Purpose: The main goal of the paper is to develop financial derivatives of the Republic of Armenia (RA) as hedging tools for foreign exchange risk management for financial organizations and other entities. The secondary goal is to substantiate the efficiency and expediency of the use of financial derivatives as alternative tools for the implementation of foreign exchange interventions of the Central Bank of Armenia (CBA). Methodology: In order to evaluate the currency interventions carried out by the Central Bank of Armenia (CBA), the interventions and their impact were studied by applying causal-comparative analysis and synthesis methods based on the CBA and International Monetary Fund (IMF) data. The most efficient intervention tools were revealed as a result of such analysis. The forward prices were calculated based on the swap intervention data and using the principle of impossibility of arbitration. Results: The present study substantiated that the application of a forward contract for difference can ensure the same goals like those pursued by foreign exchange interventions with no impact on foreign reserves and no need for sterilization. Conclusion: It was proposed to divide the swap agreements used by the CBA into spot and forward, which will ensure the realization of the same goals along with engaging a large number of non-financial companies. At the same time, the application of a forward contract for difference during the implementation of foreign exchange interventions will lead to the development of the financial derivatives market and ensure the matching of foreign exchange cash flows received by businesses in different periods.
{"title":"Implementation of currency interventions of the Central Bank of Armenia with financial\u0000derivatives","authors":"M. Aslanyan","doi":"10.51680/ev.36.1.12","DOIUrl":"https://doi.org/10.51680/ev.36.1.12","url":null,"abstract":"Purpose: The main goal of the paper is to develop financial derivatives of the Republic of Armenia (RA) as hedging tools for foreign exchange risk management for financial organizations and other entities. The secondary goal is to substantiate the efficiency and expediency of the use of financial derivatives as alternative tools for the implementation of foreign exchange interventions of the Central Bank of Armenia (CBA). Methodology: In order to evaluate the currency interventions carried out by the Central Bank of Armenia (CBA), the interventions and their impact were studied by applying causal-comparative analysis and synthesis methods based on the CBA and International Monetary Fund (IMF) data. The most efficient intervention tools were revealed as a result of such analysis. The forward prices were calculated based on the swap intervention data and using the principle of impossibility of arbitration. Results: The present study substantiated that the application of a forward contract for difference can ensure the same goals like those pursued by foreign exchange interventions with no impact on foreign reserves and no need for sterilization. Conclusion: It was proposed to divide the swap agreements used by the CBA into spot and forward, which will ensure the realization of the same goals along with engaging a large number of non-financial companies. At the same time, the application of a forward contract for difference during the implementation of foreign exchange interventions will lead to the development of the financial derivatives market and ensure the matching of foreign exchange cash flows received by businesses in different periods.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70670327","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: Personal income tax (PIT) and social security contributions (SSC) play a significant role in tax systems. Since both of them affect employers and employees, it is important to analyse the labour costs paid by the employer (gross wage) and the net wage received by the employee, i.e., the tax wedge. Methodology: Following OECD’s Taxing Wages methodology, this paper analyses the characteristics of the tax wedge and the tax wedge policy in the Republic of Croatia and the Republic of Slovenia in the period from 2005 to 2020. Results: The conducted analysis has shown that a Slovenian taxpayer faces the highest average net tax wedge for each observed family type, and that the Croatian tax wedge is lower in all hypothetical units observed. The taxpayer with the highest average gross wage also faces the highest tax burden. The problem of a relatively high tax wedge in Croatia and Slovenia does not lie with the personal income tax, which is relatively low, but with social contributions. Conclusion: The tax wedge primarily depends on the level of income, it decreases if the taxpayer has (more) children, and its amount depends on various levels of tax, deductions and social security contributions. In the future, the focus will be on alleviating the labour tax burden. However, this begs the question of how to further alleviate the burden on labour without implementing major structural reforms in the pension and healthcare system and/or introducing new tax forms.
{"title":"Comparative analysis of the tax wedge in Croatia and Slovenia from 2005 to 2020","authors":"Sandra Krtalić, Paula Peruško","doi":"10.51680/ev.36.1.1","DOIUrl":"https://doi.org/10.51680/ev.36.1.1","url":null,"abstract":"Purpose: Personal income tax (PIT) and social security contributions (SSC) play a significant role in tax systems. Since both of them affect employers and employees, it is important to analyse the labour costs paid by the employer (gross wage) and the net wage received by the employee, i.e., the tax wedge. Methodology: Following OECD’s Taxing Wages methodology, this paper analyses the characteristics of the tax wedge and the tax wedge policy in the Republic of Croatia and the Republic of Slovenia in the period from 2005 to 2020. Results: The conducted analysis has shown that a Slovenian taxpayer faces the highest average net tax wedge for each observed family type, and that the Croatian tax wedge is lower in all hypothetical units observed. The taxpayer with the highest average gross wage also faces the highest tax burden. The problem of a relatively high tax wedge in Croatia and Slovenia does not lie with the personal income tax, which is relatively low, but with social contributions. Conclusion: The tax wedge primarily depends on the level of income, it decreases if the taxpayer has (more) children, and its amount depends on various levels of tax, deductions and social security contributions. In the future, the focus will be on alleviating the labour tax burden. However, this begs the question of how to further alleviate the burden on labour without implementing major structural reforms in the pension and healthcare system and/or introducing new tax forms.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70670619","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: This paper is a continuation of research in the series that examines the weak form of the efficient capital markets theorem in Southeast European transitioning economies. Model modifications are based on learnings through the previously established inapplicability of foreign exchange metrics. At the same time, the model is being expanded by incorporating new research markets, extending the time coverage to the longest duration to date, between 2005 and 2021, to cover economic bust and recovery periods and research inherent improvements in the capital market context, and adding new variables to provide more sturdiness and conclusiveness. Methodology: The paper applies the panel pooled mean group estimator by aggregating cross-country data. By using level series prime data instead of differentials, this method enables efficient use of information and resolves at best the identified market shallowness. Results: The statistical results of empirical research infer the inefficiency of the investigated markets with greater robustness and supplementary new information revealing more powerful corrective investor and policy behavior in collectively more mature markets. Conclusions: The findings firmly reiterate subpar capital markets performance in a prolonged and more comprehensive environment. The recommendations conclusively emphasize the importance of structural reforms to support sustainability through elementary setup drivers, such as transparency, governance, judiciary productivity, and policy support, inter alia.
{"title":"Capital market efficiency in transitioning Southeastern European countries","authors":"Ante Dodig, Milica Bugarčić","doi":"10.51680/ev.36.1.5","DOIUrl":"https://doi.org/10.51680/ev.36.1.5","url":null,"abstract":"Purpose: This paper is a continuation of research in the series that examines the weak form of the efficient capital markets theorem in Southeast European transitioning economies. Model modifications are based on learnings through the previously established inapplicability of foreign exchange metrics. At the same time, the model is being expanded by incorporating new research markets, extending the time coverage to the longest duration to date, between 2005 and 2021, to cover economic bust and recovery periods and research inherent improvements in the capital market context, and adding new variables to provide more sturdiness and conclusiveness. Methodology: The paper applies the panel pooled mean group estimator by aggregating cross-country data. By using level series prime data instead of differentials, this method enables efficient use of information and resolves at best the identified market shallowness. Results: The statistical results of empirical research infer the inefficiency of the investigated markets with greater robustness and supplementary new information revealing more powerful corrective investor and policy behavior in collectively more mature markets. Conclusions: The findings firmly reiterate subpar capital markets performance in a prolonged and more comprehensive environment. The recommendations conclusively emphasize the importance of structural reforms to support sustainability through elementary setup drivers, such as transparency, governance, judiciary productivity, and policy support, inter alia.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70671145","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: This paper examines the determinants of long-term economic growth and sustainable development of the Kingdom of Saudi Arabia as a chosen one-resource economy that relies on massive oil production. Methodology is based on the econometric methods of multiple regression analysis and the multicollinearity test for the period from 2010 to 2020. The research was conducted on the basis of a model of 13 variables, where the dependent variable is the annual rate of GDP, and the independent variables are inflation, budget deficit, oil exports, imports, unemployment rate, foreign direct investment, labour productivity, public debt, labour force, GDP per capita, HDI index, total rent of natural resources and adjusted net savings. Results indicate a strong connection between gross domestic product and the selected variables and the existence of factors that are of strategic importance for the growth of the Saudi economy, but on the other hand, the negative effects of certain factors on sustainable development. Conclusion: Based on the results, it is suggested that investment in human capital is an urgent step to achieve long-term sustainability and reduce reliance on natural resource operations in the future.
{"title":"Resource-based economy – determinants of economic growth and sustainable development in Saudi Arabia","authors":"Sandra Šokčević, Andreja Rudančić, Matea Pandžić","doi":"10.51680/ev.36.1.4","DOIUrl":"https://doi.org/10.51680/ev.36.1.4","url":null,"abstract":"Purpose: This paper examines the determinants of long-term economic growth and sustainable development of the Kingdom of Saudi Arabia as a chosen one-resource economy that relies on massive oil production. Methodology is based on the econometric methods of multiple regression analysis and the multicollinearity test for the period from 2010 to 2020. The research was conducted on the basis of a model of 13 variables, where the dependent variable is the annual rate of GDP, and the independent variables are inflation, budget deficit, oil exports, imports, unemployment rate, foreign direct investment, labour productivity, public debt, labour force, GDP per capita, HDI index, total rent of natural resources and adjusted net savings. Results indicate a strong connection between gross domestic product and the selected variables and the existence of factors that are of strategic importance for the growth of the Saudi economy, but on the other hand, the negative effects of certain factors on sustainable development. Conclusion: Based on the results, it is suggested that investment in human capital is an urgent step to achieve long-term sustainability and reduce reliance on natural resource operations in the future.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70670531","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: This study aims to identify and discuss educational practices of a selected set of audit firms operating in Turkey within the scope of corporate transparency reports. Methodology: To address the basic research question, a sample of 52 audit firm disclosures in transparency reports are examined, and statistical analyses are conducted through SPSS. Results: Audit firms affiliated with international bodies provide comparatively longer periods of non-technical or soft skills education in-house. Transparency reports published in Turkey are yet to be standardized, and audit firms are to systematically plan and enrich their education programs with a particular emphasis on soft skills. Conclusion: Audit firms would gain from investing in the development of non-technical skills, which is not only limited by monetary concerns but also by other factors yet to be considered. The study also attempts to uncover any similarity/difference among audit firms’ educational initiatives identified in transparency reports, and understand whether these initiatives translate into some meaningful relationships and outcomes.
{"title":"The nexus between transparency reports and soft skills training in audit firms","authors":"Burak Özdoğan, Ayşe Necef Yereli","doi":"10.51680/ev.36.1.11","DOIUrl":"https://doi.org/10.51680/ev.36.1.11","url":null,"abstract":"Purpose: This study aims to identify and discuss educational practices of a selected set of audit firms operating in Turkey within the scope of corporate transparency reports. Methodology: To address the basic research question, a sample of 52 audit firm disclosures in transparency reports are examined, and statistical analyses are conducted through SPSS. Results: Audit firms affiliated with international bodies provide comparatively longer periods of non-technical or soft skills education in-house. Transparency reports published in Turkey are yet to be standardized, and audit firms are to systematically plan and enrich their education programs with a particular emphasis on soft skills. Conclusion: Audit firms would gain from investing in the development of non-technical skills, which is not only limited by monetary concerns but also by other factors yet to be considered. The study also attempts to uncover any similarity/difference among audit firms’ educational initiatives identified in transparency reports, and understand whether these initiatives translate into some meaningful relationships and outcomes.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70670228","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}
Jelena Budak, E. Rajh, Sunčana Slijepčević, Matea Maloča
Purpose: This paper investigates whether within the European countries with a prevalent number of companies in particular sectors the corrupt rent-seeking practice is more likely to contaminate the entire business sector. Methodology: Multiple regression analysis was conducted to investigate the determinants of corruption pressure on the business sector. Results: We found that the share of retail and wholesale trade and public companies in the economy is related to bribery incidence experienced in the domestic business sector as a whole and that the ease of doing business together with EU membership reduces the spread of corruption risk. The transmissible effect of bribery incidence in one sector on the rest of the companies is observed, notwithstanding the post-transition status of a European country. Conclusion: There is a relationship between the share of retail and wholesale trade and public companies in an economy and bribery incidence experienced by the entire business sector indicating that there might be a spillover effect of bribing in one sector on the rest of the companies.
{"title":"Corruption pressure on business revisited","authors":"Jelena Budak, E. Rajh, Sunčana Slijepčević, Matea Maloča","doi":"10.51680/ev.36.1.2","DOIUrl":"https://doi.org/10.51680/ev.36.1.2","url":null,"abstract":"Purpose: This paper investigates whether within the European countries with a prevalent number of companies in particular sectors the corrupt rent-seeking practice is more likely to contaminate the entire business sector. Methodology: Multiple regression analysis was conducted to investigate the determinants of corruption pressure on the business sector. Results: We found that the share of retail and wholesale trade and public companies in the economy is related to bribery incidence experienced in the domestic business sector as a whole and that the ease of doing business together with EU membership reduces the spread of corruption risk. The transmissible effect of bribery incidence in one sector on the rest of the companies is observed, notwithstanding the post-transition status of a European country. Conclusion: There is a relationship between the share of retail and wholesale trade and public companies in an economy and bribery incidence experienced by the entire business sector indicating that there might be a spillover effect of bribing in one sector on the rest of the companies.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70670396","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 aim of this study is to reveal and compare the effect of working capital management on return on assets with different analysis methods, based on the annual financial statement data of companies in the tourism sector traded in Borsa Istanbul (BIST) in the period 2012-2020. This study aimed to reveal the drawbacks of including in the model variables that are not an element of working capital management. Methodology: Panel data analysis, the analytical hierarchy process and the fuzzy analytical hierarchy process were used to reveal the effect of working capital management variables on return on assets based on the financial statement data of the companies. Results: As a result of the analysis, a significant relationship was identified between the rankings made by using the realized return on assets ratios and the rankings obtained by AHP and FAHP, while no significant relationship was found between the rankings obtained by panel data analysis. Conclusion: Including some variables in the model as a working capital management variable in panel data analysis may cause misinterpretation of the effects of real working capital variables on return on assets. When the model that emerged according to the AHP and FAHP methods was examined, the asset turnover rate and financial leverage ratio variables were determined as the ratios with the lowest effect on return on assets, as the elements of working capital management in the weighting made according to the opinions of the experts.
{"title":"Investigation of the effect of working capital management on profitability by panel data\u0000analysis and multi-criteria decision making techniques","authors":"E. Korkmaz, Turgut Karabulut, M. Güner","doi":"10.51680/ev.36.1.6","DOIUrl":"https://doi.org/10.51680/ev.36.1.6","url":null,"abstract":"Purpose: The aim of this study is to reveal and compare the effect of working capital management on return on assets with different analysis methods, based on the annual financial statement data of companies in the tourism sector traded in Borsa Istanbul (BIST) in the period 2012-2020. This study aimed to reveal the drawbacks of including in the model variables that are not an element of working capital management. Methodology: Panel data analysis, the analytical hierarchy process and the fuzzy analytical hierarchy process were used to reveal the effect of working capital management variables on return on assets based on the financial statement data of the companies. Results: As a result of the analysis, a significant relationship was identified between the rankings made by using the realized return on assets ratios and the rankings obtained by AHP and FAHP, while no significant relationship was found between the rankings obtained by panel data analysis. Conclusion: Including some variables in the model as a working capital management variable in panel data analysis may cause misinterpretation of the effects of real working capital variables on return on assets. When the model that emerged according to the AHP and FAHP methods was examined, the asset turnover rate and financial leverage ratio variables were determined as the ratios with the lowest effect on return on assets, as the elements of working capital management in the weighting made according to the opinions of the experts.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70670764","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 aim of this paper is to determine which characteristics the student population, especially student rural population, perceives as typical of women and men entrepreneurs, respectively, their grouping into latent factors, and the identification of possible differences in attitudes of respondents with regard to their demographic variables. Methodology: An indicative survey was conducted on a sample of 1,157 respondents of the student population in Croatia by a questionnaire as a research tool. Descriptive statistical data analysis, inferential statistics, simple analysis of variance (one-way ANOVA) and exploratory factor analysis were used in the research. Results: The results show that there are differences in attitudes towards the characteristics of women entrepreneurs and men entrepreneurs, with particular emphasis on differences in the perception of women’s entrepreneurship in rural areas. Conclusion: Positive trends in thinking about women’s entrepreneurship in rural areas are very interesting and promising, which may eventually result in a reduction in the women’s unemployment rate in rural areas and in valuing women as capable entrepreneurs.
{"title":"Characteristics of women and men entrepreneurs according to the student population in Croatia","authors":"J. Kristić, Ivana Fosić, I. Štefanić","doi":"10.51680/ev.36.1.8","DOIUrl":"https://doi.org/10.51680/ev.36.1.8","url":null,"abstract":"Purpose: The aim of this paper is to determine which characteristics the student population, especially student rural population, perceives as typical of women and men entrepreneurs, respectively, their grouping into latent factors, and the identification of possible differences in attitudes of respondents with regard to their demographic variables. Methodology: An indicative survey was conducted on a sample of 1,157 respondents of the student population in Croatia by a questionnaire as a research tool. Descriptive statistical data analysis, inferential statistics, simple analysis of variance (one-way ANOVA) and exploratory factor analysis were used in the research. Results: The results show that there are differences in attitudes towards the characteristics of women entrepreneurs and men entrepreneurs, with particular emphasis on differences in the perception of women’s entrepreneurship in rural areas. Conclusion: Positive trends in thinking about women’s entrepreneurship in rural areas are very interesting and promising, which may eventually result in a reduction in the women’s unemployment rate in rural areas and in valuing women as capable entrepreneurs.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70670937","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: When conducting their business, insurers face various risks that are controlled for in order to mitigate them and protect the insured, inter alia. Moreover, being aware of the factors that determine the reward-to-risk ratio for insurers is also of crucial importance. Thus, the aim of this research is to identify potential factors that influence risk-adjusted returns of life insurance companies. Methodology: The analysis is conducted on a sample of life insurers that operated in Croatia in the period from 2016 to 2020. For this purpose, risk-adjusted ROA, i.e. the Sharpe ratio, is used as a risk-adjusted return measure, while independent variables encompass several insurance firm-oriented and insurance industry-specific variables, as well as variables depicting the level of macroeconomic development, stock market, bond market and institutional development. Results: After conducting dynamic panel analysis, the obtained results suggest that the premium growth rate, asset-based size, the net premium to surplus ratio, i.e. leverage, as well as bond market development are significant factors when determining risk-adjusted returns. Conclusion: Risk-adjusted returns are determined by insurance firm-oriented factors which are important not only to investors but also to insurance market regulators and insurance firm managers.
{"title":"What are the factors that determine risk-adjusted returns of Croatian life insurers?","authors":"Tomislava Pavić Kramarić, M. Miletic","doi":"10.51680/ev.36.1.15","DOIUrl":"https://doi.org/10.51680/ev.36.1.15","url":null,"abstract":"Purpose: When conducting their business, insurers face various risks that are controlled for in order to mitigate them and protect the insured, inter alia. Moreover, being aware of the factors that determine the reward-to-risk ratio for insurers is also of crucial importance. Thus, the aim of this research is to identify potential factors that influence risk-adjusted returns of life insurance companies. Methodology: The analysis is conducted on a sample of life insurers that operated in Croatia in the period from 2016 to 2020. For this purpose, risk-adjusted ROA, i.e. the Sharpe ratio, is used as a risk-adjusted return measure, while independent variables encompass several insurance firm-oriented and insurance industry-specific variables, as well as variables depicting the level of macroeconomic development, stock market, bond market and institutional development. Results: After conducting dynamic panel analysis, the obtained results suggest that the premium growth rate, asset-based size, the net premium to surplus ratio, i.e. leverage, as well as bond market development are significant factors when determining risk-adjusted returns. Conclusion: Risk-adjusted returns are determined by insurance firm-oriented factors which are important not only to investors but also to insurance market regulators and insurance firm managers.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2023-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70670341","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 aim of this paper is to expand the body of knowledge on employer branding by identifying the dimensions of employer attractiveness for Generation Z and to develop a framework for employee value creation in the specific context of Croatian culture. Methodology: The research was conducted on a sample of 220 key informants using the scale developed by Berthon et al. (2005). Since the purpose of the paper was to identify the various dimensions of employer attractiveness as well as the key factors of attractiveness as the basis for value proposition underlying respondents’ perception of employer attractiveness, exploratory factor analysis was applied to analyze the data, i.e. a total of 25 identified employer attractiveness variables. After performing factor analysis, the average rates of importance were measured using summated rating scales for variables of individual factors. Results: The study identified six organizational attractiveness dimensions relevant to Generation Z. In addition, a value proposition framework was developed. The attractiveness dimensions encompass Organization’s market orientation, Acceptance and good relationships with colleagues, Informal characteristics of the workplace, Potential of the workplace for gaining experience and career advancement, Salary and other material benefits, and Sense of belonging to the organization. The dimensions have changed compared to the original Berthon et al. (2005) scale. These differences can be attributed to the specific needs of young employees and to a specific culture and general current conditions. Conclusion: In the “war for talent”, especially for young employees who enter the labor market for the first time, marketing concepts can be a powerful weapon. In order to attract them, their needs and wants should be deeply understood. Based on the proposed value proposition framework and the identified organizational dimensions, a valuable employer brand can be developed and the possibilities to attract and engage employees can be increased.
目的:本文的目的是通过确定Z世代雇主吸引力的维度来扩展雇主品牌的知识体系，并在克罗地亚文化的特定背景下制定员工价值创造框架。研究方法:使用Berthon等人(2005)开发的量表，对220名关键线人的样本进行了研究。由于本文的目的是确定雇主吸引力的各个维度以及吸引力的关键因素，作为受访者对雇主吸引力感知的价值主张的基础，因此采用探索性因素分析来分析数据，即总共确定了25个雇主吸引力变量。在进行因素分析后，使用单个因素变量的累计评级量表测量平均重要性率。结果:研究确定了与z世代相关的六个组织吸引力维度。此外，还开发了一个价值主张框架。吸引力维度包括组织的市场导向、接受度和与同事的良好关系、工作场所的非正式特征、工作场所获得经验和职业发展的潜力、工资和其他物质利益以及对组织的归属感。与原来的Berthon et al.(2005)量表相比，维度发生了变化。这些差异可以归因于年轻员工的特定需求，以及特定的文化和当前的一般情况。总结:在“人才之战”中，特别是对于第一次进入劳动力市场的年轻员工来说，营销理念可以成为一个强大的武器。为了吸引他们，应该深入了解他们的需求和欲望。基于提出的价值主张框架和确定的组织维度，可以开发有价值的雇主品牌，并增加吸引和吸引员工的可能性。
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