. The public administration performance in serving the needs of new entrepreneurs for company registration is, therefore, considered in terms of E-Government performance. Two KPIs used measure the procedural complexity and costs for opening a new enterprise in a sample, consisting of 28 European Union member-states.\u0000\u0000The statistical analysis uses secondary data, available from the official Eurostat Web pages. The empirical results confirm the existence of the hypothesized relationship between the methodological procedures for developing KPIs and the process performance, which affirms the need to develop both E-Government, as well as other processes in public administration, by using solid planning and methodological approaches.","PeriodicalId":213982,"journal":{"name":"Zbornik radova - Journal of Economy and Business","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"1900-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"127218126","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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