A. Quddus, D. Pavelková, Sarfraz Hussain, Tien Phat Pham
Purpose – Investment in working capital and firm profitability with economic policy uncertainty moderating effects has paid less attention in the existing literature. Therefore, this study examines the moderating impact of eco-nomic policy uncertainty on the relationship between Investment in working capital and firm profitability. Research methodology – This study uses secondary data of 38 Pakistani chemical companies over the period of 2014-2019 using dynamic panel data methodology. Findings – The dynamic panel analysis indicates that economic policy uncertainty moderates the relationship of in-vestment in working capital and firm profitability significantly and positively. Overall, the study findings indicate that working capital management investment significantly affect accounting base performance of Pakistani chemical and pharmaceutical companies. Research limitations – In this research, the researcher has collected data only from the non-financial sector. The financial industry can be used to carry the same study to get different results. Practical implications – This study will help practitioners while making an investment decision in working capital management for firms because the results of this study contribute significantly to the firm’s profitability. Originality/Value – This research contributes favourable to a country’s prospective investors at large and in the busi-ness’s internal environment to manage the short-term liquidity issues during economic policy fluctuations.
{"title":"THE MODERATING IMPACT OF ECONOMIC POLICY UNCERTAINTY ON THE RELATIONSHIP BETWEEN INVESTMENT IN WORKING CAPITAL AND PROFITABILITY","authors":"A. Quddus, D. Pavelková, Sarfraz Hussain, Tien Phat Pham","doi":"10.3846/CIBMEE.2021.598","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.598","url":null,"abstract":"Purpose – Investment in working capital and firm profitability with economic policy uncertainty moderating effects has paid less attention in the existing literature. Therefore, this study examines the moderating impact of eco-nomic policy uncertainty on the relationship between Investment in working capital and firm profitability.\u0000\u0000Research methodology – This study uses secondary data of 38 Pakistani chemical companies over the period of 2014-2019 using dynamic panel data methodology.\u0000\u0000Findings – The dynamic panel analysis indicates that economic policy uncertainty moderates the relationship of in-vestment in working capital and firm profitability significantly and positively. Overall, the study findings indicate that working capital management investment significantly affect accounting base performance of Pakistani chemical and pharmaceutical companies.\u0000\u0000Research limitations – In this research, the researcher has collected data only from the non-financial sector. The financial industry can be used to carry the same study to get different results.\u0000\u0000Practical implications – This study will help practitioners while making an investment decision in working capital management for firms because the results of this study contribute significantly to the firm’s profitability.\u0000\u0000Originality/Value – This research contributes favourable to a country’s prospective investors at large and in the busi-ness’s internal environment to manage the short-term liquidity issues during economic policy fluctuations.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134423596","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}
Purpose – the purpose of the article is to develop a conceptual model of the company’s financial logistics based on the system dynamics principles. Research methodology – the article is based on the system analysis and system dynamics methods to define, classify and simulate a company financial flow. Findings – the definition of financial logistics for a business system has been defined. The authors make a classification of the company’s financial flow by the main economic activities and time series factors. Research limitations – commercial data, used for the practical implementation of the model, are confidential and cannot be disclosed. Practical implications – the model is implemented by transformation of a system dynamic flow graph into VENSIM programs. It may estimate the stationary trajectory financial flow and short-term and long-term gaps. Originality/Value – the conceptual model of the company’s financial logistics is determined based on the system dynam-ics principles. The model includes the advantages of the financial management methods and contemporary econometric analysis instruments based on a system dynamics.
{"title":"COMPANY FINANCIAL FLOW MODELLING BY SYSTEM DYNAMICS METHODOLOGY","authors":"D. Zherlitsyn, Liudmyla Galaieva, V. Mandra","doi":"10.3846/CIBMEE.2021.630","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.630","url":null,"abstract":"Purpose – the purpose of the article is to develop a conceptual model of the company’s financial logistics based on the system dynamics principles.\u0000\u0000Research methodology – the article is based on the system analysis and system dynamics methods to define, classify and simulate a company financial flow.\u0000\u0000Findings – the definition of financial logistics for a business system has been defined. The authors make a classification of the company’s financial flow by the main economic activities and time series factors.\u0000\u0000Research limitations – commercial data, used for the practical implementation of the model, are confidential and cannot be disclosed.\u0000\u0000Practical implications – the model is implemented by transformation of a system dynamic flow graph into VENSIM programs. It may estimate the stationary trajectory financial flow and short-term and long-term gaps.\u0000\u0000Originality/Value – the conceptual model of the company’s financial logistics is determined based on the system dynam-ics principles. The model includes the advantages of the financial management methods and contemporary econometric analysis instruments based on a system dynamics.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"30 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"122302021","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}
Purpose – due to the constant increase of cyber-attacks not only the measures of identifying and controlling cyber risks are created, but also the methods of estimating possible cyber-attacks financial costs should be developed to increase business preparedness. The purpose of this research is to forecast potential costs of cyber-attacks in Baltic countries. Research methodology – to achieve the aim of the article and prepare a prognosis of possible cyber-attacks costs the Estimation the Global Costs of Cyber Risk Calculator V 1.2 tool was used. Findings – estimated costs of cyber-attacks in Lithuania, Latvia and Estonia are highest in the public business and ser-vices sector and also in the defense sector. According to conducted calculations the costs of cyber-attacks in Lithuania will reach 1% of GDP of Lithuania by 2026. Research limitations – in this research the costs of cyber-attacks are estimated regarding industries of business but not excluding specific cyber threats. Therefore, for the future research possibilities could be the analyses of specific cyber risks and their impact to various business sectors. Practical implications – the results of the research may be useful in practical approach for preparing the risk manage-ment tools, evaluating possible damage and effect of cyber-attacks to business, also increasing preparedness level and business resilience. Originality/Value – this estimation model has been not used to evaluate and discuss cyber-risks costs in Lithuania among previous researches, therefore the topic and conducted results are original and significantly relevant for further analyses of cyber security issues in Lithuania.
{"title":"FORECASTING COSTS OF CYBER ATTACKS USING ESTIMATION THE GLOBAL COST OF CYBER RISK CALCULATOR V 1.2","authors":"Julija Gavėnaitė-Sirvydienė, Algita Miečinskienė","doi":"10.3846/CIBMEE.2021.618","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.618","url":null,"abstract":"Purpose – due to the constant increase of cyber-attacks not only the measures of identifying and controlling cyber risks are created, but also the methods of estimating possible cyber-attacks financial costs should be developed to increase business preparedness. The purpose of this research is to forecast potential costs of cyber-attacks in Baltic countries.\u0000\u0000Research methodology – to achieve the aim of the article and prepare a prognosis of possible cyber-attacks costs the Estimation the Global Costs of Cyber Risk Calculator V 1.2 tool was used.\u0000\u0000Findings – estimated costs of cyber-attacks in Lithuania, Latvia and Estonia are highest in the public business and ser-vices sector and also in the defense sector. According to conducted calculations the costs of cyber-attacks in Lithuania will reach 1% of GDP of Lithuania by 2026.\u0000\u0000Research limitations – in this research the costs of cyber-attacks are estimated regarding industries of business but not excluding specific cyber threats. Therefore, for the future research possibilities could be the analyses of specific cyber risks and their impact to various business sectors.\u0000\u0000Practical implications – the results of the research may be useful in practical approach for preparing the risk manage-ment tools, evaluating possible damage and effect of cyber-attacks to business, also increasing preparedness level and business resilience.\u0000\u0000Originality/Value – this estimation model has been not used to evaluate and discuss cyber-risks costs in Lithuania among previous researches, therefore the topic and conducted results are original and significantly relevant for further analyses of cyber security issues in Lithuania.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129474449","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}
Purpose – to analyze the current state of risk management in Public Finance System of Ukraine and prefer recommendations for its improvement. Research methodology – the structural-functional method (for revealing the influence mechanism of public finance risks on main indicators of Public Finance System), the comparison method (for comparing the main indicators of Public Finance System between Ukraine and other countries). Findings – recommendations for reducing of public finance risks will provide the budget with reliable sources of in-comes, optimize the structure of government spending, and improve the budget process in order to create conditions for enhancing the quality and efficiency of budget decisions. Research limitations – some risks are only of a qualitative nature and cannot be measured to analyze the impact of risks on the main indicators of Public Finance System. Practical implications – improvement of a risk-oriented method in Public Finance System under global challenges is an effective method of developing the existing Public Finance Management in Ukraine. Originality/Value – risk management in Public Finance system under global challenges is a new stage of comprehen-sive relations which opens the way for further progressive reforms. A great importance is to use the experience of risk management measures gained by EU states, but also taking into account the peculiarities of socio-economic situation in Ukraine.
{"title":"RISK MANAGEMENT IN PUBLIC FINANCE SYSTEM OF UKRAINE UNDER GLOBAL CHALLENGES","authors":"D. Tretiak, N. Miedviedkova","doi":"10.3846/CIBMEE.2021.622","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.622","url":null,"abstract":"Purpose – to analyze the current state of risk management in Public Finance System of Ukraine and prefer recommendations for its improvement.\u0000\u0000Research methodology – the structural-functional method (for revealing the influence mechanism of public finance risks on main indicators of Public Finance System), the comparison method (for comparing the main indicators of Public Finance System between Ukraine and other countries).\u0000\u0000Findings – recommendations for reducing of public finance risks will provide the budget with reliable sources of in-comes, optimize the structure of government spending, and improve the budget process in order to create conditions for enhancing the quality and efficiency of budget decisions.\u0000\u0000Research limitations – some risks are only of a qualitative nature and cannot be measured to analyze the impact of risks on the main indicators of Public Finance System.\u0000\u0000Practical implications – improvement of a risk-oriented method in Public Finance System under global challenges is an effective method of developing the existing Public Finance Management in Ukraine.\u0000\u0000Originality/Value – risk management in Public Finance system under global challenges is a new stage of comprehen-sive relations which opens the way for further progressive reforms. A great importance is to use the experience of risk management measures gained by EU states, but also taking into account the peculiarities of socio-economic situation in Ukraine.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"66 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132643790","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}
Purpose – In recent years, crowdfunding platforms have become very popular as intermediaries between fundraisers and funders. However, various campaigns published on the platform might be of bad quality or fraudulent, so the crowdfunding platform must be very careful when choosing the right ones. Also, the proper selection depends on the profits of a crowdfunding platform. In most cases, crowdfunding platforms mainly earn money from transaction and administration fees from successful campaigns on their platforms. While it is very hard to select successful cam-paigns, it is possible to analyse already published campaigns and forecast future revenues of crowdfunding platforms. And based on this, to select new projects which might be successful too. The aim of this work is to develop a model to forecast the revenues of crowdfunding platforms. Research methodology – In this research, comparative and statistical analysis will be used, data structuring, modelling and forecasting, performed with the ARIMA model. Findings – Main findings of this research present the three most successful campaign categories from the Kickstarter platform that receives the highest funding. Fees were calculated from those three campaign categories, and revenues for the platform were forecasted using the ARIMA model. Research limitations – Main limitations are that there were used data from a very short period of time. For better results accuracy, a longer period is needed. Practical implications – this research might be of practical use since the forecasts show that the revenues will continue to grow from the successful campaign categories. Consequently, investors should continue to support technology, games and design categories the most. At the same time, crowdfunding platforms should give more attention to these categories when choosing new projects to launch on the platform.
{"title":"FORECASTING CROWDFUNDING PLATFORM REVENUES USING ARIMA MODEL","authors":"Santautė Venslavienė, Jelena Stankevičienė","doi":"10.3846/CIBMEE.2021.595","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.595","url":null,"abstract":"Purpose – In recent years, crowdfunding platforms have become very popular as intermediaries between fundraisers and funders. However, various campaigns published on the platform might be of bad quality or fraudulent, so the crowdfunding platform must be very careful when choosing the right ones. Also, the proper selection depends on the profits of a crowdfunding platform. In most cases, crowdfunding platforms mainly earn money from transaction and administration fees from successful campaigns on their platforms. While it is very hard to select successful cam-paigns, it is possible to analyse already published campaigns and forecast future revenues of crowdfunding platforms. And based on this, to select new projects which might be successful too. The aim of this work is to develop a model to forecast the revenues of crowdfunding platforms.\u0000\u0000Research methodology – In this research, comparative and statistical analysis will be used, data structuring, modelling and forecasting, performed with the ARIMA model.\u0000\u0000Findings – Main findings of this research present the three most successful campaign categories from the Kickstarter platform that receives the highest funding. Fees were calculated from those three campaign categories, and revenues for the platform were forecasted using the ARIMA model.\u0000\u0000Research limitations – Main limitations are that there were used data from a very short period of time. For better results accuracy, a longer period is needed.\u0000\u0000Practical implications – this research might be of practical use since the forecasts show that the revenues will continue to grow from the successful campaign categories. Consequently, investors should continue to support technology, games and design categories the most. At the same time, crowdfunding platforms should give more attention to these categories when choosing new projects to launch on the platform.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132130796","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}
Purpose – to propose conceptual model for forecasting of waste trends and empirically implement the model based on the case of Lithuania and its regions. Research methodology – 1) scientific literature analysis on circular economy, zero waste and waste management, 2) gathering of statistical data on waste flows, composition and treatment 3) creation of conceptual model of forecasting with Exponential Smoothing for prediction of waste-related trends based on literature review. Findings – proposed conceptual model for prediction of waste-related trends is adequate for prognosis of waste flows, composition and treatment ways. The main forecasting results are that the total waste flows will increase in Lithuania, on a regional level, Alytus, Kaunas, Klaipėda, Telšiai, have a tendency of the increase in municipal waste flows. The results imply that in order to contribute to the reduction of waste, the active involvement on a regional level is necessary. Research limitations – the research can be extended with statistical data on waste of other countries to check adequacy of the conceptual model for waste-related trends prognosis. Practical implications – the findings of the research can be applied in planning and decision-making process of gov-ernment bodies on national or local level. The results are also useful for the general public in educational purposes. Originality/Value – the study provides original conceptual model for the forecasting of waste-related trends which provides robust results of predictions and can be replicated by different countries.
{"title":"TRENDS OF MUNICIPAL WASTE FLOWS, COMPOSITION, TREATMENT IN LITHUANIA AND ITS REGIONS","authors":"Jelena Stankevičienė, Julija Bužinskė","doi":"10.3846/CIBMEE.2021.599","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.599","url":null,"abstract":"Purpose – to propose conceptual model for forecasting of waste trends and empirically implement the model based on the case of Lithuania and its regions.\u0000\u0000Research methodology – 1) scientific literature analysis on circular economy, zero waste and waste management, 2) gathering of statistical data on waste flows, composition and treatment 3) creation of conceptual model of forecasting with Exponential Smoothing for prediction of waste-related trends based on literature review.\u0000\u0000Findings – proposed conceptual model for prediction of waste-related trends is adequate for prognosis of waste flows, composition and treatment ways. The main forecasting results are that the total waste flows will increase in Lithuania, on a regional level, Alytus, Kaunas, Klaipėda, Telšiai, have a tendency of the increase in municipal waste flows. The results imply that in order to contribute to the reduction of waste, the active involvement on a regional level is necessary.\u0000\u0000Research limitations – the research can be extended with statistical data on waste of other countries to check adequacy of the conceptual model for waste-related trends prognosis.\u0000\u0000Practical implications – the findings of the research can be applied in planning and decision-making process of gov-ernment bodies on national or local level. The results are also useful for the general public in educational purposes.\u0000\u0000Originality/Value – the study provides original conceptual model for the forecasting of waste-related trends which provides robust results of predictions and can be replicated by different countries.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"54 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"128629736","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}
Purpose – to reveal prerequisites of technology-enabled banking development in Lithuania, Poland, and Ukraine; to identify if digitalization was a beneficial factor in households deposits-raising during the COVID-19. Research methodology is twofold: analysis of digitalization index based on World Bank data as a premise of tech-nology-enabled banks development; beta-coefficient analysis and descriptive statistics – for digitalization influence assessment. Findings – digitalization index analysis showed that Lithuania has a more generous benefit in terms of digitalization. Poland and Ukraine follow with a slight gap. Traditional banks of analyzed countries are acting towards digitalization but at different paces. There are both digital and neobanks in Lithuania and Poland, while in Ukraine only digital banks. Analysis of Ukrainian banks deposits highlighted the fact that digital banks were in some cases more preferable for households, especially during a pandemic. Research limitations – lack of data: common digitalization indexes could not be calculated for Ukraine; differences in countries’ banking data: content and structuring criteria. Practical implications – the results could be important for policy recommendations to tackle the blind spots of banking digitalization. Originality/Value – suggested digitalization index could be utilized as a universal. Due to DESI limitations, common for EU countries, we were to create our own index and compare results with calculated by European Commission DESI values. While DESI is calculated using some specific survey data, the proposed index is using standardized data of World Bank; the results of digital and traditional banks deposits comparison could be useful for further study.
{"title":"IS DIGITAL 'NEW NORMAL' OR 'CHALLENGE' FOR BANKS UNDER COVID-19?","authors":"N. Versal, Vasyl Erastov, M. Balytska","doi":"10.3846/CIBMEE.2021.608","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.608","url":null,"abstract":"Purpose – to reveal prerequisites of technology-enabled banking development in Lithuania, Poland, and Ukraine; to identify if digitalization was a beneficial factor in households deposits-raising during the COVID-19.\u0000\u0000Research methodology is twofold: analysis of digitalization index based on World Bank data as a premise of tech-nology-enabled banks development; beta-coefficient analysis and descriptive statistics – for digitalization influence assessment.\u0000\u0000Findings – digitalization index analysis showed that Lithuania has a more generous benefit in terms of digitalization. Poland and Ukraine follow with a slight gap. Traditional banks of analyzed countries are acting towards digitalization but at different paces. There are both digital and neobanks in Lithuania and Poland, while in Ukraine only digital banks. Analysis of Ukrainian banks deposits highlighted the fact that digital banks were in some cases more preferable for households, especially during a pandemic.\u0000\u0000Research limitations – lack of data: common digitalization indexes could not be calculated for Ukraine; differences in countries’ banking data: content and structuring criteria.\u0000\u0000Practical implications – the results could be important for policy recommendations to tackle the blind spots of banking digitalization.\u0000\u0000Originality/Value – suggested digitalization index could be utilized as a universal. Due to DESI limitations, common for EU countries, we were to create our own index and compare results with calculated by European Commission DESI values. While DESI is calculated using some specific survey data, the proposed index is using standardized data of World Bank; the results of digital and traditional banks deposits comparison could be useful for further study.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"62 8","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132236590","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}
Zhanna Pisarenko, N. Kuznetsova, Nguyen Canh Toan, L. Ivanov
Purpose – the purpose of the article is to assess the investment potential of YieldСos as an innovative pension vehicle and determine the risks that may arise in connection with them. Methods used: empirical analyses, comparisons, statistical analyses. Research methodology – empirical research, comparative analysis, statistical analyses. Findings – in the paper we compared the new investment vehicle YieldCos (green) and a traditional investment vehicle – energy companies (non-green). It was found that the correlation of YieldCos with the market indices is similar to nongreen companies. But YieldCos are more exposed to risks than energy companies. That may offset their attractiveness as long term investment vehicle. It is necessary to continue research for this investment vehicle during the period of global financial volatility and crash of crude oil price. Research limitations – the authors study the raise of the new investment vehicle – YieldCos, during the period from 2013 to 2018 (pre Covid-19 Era). Practical implications – YieldCos focus on investors interests, raising money in an environmental projects (namely renewable energy), and provide combination of high yield and high income growth. Aforesaid characteristics are attractive for institutional investors that are currently experiencing a lack of resources to meet their obligations. Originality/Value – new investment vehicle is becoming a part of the overall socially responsible investment universe. We have taken the first step in the comparative evaluation of traditional and innovative types of investment instruments. Showed the prospects of a new environmentally oriented tool. It is necessary to continue research of this investment vehicle during the period of global financial volatility, changing landscape of energy resources and stakeholders rising influence.
{"title":"YIELDCO AS A PERSPECTIVE INVESTMENT VEHICLE","authors":"Zhanna Pisarenko, N. Kuznetsova, Nguyen Canh Toan, L. Ivanov","doi":"10.3846/CIBMEE.2021.638","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.638","url":null,"abstract":"Purpose – the purpose of the article is to assess the investment potential of YieldСos as an innovative pension\u0000vehicle and determine the risks that may arise in connection with them. Methods used: empirical analyses, comparisons,\u0000statistical analyses.\u0000Research methodology – empirical research, comparative analysis, statistical analyses.\u0000Findings – in the paper we compared the new investment vehicle YieldCos (green) and a traditional investment vehicle –\u0000energy companies (non-green). It was found that the correlation of YieldCos with the market indices is similar to nongreen companies. But YieldCos are more exposed to risks than energy companies. That may offset their attractiveness\u0000as long term investment vehicle. It is necessary to continue research for this investment vehicle during the period of\u0000global financial volatility and crash of crude oil price.\u0000Research limitations – the authors study the raise of the new investment vehicle – YieldCos, during the period from\u00002013 to 2018 (pre Covid-19 Era).\u0000Practical implications – YieldCos focus on investors interests, raising money in an environmental projects (namely renewable energy), and provide combination of high yield and high income growth. Aforesaid characteristics are attractive\u0000for institutional investors that are currently experiencing a lack of resources to meet their obligations.\u0000Originality/Value – new investment vehicle is becoming a part of the overall socially responsible investment universe.\u0000We have taken the first step in the comparative evaluation of traditional and innovative types of investment instruments.\u0000Showed the prospects of a new environmentally oriented tool. It is necessary to continue research of this investment\u0000vehicle during the period of global financial volatility, changing landscape of energy resources and stakeholders rising\u0000influence. \u0000","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"39 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"132309044","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}
Purpose – In the field of the economics’ regulation researchers so far have built the conceptual framework showing how the deadweight loss of market failures decrease and costs of the government intervention increase with the increased level of the government intervention. In order to quantify relationships between the level of intervention, intervention costs and the deadweight loss with econometric models it is important to understand how to quantify the regulation costs as a part of intervention costs. The objective of the research presented in this paper is to find the appropriate methodology for the quantification of the regulation costs in the banking market. Research methodology – literature review (regarding theories), mathematical methods for quantification and econometric methods for validation purposes. Findings – research shows that in the assessment of regulation costs three main stakeholders should be included – microprudential regulator, macroprudential regulator and financial regulation’s policy maker. Research presents their cost assessment methodology. Its validation shows that in general methodology works as expected, i.e., higher government intervention levels lead to higher regulation costs, however this general rule has exceptions, which in authors’ view indicates that other factors have an impact on the cost levels. Research limitations – research shows how to assess the costs of main stakeholders based on the publicly available information. More precise view could be obtained if in the cooperation with authorities more details on certain cost items are received. Practical implications – research results will be used to assess all government intervention costs (other positions include compliance costs and other indirect costs) and finalize the quantification of the framework. Quantified framework could be used for more precise policy making regarding the regulation of the banking market. Originality/Value – research shows how to quantify the regulation costs of the banking market as currently there are only conceptual ideas.
{"title":"METHODOLOGY FOR THE ASSESSMENT OF REGULATION COSTS IN THE BANKING MARKET","authors":"K. Freimanis, Maija Šenfelde","doi":"10.3846/CIBMEE.2021.600","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.600","url":null,"abstract":"Purpose – In the field of the economics’ regulation researchers so far have built the conceptual framework\u0000showing how the deadweight loss of market failures decrease and costs of the government intervention increase with\u0000the increased level of the government intervention. In order to quantify relationships between the level of intervention,\u0000intervention costs and the deadweight loss with econometric models it is important to understand how to quantify the\u0000regulation costs as a part of intervention costs. The objective of the research presented in this paper is to find the appropriate methodology for the quantification of the regulation costs in the banking market.\u0000Research methodology – literature review (regarding theories), mathematical methods for quantification and econometric\u0000methods for validation purposes.\u0000Findings – research shows that in the assessment of regulation costs three main stakeholders should be included – microprudential regulator, macroprudential regulator and financial regulation’s policy maker. Research presents their cost\u0000assessment methodology. Its validation shows that in general methodology works as expected, i.e., higher government\u0000intervention levels lead to higher regulation costs, however this general rule has exceptions, which in authors’ view\u0000indicates that other factors have an impact on the cost levels.\u0000Research limitations – research shows how to assess the costs of main stakeholders based on the publicly available\u0000information. More precise view could be obtained if in the cooperation with authorities more details on certain cost\u0000items are received.\u0000Practical implications – research results will be used to assess all government intervention costs (other positions include\u0000compliance costs and other indirect costs) and finalize the quantification of the framework. Quantified framework could\u0000be used for more precise policy making regarding the regulation of the banking market.\u0000Originality/Value – research shows how to quantify the regulation costs of the banking market as currently there are\u0000only conceptual ideas.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"14 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-17","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116694326","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}
S. Lehenchuk, N. Valinkevych, O. Hryhorevska, I. Vyhivska
Purpose of the article is the actualization of problematic issues related to the identification of risks and threats to the tax security of the enterprise, which is a trigger for the probable onset of the “fiscal crisis” and is a consequence of COVID-19. Research methodology – The article used general scientific research methods (observation, comparison, modeling, generalization), methods of tax risk management were used for minimizing the impact of COVID-19 on the activities of enterprises and extrapolation method was used for identifying the stages of tax security risk management. Findings – The generalization of factual material and statistical data allowed to establish that in modern conditions of business environment development the main threats to tax security of the enterprise were the probability of global epidemic risk, the risk of military collaboration, the risk of management failure and effective risk of social destabilization. Practical implications – It has been recommended to take actions in the field of minimizing tax security risks taking into account the implementation of the Fiscal Roadmap for economic recovery. Research limitations – One of the main limitations of this study is that the main proposals of the article are formed taking into account the peculiarities of the tax system of Ukraine. Originality/Value – consists in identifying the impact of general state policy on minimizing tax risks of business entities as a result of assessing the experience of minimizing tax risks in the context of Covid-19 based on Ukrainian national practice.
{"title":"TAX SECURITY OF THE ENTERPRISE: RISKS, THREATS AND WAYS OF THEIR MINIMIZATION UNDER THE INFLUENCE OF COVID-19","authors":"S. Lehenchuk, N. Valinkevych, O. Hryhorevska, I. Vyhivska","doi":"10.3846/CIBMEE.2021.606","DOIUrl":"https://doi.org/10.3846/CIBMEE.2021.606","url":null,"abstract":"Purpose of the article is the actualization of problematic issues related to the identification of risks and threats\u0000to the tax security of the enterprise, which is a trigger for the probable onset of the “fiscal crisis” and is a consequence\u0000of COVID-19.\u0000Research methodology – The article used general scientific research methods (observation, comparison, modeling,\u0000generalization), methods of tax risk management were used for minimizing the impact of COVID-19 on the activities\u0000of enterprises and extrapolation method was used for identifying the stages of tax security risk management.\u0000Findings – The generalization of factual material and statistical data allowed to establish that in modern conditions of\u0000business environment development the main threats to tax security of the enterprise were the probability of global epidemic\u0000risk, the risk of military collaboration, the risk of management failure and effective risk of social destabilization.\u0000Practical implications – It has been recommended to take actions in the field of minimizing tax security risks taking\u0000into account the implementation of the Fiscal Roadmap for economic recovery.\u0000Research limitations – One of the main limitations of this study is that the main proposals of the article are formed\u0000taking into account the peculiarities of the tax system of Ukraine.\u0000Originality/Value – consists in identifying the impact of general state policy on minimizing tax risks of business entities\u0000as a result of assessing the experience of minimizing tax risks in the context of Covid-19 based on Ukrainian national\u0000practice.","PeriodicalId":237890,"journal":{"name":"Selected papers of the International Scientific Conference “Contemporary Issues in Business, Management and Economics Engineering 2021”","volume":"10 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-05-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129233870","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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