Abstract Research background Corporate ideology is perceived as a set of fundamental beliefs held by company members about how the company and its members should behave in relation to one another and the outside world. In this paper, corporate ideology is treated as the basis for creating an organization’s identity and as an extremely important factor in its success. Purpose The aim of this paper is to analyze the corporate ideologies of banks operating in the Republic of Croatia, to classify different ideologies, and finally, to determine what kind of identity the surveyed banks communicate through their corporate ideologies. Research methodology A comparative and content analysis are applied as qualitative methods of research of an interpretative character. Results The corporate ideologies of two of the analyzed banks (ZABA and Erste) are described as social institutionalism, and PBZ’s ideology is labeled as social corporatism. Detected corporate ideologies do not serve to build the authenticity of banks’ identities. Novelty The main novelty of this research is in the methodology of reaching corporate ideologies. Unlike previous works on corporate ideology, in this paper public messages communicated in (digital) media were the main sources for the analysis of an organization’s core values and ideologies resulting from it. Also, a simple framework for the possible classification of different corporate ideologies was provided.
{"title":"A Comparative Analysis of the Corporate Ideologies of Banks Operating in the Republic of Croatia","authors":"Stjepan Lacković, M. Baralić, Mateja Šporčić","doi":"10.2478/foli-2023-0007","DOIUrl":"https://doi.org/10.2478/foli-2023-0007","url":null,"abstract":"Abstract Research background Corporate ideology is perceived as a set of fundamental beliefs held by company members about how the company and its members should behave in relation to one another and the outside world. In this paper, corporate ideology is treated as the basis for creating an organization’s identity and as an extremely important factor in its success. Purpose The aim of this paper is to analyze the corporate ideologies of banks operating in the Republic of Croatia, to classify different ideologies, and finally, to determine what kind of identity the surveyed banks communicate through their corporate ideologies. Research methodology A comparative and content analysis are applied as qualitative methods of research of an interpretative character. Results The corporate ideologies of two of the analyzed banks (ZABA and Erste) are described as social institutionalism, and PBZ’s ideology is labeled as social corporatism. Detected corporate ideologies do not serve to build the authenticity of banks’ identities. Novelty The main novelty of this research is in the methodology of reaching corporate ideologies. Unlike previous works on corporate ideology, in this paper public messages communicated in (digital) media were the main sources for the analysis of an organization’s core values and ideologies resulting from it. Also, a simple framework for the possible classification of different corporate ideologies was provided.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"81 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126334776","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}
Abstract Research background The evolution of technologies nowadays gives a higher impact on all sectors, including accounting. With rapidly growing volumes of data available, coding can be a valuable skillset for accountants to derive insight and value for organizations from accounting data. Purpose The objective of this paper is to identify the benefits of coding skills among accounting professionals, especially in the area of the automation of processes. In addition, the paper discusses some barriers to developing coding abilities. Research methodology The research study analyzed a sample of 160 respondents from around the world. The study used a questionnaire. A principal axis factor analysis with the Promax rotation was conducted to assess the underlying structure for the points of the questionnaire. Results The results showed that accountants should possess at least some basic skills in coding. The top benefit of coding skills by accountants, as perceived by the respondents, was the possibility to automate repetitive tasks, data reporting, and visualization. The top barrier to coding skills by accountants, as perceived by the respondents, was a lack of time and knowledge of what software skills to acquire and how. Novelty This research contributes to the literature by exploring the benefits of and barriers to coding in the accounting field. The findings can be useful for financial professionals and adepts to understand the benefits of coding skills in accounting.
{"title":"Coding Skills in the Automation of Accounting Processes","authors":"Anna Karmańska","doi":"10.2478/foli-2023-0006","DOIUrl":"https://doi.org/10.2478/foli-2023-0006","url":null,"abstract":"Abstract Research background The evolution of technologies nowadays gives a higher impact on all sectors, including accounting. With rapidly growing volumes of data available, coding can be a valuable skillset for accountants to derive insight and value for organizations from accounting data. Purpose The objective of this paper is to identify the benefits of coding skills among accounting professionals, especially in the area of the automation of processes. In addition, the paper discusses some barriers to developing coding abilities. Research methodology The research study analyzed a sample of 160 respondents from around the world. The study used a questionnaire. A principal axis factor analysis with the Promax rotation was conducted to assess the underlying structure for the points of the questionnaire. Results The results showed that accountants should possess at least some basic skills in coding. The top benefit of coding skills by accountants, as perceived by the respondents, was the possibility to automate repetitive tasks, data reporting, and visualization. The top barrier to coding skills by accountants, as perceived by the respondents, was a lack of time and knowledge of what software skills to acquire and how. Novelty This research contributes to the literature by exploring the benefits of and barriers to coding in the accounting field. The findings can be useful for financial professionals and adepts to understand the benefits of coding skills in accounting.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"35 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"133878223","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}
Abstract Research background The issue of reliability and the cost of failure or maintenance costs of renewable energy sources, including wind farms, is becoming increasingly important, especially as the volume of electricity supply from such installations increases. Purpose The purpose of the paper is to evaluate the development of wind energy in European countries between 2010 and 2020. Evaluating the reliability of wind farm components and ensuring that wind farm infrastructure is available at a high level is crucial to the stability of the electricity supply system. Therefore, the paper presents, as a case study, a reliability estimation of one of the wind farms operating in the North Sea. The analysis is carried out on the basis of empirical data obtained from experts involved in the maintenance of this wind farm. The estimated reliability function is an important reliability indicator for users of this system. On the basis of the evaluated reliability function, for example, the system availability can be improved, and the maintenance costs of the system can be optimised. Research methodology Mathematical modelling was used to analyse system reliability. Further, in the developed reliability models, it was assumed that the system components have the multistate Weibull reliability functions with various parameters in their different reliability state subsets. Novelty Original study with literature review. In the context of the requirements for the transformation of the Polish energy sector, the presented approach can be used in the practical implementation of RES projects, taking into account the reliability of offshore wind farm installations.
{"title":"Reliability of Renewable Power Generation using the Example of Offshore Wind Farms","authors":"J. Soszyńska-Budny, M. Chmielewski, Joanna Pioch","doi":"10.2478/foli-2023-0012","DOIUrl":"https://doi.org/10.2478/foli-2023-0012","url":null,"abstract":"Abstract Research background The issue of reliability and the cost of failure or maintenance costs of renewable energy sources, including wind farms, is becoming increasingly important, especially as the volume of electricity supply from such installations increases. Purpose The purpose of the paper is to evaluate the development of wind energy in European countries between 2010 and 2020. Evaluating the reliability of wind farm components and ensuring that wind farm infrastructure is available at a high level is crucial to the stability of the electricity supply system. Therefore, the paper presents, as a case study, a reliability estimation of one of the wind farms operating in the North Sea. The analysis is carried out on the basis of empirical data obtained from experts involved in the maintenance of this wind farm. The estimated reliability function is an important reliability indicator for users of this system. On the basis of the evaluated reliability function, for example, the system availability can be improved, and the maintenance costs of the system can be optimised. Research methodology Mathematical modelling was used to analyse system reliability. Further, in the developed reliability models, it was assumed that the system components have the multistate Weibull reliability functions with various parameters in their different reliability state subsets. Novelty Original study with literature review. In the context of the requirements for the transformation of the Polish energy sector, the presented approach can be used in the practical implementation of RES projects, taking into account the reliability of offshore wind farm installations.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"22 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"121451074","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}
Abstract Research background with the introduction of the euro as the domestic currency, economies have faced inflationary pressures caused by price convergence towards higher levels. During the last period of significant negative shocks from the environment, by entering the euro area, the negative effects of the likelihood of inflation caused by the introduction of the euro may be absent. Purpose the aim of this paper is to prove that inflation caused by joining the euro area will not materialize due to the negative effects of external shocks. Research methodology A panel analysis with a fixed effects model was conducted for two models. Model 1 represents the countries that introduced the euro before the escalation of the global financial crisis and Model 2 represents the countries that introduced the euro after the development of the global financial crisis. Results the research confirmed that due to current negative external shocks and rising long-term interest rates in financial markets, the effect of inflation due to the introduction of the euro will be absent among EU members that will adopt the euro as a common currency in the next few years. Novelty The results of the research contribute to the scientific prediction of business and financial trends. The creators of macroeconomic models and monetary policy can use the results to define measures, instruments and activities more precisely for achieving and maintaining macroeconomic balance.
{"title":"Confronting the Inflationary Pressures of Introducing the Euro with the Effects of Negative External Shocks","authors":"P. P. Biškupec, I. Ružić","doi":"10.2478/foli-2023-0010","DOIUrl":"https://doi.org/10.2478/foli-2023-0010","url":null,"abstract":"Abstract Research background with the introduction of the euro as the domestic currency, economies have faced inflationary pressures caused by price convergence towards higher levels. During the last period of significant negative shocks from the environment, by entering the euro area, the negative effects of the likelihood of inflation caused by the introduction of the euro may be absent. Purpose the aim of this paper is to prove that inflation caused by joining the euro area will not materialize due to the negative effects of external shocks. Research methodology A panel analysis with a fixed effects model was conducted for two models. Model 1 represents the countries that introduced the euro before the escalation of the global financial crisis and Model 2 represents the countries that introduced the euro after the development of the global financial crisis. Results the research confirmed that due to current negative external shocks and rising long-term interest rates in financial markets, the effect of inflation due to the introduction of the euro will be absent among EU members that will adopt the euro as a common currency in the next few years. Novelty The results of the research contribute to the scientific prediction of business and financial trends. The creators of macroeconomic models and monetary policy can use the results to define measures, instruments and activities more precisely for achieving and maintaining macroeconomic balance.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"7 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131993722","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}
Abstract Research background Agency theory refers to the conflict of interests between different groups involved in the business. One aspect of the agency theory is conflict among shareholders. One of the areas of potential conflict is dividend payment. Purpose The goal of our paper was to identify the impact of voting behaviour of shareholders during Annual General Meetings on dividend decisions. We make a comparison between big and small companies. Research methodology We included the 20 biggest and the 20 smallest companies from the Warsaw Stock Exchange (WSE) in our sample over the 2010–2022 period. We collected 413 observations (shareholders’ presence, voting results from annual general meetings, and financial data). We use statistical tests, a correlation analysis, and a regression analysis. Results: We found that in small companies there is conflict among large shareholders on dividend payout decisions, while in big companies small shareholders show their disappointment by voting against or abstaining from voting for financial statement acceptance (but not dividend payout decisions). Additionally, we found that the higher presence of large shareholders at the AGM the lower the dividend payout is. Novelty: The originality of the paper is that instead of ownership structure we took into account shareholders’ presence at AGM’s. We deal with a unique set of hand-collected data on voting results. We present new evidence on interests of conflict among shareholders (not only on dividend decisions). Although the problem of the conflict between minority and majority shareholders was identified, there is a scarcity of research on its background and implication.
{"title":"Conflict of interests among shareholders – does it refer to dividend decisions?","authors":"E. Bukalska, Myroslava Zabediuk, N. Mostovenko","doi":"10.2478/foli-2023-0002","DOIUrl":"https://doi.org/10.2478/foli-2023-0002","url":null,"abstract":"Abstract Research background Agency theory refers to the conflict of interests between different groups involved in the business. One aspect of the agency theory is conflict among shareholders. One of the areas of potential conflict is dividend payment. Purpose The goal of our paper was to identify the impact of voting behaviour of shareholders during Annual General Meetings on dividend decisions. We make a comparison between big and small companies. Research methodology We included the 20 biggest and the 20 smallest companies from the Warsaw Stock Exchange (WSE) in our sample over the 2010–2022 period. We collected 413 observations (shareholders’ presence, voting results from annual general meetings, and financial data). We use statistical tests, a correlation analysis, and a regression analysis. Results: We found that in small companies there is conflict among large shareholders on dividend payout decisions, while in big companies small shareholders show their disappointment by voting against or abstaining from voting for financial statement acceptance (but not dividend payout decisions). Additionally, we found that the higher presence of large shareholders at the AGM the lower the dividend payout is. Novelty: The originality of the paper is that instead of ownership structure we took into account shareholders’ presence at AGM’s. We deal with a unique set of hand-collected data on voting results. We present new evidence on interests of conflict among shareholders (not only on dividend decisions). Although the problem of the conflict between minority and majority shareholders was identified, there is a scarcity of research on its background and implication.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"78 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"115480107","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}
Abstract Research background Many studies have declared the influence of organizational culture on the performance of employees, however little attention was given to the correlation of organizational culture and human capital development in the healthcare sector in the Indian context. Purpose The current study intends to elucidate the effects that organizational culture has on the development of Human Capital for various healthcare service sector organizations in Odisha. Research methodology A total of 300 responses were gleaned from various employees employed in different healthcare service sector organizations operating in the Odisha market. The positive influence of Organizational Culture (OC) was observed on the development of human capital as was found from the results of the data analysis. Results From the findings of the study the positive influence of various Reward Systems, Trend towards Participation and Trust was observed on the development of human capital. However, the results of the study showed no significant influence of the dimensions of information systems on the development of human capital. Novelty There are no previous studies which have substantiated the positive impacts of Organizational Culture on Human Capital Development (HCD) which were explicit to the Indian healthcare service sector. Furthermore, the findings of this study provide a unique insight into the influences of certain elements of organizational culture upon developing the human capital of healthcare service sector employees in the Indian context.
{"title":"An Inferential Response of Organizational Culture upon Human Capital Development: A Justification on the Healthcare Service Sector","authors":"Loknath Sen, Arya Kumar, S. K. Biswal","doi":"10.2478/foli-2023-0011","DOIUrl":"https://doi.org/10.2478/foli-2023-0011","url":null,"abstract":"Abstract Research background Many studies have declared the influence of organizational culture on the performance of employees, however little attention was given to the correlation of organizational culture and human capital development in the healthcare sector in the Indian context. Purpose The current study intends to elucidate the effects that organizational culture has on the development of Human Capital for various healthcare service sector organizations in Odisha. Research methodology A total of 300 responses were gleaned from various employees employed in different healthcare service sector organizations operating in the Odisha market. The positive influence of Organizational Culture (OC) was observed on the development of human capital as was found from the results of the data analysis. Results From the findings of the study the positive influence of various Reward Systems, Trend towards Participation and Trust was observed on the development of human capital. However, the results of the study showed no significant influence of the dimensions of information systems on the development of human capital. Novelty There are no previous studies which have substantiated the positive impacts of Organizational Culture on Human Capital Development (HCD) which were explicit to the Indian healthcare service sector. Furthermore, the findings of this study provide a unique insight into the influences of certain elements of organizational culture upon developing the human capital of healthcare service sector employees in the Indian context.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"31 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"130678761","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}
Abstract Research background Because of the convergence of demographic, political, and economic trends, retirement has become a significant stage of human life, which currently requires thoughtful and careful planning. Therefore, social pension schemes – a type of system under which the benefits are being provided – and women’s individual saving decisions should give consideration to the fact that it is necessary to accumulate additional funds which should be sufficient for several decades after retirement. Purpose Social pension schemes are widely discussed in all European countries, and in this context we can pose the following question: What is it exactly that makes women save for retirement? This paper has two objectives: to identify the factors that encourage women to save and to measure these factors and develop a model which shows correlations. Research methodology A questionnaire survey was used for collecting the primary data. Subsequently, the analysis is based on 4 indexes created for the purposes of this paper. Then, the indexes were estimated on the basis of the unidimensional two-parameter IRT model, rho and CR coefficients, and multiple-group logistic regression analysis. Novelty The conducted calculations lead to the conclusion that regardless of age, several factors are statistically significant for the whole analysed group, e.g. a place of residence. This is the first paper that shows determinants important for women when it comes to saving for retirement.
{"title":"An Attempt to Measure and Model Women’s Attitudes to Saving for Retirement","authors":"J. Hernik, A. Sagan","doi":"10.2478/foli-2023-0005","DOIUrl":"https://doi.org/10.2478/foli-2023-0005","url":null,"abstract":"Abstract Research background Because of the convergence of demographic, political, and economic trends, retirement has become a significant stage of human life, which currently requires thoughtful and careful planning. Therefore, social pension schemes – a type of system under which the benefits are being provided – and women’s individual saving decisions should give consideration to the fact that it is necessary to accumulate additional funds which should be sufficient for several decades after retirement. Purpose Social pension schemes are widely discussed in all European countries, and in this context we can pose the following question: What is it exactly that makes women save for retirement? This paper has two objectives: to identify the factors that encourage women to save and to measure these factors and develop a model which shows correlations. Research methodology A questionnaire survey was used for collecting the primary data. Subsequently, the analysis is based on 4 indexes created for the purposes of this paper. Then, the indexes were estimated on the basis of the unidimensional two-parameter IRT model, rho and CR coefficients, and multiple-group logistic regression analysis. Novelty The conducted calculations lead to the conclusion that regardless of age, several factors are statistically significant for the whole analysed group, e.g. a place of residence. This is the first paper that shows determinants important for women when it comes to saving for retirement.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116914781","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}
Moussa Chenini, Hicham Ayad, Manel Attouchi, M. Dahmani
Abstract Research background This paper examines the existence of Okun’s law in Algeria over the period of 1970–2020 using both the gap and differences model. Purpose The main objective of this paper is to econometrically examine, explore and test the nexus among unemployment rate and economic growth, in order to have a clear explanation about unemployment in Algeria. Research methodology Firstly, the Kapetanios unit root test and Maki cointegration test are employed for the gap model to deal with the structural breaks than the estimation of the coefficients in this case, secondly, the quantile regression is used for the differences model; finally, three categories of causality tests are used in this research. Results The findings revealed that unemployment rates are not affected by output over the period of study both in the gap and differences model. Hence, Okun’s law is not held in Algeria. Novelty The study focused on Okun’s law in different ways. This latter carries out structural breaks in both the unit root and co-integration analysis. On the other hand, the study uses the quantile regression for the first time in the examination of Okun’s law. In the same line of thought, this research introduces an asymmetric analysis in the Maki cointegration and quantile regression.
{"title":"Testing the Validity of Okun’s Law in Algeria: Is there a difference between Maki’s Cointegration and Quantile’s Regression Results?","authors":"Moussa Chenini, Hicham Ayad, Manel Attouchi, M. Dahmani","doi":"10.2478/foli-2023-0003","DOIUrl":"https://doi.org/10.2478/foli-2023-0003","url":null,"abstract":"Abstract Research background This paper examines the existence of Okun’s law in Algeria over the period of 1970–2020 using both the gap and differences model. Purpose The main objective of this paper is to econometrically examine, explore and test the nexus among unemployment rate and economic growth, in order to have a clear explanation about unemployment in Algeria. Research methodology Firstly, the Kapetanios unit root test and Maki cointegration test are employed for the gap model to deal with the structural breaks than the estimation of the coefficients in this case, secondly, the quantile regression is used for the differences model; finally, three categories of causality tests are used in this research. Results The findings revealed that unemployment rates are not affected by output over the period of study both in the gap and differences model. Hence, Okun’s law is not held in Algeria. Novelty The study focused on Okun’s law in different ways. This latter carries out structural breaks in both the unit root and co-integration analysis. On the other hand, the study uses the quantile regression for the first time in the examination of Okun’s law. In the same line of thought, this research introduces an asymmetric analysis in the Maki cointegration and quantile regression.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"19 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"126076856","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}
Abstract Research background Every country attempts to improve its balance of payments (BOP) position to enhance macroeconomic policy. Algeria, like many developing countries, is experiencing a BOP deficit. This raises concerns about the reasons for this deficit and prioritizes the quest for potential answers. Purpose In the context of the Monetary Approach to the balance of payments (MABP), this paper investigates the long-run relationship between domestic credit, inflation, interest rate, GDP, and net foreign assets to find whether BOP is a monetary phenomenon in Algeria from 1980 to 2019. Research methodology: The Autoregressive Distributed Lag (ARDL) bounds test, combined with the critical approximation p-values of Kripfganz and Schneider (2020), has been applied. Results The findings clearly showed a long-run relationship among the variables. The long-run estimates strongly supported MABP propositions, and domestic credit had a negative and statistically significant influence on net foreign assets. This suggests that Algeria’s BOP is a monetary phenomenon, and excess money supply played a crucial role in Algeria’s balance of payments disequilibrium. Novelty The contribution of this paper is the use of the ARDL bounds test in combination with the novel critical approximation p-values of Kripfganz and Schneider (2020), which provided more robust results. This study could help monetary authorities to elaborate the suitable policies in dealing with BOP problems in Algeria.
{"title":"Balance of Payments as a Monetary Phenomenon: An ARDL Bounds Test Method for Algeria","authors":"Azeddine Ghilous, Adel Ziat","doi":"10.2478/foli-2023-0004","DOIUrl":"https://doi.org/10.2478/foli-2023-0004","url":null,"abstract":"Abstract Research background Every country attempts to improve its balance of payments (BOP) position to enhance macroeconomic policy. Algeria, like many developing countries, is experiencing a BOP deficit. This raises concerns about the reasons for this deficit and prioritizes the quest for potential answers. Purpose In the context of the Monetary Approach to the balance of payments (MABP), this paper investigates the long-run relationship between domestic credit, inflation, interest rate, GDP, and net foreign assets to find whether BOP is a monetary phenomenon in Algeria from 1980 to 2019. Research methodology: The Autoregressive Distributed Lag (ARDL) bounds test, combined with the critical approximation p-values of Kripfganz and Schneider (2020), has been applied. Results The findings clearly showed a long-run relationship among the variables. The long-run estimates strongly supported MABP propositions, and domestic credit had a negative and statistically significant influence on net foreign assets. This suggests that Algeria’s BOP is a monetary phenomenon, and excess money supply played a crucial role in Algeria’s balance of payments disequilibrium. Novelty The contribution of this paper is the use of the ARDL bounds test in combination with the novel critical approximation p-values of Kripfganz and Schneider (2020), which provided more robust results. This study could help monetary authorities to elaborate the suitable policies in dealing with BOP problems in Algeria.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"9 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"123205064","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}
Abstract Research background The business environment is an integral part of all business activity. Every business operates in a certain atmosphere that is dynamic and has a constant impact on the business. Therefore, it is important to analyse and predict the development of the business environment. Purpose The aim of this paper is to specify the financial health of a group of companies determined by selected indicators with the business environment of the V4 countries, to interpret the obtained results and, based on them, to propose a complex of systemic measures for business practice. Research methodology The business environment is evaluated within two decision-making processes, in which the optimal environment is selected based on selected criteria (e.g., GDP, unemployment, inflation). To solve decision-making processes, two methods are used – the Saaty’s matrix method and the TOPSIS method. The business environment is also evaluated based on the ratio indicators of the financial analysis of companies in the V4 group. Results Applying the TOPSIS method, it was found that Hungary’s business environment is considered the most suitable for entrepreneurs. From the point of view of financial analysis indicators, it was found that companies in Poland were ranked best. Second place was occupied by Czech companies, followed by Hungarian companies. Companies in the Slovak Republic were ranked worst. Novelty The subjectivity of choosing the criterion weights and the lack of data might both be seen as research limitations. The difficulty lies in conducting a more in-depth study that may also be applied to a wider region. The added value of the work can be considered a mutual comparison of the decision-making processes within the V4 group and a kind of advice for entrepreneurs, where one can do business with the best prospects for the future.
{"title":"An Analysis of the Financial Health of Companies Concerning the Business Environment of the V4 Countries","authors":"Marek Nagy, K. Valaskova","doi":"10.2478/foli-2023-0009","DOIUrl":"https://doi.org/10.2478/foli-2023-0009","url":null,"abstract":"Abstract Research background The business environment is an integral part of all business activity. Every business operates in a certain atmosphere that is dynamic and has a constant impact on the business. Therefore, it is important to analyse and predict the development of the business environment. Purpose The aim of this paper is to specify the financial health of a group of companies determined by selected indicators with the business environment of the V4 countries, to interpret the obtained results and, based on them, to propose a complex of systemic measures for business practice. Research methodology The business environment is evaluated within two decision-making processes, in which the optimal environment is selected based on selected criteria (e.g., GDP, unemployment, inflation). To solve decision-making processes, two methods are used – the Saaty’s matrix method and the TOPSIS method. The business environment is also evaluated based on the ratio indicators of the financial analysis of companies in the V4 group. Results Applying the TOPSIS method, it was found that Hungary’s business environment is considered the most suitable for entrepreneurs. From the point of view of financial analysis indicators, it was found that companies in Poland were ranked best. Second place was occupied by Czech companies, followed by Hungarian companies. Companies in the Slovak Republic were ranked worst. Novelty The subjectivity of choosing the criterion weights and the lack of data might both be seen as research limitations. The difficulty lies in conducting a more in-depth study that may also be applied to a wider region. The added value of the work can be considered a mutual comparison of the decision-making processes within the V4 group and a kind of advice for entrepreneurs, where one can do business with the best prospects for the future.","PeriodicalId":314664,"journal":{"name":"Folia Oeconomica Stetinensia","volume":"55 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-06-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"124515556","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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