Abstract The impact of foreign capital on human development has been at best ambiguous, while that of institutions is undoubtedly favorable. That said, the way foreign capital relates to human development may be affected by the quality of institutions. This paper assesses this very phenomenon in 65 developing countries over the time period 1984-2014. In this regard, this study incorporates three indicators of human development namely, per capita income (PCI), Secondary School Enrollment (SSE) and Life Expectancy (LE). Using two step system GMM estimation technique, we found that the impact of foreign capital varies with respect to the indicators of human development and the type of foreign capital being studied. Both FDI and FPI negatively affect per capita income and secondary school enrollment, while, remittances affect all the indicators of human development positively, except for life expectancy. The interaction between institutions and each type of foreign capital flow exerts a positive influence on all indicators of human development. However, this positive interaction fails to completely eliminate the adverse influence of the capital flows, which reflects inadequacy of existing institutional quality in developing countries and the need for institutional reforms.
{"title":"Foreign Capital Flows and Human Development in Developing Countries: Does Institutional Quality Matter?","authors":"Saadia Ali, Z. Jehan, Sadia Sherbaz","doi":"10.2478/zireb-2022-0001","DOIUrl":"https://doi.org/10.2478/zireb-2022-0001","url":null,"abstract":"Abstract The impact of foreign capital on human development has been at best ambiguous, while that of institutions is undoubtedly favorable. That said, the way foreign capital relates to human development may be affected by the quality of institutions. This paper assesses this very phenomenon in 65 developing countries over the time period 1984-2014. In this regard, this study incorporates three indicators of human development namely, per capita income (PCI), Secondary School Enrollment (SSE) and Life Expectancy (LE). Using two step system GMM estimation technique, we found that the impact of foreign capital varies with respect to the indicators of human development and the type of foreign capital being studied. Both FDI and FPI negatively affect per capita income and secondary school enrollment, while, remittances affect all the indicators of human development positively, except for life expectancy. The interaction between institutions and each type of foreign capital flow exerts a positive influence on all indicators of human development. However, this positive interaction fails to completely eliminate the adverse influence of the capital flows, which reflects inadequacy of existing institutional quality in developing countries and the need for institutional reforms.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"25 1","pages":"1 - 20"},"PeriodicalIF":0.6,"publicationDate":"2022-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46246222","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 This paper aims to investigate the impact of deferred tax, as a technique adopted to support the economic orientation of financial statements over their legal form, on earnings quality as a required attribute to achieve the objective of financial reporting. The study used the model of Sloan (1996) through 280 firm-year observations that concern 40 Algerian companies from 2013 to 2019. Employing persistence and predictive ability as proxies for earnings quality, the results indicated that earnings of Algerian companies present a high level of persistence and a weak level of predictive ability. However, the deferred tax does impact neither the persistence of earnings nor their predictive ability. Therefore, accounting regulators in Algeria must simplify accounting for the deferred tax to encourage its application by companies and improve earnings quality.
{"title":"The Impact of Deferred Tax on Earnings Quality: Evidence from Algerian Companies","authors":"Bilal Kimouche","doi":"10.2478/zireb-2022-0009","DOIUrl":"https://doi.org/10.2478/zireb-2022-0009","url":null,"abstract":"Abstract This paper aims to investigate the impact of deferred tax, as a technique adopted to support the economic orientation of financial statements over their legal form, on earnings quality as a required attribute to achieve the objective of financial reporting. The study used the model of Sloan (1996) through 280 firm-year observations that concern 40 Algerian companies from 2013 to 2019. Employing persistence and predictive ability as proxies for earnings quality, the results indicated that earnings of Algerian companies present a high level of persistence and a weak level of predictive ability. However, the deferred tax does impact neither the persistence of earnings nor their predictive ability. Therefore, accounting regulators in Algeria must simplify accounting for the deferred tax to encourage its application by companies and improve earnings quality.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"25 1","pages":"133 - 148"},"PeriodicalIF":0.6,"publicationDate":"2022-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49205718","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 Foreign direct investment is one of the major factors for the development of national economies with positive implications for the growth of their gross domestic product, technology transfer, as well as increased competitiveness and improved performance of local companies. They generate investment capital, provide new employment, transfer expertise and skills to employees, and increase exports. In the Republic of North Macedonia a number of reform activities have been undertaken relating the protection of property rights, improvement of the efficiency in the functioning of the legislative, judicial and executive branches of government, which result with reduced business risks and motivates companies to make investment decisions. Current paper aimed at outlining the connection between the effectiveness of the judicial system and increasing the number of foreign direct investments in the Republic of North Macedonia.
{"title":"The Impact of the Efficiency of the Judicial System in Attracting Foreign Direct Investments in the Republic of North Macedonia","authors":"Zanina Kirovska, Biljana Gjozinska, Lidija Tanevska Jadrovska","doi":"10.2478/zireb-2022-0002","DOIUrl":"https://doi.org/10.2478/zireb-2022-0002","url":null,"abstract":"Abstract Foreign direct investment is one of the major factors for the development of national economies with positive implications for the growth of their gross domestic product, technology transfer, as well as increased competitiveness and improved performance of local companies. They generate investment capital, provide new employment, transfer expertise and skills to employees, and increase exports. In the Republic of North Macedonia a number of reform activities have been undertaken relating the protection of property rights, improvement of the efficiency in the functioning of the legislative, judicial and executive branches of government, which result with reduced business risks and motivates companies to make investment decisions. Current paper aimed at outlining the connection between the effectiveness of the judicial system and increasing the number of foreign direct investments in the Republic of North Macedonia.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"25 1","pages":"21 - 32"},"PeriodicalIF":0.6,"publicationDate":"2022-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42959869","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 This paper is the first paper that systematically observes and describes all publicly available data on insider trading on the Zagreb Stock Exchange during the period of June 2010 - June 2021. To accomplish this objective both parametric and non-parametric event-study tests are conducted using the data collected from 827 notifications published on the Zagreb Stock Exchange website. After filtering the notifications for overlapping events, there were 48 insiders’ purchase events and 50 insiders’ sales events. The results indicate that insiders can earn abnormal returns on share purchases based on their insider knowledge and that the information on insider purchases can bring additional information to outside investors. However, in the case of notifications of share sales by insiders, Cumulative Average Abnormal Returns (CAARs) after the event are not statistically significant and are just slightly positive, thus bringing no abnormal returns for insiders and not conveying information to the public. This suggests that the market may perceive sales having a lower informational content, as motivation for sales may be other needs, such as liquidity.
{"title":"Insider Trading at Zagreb Stock Exchange","authors":"Marko Kuveždić, Lidija Dedi","doi":"10.2478/zireb-2022-0006","DOIUrl":"https://doi.org/10.2478/zireb-2022-0006","url":null,"abstract":"Abstract This paper is the first paper that systematically observes and describes all publicly available data on insider trading on the Zagreb Stock Exchange during the period of June 2010 - June 2021. To accomplish this objective both parametric and non-parametric event-study tests are conducted using the data collected from 827 notifications published on the Zagreb Stock Exchange website. After filtering the notifications for overlapping events, there were 48 insiders’ purchase events and 50 insiders’ sales events. The results indicate that insiders can earn abnormal returns on share purchases based on their insider knowledge and that the information on insider purchases can bring additional information to outside investors. However, in the case of notifications of share sales by insiders, Cumulative Average Abnormal Returns (CAARs) after the event are not statistically significant and are just slightly positive, thus bringing no abnormal returns for insiders and not conveying information to the public. This suggests that the market may perceive sales having a lower informational content, as motivation for sales may be other needs, such as liquidity.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"25 1","pages":"79 - 94"},"PeriodicalIF":0.6,"publicationDate":"2022-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44930865","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 This paper examines the implicit impact of an individual company financial parameters on dividends payments. The empirical research is conducted within the environment that cross-examines fifteen European transition economies with shared traits of frontier to emerging capital markets development stage and exposure to exogenic global volatility from 2007/8 and Covid-19 economic crises spilling over at magnitude. The purpose of this paper is to test whether companies establish stable dividend policy. Dividends payments are sensitive to earnings and hence adjust imminently. The reason stems from uncertainty on future financial performance and on investor protection. Results yield negative link between solvency and dividends based on the fact that the weaker solvency position decreases the priority of dividends likelihood. Comparably dividends are less desirable if competing with company growth opportunities although investors are less willing to wait for future profits. Altogether transitioning markets are less responsive and structurally feature fewer corporate events.
{"title":"Dividend Policies in Volatile Transitioning Markets","authors":"Ante Dodig, Ante Džidić","doi":"10.2478/zireb-2022-0008","DOIUrl":"https://doi.org/10.2478/zireb-2022-0008","url":null,"abstract":"Abstract This paper examines the implicit impact of an individual company financial parameters on dividends payments. The empirical research is conducted within the environment that cross-examines fifteen European transition economies with shared traits of frontier to emerging capital markets development stage and exposure to exogenic global volatility from 2007/8 and Covid-19 economic crises spilling over at magnitude. The purpose of this paper is to test whether companies establish stable dividend policy. Dividends payments are sensitive to earnings and hence adjust imminently. The reason stems from uncertainty on future financial performance and on investor protection. Results yield negative link between solvency and dividends based on the fact that the weaker solvency position decreases the priority of dividends likelihood. Comparably dividends are less desirable if competing with company growth opportunities although investors are less willing to wait for future profits. Altogether transitioning markets are less responsive and structurally feature fewer corporate events.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"25 1","pages":"111 - 132"},"PeriodicalIF":0.6,"publicationDate":"2022-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45888430","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 Despite considerable improvements in electricity coverage, millions of people are still lacking the access to electricity. Residential electricity access is a prerequisite for numerous aspects of increased well-being and quality of life. The aim of this paper is to identify key household characteristics that are linked to the energy poverty measured as access to electricity. Literature on financial and general poverty showed mixed results on household size and characteristics as a driver of poverty. We argue that household size and proportion of children in households are key variables associated with energy poverty in developing countries with lowest levels of electricity coverage. Our research approach treats electricity access as economic good and focuses on demand side – households. By utilizing census microdata across 69 non-OECD countries, our research provides large-scale analysis on household size and characteristics as a driver of energy poverty. We found that, in majority of low-income countries, same principles for general or financial poverty apply to energy poverty which is represented by negative effect of household size and proportion of children on energy poverty.
{"title":"Electricity Access in non-OECD Countries: Do Household Size and Composition Matter?","authors":"Marin Strmota, Krešimir Ivanda","doi":"10.2478/zireb-2022-0005","DOIUrl":"https://doi.org/10.2478/zireb-2022-0005","url":null,"abstract":"Abstract Despite considerable improvements in electricity coverage, millions of people are still lacking the access to electricity. Residential electricity access is a prerequisite for numerous aspects of increased well-being and quality of life. The aim of this paper is to identify key household characteristics that are linked to the energy poverty measured as access to electricity. Literature on financial and general poverty showed mixed results on household size and characteristics as a driver of poverty. We argue that household size and proportion of children in households are key variables associated with energy poverty in developing countries with lowest levels of electricity coverage. Our research approach treats electricity access as economic good and focuses on demand side – households. By utilizing census microdata across 69 non-OECD countries, our research provides large-scale analysis on household size and characteristics as a driver of energy poverty. We found that, in majority of low-income countries, same principles for general or financial poverty apply to energy poverty which is represented by negative effect of household size and proportion of children on energy poverty.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"25 1","pages":"61 - 78"},"PeriodicalIF":0.6,"publicationDate":"2022-05-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47113392","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 The positive relationship between product market efficiency (PME) and productivity has been established in the existing literature. An important component of productivity is the PME, which is significantly affected by the quality of institutions. Weaker quality of institutions, higher levels of corruption and lower efficiency of product markets have been confirmed in countries that share similar characteristics with Croatia. The results show a positive relationship between the quality of institutions and PME while the link between corruption control and PME is negative. Exports and taxes were also significantly correlated with PME. The text additionally comments on the direction of this connection. The link between PME, institutional quality and corruption is particularly commented on in the context of Croatia and Slovenia as these are two areas that share a common past of approximately 500 years. To improve the PME, a prerequisite for greater productivity and consequently economic growth, it is necessary to change the institutional framework.
{"title":"Institutions and the Efficiency of the European Union Product Market with an Emphasis on Croatia – Dynamic Panel Data Analysis","authors":"Lucija Rogić Dumančić, Z. Bogdan, I. Krištić","doi":"10.2478/zireb-2021-0017","DOIUrl":"https://doi.org/10.2478/zireb-2021-0017","url":null,"abstract":"Abstract The positive relationship between product market efficiency (PME) and productivity has been established in the existing literature. An important component of productivity is the PME, which is significantly affected by the quality of institutions. Weaker quality of institutions, higher levels of corruption and lower efficiency of product markets have been confirmed in countries that share similar characteristics with Croatia. The results show a positive relationship between the quality of institutions and PME while the link between corruption control and PME is negative. Exports and taxes were also significantly correlated with PME. The text additionally comments on the direction of this connection. The link between PME, institutional quality and corruption is particularly commented on in the context of Croatia and Slovenia as these are two areas that share a common past of approximately 500 years. To improve the PME, a prerequisite for greater productivity and consequently economic growth, it is necessary to change the institutional framework.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"24 1","pages":"1 - 25"},"PeriodicalIF":0.6,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47651619","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 Azerbaijan has an oil-led economy, which according to the well-known resource curse and Dutch disease hypotheses decreases the role of non-oil tradable sectors. Nevertheless, the government has actively fostered the growth of non-oil tradable sectors as the export orientation of Azerbaijan is being leveraged by the recently adopted economic policies. However, performance evaluations at the subsectoral level remain rare. The present paper evaluates the performance of the fruit and vegetable subsectors in Azerbaijan from 1995 to 2020 based on multiple key indicators, such as production, profitability, and productivity via principle component analysis (PCA). The purpose of the study was to provide a comparison of two key subsectors in Azerbaijan that are strong candidates for non-oil tradable exports. The results revealed that the vegetable subsector outperformed the fruit subsector in terms of production and profitability from 1999 to 2014; however, it experienced a sharp decline from 2014 to 2015 (the period of the rapid commodity price downturns), which gives rise to the question of whether the extractive industry negatively affected the subsector. Compared to the vegetable subsector, production and profitability in the fruit subsector demonstrated a more stable upward trend. In addition, labor input in both sub-sectors decreased over time, indicating efficiency gains via new technology transfers and productivity enhancements. Ordinary Least Squares (OLS) results demonstrated a strong and statistically significant negative relationship between the performance of the vegetable subsector with the oil revenue boom period (2008–2015).
{"title":"Performance Evaluation of the Fruit and Vegetable Subsectors in the Azerbaijani Economy: a Combinatorial Analysis Using Regression and Principal Component Analysis","authors":"I. Niftiyev","doi":"10.2478/zireb-2021-0018","DOIUrl":"https://doi.org/10.2478/zireb-2021-0018","url":null,"abstract":"Abstract Azerbaijan has an oil-led economy, which according to the well-known resource curse and Dutch disease hypotheses decreases the role of non-oil tradable sectors. Nevertheless, the government has actively fostered the growth of non-oil tradable sectors as the export orientation of Azerbaijan is being leveraged by the recently adopted economic policies. However, performance evaluations at the subsectoral level remain rare. The present paper evaluates the performance of the fruit and vegetable subsectors in Azerbaijan from 1995 to 2020 based on multiple key indicators, such as production, profitability, and productivity via principle component analysis (PCA). The purpose of the study was to provide a comparison of two key subsectors in Azerbaijan that are strong candidates for non-oil tradable exports. The results revealed that the vegetable subsector outperformed the fruit subsector in terms of production and profitability from 1999 to 2014; however, it experienced a sharp decline from 2014 to 2015 (the period of the rapid commodity price downturns), which gives rise to the question of whether the extractive industry negatively affected the subsector. Compared to the vegetable subsector, production and profitability in the fruit subsector demonstrated a more stable upward trend. In addition, labor input in both sub-sectors decreased over time, indicating efficiency gains via new technology transfers and productivity enhancements. Ordinary Least Squares (OLS) results demonstrated a strong and statistically significant negative relationship between the performance of the vegetable subsector with the oil revenue boom period (2008–2015).","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"24 1","pages":"27 - 47"},"PeriodicalIF":0.6,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46351889","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 The concept of working students meeting triple demands of their work, studies and private life has not been sufficiently described or empirically supported in the literature, although combining work and study is not only a necessity for many students, but a common phenomenon among them. As well, studies so far focused on the dyads of work-nonwork relationship, predominantly on the work-study conflict/balance and rarely on the study-life conflict/balance, while the triad of work-study-life balance (WSLB) is understudied. This study is the first one to empirically examine the WSLB concept, defined as a balance of conjoining three ‘categories of student commitment’ – their work obligations, demands of their studies and their private life, using a methodology grounded in the work-life balance (WLB) theory. We conducted a cross-sectional quantitative study on a sample of 235 students, focused on the most relevant dyads of the WSLB concept, socio-demographic predictors and emotional consequences of WSLB. Our five key findings are: (1) it is possible to balance work, studies and private life, (2) work-study balance (WSB) is critical for achieving WSLB, (3) all subgroups of students based on their socio-demographic characteristics are equally (un)successful in achieving balance between and among various life aspects, (4) WSLB is significantly participating in students’ emotional state in terms of their happiness, unhappiness and relaxation, and (5) the study-life balance (SLB) dyad is the most relevant dyad for the students’ emotional state.
{"title":"Work-Study-Life Balance – the Concept, its Dyads, Socio-Demographic Predictors and Emotional Consequences","authors":"N. Vokic, Milka Rimac Bilušić, Ivan Peric","doi":"10.2478/zireb-2021-0021","DOIUrl":"https://doi.org/10.2478/zireb-2021-0021","url":null,"abstract":"Abstract The concept of working students meeting triple demands of their work, studies and private life has not been sufficiently described or empirically supported in the literature, although combining work and study is not only a necessity for many students, but a common phenomenon among them. As well, studies so far focused on the dyads of work-nonwork relationship, predominantly on the work-study conflict/balance and rarely on the study-life conflict/balance, while the triad of work-study-life balance (WSLB) is understudied. This study is the first one to empirically examine the WSLB concept, defined as a balance of conjoining three ‘categories of student commitment’ – their work obligations, demands of their studies and their private life, using a methodology grounded in the work-life balance (WLB) theory. We conducted a cross-sectional quantitative study on a sample of 235 students, focused on the most relevant dyads of the WSLB concept, socio-demographic predictors and emotional consequences of WSLB. Our five key findings are: (1) it is possible to balance work, studies and private life, (2) work-study balance (WSB) is critical for achieving WSLB, (3) all subgroups of students based on their socio-demographic characteristics are equally (un)successful in achieving balance between and among various life aspects, (4) WSLB is significantly participating in students’ emotional state in terms of their happiness, unhappiness and relaxation, and (5) the study-life balance (SLB) dyad is the most relevant dyad for the students’ emotional state.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"24 1","pages":"77 - 94"},"PeriodicalIF":0.6,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45505714","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 The future of work of both external and internal auditors is exciting and promising, as well as, in the same time, threatening and extremely demanding. The exciting and promising part is connected with lots of possibilities for auditors’ professional career developments and specialization, while the threatening and demanding part is directed towards the ongoing demand and need for continuous education and upgrading their knowledge base and skill sets in order to be able to stay up to date with all developments and changes in their and their clients’ internal and external surroundings. Today these surroundings are characterized by big data and usage of information and communication technologies (ICTs), among which the blockchain technology (BCT) is described as the most pervasive and promising one. This paper is primarily driven by the scarcity of literature and conducted scientific researches regarding the specialized educations and expertise that auditors need to attend and possess in order to be able to exist in the blockchain-based business environment. Therefore, the main research objective of this paper was to determine critical external and internal auditors’ expertise that they need to possess in order to be relevant and successful in the blockchain-based business environment. In order to achieve this main objective, desk research and survey research were conducted. Survey research was conducted on a sample of external and internal auditors in Croatia. In general, results of the empirical research showed that both external and internal auditors in Croatia think that they need to possess high level of expertise in advanced analytical procedures (APs) in order to be able to audit blockchain-based business operations. Consequently, this then instantaneously increases auditors’ demand for specialized education in fields of BCT, APs, and data analytics (DAs) in general.
{"title":"Critical Auditors’ Expertise for Blockchain-Based Business Environment","authors":"Boris Tušek, Ana Ježovita, Petra Halar","doi":"10.2478/zireb-2021-0019","DOIUrl":"https://doi.org/10.2478/zireb-2021-0019","url":null,"abstract":"Abstract The future of work of both external and internal auditors is exciting and promising, as well as, in the same time, threatening and extremely demanding. The exciting and promising part is connected with lots of possibilities for auditors’ professional career developments and specialization, while the threatening and demanding part is directed towards the ongoing demand and need for continuous education and upgrading their knowledge base and skill sets in order to be able to stay up to date with all developments and changes in their and their clients’ internal and external surroundings. Today these surroundings are characterized by big data and usage of information and communication technologies (ICTs), among which the blockchain technology (BCT) is described as the most pervasive and promising one. This paper is primarily driven by the scarcity of literature and conducted scientific researches regarding the specialized educations and expertise that auditors need to attend and possess in order to be able to exist in the blockchain-based business environment. Therefore, the main research objective of this paper was to determine critical external and internal auditors’ expertise that they need to possess in order to be relevant and successful in the blockchain-based business environment. In order to achieve this main objective, desk research and survey research were conducted. Survey research was conducted on a sample of external and internal auditors in Croatia. In general, results of the empirical research showed that both external and internal auditors in Croatia think that they need to possess high level of expertise in advanced analytical procedures (APs) in order to be able to audit blockchain-based business operations. Consequently, this then instantaneously increases auditors’ demand for specialized education in fields of BCT, APs, and data analytics (DAs) in general.","PeriodicalId":42298,"journal":{"name":"Zagreb International Review of Economics & Business","volume":"24 1","pages":"49 - 61"},"PeriodicalIF":0.6,"publicationDate":"2021-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42743112","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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