Purpose: The aim of this paper is to analyze overall technical efficiency (OTE), pure technical efficiency (PTE) and scale efficiency (SE) of both life and non-life insurance sectors in three Central and Eastern European countries (CEE), i.e. Croatia, Hungary and Poland, in 2018. Methodology: The efficiency of insurance sectors is estimated by applying data envelopment analysis (DEA), while a one-way analysis of variance (ANOVA) is performed to find out whether there exists any statistically significant difference between the estimated levels of the efficiency of non-life and life insurance sectors in the observed CEE countries. Results: Out of 34 non-life Polish insurers, only two (6%) were overall technically efficient, while the remaining 32 were inefficient. Croatia and Hungary achieved better results with three (20%) and seven (43.7%) efficient insurers, respectively. However, when observing the life insurance segment, half of the Croatian life insurers were efficient according to the CCR model, while six (23%) Polish and three (23%) Hungarian efficient insurers were recorded. Conclusion: Research reveals that the Hungarian non-life insurers are the most efficient ones in terms of OTE, PTE and SE. They are followed by the Croatian insurers, leaving the Polish insurers behind. Regarding the life insurance sector, the domination of the Croatian insurers is recorded, while the Hungarian ones were found to be the least efficient. Moreover, inefficiency in both life and non-life sectors (except for the Hungarian life sector) is more related to scale than to managerial inefficiency. Finally, ANOVAs and Tukey post hoc tests revealed a statistically significant difference among considered groups of insurers.
{"title":"A comparative analysis of the efficiency of life and non-life sectors in selected CEE countries","authors":"M. Pervan, Tomislava Pavić Kramarić, M. Ćurak","doi":"10.51680/ev.34.2.3","DOIUrl":"https://doi.org/10.51680/ev.34.2.3","url":null,"abstract":"Purpose: The aim of this paper is to analyze overall technical efficiency (OTE), pure technical efficiency (PTE) and scale efficiency (SE) of both life and non-life insurance sectors in three Central and Eastern European countries (CEE), i.e. Croatia, Hungary and Poland, in 2018. Methodology: The efficiency of insurance sectors is estimated by applying data envelopment analysis (DEA), while a one-way analysis of variance (ANOVA) is performed to find out whether there exists any statistically significant difference between the estimated levels of the efficiency of non-life and life insurance sectors in the observed CEE countries. Results: Out of 34 non-life Polish insurers, only two (6%) were overall technically efficient, while the remaining 32 were inefficient. Croatia and Hungary achieved better results with three (20%) and seven (43.7%) efficient insurers, respectively. However, when observing the life insurance segment, half of the Croatian life insurers were efficient according to the CCR model, while six (23%) Polish and three (23%) Hungarian efficient insurers were recorded. Conclusion: Research reveals that the Hungarian non-life insurers are the most efficient ones in terms of OTE, PTE and SE. They are followed by the Croatian insurers, leaving the Polish insurers behind. Regarding the life insurance sector, the domination of the Croatian insurers is recorded, while the Hungarian ones were found to be the least efficient. Moreover, inefficiency in both life and non-life sectors (except for the Hungarian life sector) is more related to scale than to managerial inefficiency. Finally, ANOVAs and Tukey post hoc tests revealed a statistically significant difference among considered groups of insurers.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70667737","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: Children in the Republic of Croatia are, as everywhere else in the world, active users of information and communication i.e. digital technologies, which is reflected in their daily habits and routines in the digital environment. The purpose of this paper is to find out if there are gender-based differences in behavior and established habits in the digital environment between boys and girls. Methodology: Quantitative research was carried out using the CAWI method among 400 parents or guardians in the Republic of Croatia who provided answers on (their own) children of primary school age. This paper focuses on the segment of children and their gender, i.e. the existence (or the lack of existence) of differences in the behavior of boys and girls in a digital environment. The statistically significant differences are demonstrated by testing various variables between the two above-mentioned segments. Results: The research results indicate that, on average, girls and boys start to use the Internet at the same age, approximately at the age of 6. However, there are noticeable differences between the sexes in terms of the habits and in the way they use the Internet. Conclusion: The conclusion shows that boys more frequently have desktop computers, laptops, and gaming consoles, and prefer to play online games and spend time in the online world, while girls more often post and publicly share photos, video records, and music. They equally use the Internet on weekdays, but boys spend more time on Internet activities on weekends.
{"title":"Internet usage and related behavior patterns of primary school children","authors":"Marija Šmit, Antun Biloš, D. Turkalj","doi":"10.51680/ev.34.2.5","DOIUrl":"https://doi.org/10.51680/ev.34.2.5","url":null,"abstract":"Purpose: Children in the Republic of Croatia are, as everywhere else in the world, active users of information and communication i.e. digital technologies, which is reflected in their daily habits and routines in the digital environment. The purpose of this paper is to find out if there are gender-based differences in behavior and established habits in the digital environment between boys and girls. Methodology: Quantitative research was carried out using the CAWI method among 400 parents or guardians in the Republic of Croatia who provided answers on (their own) children of primary school age. This paper focuses on the segment of children and their gender, i.e. the existence (or the lack of existence) of differences in the behavior of boys and girls in a digital environment. The statistically significant differences are demonstrated by testing various variables between the two above-mentioned segments. Results: The research results indicate that, on average, girls and boys start to use the Internet at the same age, approximately at the age of 6. However, there are noticeable differences between the sexes in terms of the habits and in the way they use the Internet. Conclusion: The conclusion shows that boys more frequently have desktop computers, laptops, and gaming consoles, and prefer to play online games and spend time in the online world, while girls more often post and publicly share photos, video records, and music. They equally use the Internet on weekdays, but boys spend more time on Internet activities on weekends.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70667917","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: One of the ways to enhance transparency and usefulness of audit reports is to include information on key audit matters (KAMs). In this paper, based on the presented KAMs, we investigate transparency of audit reports of listed companies in Bosnia and Herzegovina and in Croatia. Methodology: For the purposes of this research, we collected and systematised data from published audit reports and then analysed them by means of descriptive statistical methods. Results: The research results show that in Croatia only a few audit reports lack a section on KAMs and there is no difference between the audit reports issued by the Big Four and the reports of other audit firms. In Bosnia and Herzegovina, most audit reports do not include a section on KAMs, but, unlike the Big Four, who disclose at least one KAM, other audit firms generally do not present any. Additionally, the research results show differences in the number of communicated KAMs between the audit reports prepared by the Big Four in Croatia and their reports for Bosnia and Herzegovina. There are also differences in the type of KAMs used in the two observed countries. Conclusion: Having analysed the situation in the two developing countries, we obtained different results. The discrepancies mainly stem from the varying degrees of transparency of the audit profession in each country.
{"title":"Assessment of transparency of audit reports based on presentation of key audit matters","authors":"Mirjana Hladika, J. Poljašević, Josipa Grbavac","doi":"10.51680/ev.34.2.16","DOIUrl":"https://doi.org/10.51680/ev.34.2.16","url":null,"abstract":"Purpose: One of the ways to enhance transparency and usefulness of audit reports is to include information on key audit matters (KAMs). In this paper, based on the presented KAMs, we investigate transparency of audit reports of listed companies in Bosnia and Herzegovina and in Croatia. Methodology: For the purposes of this research, we collected and systematised data from published audit reports and then analysed them by means of descriptive statistical methods. Results: The research results show that in Croatia only a few audit reports lack a section on KAMs and there is no difference between the audit reports issued by the Big Four and the reports of other audit firms. In Bosnia and Herzegovina, most audit reports do not include a section on KAMs, but, unlike the Big Four, who disclose at least one KAM, other audit firms generally do not present any. Additionally, the research results show differences in the number of communicated KAMs between the audit reports prepared by the Big Four in Croatia and their reports for Bosnia and Herzegovina. There are also differences in the type of KAMs used in the two observed countries. Conclusion: Having analysed the situation in the two developing countries, we obtained different results. The discrepancies mainly stem from the varying degrees of transparency of the audit profession in each country.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70667924","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Purpose: The purpose of this paper is to explore the potentials that can positively impact the success of a hotel online business by: (1) exploring the specifics of the internal structure of online booking channels in the hotel business, (2) identifying the value and distribution of the potential to increase hotel bookings through the hotel website, (3) identifying the potential by exploring the space for improving hotel website excellence, and (4) developing an innovative multidimensional metric for monitoring hotel website quality. Methodology: This research was approached in a way that the issue is considered from two aspects. Firstly, the potential to improve the ratio value of the hotel online booking channel structure is observed. The survey in the Republic of Croatia was conducted by regions on a sample of 4* and 5* hotels. Secondly, the potential to improve a hotel business is considered as the possibility to improve the performance of a hotel website. Results: The research results show the value and distribution of the potential which can be used for a positive impact on the hotel business. Furthermore, the use of the presented multidimensional metric model allows a clear recognition of the potential for the hotel website quality improvement. Conclusion: It can be concluded that both aspects of the potential research (in addition to the research findings), open up numerous possibilities for conducting similar or more complex analytical procedures and a new empirical research.
{"title":"Ratio of the structure of hotel online booking channels and the monitoring of the quality of hotel websites in a multidimensional system","authors":"Mislav Šimunić","doi":"10.51680/ev.34.2.6","DOIUrl":"https://doi.org/10.51680/ev.34.2.6","url":null,"abstract":"Purpose: The purpose of this paper is to explore the potentials that can positively impact the success of a hotel online business by: (1) exploring the specifics of the internal structure of online booking channels in the hotel business, (2) identifying the value and distribution of the potential to increase hotel bookings through the hotel website, (3) identifying the potential by exploring the space for improving hotel website excellence, and (4) developing an innovative multidimensional metric for monitoring hotel website quality. Methodology: This research was approached in a way that the issue is considered from two aspects. Firstly, the potential to improve the ratio value of the hotel online booking channel structure is observed. The survey in the Republic of Croatia was conducted by regions on a sample of 4* and 5* hotels. Secondly, the potential to improve a hotel business is considered as the possibility to improve the performance of a hotel website. Results: The research results show the value and distribution of the potential which can be used for a positive impact on the hotel business. Furthermore, the use of the presented multidimensional metric model allows a clear recognition of the potential for the hotel website quality improvement. Conclusion: It can be concluded that both aspects of the potential research (in addition to the research findings), open up numerous possibilities for conducting similar or more complex analytical procedures and a new empirical research.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70668070","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}
Dubravka Pekanov Starčević, B. Crnković, Ivana Fosić
Purpose: The purpose of this paper is to identify and evaluate the environmental impacts and estimate the external costs and benefits of building and operating a combined heat and power (CHP) plant. This research will contribute to the scientific literature in the field of public capital investments in CHP plants and facilitate the evaluation of similar assessments and studies by identifying relevant factors that affect society and the environment. Methodology: The ExternE methodology and Impact Pathway Approach (IPA) were used to estimate the externalities of building and operating the plant. The ExternE methodology considers environmental impacts, global warming impacts and accidents, and it is widely accepted in the estimation of externalities of CHP plants. Results: The main external benefits refer to the savings from the reduction of CO2 emissions per unit of energy produced, savings from the reduction of energy losses in the transmission of electricity, reduction of Croatia’s dependence on electricity imports, improvement of the balance of payments, and fiscal benefits. The main external costs arise from Croatia’s increasing import dependence on natural gas and changes in the use of agricultural land. Conclusion: It is estimated that the external benefits are higher than the external costs. In addition to the estimation of external costs, their internalization is done through various taxes and fees, thus affecting the unit cost of electricity. Further research should extend the estimation of external benefits and costs to consider broader social impacts and conduct a full cost-benefit analysis.
{"title":"Investing in CHP plants","authors":"Dubravka Pekanov Starčević, B. Crnković, Ivana Fosić","doi":"10.51680/ev.34.2.8","DOIUrl":"https://doi.org/10.51680/ev.34.2.8","url":null,"abstract":"Purpose: The purpose of this paper is to identify and evaluate the environmental impacts and estimate the external costs and benefits of building and operating a combined heat and power (CHP) plant. This research will contribute to the scientific literature in the field of public capital investments in CHP plants and facilitate the evaluation of similar assessments and studies by identifying relevant factors that affect society and the environment. Methodology: The ExternE methodology and Impact Pathway Approach (IPA) were used to estimate the externalities of building and operating the plant. The ExternE methodology considers environmental impacts, global warming impacts and accidents, and it is widely accepted in the estimation of externalities of CHP plants. Results: The main external benefits refer to the savings from the reduction of CO2 emissions per unit of energy produced, savings from the reduction of energy losses in the transmission of electricity, reduction of Croatia’s dependence on electricity imports, improvement of the balance of payments, and fiscal benefits. The main external costs arise from Croatia’s increasing import dependence on natural gas and changes in the use of agricultural land. Conclusion: It is estimated that the external benefits are higher than the external costs. In addition to the estimation of external costs, their internalization is done through various taxes and fees, thus affecting the unit cost of electricity. Further research should extend the estimation of external benefits and costs to consider broader social impacts and conduct a full cost-benefit analysis.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70668604","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: Recently, considerable attention has been given to forecasting, not only the mean and the variance, but also the entire probability density function (pdf) of the underlying asset. These forecasts can be obtained as implied moments of future distribution originating from European call and put options. However, the predictive accuracy of option pricing models is not so well established. With this in mind, this research aims to identify the model that predicts the entire pdf most accurately when compared to the ex-post “true” density given by high-frequency data at expiration date. Methodology: The methodological part includes two steps. In the first step, several probability density functions are estimated using different option pricing models, considering the values of major market indices with different maturities. These implied probability density functions are risk neutral. In the second step, the implied pdfs are compared against the “true” density obtained from the high-frequency data to examine which one gives the best fit out-of-sample. Results: The results support the idea that a “true” density function, although unknown, can be estimated by employing the kernel estimator within high-frequency data and adjusted for risk preferences. Conclusion: The main conclusion is that the Shimko model outperforms the Mixture Log-Normal model as well as the Edgeworth expansion model in terms of out-of-sample forecasting accuracy. This study contributes to the existing body of research by: i) establishing the benchmark of the “true” density function using high-frequency data, ii) determining the predictive accuracy of the option pricing models and iii) providing applicative results both for market participants and public authorities.
{"title":"Predictive accuracy of option pricing models considering high-frequency data","authors":"Josip Arnerić, Maria Čuljak","doi":"10.51680/EV.34.1.10","DOIUrl":"https://doi.org/10.51680/EV.34.1.10","url":null,"abstract":"Purpose: Recently, considerable attention has been given to forecasting, not only the mean and the variance, but also the entire probability density function (pdf) of the underlying asset. These forecasts can be obtained as implied moments of future distribution originating from European call and put options. However, the predictive accuracy of option pricing models is not so well established. With this in mind, this research aims to identify the model that predicts the entire pdf most accurately when compared to the ex-post “true” density given by high-frequency data at expiration date. Methodology: The methodological part includes two steps. In the first step, several probability density functions are estimated using different option pricing models, considering the values of major market indices with different maturities. These implied probability density functions are risk neutral. In the second step, the implied pdfs are compared against the “true” density obtained from the high-frequency data to examine which one gives the best fit out-of-sample. Results: The results support the idea that a “true” density function, although unknown, can be estimated by employing the kernel estimator within high-frequency data and adjusted for risk preferences. Conclusion: The main conclusion is that the Shimko model outperforms the Mixture Log-Normal model as well as the Edgeworth expansion model in terms of out-of-sample forecasting accuracy. This study contributes to the existing body of research by: i) establishing the benchmark of the “true” density function using high-frequency data, ii) determining the predictive accuracy of the option pricing models and iii) providing applicative results both for market participants and public authorities.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70666381","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, first to describe and explore equity agency costs; second, to explore the impact of capital structure on equity agency costs; and finally, to examine the impact of agency costs on the performance of listed companies. Methodology: Panel data regression has been used for research data analysis. Results: The results of the work show that equity to capital and long-term debt to capital variables have a positive and significant impact on the agency costs of listed companies in the Republic of Croatia. The study indicates that long-term debt to capital variable has a negative and significant impact on the agency costs of listed companies in Slovenia and the Czech Republic. Furthermore, we find evidence to suggest that changes in agency costs have little or no effect on the performance of listed companies in Croatia, Slovenia and the Czech Republic. The findings suggest that the capital structure decisions affect the agency costs of listed companies and the agency costs may affect corporate performance. Conclusion: This study makes a number of contributions to the agency costs literature. It presents the first study of agency costs of listed companies in Croatia, Slovenia and the Czech Republic that uses panel data, a technique that enables us to isolate both cross section and time series effects. The present paper can help managers to better understand equity agency costs and their effects on corporate performance.
{"title":"Agency costs, capital structure and corporate performance","authors":"Eleonora Kontuš","doi":"10.51680/EV.34.1.6","DOIUrl":"https://doi.org/10.51680/EV.34.1.6","url":null,"abstract":"Purpose: The aim of this study is, first to describe and explore equity agency costs; second, to explore the impact of capital structure on equity agency costs; and finally, to examine the impact of agency costs on the performance of listed companies. Methodology: Panel data regression has been used for research data analysis. Results: The results of the work show that equity to capital and long-term debt to capital variables have a positive and significant impact on the agency costs of listed companies in the Republic of Croatia. The study indicates that long-term debt to capital variable has a negative and significant impact on the agency costs of listed companies in Slovenia and the Czech Republic. Furthermore, we find evidence to suggest that changes in agency costs have little or no effect on the performance of listed companies in Croatia, Slovenia and the Czech Republic. The findings suggest that the capital structure decisions affect the agency costs of listed companies and the agency costs may affect corporate performance. Conclusion: This study makes a number of contributions to the agency costs literature. It presents the first study of agency costs of listed companies in Croatia, Slovenia and the Czech Republic that uses panel data, a technique that enables us to isolate both cross section and time series effects. The present paper can help managers to better understand equity agency costs and their effects on corporate performance.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70666973","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 aims to develop and validate the scale for measuring digital marketing orientation (DMO) in the hotel industry. Methodology: The robust exploratory and confirmatory factor analysis procedure is applied to a data set collected through an online survey of 164 hotels in Bosnia and Herzegovina, Croatia, Serbia, and Montenegro. Results: Digital marketing orientation has been conceptualized, and a scale has been developed to measure this construct. The scale consists of 15 items in three defined dimensions (subscales): Strategic emphasis, Digital intelligence generation, and Planning and resource provisioning. Conclusion: Using the developed digital marketing orientation (DMO) scale, hotel managers can conduct a DMO audit similar to conducting a market orientation audit to determine in which areas it is necessary to improve market orientation in the online environment. Academics may use the DMO scale to investigate its antecedents and the influence of other factors on DMO and/or the influence of DMO on other factors. This is the first study, to the author’s knowledge, that developed and validated a measurement scale for digital marketing orientation in the hotel industry.
{"title":"Development and validation of the scale for measuring digital marketing\u0000orientation in the hotel industry","authors":"Kenan Mahmutović","doi":"10.51680/EV.34.1.9","DOIUrl":"https://doi.org/10.51680/EV.34.1.9","url":null,"abstract":"Purpose: This paper aims to develop and validate the scale for measuring digital marketing orientation (DMO) in the hotel industry. Methodology: The robust exploratory and confirmatory factor analysis procedure is applied to a data set collected through an online survey of 164 hotels in Bosnia and Herzegovina, Croatia, Serbia, and Montenegro. Results: Digital marketing orientation has been conceptualized, and a scale has been developed to measure this construct. The scale consists of 15 items in three defined dimensions (subscales): Strategic emphasis, Digital intelligence generation, and Planning and resource provisioning. Conclusion: Using the developed digital marketing orientation (DMO) scale, hotel managers can conduct a DMO audit similar to conducting a market orientation audit to determine in which areas it is necessary to improve market orientation in the online environment. Academics may use the DMO scale to investigate its antecedents and the influence of other factors on DMO and/or the influence of DMO on other factors. This is the first study, to the author’s knowledge, that developed and validated a measurement scale for digital marketing orientation in the hotel industry.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70667310","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 examine the co-movement between the real effective exchange rate and unemployment across post-transition Europe. Methodology: The research data sample in this paper consists of monthly data from 2000M1 to 2019M6 for ten European post-transition countries. After standard correlation analysis, the research followed a wavelet coherence approach, provided time-series analysis in the time-frequency domain and illustrated evolution of the co-movements in the observed period. Results: Conventional approach research results suggest no significant correlation between variables under consideration in cases of Poland and Lithuania. In cases of Latvia and Slovenia, standard correlation coefficients were positive and not in line with the theory. Correlation coefficients supported the theoretical assumption in six other countries included in the study. Wavelet coherence analysis results provided deeper insights into the relationship over time and the frequency domain. Empirical results gained in this research revealed a decline in the unemployment rate accompanied by depreciation of the real effective exchange rate as a prominent pattern at the beginning of the observation period suggesting pro-cyclical monetary policy. Conclusion: During the crisis of 2008 no link between variables under consideration was confirmed, while after the crisis empirical results were in line with the theoretical assumption, suggesting that depreciation of the real effective exchange rate might be used as an instrument to boost employment.
{"title":"Real effective exchange rate and unemployment across post-transition Europe","authors":"Mile Bošnjak","doi":"10.51680/ev.34.2.1","DOIUrl":"https://doi.org/10.51680/ev.34.2.1","url":null,"abstract":"Purpose: The aim of this paper is to examine the co-movement between the real effective exchange rate and unemployment across post-transition Europe. Methodology: The research data sample in this paper consists of monthly data from 2000M1 to 2019M6 for ten European post-transition countries. After standard correlation analysis, the research followed a wavelet coherence approach, provided time-series analysis in the time-frequency domain and illustrated evolution of the co-movements in the observed period. Results: Conventional approach research results suggest no significant correlation between variables under consideration in cases of Poland and Lithuania. In cases of Latvia and Slovenia, standard correlation coefficients were positive and not in line with the theory. Correlation coefficients supported the theoretical assumption in six other countries included in the study. Wavelet coherence analysis results provided deeper insights into the relationship over time and the frequency domain. Empirical results gained in this research revealed a decline in the unemployment rate accompanied by depreciation of the real effective exchange rate as a prominent pattern at the beginning of the observation period suggesting pro-cyclical monetary policy. Conclusion: During the crisis of 2008 no link between variables under consideration was confirmed, while after the crisis empirical results were in line with the theoretical assumption, suggesting that depreciation of the real effective exchange rate might be used as an instrument to boost employment.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70667474","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 main objective of this research was to determine the impact of capital structure on the profitability of Croatian companies. The second objective was to analyze the consistency of the way in which capital structure is managed with respect to the existing theories of capital structure. Methodology: A survey was conducted on the sample of Croatian companies for the period from 2009 to 2019 using panel model GMM estimation. In order to be included in the sample, all shares listed on the Zagreb Stock Exchange were considered which meet the liquidity criterion and are part of the non-financial sector. Accordingly, the sample consists of 30 shares. Results: The research established a significant relationship between capital structure and profitability, with a negative sign. With these results, Croatian companies are placed alongside other companies from countries that belong to the group of developing countries, and diametrically opposed to the results obtained for the markets of developed countries. Indirectly, the validity of theories of capital structure formation on the Croatian market was tested, and it was proved that the behavior of Croatian companies can best be described by settings of the trade-off theory of capital structure. Conclusion: For Croatian companies, this means that any further use of debt will lead to a decline in profitability. Consequently, this means that domestic companies cannot make significant use of the current situation of low interest rates on loans, and therefore they lag behind in terms of the level of investments made.
{"title":"The importance of a company’s capital structure in financial relations","authors":"Dean Učkar, Manuel Benazić, D. Tomić","doi":"10.51680/ev.34.2.13","DOIUrl":"https://doi.org/10.51680/ev.34.2.13","url":null,"abstract":"Purpose: The main objective of this research was to determine the impact of capital structure on the profitability of Croatian companies. The second objective was to analyze the consistency of the way in which capital structure is managed with respect to the existing theories of capital structure. Methodology: A survey was conducted on the sample of Croatian companies for the period from 2009 to 2019 using panel model GMM estimation. In order to be included in the sample, all shares listed on the Zagreb Stock Exchange were considered which meet the liquidity criterion and are part of the non-financial sector. Accordingly, the sample consists of 30 shares. Results: The research established a significant relationship between capital structure and profitability, with a negative sign. With these results, Croatian companies are placed alongside other companies from countries that belong to the group of developing countries, and diametrically opposed to the results obtained for the markets of developed countries. Indirectly, the validity of theories of capital structure formation on the Croatian market was tested, and it was proved that the behavior of Croatian companies can best be described by settings of the trade-off theory of capital structure. Conclusion: For Croatian companies, this means that any further use of debt will lead to a decline in profitability. Consequently, this means that domestic companies cannot make significant use of the current situation of low interest rates on loans, and therefore they lag behind in terms of the level of investments made.","PeriodicalId":42693,"journal":{"name":"Ekonomski Vjesnik","volume":null,"pages":null},"PeriodicalIF":0.4,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"70667709","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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