Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.14657
Maja Glogovac, J. Filipović, N. Zivkovic, V. Jeremic
In this paper, the PAF (preventive-appraisal-failure) quality costs model is used on the process level, in order to identify those processes which are critical as a top-priority for improvement. The elements of quality costs are considered in relation to the outputs of the processes, where the principle that one process affects the quality of another process by its outputs is taken into account. That is why the failure costs of the affected processes should also be assigned to the quality costs of the observed process. Using the factors proposed in the Process cost model, costs are identified and calculated for each process for two moments: the current (before improvements) and desired (after improvements). Improvements are implemented on the basis of the causes of nonconformity analysis and according to the PAF model assumption that preventive and appraisal activities reduce failure costs and the total costs of quality. The difference between the total costs of quality in two observed moments is seen as the greatest possible quality cost reduction for the observed process. This value is used as a criterion for ranking the processes according to their priority for improvements, taking into account the assumption of the PAF model that greater costs mean lower quality and hence a higher priority for improvement.
{"title":"A Model for Prioritization of Improvement Opportunities Based on Quality Costs in the Process Interdependency Context","authors":"Maja Glogovac, J. Filipović, N. Zivkovic, V. Jeremic","doi":"10.5755/J01.EE.30.3.14657","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.14657","url":null,"abstract":"In this paper, the PAF (preventive-appraisal-failure) quality costs model is used on the process level, in order to identify those processes which are critical as a top-priority for improvement. The elements of quality costs are considered in relation to the outputs of the processes, where the principle that one process affects the quality of another process by its outputs is taken into account. That is why the failure costs of the affected processes should also be assigned to the quality costs of the observed process. Using the factors proposed in the Process cost model, costs are identified and calculated for each process for two moments: the current (before improvements) and desired (after improvements). Improvements are implemented on the basis of the causes of nonconformity analysis and according to the PAF model assumption that preventive and appraisal activities reduce failure costs and the total costs of quality. The difference between the total costs of quality in two observed moments is seen as the greatest possible quality cost reduction for the observed process. This value is used as a criterion for ranking the processes according to their priority for improvements, taking into account the assumption of the PAF model that greater costs mean lower quality and hence a higher priority for improvement.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89666132","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.20483
Alina Almasan, Cristina Circa, Justyna Dobroszek, E. Zarzycka
The purpose of this paper is to investigate how selected contingency factors, such as the company profile and the managers’ profile, impact on the usefulness of management accounting (MA) in two Eastern European countries: Romania and Poland. In order to achieve the objective of the paper, we employed a questionnaire-based survey addressed to managers of randomly selected companies from various industries. Data were processed by means of several statistical tests, as well as classification and regression trees (C&RT) and the results were interpreted in the historical context of the two countries. Our investigation showed that management accounting in both countries is oriented towards providing useful information for budgeting and cost control. There is no interest in preparing and communicating information meant to support strategy implementation. It was also found that the information delivered to management is seldom employed in supporting the decision-making process, where its usefulness is rated as relatively low. The most important predictor variable for the assessment of Polish managers is the origin of the company’s capital, followed by the education of the managers, while in Romania the assessment is mainly influenced by the managers’ function and the origin of capital. The paper contributes to the development of literature in this field by complementing the existing research on MA development in CEE countries, and identifying the internal factors that lead to managers from the two countries perceiving MA usefulness differently. Keywords: management accounting information; usefulness; assessment; comparison; contingency factors; classification and regression trees
{"title":"The assessed usefulness of management accounting in Romania and Poland: a comparative contingency-based study","authors":"Alina Almasan, Cristina Circa, Justyna Dobroszek, E. Zarzycka","doi":"10.5755/J01.EE.30.3.20483","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.20483","url":null,"abstract":"The purpose of this paper is to investigate how selected contingency factors, such as the company profile and the managers’ profile, impact on the usefulness of management accounting (MA) in two Eastern European countries: Romania and Poland. In order to achieve the objective of the paper, we employed a questionnaire-based survey addressed to managers of randomly selected companies from various industries. Data were processed by means of several statistical tests, as well as classification and regression trees (C&RT) and the results were interpreted in the historical context of the two countries. Our investigation showed that management accounting in both countries is oriented towards providing useful information for budgeting and cost control. There is no interest in preparing and communicating information meant to support strategy implementation. It was also found that the information delivered to management is seldom employed in supporting the decision-making process, where its usefulness is rated as relatively low. The most important predictor variable for the assessment of Polish managers is the origin of the company’s capital, followed by the education of the managers, while in Romania the assessment is mainly influenced by the managers’ function and the origin of capital. The paper contributes to the development of literature in this field by complementing the existing research on MA development in CEE countries, and identifying the internal factors that lead to managers from the two countries perceiving MA usefulness differently. \u0000Keywords: management accounting information; usefulness; assessment; comparison; contingency factors; classification and regression trees","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90378478","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.21966
Jelena Borocki, Mladen Radišić, W. Sroka, Jolita Greblikaitė, Armenia Androniceanu
This paper presents the methodology for strategic posture determination of SMEs. The methodology itself that is explained in detail is based on the original work of A. Rowe and the research has been conducted on the sample of 179 companies from an emerging market of various sizes, ownership structures and industry sectors. A modified strategic analysis tool for defining company’s strategic posture (modified Strategic Position & Action Evaluation - SPACE analysis) presented in this paper investigates the basic dimensions of external environment and enterprise itself: environment stability (ES) and industry strength (IS), as well as competitive strength (CS) and financial strength (FS). Along with the presented mathematical modelling that determines resultant vector describing the strategic posture, the paper presents the mean scores of each variable from the questionnaire results that are calculated for every strategic posture. The results obtained contribute to the precise definition of the strategic position of companies and are useful for future works related to small and medium-sized firms' strategic posture evaluation.
{"title":"Methodology for Strategic Posture Determination of SMEs","authors":"Jelena Borocki, Mladen Radišić, W. Sroka, Jolita Greblikaitė, Armenia Androniceanu","doi":"10.5755/J01.EE.30.3.21966","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.21966","url":null,"abstract":"This paper presents the methodology for strategic posture determination of SMEs. The methodology itself that is explained in detail is based on the original work of A. Rowe and the research has been conducted on the sample of 179 companies from an emerging market of various sizes, ownership structures and industry sectors. A modified strategic analysis tool for defining company’s strategic posture (modified Strategic Position & Action Evaluation - SPACE analysis) presented in this paper investigates the basic dimensions of external environment and enterprise itself: environment stability (ES) and industry strength (IS), as well as competitive strength (CS) and financial strength (FS). Along with the presented mathematical modelling that determines resultant vector describing the strategic posture, the paper presents the mean scores of each variable from the questionnaire results that are calculated for every strategic posture. The results obtained contribute to the precise definition of the strategic position of companies and are useful for future works related to small and medium-sized firms' strategic posture evaluation.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"83088772","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.21119
Z. Nedelko, Valentina Peleckienė, Kestutis K. Peleckis, Kestutis K. Peleckis, Giedrė Lapinskienė, V. Potočan
This paper reports on research that examines the state of corporate social responsibility (CSR) and the impact of economic attitudes on natural and social CSR in Lithuania and Slovenia. The study exposes CSR and organizational behavior theories and analyzes answers from 159 Lithuanian and 183 Slovenian business students considered as future employees. The authors established a model to examine the impact of economic CSR – considered through a “primary concern for economic results” and “devoting resources for CSR” to “natural CSR” and “social CSR.” In Lithuania interest in social CSR prevails, while in Slovenia interest is focused on natural CSR. The economic aspect of CSR is poorly appreciated in both countries. Associations between CSR aspects reveal that favoring economic results has no significant influence on natural and social CSR in the Lithuanian sample. In the Slovenian sample there is a significant and negative association between the concern for economic results and natural and social CSR. A positive and significant impact of devoting resources to natural and social CSR in both countries exists, but the impact is stronger for Slovenia than Lithuania. Devoting resources contributes more to a concern for social rather than natural CSR in both samples. Economic CSR explains significantly more variance in social CSR than in natural CSR. The findings could help improve and develop CSR behavior in organizations and among their future employees. They could also benefit higher education organizations and society.
{"title":"The Impact of Economic Attitudes on Natural and Social Corporate Responsibility – A Comparative Study of Lithuania and Slovenia","authors":"Z. Nedelko, Valentina Peleckienė, Kestutis K. Peleckis, Kestutis K. Peleckis, Giedrė Lapinskienė, V. Potočan","doi":"10.5755/J01.EE.30.3.21119","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.21119","url":null,"abstract":"This paper reports on research that examines the state of corporate social responsibility (CSR) and the impact of economic attitudes on natural and social CSR in Lithuania and Slovenia. The study exposes CSR and organizational behavior theories and analyzes answers from 159 Lithuanian and 183 Slovenian business students considered as future employees. The authors established a model to examine the impact of economic CSR – considered through a “primary concern for economic results” and “devoting resources for CSR” to “natural CSR” and “social CSR.” In Lithuania interest in social CSR prevails, while in Slovenia interest is focused on natural CSR. The economic aspect of CSR is poorly appreciated in both countries. Associations between CSR aspects reveal that favoring economic results has no significant influence on natural and social CSR in the Lithuanian sample. In the Slovenian sample there is a significant and negative association between the concern for economic results and natural and social CSR. A positive and significant impact of devoting resources to natural and social CSR in both countries exists, but the impact is stronger for Slovenia than Lithuania. Devoting resources contributes more to a concern for social rather than natural CSR in both samples. Economic CSR explains significantly more variance in social CSR than in natural CSR. The findings could help improve and develop CSR behavior in organizations and among their future employees. They could also benefit higher education organizations and society.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82749265","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.21253
Donata Šiuškaitė, V. Pilinkienė, Dainius Žvirdauskas
The phenomenon of sharing economy originated as a response to the intensifying globalization, misallocation of resources, rising levels of poverty and inequality. The spread of information and web technologies forced the society and existing businesses to take a look at the concept of ownership from another viewpoint and revealed a new truth: what we own is not more important than what we share. Today the world observes not only a rapidly growing number of new sharing economy initiatives, but a considerably wider variety of sectors the platforms emerge in as well. However, an extensive amount of scientific publications disregard this fact and apply a simplified business model to all sharing economy initiatives despite their evident differences. The assessment of the recently emerged phenomenon was based on a theoretical analysis of scientific literature. The paper provides a chronological process of sharing economy development as well as examines the formation and disclosure of the concept itself. Moreover, the research also presents the peculiarities of the sharing economy as a new business model by defining the characteristics and dimensions of the sharing economy and describing the key factors and drivers of the phenomenon. A conceptual business model of sharing economy based enterprises is provided as a final result of this paper.Sharing Economy, Collaborative economy, Business Model, Digital Platforms, Users, Peer-to-peer
{"title":"The Conceptualization of the Sharing Economy as a Business Model","authors":"Donata Šiuškaitė, V. Pilinkienė, Dainius Žvirdauskas","doi":"10.5755/J01.EE.30.3.21253","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.21253","url":null,"abstract":"The phenomenon of sharing economy originated as a response to the intensifying globalization, misallocation of resources, rising levels of poverty and inequality. The spread of information and web technologies forced the society and existing businesses to take a look at the concept of ownership from another viewpoint and revealed a new truth: what we own is not more important than what we share. Today the world observes not only a rapidly growing number of new sharing economy initiatives, but a considerably wider variety of sectors the platforms emerge in as well. However, an extensive amount of scientific publications disregard this fact and apply a simplified business model to all sharing economy initiatives despite their evident differences. The assessment of the recently emerged phenomenon was based on a theoretical analysis of scientific literature. The paper provides a chronological process of sharing economy development as well as examines the formation and disclosure of the concept itself. Moreover, the research also presents the peculiarities of the sharing economy as a new business model by defining the characteristics and dimensions of the sharing economy and describing the key factors and drivers of the phenomenon. A conceptual business model of sharing economy based enterprises is provided as a final result of this paper.Sharing Economy, Collaborative economy, Business Model, Digital Platforms, Users, Peer-to-peer","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86557076","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.22832
Meda Andrijauskiene, Daiva Dumčiuvienė
A remarkable increase in the attention devoted to national innovative capacity (NIC) has been noticed over the last decades. There is a strong debate whether a country’s national innovative capacity is entirely determined by local effects or it is also influenced by global network position and international economic activities. Furthermore, despite its’ importance, there is a lack of studies which take the variables of non-technological innovation into account. This paper aims to fill the empirical research gap by focusing on inward foreign direct investment as an input of NIC and engaging non–technological innovation as an output in NIC models. An investigation of 28 European Union (EU) Member States in the period of 2013-2016 shows that EU has a great intellectual capacity of human capital which drives both technological and non-technological innovation. The regression analysis revealed that the international transmission of knowledge through inward FDI and import boost the employment in knowledge-intensive sectors and has a positive effect on trademark and design applications. The findings thus help to better understand the role of international economic activities in enhancing national innovative capacity and facilitate EU efforts to catch up with the strongest innovators in the World.
{"title":"Inward Foreign Direct Investment and National Innovative Capacity","authors":"Meda Andrijauskiene, Daiva Dumčiuvienė","doi":"10.5755/J01.EE.30.3.22832","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.22832","url":null,"abstract":"A remarkable increase in the attention devoted to national innovative capacity (NIC) has been noticed over the last decades. There is a strong debate whether a country’s national innovative capacity is entirely determined by local effects or it is also influenced by global network position and international economic activities. Furthermore, despite its’ importance, there is a lack of studies which take the variables of non-technological innovation into account. This paper aims to fill the empirical research gap by focusing on inward foreign direct investment as an input of NIC and engaging non–technological innovation as an output in NIC models. An investigation of 28 European Union (EU) Member States in the period of 2013-2016 shows that EU has a great intellectual capacity of human capital which drives both technological and non-technological innovation. The regression analysis revealed that the international transmission of knowledge through inward FDI and import boost the employment in knowledge-intensive sectors and has a positive effect on trademark and design applications. The findings thus help to better understand the role of international economic activities in enhancing national innovative capacity and facilitate EU efforts to catch up with the strongest innovators in the World.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88077981","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.20942
Viktor Prokop, J. Stejskal, P. Hájek
R&D activities affect the ability to create innovation for every firm. Many studies have shown that R&D activities are influenced by a number of determinants and the environment (R&D milieu) in which individual economic entities exist. Due to the nature of firms´ production, it is important to note that not every firm needs the same amount of information and knowledge. This thesis will also affect the efficiency of the use of information sources in R&D activities. In practice, it is necessary to know the dependence of companies and their R&D activities on the available information sources so that public policy makers can better target public policy and possible financial support schemes (grant schemes), because, the one size-fits all principle cannot be assumed. Therefore, the aim of this paper is to analyze the role of information resources in the knowledge intensive industries in the strongest EU economy, i.e. Germany. For the analysis, Eurostat CIS data and own regression model were used. The results show that the knowledge environment has a major impact on the development of R&D in the German knowledge intensive firms. German companies sourced information from the market (especially clients and customers), and all firms acquired information and knowledge from collaborating with universities. The biggest impetus for the realization of R&D activities is for firms to focus on markets outside the EU.
{"title":"The Role of Information Sources in Firm R&D Activities – The Case of German Knowledge Intensive Industries","authors":"Viktor Prokop, J. Stejskal, P. Hájek","doi":"10.5755/J01.EE.30.3.20942","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.20942","url":null,"abstract":"R&D activities affect the ability to create innovation for every firm. Many studies have shown that R&D activities are influenced by a number of determinants and the environment (R&D milieu) in which individual economic entities exist. Due to the nature of firms´ production, it is important to note that not every firm needs the same amount of information and knowledge. This thesis will also affect the efficiency of the use of information sources in R&D activities. In practice, it is necessary to know the dependence of companies and their R&D activities on the available information sources so that public policy makers can better target public policy and possible financial support schemes (grant schemes), because, the one size-fits all principle cannot be assumed. Therefore, the aim of this paper is to analyze the role of information resources in the knowledge intensive industries in the strongest EU economy, i.e. Germany. For the analysis, Eurostat CIS data and own regression model were used. The results show that the knowledge environment has a major impact on the development of R&D in the German knowledge intensive firms. German companies sourced information from the market (especially clients and customers), and all firms acquired information and knowledge from collaborating with universities. The biggest impetus for the realization of R&D activities is for firms to focus on markets outside the EU.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88753102","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.17511
M. Aluchna, Maria Roszkowska‐Menkes
Over the last decade strategic implications of CSR have become one of the most important area of research in social business literature. CSR initiatives are gradually advancing from philanthropic programs to authentic strategies intended to regain trust of society at large and generate social change, by simultaneously creating value for shareholders. The CSR isolated from strategy and governance does not provide a fundamental change towards integrated thinking and shift transition into low-emission and resource-efficient economy. Simultaneously, corporate governance proposing maximization of shareholder value and offering formal procedures, guidelines and evaluation standards cannot longer be an asset for companies if it remains detached from the assumptions of socially and environmentally responsible business. In this conceptual paper we use the results of the literature review to identify four stages of CSR and corporate governance integration.
{"title":"Integrating Corporate Social Responsibility and Corporate Governance at the Company Level. Towards a Conceptual Model","authors":"M. Aluchna, Maria Roszkowska‐Menkes","doi":"10.5755/J01.EE.30.3.17511","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.17511","url":null,"abstract":"Over the last decade strategic implications of CSR have become one of the most important area of research in social business literature. CSR initiatives are gradually advancing from philanthropic programs to authentic strategies intended to regain trust of society at large and generate social change, by simultaneously creating value for shareholders. The CSR isolated from strategy and governance does not provide a fundamental change towards integrated thinking and shift transition into low-emission and resource-efficient economy. Simultaneously, corporate governance proposing maximization of shareholder value and offering formal procedures, guidelines and evaluation standards cannot longer be an asset for companies if it remains detached from the assumptions of socially and environmentally responsible business. In this conceptual paper we use the results of the literature review to identify four stages of CSR and corporate governance integration.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88247098","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.23446
M. Škare, D. Tomić, Malgorzata Porada Rochon
For many decades, world trade has grown on average nearly twice as fast as total world output. International trade flows have exploded since the 1980s, however high and middle-income countries continue to make up the main players in international trade. Favorable movements in global export prices lead to similar movements in terms of trade in developed and developing countries, but it still did not stop the latent deterioration of terms of trade of undeveloped countries. Though we can detect general convergence in the dynamics and lower volatility of the terms of trade, this still does not explain us the evolution of the terms of trade. We still have to asses if the movements in this variable were random. This paper examines long time aggregated series data (1960 - 2015) of the terms of trade for the variety of (grouped) countries to find out if there are any signs of nonlinearity in these series. Finding evidence of nonlinearity suggests that economic models that include terms of trade can improve by switching from linear to nonlinear modeling strategy. For this purpose, we use BDS nonparametric test as it is one of the most popular tests for nonlinearity. We can use it as a portmanteau test or miss-specification test when applied to the residuals from a fitting model. Results reject the nonlinearity presumption going in favor of linear behavior of the terms of trade.
{"title":"Testing Nonlinear Dynamics in Terms of Trade with Aggregated Data: Implications for Economic Growth Models","authors":"M. Škare, D. Tomić, Malgorzata Porada Rochon","doi":"10.5755/J01.EE.30.3.23446","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.23446","url":null,"abstract":"For many decades, world trade has grown on average nearly twice as fast as total world output. International trade flows have exploded since the 1980s, however high and middle-income countries continue to make up the main players in international trade. Favorable movements in global export prices lead to similar movements in terms of trade in developed and developing countries, but it still did not stop the latent deterioration of terms of trade of undeveloped countries. Though we can detect general convergence in the dynamics and lower volatility of the terms of trade, this still does not explain us the evolution of the terms of trade. We still have to asses if the movements in this variable were random. This paper examines long time aggregated series data (1960 - 2015) of the terms of trade for the variety of (grouped) countries to find out if there are any signs of nonlinearity in these series. Finding evidence of nonlinearity suggests that economic models that include terms of trade can improve by switching from linear to nonlinear modeling strategy. For this purpose, we use BDS nonparametric test as it is one of the most popular tests for nonlinearity. We can use it as a portmanteau test or miss-specification test when applied to the residuals from a fitting model. Results reject the nonlinearity presumption going in favor of linear behavior of the terms of trade.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86540043","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Pub Date : 2019-06-27DOI: 10.5755/J01.EE.30.3.20281
D. Procházka
The paper evaluates the financial performance of Czech entities under control of companies listed in the EU and its relation to effective tax rates. Using individual corporate data, empirical evidence of 4,917 year-firm observations indicates a wide dispersion both in performance and taxation. The domicile of the parent has an impact on the subsidiary’s effective tax rate and the effective taxation of Czech subsidiaries under control of foreign listed parents is significantly lower than for other Czech companies. Despite exhibiting tax avoidance to some extent, the data reveal significant variability in relative tax rates suggesting that the majority of foreign parents from western and northern EU countries prefer to tax profits in the Czech Republic rather than elsewhere. Shifting profits to the Czech Republic results in superior reporting performance of the affected subsidiaries. In contrast, empirical evidence shows that parent companies from southern EU countries seek ways to avoid taxation. The unclear tax motives of both parent company groups hinder an appropriate assessment of the financial performance of subsidiaries from being conducted.
{"title":"Tax-in or Tax-out? Evidence from the relation of financial performance and effective taxation of Czech subsidiaries under foreign control","authors":"D. Procházka","doi":"10.5755/J01.EE.30.3.20281","DOIUrl":"https://doi.org/10.5755/J01.EE.30.3.20281","url":null,"abstract":"The paper evaluates the financial performance of Czech entities under control of companies listed in the EU and its relation to effective tax rates. Using individual corporate data, empirical evidence of 4,917 year-firm observations indicates a wide dispersion both in performance and taxation. The domicile of the parent has an impact on the subsidiary’s effective tax rate and the effective taxation of Czech subsidiaries under control of foreign listed parents is significantly lower than for other Czech companies. Despite exhibiting tax avoidance to some extent, the data reveal significant variability in relative tax rates suggesting that the majority of foreign parents from western and northern EU countries prefer to tax profits in the Czech Republic rather than elsewhere. Shifting profits to the Czech Republic results in superior reporting performance of the affected subsidiaries. In contrast, empirical evidence shows that parent companies from southern EU countries seek ways to avoid taxation. The unclear tax motives of both parent company groups hinder an appropriate assessment of the financial performance of subsidiaries from being conducted.","PeriodicalId":46830,"journal":{"name":"Inzinerine Ekonomika-Engineering Economics","volume":null,"pages":null},"PeriodicalIF":2.8,"publicationDate":"2019-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79777490","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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