Pub Date : 2020-12-31DOI: 10.18045/zbefri.2020.2.521
M. Čalopa, Ivana Đunđek Kokotec, Karolina Kokot
The main objective of this research paper is to examine the impact of board size and ownership concentration, representing corporate governance mechanisms, on agency costs in large Croatian companies. Furthermore, debt financing and firm growth are examined because those variables also have impact on agency costs. Agency theory defines a framework for the potential issue of the separation of ownership and management as well as for the conflict between stakeholders (principals) and managers (agents). The most significant principal-agent problems are agency costs, but they do not have a directly quantifiable value; hence, in this research paper, the asset turnover ratio is used as the approximation. Therefore, this research will empirically test the significance of the impact of board size, ownership concentration, debt financing and firm growth on agency cost in the observed period from 2014 to 2018 using panel data analysis. This research was conducted with large Croatian companies using data and information from official annual accounts primarily to ensure objectivity, standardization and comparability. Specifically, the analysis was conducted on 219 companies operating in two main categories of economic activity: Manufacturing (C) and Wholesale and retail trade (G). The results indicate that board size has a significant but negative impact on agency costs. The results also indicate that debt and growth have a significant and negative impact on agency costs. Ownership concentration was not found to have significant impact.
{"title":"Impact of board size and ownership concentration on agency costs: evidence for Croatian companies","authors":"M. Čalopa, Ivana Đunđek Kokotec, Karolina Kokot","doi":"10.18045/zbefri.2020.2.521","DOIUrl":"https://doi.org/10.18045/zbefri.2020.2.521","url":null,"abstract":"The main objective of this research paper is to examine the impact of board size and ownership concentration, representing corporate governance mechanisms, on agency costs in large Croatian companies. Furthermore, debt financing and firm growth are examined because those variables also have impact on agency costs. Agency theory defines a framework for the potential issue of the separation of ownership and management as well as for the conflict between stakeholders (principals) and managers (agents). The most significant principal-agent problems are agency costs, but they do not have a directly quantifiable value; hence, in this research paper, the asset turnover ratio is used as the approximation. Therefore, this research will empirically test the significance of the impact of board size, ownership concentration, debt financing and firm growth on agency cost in the observed period from 2014 to 2018 using panel data analysis. This research was conducted with large Croatian companies using data and information from official annual accounts primarily to ensure objectivity, standardization and comparability. Specifically, the analysis was conducted on 219 companies operating in two main categories of economic activity: Manufacturing (C) and Wholesale and retail trade (G). The results indicate that board size has a significant but negative impact on agency costs. The results also indicate that debt and growth have a significant and negative impact on agency costs. Ownership concentration was not found to have significant impact.","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67569146","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}
Pub Date : 2020-12-31DOI: 10.18045/zbefri.2020.2.697
Goran Buturac, Miloš Parežanin
Digital transformation is increasingly affecting many aspects of the world economy. It is boosting economic growth, has an impact on foreign direct investments and increases international trade. Hence, the aim of the paper is to analyse digital transformation in relation with the economic cooperation between Western Balkan economies. In order to do so, we construct two indicators: the harmonised index of economic cooperation among Western Balkan economies and the indicator of digital transformation convergence. The results indicate a rising trend of economic cooperation amongst Western Balkan countries, with cooperation dominated by foreign trade. Even though Western Balkan countries have experienced an increased digital transformation convergence, they are still lagging behind the EU in the use of digital technologies. Hence, placing more emphasis on digital transformation could potentially boost the region’s GDP and thus economic cooperation among them.
{"title":"Digital transformation and economic cooperation: The case of Western Balkan countries","authors":"Goran Buturac, Miloš Parežanin","doi":"10.18045/zbefri.2020.2.697","DOIUrl":"https://doi.org/10.18045/zbefri.2020.2.697","url":null,"abstract":"Digital transformation is increasingly affecting many aspects of the world economy. It is boosting economic growth, has an impact on foreign direct investments and increases international trade. Hence, the aim of the paper is to analyse digital transformation in relation with the economic cooperation between Western Balkan economies. In order to do so, we construct two indicators: the harmonised index of economic cooperation among Western Balkan economies and the indicator of digital transformation convergence. The results indicate a rising trend of economic cooperation amongst Western Balkan countries, with cooperation dominated by foreign trade. Even though Western Balkan countries have experienced an increased digital transformation convergence, they are still lagging behind the EU in the use of digital technologies. Hence, placing more emphasis on digital transformation could potentially boost the region’s GDP and thus economic cooperation among them.","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-12-31","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67569156","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}
Pub Date : 2020-12-30DOI: 10.18045/ZBEFRI.2020.2.429
Albulena Shala, Valentin Toçi, Skender Ahmeti
This study provides empirical evidence on income smoothing from the banking sector in nine South-Eastern Europe (SEE) countries for the period 2005-2014 by applying a number of methodological approaches. First, by using a sample of 321 banks this paper confirms our first hypothesis that banks in the SEE region use loan loss provisions (LLPs) to smooth their incomes. Second, by dividing the loan loss provision into its two components (discretionary and non-discretionary,) the study provides new evidence on the effects of loan loss provisions components on growth in bank lending. The results clearly prove our second hypothesis that the components of LLPs do matter on growth in bank lending. Third, this paper estimates the use of loan loss provisions for capital management by banks. The empirical results do not support the hypothesis of capital management for SEE banks. The novelty of this paper, unlike other works, is the inclusion of SEE countries.
{"title":"Income smoothing through loan loss provisions in south and Eastern European banks","authors":"Albulena Shala, Valentin Toçi, Skender Ahmeti","doi":"10.18045/ZBEFRI.2020.2.429","DOIUrl":"https://doi.org/10.18045/ZBEFRI.2020.2.429","url":null,"abstract":"This study provides empirical evidence on income smoothing from the banking sector in nine South-Eastern Europe (SEE) countries for the period 2005-2014 by applying a number of methodological approaches. First, by using a sample of 321 banks this paper confirms our first hypothesis that banks in the SEE region use loan loss provisions (LLPs) to smooth their incomes. Second, by dividing the loan loss provision into its two components (discretionary and non-discretionary,) the study provides new evidence on the effects of loan loss provisions components on growth in bank lending. The results clearly prove our second hypothesis that the components of LLPs do matter on growth in bank lending. Third, this paper estimates the use of loan loss provisions for capital management by banks. The empirical results do not support the hypothesis of capital management for SEE banks. The novelty of this paper, unlike other works, is the inclusion of SEE countries.","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-12-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67569080","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}
Pub Date : 2020-06-30DOI: 10.18045/ZBEFRI.2020.1.125
M. Jabłońska, J. Stawska
The purpose of the article is to identify the factors determining the rate of entrepreneurship in selected regions of Poland and the Czech Republic, two neighboring countries, within the period 2007 – 2017. This period includes the time of the financial and economic crisis, which could have influenced the entrepreneurship determinants in the regions under study in varying degrees. The differentiation of the impact of selected variables on the entrepreneurship rate had its basis in many elements. To achieve this objective, the following research methods were used: presentation of statistical data, statistical and econometric research methods – the logarithmic panel model with delays. The article also emphasizes the importance of entrepreneurship for the development of a country’s economy. Considering the high level of competitiveness in local and global markets, enterprises should pay increasing attention to micro-environment and some regional conditions, because an enterprise depends on these conditions and may influence many of them. The results of the research and thus the contribution and their added value are as follows: an increase in local entrepreneurship is positively transferred to the growth of international entrepreneurship, while R&D expenditure and average remuneration in the economy are the crucial factors influencing the development of entrepreneurship.
{"title":"The key factors affecting entrepreneurship: a comparative analysis","authors":"M. Jabłońska, J. Stawska","doi":"10.18045/ZBEFRI.2020.1.125","DOIUrl":"https://doi.org/10.18045/ZBEFRI.2020.1.125","url":null,"abstract":"The purpose of the article is to identify the factors determining the rate of entrepreneurship in selected regions of Poland and the Czech Republic, two neighboring countries, within the period 2007 – 2017. This period includes the time of the financial and economic crisis, which could have influenced the entrepreneurship determinants in the regions under study in varying degrees. The differentiation of the impact of selected variables on the entrepreneurship rate had its basis in many elements. To achieve this objective, the following research methods were used: presentation of statistical data, statistical and econometric research methods – the logarithmic panel model with delays. The article also emphasizes the importance of entrepreneurship for the development of a country’s economy. Considering the high level of competitiveness in local and global markets, enterprises should pay increasing attention to micro-environment and some regional conditions, because an enterprise depends on these conditions and may influence many of them. The results of the research and thus the contribution and their added value are as follows: an increase in local entrepreneurship is positively transferred to the growth of international entrepreneurship, while R&D expenditure and average remuneration in the economy are the crucial factors influencing the development of entrepreneurship.","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47862197","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}
Pub Date : 2020-06-30DOI: 10.18045/zbefri.2020.1.35
Wen Jun, Junaid Waheed, H. Hussain, Ihsan Jamil, M. K. Anser
Working women have more compulsive buying tendencies which can lead to a significant increase in their household consumption expenditures. This study investigates the effects of changes in the number of working women on household per capita consumption. We test the hypothesis that changes in the number of working women have a discernible impact on household final per capita consumption expenditures, due to their differing consumption propensities, by doing an empirical analysis based on panel data set of 36 OECD economies within the period 2000-2016. The results indicate that changes in the number of working women increase the household per capita consumption expenditures. The result also implies that age plays a significant role in working women consumption decision making and may lead to significant differences in aggregate consumption expenditure. These findings suggest the importance of understanding changes in the number of working women in planning for aggregate consumption mobilization and in the formulation of aggregate growth policies.
{"title":"Working women and per capita household consumption expenditures; an untouched reality","authors":"Wen Jun, Junaid Waheed, H. Hussain, Ihsan Jamil, M. K. Anser","doi":"10.18045/zbefri.2020.1.35","DOIUrl":"https://doi.org/10.18045/zbefri.2020.1.35","url":null,"abstract":"Working women have more compulsive buying tendencies which can lead to a significant increase in their household consumption expenditures. This study investigates the effects of changes in the number of working women on household per capita consumption. We test the hypothesis that changes in the number of working women have a discernible impact on household final per capita consumption expenditures, due to their differing consumption propensities, by doing an empirical analysis based on panel data set of 36 OECD economies within the period 2000-2016. The results indicate that changes in the number of working women increase the household per capita consumption expenditures. The result also implies that age plays a significant role in working women consumption decision making and may lead to significant differences in aggregate consumption expenditure. These findings suggest the importance of understanding changes in the number of working women in planning for aggregate consumption mobilization and in the formulation of aggregate growth policies.","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.18045/zbefri.2020.1.35","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67568908","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}
Pub Date : 2020-06-30DOI: 10.18045/ZBEFRI.2020.183
Marija Radulović, Milan Kostić
{"title":"Globalizacija i ekonomski rast ekonomija Eurozone","authors":"Marija Radulović, Milan Kostić","doi":"10.18045/ZBEFRI.2020.183","DOIUrl":"https://doi.org/10.18045/ZBEFRI.2020.183","url":null,"abstract":"","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67569073","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}
Pub Date : 2020-06-30DOI: 10.18045/ZBEFRI.2020.1.101
Dejan Malinić, K. Denčić-Mihajlov, Konrad Grabiński
{"title":"Preispitivanje odrednica rasta poduzeća tijekom kriznih perioda","authors":"Dejan Malinić, K. Denčić-Mihajlov, Konrad Grabiński","doi":"10.18045/ZBEFRI.2020.1.101","DOIUrl":"https://doi.org/10.18045/ZBEFRI.2020.1.101","url":null,"abstract":"","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67569194","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}
Pub Date : 2020-06-30DOI: 10.18045/zbefri.2020.1.147
The main objective of this paper is to identify the most important direct and indirect sources of water use in the Croatian economy and, based on that, to identify the key drivers of water use in the process of Croatian national production. For this purpose, water extended input-output model was constructed and empirically applied in the paper, based on which the indicators of direct, indirect, and cumulative water intensities of production sectors in the Croatian economy have been quantified and analysed, including their cumulative and indirect water use multipliers. Using the aforementioned model, the paper also assesses and analyses domestic, net imported, and total water footprints of production sectors in the Croatian economy, as well as the relative strength of pull-and-push effects of their water use. For the purpose of model construction, the last published input-output table of the Croatian economy for 2010 and the reference data of the Croatian official water statistics were used. The results of the model indicate that direct and indirect water use flows in the Croatian economy are mostly determined by intermediate processes of generating and using the output of the power, chemical, and oil-processing sector. Through the application of the model, it has also been found that these sectors dominate in the structure of the total water footprint of the Croatian economy, whereby the Republic of Croatia, overall, achieves a surplus in the international exchange of virtual waters. Given the new findings on indirect and cumulative water use flows in the Croatian economy, the author’s recommendation is that the multiplicative effects of inter-sectoral dependencies in the processes of national production on the total water use must be taken into account when conducting future activities of planning, management, and protection of Croatian water resources.
{"title":"Water extended input-output analysis of the Croatian economy","authors":"","doi":"10.18045/zbefri.2020.1.147","DOIUrl":"https://doi.org/10.18045/zbefri.2020.1.147","url":null,"abstract":"The main objective of this paper is to identify the most important direct and indirect sources of water use in the Croatian economy and, based on that, to identify the key drivers of water use in the process of Croatian national production. For this purpose, water extended input-output model was constructed and empirically applied in the paper, based on which the indicators of direct, indirect, and cumulative water intensities of production sectors in the Croatian economy have been quantified and analysed, including their cumulative and indirect water use multipliers. Using the aforementioned model, the paper also assesses and analyses domestic, net imported, and total water footprints of production sectors in the Croatian economy, as well as the relative strength of pull-and-push effects of their water use. For the purpose of model construction, the last published input-output table of the Croatian economy for 2010 and the reference data of the Croatian official water statistics were used. The results of the model indicate that direct and indirect water use flows in the Croatian economy are mostly determined by intermediate processes of generating and using the output of the power, chemical, and oil-processing sector. Through the application of the model, it has also been found that these sectors dominate in the structure of the total water footprint of the Croatian economy, whereby the Republic of Croatia, overall, achieves a surplus in the international exchange of virtual waters. Given the new findings on indirect and cumulative water use flows in the Croatian economy, the author’s recommendation is that the multiplicative effects of inter-sectoral dependencies in the processes of national production on the total water use must be taken into account when conducting future activities of planning, management, and protection of Croatian water resources.","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67569255","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}
Pub Date : 2020-06-30DOI: 10.18045/zbefri.2020.1.71
Abdul Wahid, Muhammad Zubair Mumtaz
Earlier studies document that IPOs are underpriced in the short-run and underperformed in the long-run. In almost all studies, researchers analyze the IPO performance using the dataset from highly liquid markets. However, the pricing behavior of IPOs in the Alternative Investment Market (AIM) is different. There is a reason to expect the price performance of IPOs in the AIM to be significantly different from IPO performance in traditional markets mainly because of the diminished liquidity of AIM offerings as well as the meager disclosures required in comparison to traditional markets. To test our propositions, we select 292 IPOs listed on AIM during the period between 2001 and 2016 and apply the Extreme Bound Analysis (EBA) to determine the factors that cause longer-term performance. This study reports that investors in the alternative markets earn significant positive returns if the stock is held for three years, and the price variation is dependent upon the firm size. This illustrates that investment in smallsized firms seems more profitable as compared to those of large-sized firms in the AIM. Moreover, this study examines statistical evidence bearing on the question of whether early investors in IPOs can expect abnormal excess returns in the longrun.
{"title":"Long-run price performance of local and dual class IPOs in alternative investment market","authors":"Abdul Wahid, Muhammad Zubair Mumtaz","doi":"10.18045/zbefri.2020.1.71","DOIUrl":"https://doi.org/10.18045/zbefri.2020.1.71","url":null,"abstract":"Earlier studies document that IPOs are underpriced in the short-run and underperformed in the long-run. In almost all studies, researchers analyze the IPO performance using the dataset from highly liquid markets. However, the pricing behavior of IPOs in the Alternative Investment Market (AIM) is different. There is a reason to expect the price performance of IPOs in the AIM to be significantly different from IPO performance in traditional markets mainly because of the diminished liquidity of AIM offerings as well as the meager disclosures required in comparison to traditional markets. To test our propositions, we select 292 IPOs listed on AIM during the period between 2001 and 2016 and apply the Extreme Bound Analysis (EBA) to determine the factors that cause longer-term performance. This study reports that investors in the alternative markets earn significant positive returns if the stock is held for three years, and the price variation is dependent upon the firm size. This illustrates that investment in smallsized firms seems more profitable as compared to those of large-sized firms in the AIM. Moreover, this study examines statistical evidence bearing on the question of whether early investors in IPOs can expect abnormal excess returns in the longrun.","PeriodicalId":44594,"journal":{"name":"Zbornik Radova Ekonomskog Fakulteta u Rijeci-Proceedings of Rijeka Faculty of Economics","volume":null,"pages":null},"PeriodicalIF":1.2,"publicationDate":"2020-06-30","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://sci-hub-pdf.com/10.18045/zbefri.2020.1.71","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"67568967","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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