Pub Date : 2021-07-15DOI: 10.22598/IELE.2021.8.1.4
Valerija Botrić
The paper addresses the relatively unexplored issue of the effects of crime against business on firm performance in post-transition economies. The focus is on the eight countries: Bosnia and Herzegovina, Bulgaria, Croatia, Czechia, Montenegro, Serbia, Slovakia, and Slovenia. Based on the comparable microdata from World Bank Enterprise Survey the analysis shows that respondents in firms who suffered crime losses are in general more likely to expect a decrease in their sales in the next fiscal period. It has been also established that in some countries those who experienced crime losses are more optimistic about the possibility to increase the sales in the short-run (Slovakia, Montenegro, and Croatia), thus indicating certain resilience to adverse effects of crime. The estimates of the multinomial model suggest that crime exposure negatively affects business activity. However, the effect was only significant for those who expect decreases in their activity – respondents who experienced losses attributed to crime are 5.9% more likely to expect a decrease in their future sales (in comparison to maintain the same level of sales).
{"title":"DOES CRIME AFFECT FIRM PERFORMANCE: EVIDENCE FROM POST-TRANSITION ECONOMIES","authors":"Valerija Botrić","doi":"10.22598/IELE.2021.8.1.4","DOIUrl":"https://doi.org/10.22598/IELE.2021.8.1.4","url":null,"abstract":"The paper addresses the relatively unexplored issue of the effects of crime against business on firm performance in post-transition economies. The focus is on the eight countries: Bosnia and Herzegovina, Bulgaria, Croatia, Czechia, Montenegro, Serbia, Slovakia, and Slovenia. Based on the comparable microdata from World Bank Enterprise Survey the analysis shows that respondents in firms who suffered crime losses are in general more likely to expect a decrease in their sales in the next fiscal period. It has been also established that in some countries those who experienced crime losses are more optimistic about the possibility to increase the sales in the short-run (Slovakia, Montenegro, and Croatia), thus indicating certain resilience to adverse effects of crime. The estimates of the multinomial model suggest that crime exposure negatively affects business activity. However, the effect was only significant for those who expect decreases in their activity – respondents who experienced losses attributed to crime are 5.9% more likely to expect a decrease in their future sales (in comparison to maintain the same level of sales).","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"95 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2021-07-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"73755676","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 : 2020-12-01DOI: 10.22598/IELE.2020.7.2.4
Boris Tušek, Ana Ježovita
It is known that the financial statement audit represents the corporate governance mechanism crucial for ensuring the appropriate quality of the financial reporting process and financial statements. One of the most significant aspects of the financial statement audit process is the application of the materiality concept. Auditors apply the concept in planning and performing the process, as well as in evaluating the effects of identified misstatements. The International Accounting Standards Board (IASB) de fines that the information provided in financial statements is material if could reason ably be expected that will influence the business decisions of the stakeholders. Although not mandatory, recent Standards and regulation changes resulted in reporting mate riality details by a significant number of auditors in Croatia. The research question is how that practice develops from the implementation year, 2016, to nowadays, 2020, and what can be expected in the future. Following the research problem, the objective of the paper will be to investigate the current state and future perspective of disclosing information regarding materiality in the independent auditor’s report in Croatia. To investigate the research problem, we analyzed independent auditor’s reports of Croa tian listed companies (public interest entities - PIEs) from 2016 to 2019. The research is conducted by applying appropriate statistical methodology as descriptive statistics, cluster analysis, and non-parametric tests, and regression analysis.
{"title":"TRENDS ON REPORTING MATERIALITY INFORMATION IN THE INDEPENDENT AUDITOR’S REPORT – CASE OF CROATIA","authors":"Boris Tušek, Ana Ježovita","doi":"10.22598/IELE.2020.7.2.4","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.4","url":null,"abstract":"It is known that the financial statement audit represents the corporate governance mechanism crucial for ensuring the appropriate quality of the financial reporting process and financial statements. One of the most significant aspects of the financial statement audit process is the application of the materiality concept. Auditors apply the concept in planning and performing the process, as well as in evaluating the effects of identified misstatements. The International Accounting Standards Board (IASB) de fines that the information provided in financial statements is material if could reason ably be expected that will influence the business decisions of the stakeholders. Although not mandatory, recent Standards and regulation changes resulted in reporting mate riality details by a significant number of auditors in Croatia. The research question is how that practice develops from the implementation year, 2016, to nowadays, 2020, and what can be expected in the future. Following the research problem, the objective of the paper will be to investigate the current state and future perspective of disclosing information regarding materiality in the independent auditor’s report in Croatia. To investigate the research problem, we analyzed independent auditor’s reports of Croa tian listed companies (public interest entities - PIEs) from 2016 to 2019. The research is conducted by applying appropriate statistical methodology as descriptive statistics, cluster analysis, and non-parametric tests, and regression analysis.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"49 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"87824529","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 : 2020-12-01DOI: 10.22598/IELE.2020.7.2.3
Anne-Marie Weber-Elżanowska
The recently reignited debate on the corporate purpose focuses primarily on the question, whether sustainability-influenced stakeholderism may substitute the domi nating shareholder value doctrine. Its outcomes remain vague. In order to add some extra fuel to the ongoing discussion, this examines an alternative research angle in order to investigate the impact of the sustainability postulate on the notion of the corporate purpose. According to the paper’s core claim, profoundly changing values within society may propel a paradigm shift which would lead to the abandonment to the prevailing shareholder primacy doctrine. The paper establishes a theoretical framework build upon the concept of safety valves embedded in private law systems which open the legal system to judgements on morality (bonos mores) and enable its running “update” according to values cultivated by society at a given time. It also discusses preliminary empirical evidence which indicates that in light of the ongoing value transformation within society, safety valves in private law could enable the sustainability objective to invade the corporation “from the outside” and necessitate the reconceptualization of the corporate purpose. Consequently, even if the shareholder value model’s triumph in the current corporate law debate is assumed, the process of delineating the corporate purpose and implementing it into corporate conduct is fenced-in by safety valves as institutions of general private law. As a result, the paper wishes to provoke the contemplation on whether it is actually up to the corporate law centered debate to decide, how the corporate purpose should be defined. It urges to consider the possibility, which the notion of the corporate purpose as perceived by society at large is already being subject to a profound value transformation towards sustainability and the corporate law debate is not to be considered as a driver of this process. This realization could bring about a denouement of the Gordian knot of the stakeholder v. shareholder primacy dispute and refocus the academic corporate law discussion on issues of legal design which would translate the “externally” reconceptualized corporate purpose into corporate law.
{"title":"SUSTAINABILITY VS. CORPORATE PURPOSE: WILL TRANSFORMING VALUES SHIFT THE PARADIGM?","authors":"Anne-Marie Weber-Elżanowska","doi":"10.22598/IELE.2020.7.2.3","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.3","url":null,"abstract":"The recently reignited debate on the corporate purpose focuses primarily on the question, whether sustainability-influenced stakeholderism may substitute the domi nating shareholder value doctrine. Its outcomes remain vague. In order to add some extra fuel to the ongoing discussion, this examines an alternative research angle in order to investigate the impact of the sustainability postulate on the notion of the corporate purpose. According to the paper’s core claim, profoundly changing values within society may propel a paradigm shift which would lead to the abandonment to the prevailing shareholder primacy doctrine. The paper establishes a theoretical framework build upon the concept of safety valves embedded in private law systems which open the legal system to judgements on morality (bonos mores) and enable its running “update” according to values cultivated by society at a given time. It also discusses preliminary empirical evidence which indicates that in light of the ongoing value transformation within society, safety valves in private law could enable the sustainability objective to invade the corporation “from the outside” and necessitate the reconceptualization of the corporate purpose. Consequently, even if the shareholder value model’s triumph in the current corporate law debate is assumed, the process of delineating the corporate purpose and implementing it into corporate conduct is fenced-in by safety valves as institutions of general private law. As a result, the paper wishes to provoke the contemplation on whether it is actually up to the corporate law centered debate to decide, how the corporate purpose should be defined. It urges to consider the possibility, which the notion of the corporate purpose as perceived by society at large is already being subject to a profound value transformation towards sustainability and the corporate law debate is not to be considered as a driver of this process. This realization could bring about a denouement of the Gordian knot of the stakeholder v. shareholder primacy dispute and refocus the academic corporate law discussion on issues of legal design which would translate the “externally” reconceptualized corporate purpose into corporate law.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"41 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88656180","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 : 2020-12-01DOI: 10.22598/IELE.2020.7.2.5
Tomislav Ridzak, Ante Žigman
Sustainable investments make a growing and important share of total assets under management in the fund management industry. Except for investor preferences, a significant driver of demand for sustainable assets will also be the new European plan for sustainable finance. The goal of the plan is to reorient capital towards a more sustainable economy by incentivizing financial intermediaries to offer more sustainable investment products. This paper aims to assess the EU plan for sustain able finance and explain its implications on the financial system and the economy of a small member state, using Croatia as an example. In addition to that, we also present policy advice for policymakers that want to use the European plan for sustainable finance to make their economy (more) sustainable. We find that although the plan is broad and ambitious, to ensure its overall success some additions and tweaks at the national level could be needed. First, including pension plans as one of the biggest investors in many EU member states would increase overall plan impact. Second, national-level regulation about non-financial (sustainability) data for listed companies might be beneficial. Without such regulation, obtaining data directly from corporations might result in non-comparable reports or missing data. In the second step, this could undermine the plan’s overall goals.
{"title":"GREEN FINANCE FOR SUSTAINABLE GROWTH, THE CASE OF CROATIA","authors":"Tomislav Ridzak, Ante Žigman","doi":"10.22598/IELE.2020.7.2.5","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.5","url":null,"abstract":"Sustainable investments make a growing and important share of total assets under management in the fund management industry. Except for investor preferences, a significant driver of demand for sustainable assets will also be the new European plan for sustainable finance. The goal of the plan is to reorient capital towards a more sustainable economy by incentivizing financial intermediaries to offer more sustainable investment products. This paper aims to assess the EU plan for sustain able finance and explain its implications on the financial system and the economy of a small member state, using Croatia as an example. In addition to that, we also present policy advice for policymakers that want to use the European plan for sustainable finance to make their economy (more) sustainable. We find that although the plan is broad and ambitious, to ensure its overall success some additions and tweaks at the national level could be needed. First, including pension plans as one of the biggest investors in many EU member states would increase overall plan impact. Second, national-level regulation about non-financial (sustainability) data for listed companies might be beneficial. Without such regulation, obtaining data directly from corporations might result in non-comparable reports or missing data. In the second step, this could undermine the plan’s overall goals.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"27 5 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"82713575","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 : 2020-12-01DOI: 10.22598/IELE.2020.7.2.2
Kristijan Poljanec, Hana Horak
Building their paper around long-standing critics of the EU capital maintenance regime and the distribution rules thereof, the authors consider introducing additional instruments for creditor protection into Croatian company law, where special regard is paid to the ‘solvency test’. Given the scope and aim of the EU Codification Directive, the paper seeks to find out whether and to what extent such a test could be introduced into Croatian law. The paper argues that the EU regime allows the introduction of the solvency test into Croatian law on public limited companies as a distribution test complementary to the two-fold ‘balance sheet test’ leaving, however, entirely to the Croatian legislator to decide about the place of the solvency test in private limited companies. Alongside the examination of legal sources and literature, the authors pursue their research by employing the systematic and teleological analysis of distribution rules under the Croatian Companies’ Act. That act has already introduced the ‘circumstances test’ as a yardstick for the assessment of the validi-ty of the decision to withhold dividend payment. After the introduction, the second part of the paper considers the concept of legal capital and provides an overview of potentially more efficient means of creditor protection. The third part analyses the Croatian legal capital regime, aiming at revisiting it in light of the solvency test. This part examines various solvency tests so as to decide which one could align with the Croatian distribution rules. The fourth part summarizes and concludes the paper.
{"title":"SOLVENCY TEST AS YARDSTICK FOR PRUDENT DIVIDEND DISTRIBUTION: A CROATIAN OUTLOOK","authors":"Kristijan Poljanec, Hana Horak","doi":"10.22598/IELE.2020.7.2.2","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.2","url":null,"abstract":"Building their paper around long-standing critics of the EU capital maintenance regime and the distribution rules thereof, the authors consider introducing additional instruments for creditor protection into Croatian company law, where special regard is paid to the ‘solvency test’. Given the scope and aim of the EU Codification Directive, the paper seeks to find out whether and to what extent such a test could be introduced into Croatian law. The paper argues that the EU regime allows the introduction of the solvency test into Croatian law on public limited companies as a distribution test complementary to the two-fold ‘balance sheet test’ leaving, however, entirely to the Croatian legislator to decide about the place of the solvency test in private limited companies. Alongside the examination of legal sources and literature, the authors pursue their research by employing the systematic and teleological analysis of distribution rules under the Croatian Companies’ Act. That act has already introduced the ‘circumstances test’ as a yardstick for the assessment of the validi-ty of the decision to withhold dividend payment. After the introduction, the second part of the paper considers the concept of legal capital and provides an overview of potentially more efficient means of creditor protection. The third part analyses the Croatian legal capital regime, aiming at revisiting it in light of the solvency test. This part examines various solvency tests so as to decide which one could align with the Croatian distribution rules. The fourth part summarizes and concludes the paper.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"75657069","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 : 2020-12-01DOI: 10.22598/IELE.2020.7.2.6
Jane Lasak
Over time, the Czech Republic has become a clear market leader in SE incorporations. For instance, in 2012, more than 55% of all Societas Europaeas were incorporated in the Czech Republic. In recent years, the number of SE incorporations has always been substantial in the Czech Republic, which has created an interesting puzzle for both academics and practitioners. In previous research, a three-level structure of Czech SEs was identified – (i) operating SEs, (ii) “UFO SEs” and (iii) Shelf SEs. In a follow-up study prepared by Lasak and Eidenmueller, several corporate governance elements were identified as forces driving SE incorporations in the Czech Republic. My paper analyses these driving forces in the light of the development of Czech corporate governance and evaluates how sustainable these drivers for market leadership of the Czech Republic in terms of Czech SE incorporations are in the light of the recodification of Czech private law, which came into effect on 1 January 2014 and which significantly affected the motives behind the large boom in the number of SEs in the Czech Republic between 2004 and 2011/2012.
{"title":"THE CZECH REPUBLIC AS MARKET LEADER IN SOCIETAS EUROPAEA: HOW SUSTAINABLE ARE THE DRIVING FORCES?","authors":"Jane Lasak","doi":"10.22598/IELE.2020.7.2.6","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.6","url":null,"abstract":"Over time, the Czech Republic has become a clear market leader in SE incorporations. For instance, in 2012, more than 55% of all Societas Europaeas were incorporated in the Czech Republic. In recent years, the number of SE incorporations has always been substantial in the Czech Republic, which has created an interesting puzzle for both academics and practitioners. In previous research, a three-level structure of Czech SEs was identified – (i) operating SEs, (ii) “UFO SEs” and (iii) Shelf SEs. In a follow-up study prepared by Lasak and Eidenmueller, several corporate governance elements were identified as forces driving SE incorporations in the Czech Republic. My paper analyses these driving forces in the light of the development of Czech corporate governance and evaluates how sustainable these drivers for market leadership of the Czech Republic in terms of Czech SE incorporations are in the light of the recodification of Czech private law, which came into effect on 1 January 2014 and which significantly affected the motives behind the large boom in the number of SEs in the Czech Republic between 2004 and 2011/2012.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"1 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89111948","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 : 2020-12-01DOI: 10.22598/IELE.2020.7.2.1
V. Šmejkal
Digital technologies are one of the most important factors driving the current EU to revise its competition rules, inter alia in an area as sensitive to corporate strategies as mergers and acquisitions. The European Commission and a number of indepen-dent experts have already identified several key problems that the online environment raises for the application of traditional merger control institutes. Among them the takeovers of promising start-ups, that have already attracted millions of users to their freely distributed application, by some of the major online world players. They are sometimes referred to as “killer acquisitions” and they could even not to come under the authority of the European Commission because the EU Merger Regulation turnover criteria are not achieved. Should other criteria be chosen, or would such take-overs rather be controlled ex-post and under the risk of a de-concentration be ing ordered? The Commission is coming up with the first outlines of an answer. Its search for a response to these merger control challenges should be closely monitored by corporate practice, as it will set future boundaries for corporate strategies in the markets of tomorrow. The paper tries to structure the main challenges and possible EU law answers to the issue to predict what undertakings must be ready for when contemplating their future strategies for European markets.
{"title":"CONCENTRATIONS IN DIGITAL SECTOR - A NEW EU ANTITRUST STANDARD FOR “KILLER ACQUISITIONS” NEEDED?","authors":"V. Šmejkal","doi":"10.22598/IELE.2020.7.2.1","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.1","url":null,"abstract":"Digital technologies are one of the most important factors driving the current EU to revise its competition rules, inter alia in an area as sensitive to corporate strategies as mergers and acquisitions. The European Commission and a number of indepen-dent experts have already identified several key problems that the online environment raises for the application of traditional merger control institutes. Among them the takeovers of promising start-ups, that have already attracted millions of users to their freely distributed application, by some of the major online world players. They are sometimes referred to as “killer acquisitions” and they could even not to come under the authority of the European Commission because the EU Merger Regulation turnover criteria are not achieved. Should other criteria be chosen, or would such take-overs rather be controlled ex-post and under the risk of a de-concentration be ing ordered? The Commission is coming up with the first outlines of an answer. Its search for a response to these merger control challenges should be closely monitored by corporate practice, as it will set future boundaries for corporate strategies in the markets of tomorrow. The paper tries to structure the main challenges and possible EU law answers to the issue to predict what undertakings must be ready for when contemplating their future strategies for European markets.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"96 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"85777927","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}
Investment funds come in a large variety of legal forms, investment techniques, target investors, redemption rights, and others. It is often said that there are no two investment funds that are the same. The focus of this article is the legal form in which they come. Authors shall analyze the position of investors in funds with legal personality in order to discuss differences in comparison to investors in mutual funds. On the EU level only the UCITS funds are harmonized, while alternative investment funds are left to national regulations. The aim is to discuss whether the legal status of investment funds is a real yardstick for determining the crucial investor’s rights such as redemption rights and relations between the investors and fund managers. In order to provide answer authors shall compare funds in jurisdictions that are comparable and often serve as role models, as well as those in which the fund industry is most developed, followed by the Croatian perspective. Finally, the authors shall contribute to the discussion of how can traditional types of companies such as joint-stock or limited liability companies be integrated into the capital market law arena, serving as a vessel to investment funds.
{"title":"INVESTMENT FUNDS WITH LEGAL PERSONALITY – A TRUE RIVAL TO MUTUAL FUNDS?","authors":"Morana Derenčinović Ruk, Mihaela Braut Filipović, Suzana Audić Vuletić","doi":"10.22598/IELE.2020.7.2.7","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.7","url":null,"abstract":"Investment funds come in a large variety of legal forms, investment techniques, target investors, redemption rights, and others. It is often said that there are no two investment funds that are the same. The focus of this article is the legal form in which they come. Authors shall analyze the position of investors in funds with legal personality in order to discuss differences in comparison to investors in mutual funds. On the EU level only the UCITS funds are harmonized, while alternative investment funds are left to national regulations. The aim is to discuss whether the legal status of investment funds is a real yardstick for determining the crucial investor’s rights such as redemption rights and relations between the investors and fund managers. In order to provide answer authors shall compare funds in jurisdictions that are comparable and often serve as role models, as well as those in which the fund industry is most developed, followed by the Croatian perspective. Finally, the authors shall contribute to the discussion of how can traditional types of companies such as joint-stock or limited liability companies be integrated into the capital market law arena, serving as a vessel to investment funds.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"43 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"90859574","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 : 2020-12-01DOI: 10.22598/IELE.2020.7.2.10
Ana Pošćić, Adrijana Martinović
The new technologies, digitalization, algorithms, big data, artificial intelligence are already changing our lives and commercial habits. The technological revolution with new products and services is transforming the market and business operators. There is a general understanding that new technological improvements benefit competition. The question is, whether competition models are adequate and ready to deal with the challenges associated with new technologies. In recent years, there has been a revived interest in the concept of innovation and its application in competition policy and law. However, proper examination of its influence on competition policy is lacking. During the last decades, there have been attempts to explain the relationship between competition and innovation by including various innovation models in competition analysis. The innovation instruments have developed. Despite these developments, there are still diametrically opposed theoretical approaches, from completely ignoring the concept of innovation in competition law to the ones that develop a specific economic test in competition analysis. This paper will try to analyze and compare different approaches to the intersection of competition and innovation. Systematic theories that assess innovation in the context of competition are scarce. Competition authorities have been focused on issues of consumer and social welfare, rather than on the impact of innovation on the competition. * This work has been fully supported by the University of Rijeka under the project uniri-drustv-18-252 “Legal aspects of the digital transformation of society”. ** Ana Pošćić, University of Rijeka, Faculty of Law, Rijeka, Croatia; aposcic@pravri.hr. *** Adrijana Martinović, University of Rijeka, Faculty of Law, Rijeka, Croatia; adrijana@ pravri.hr. Intereulaweast, Vol. VII (2) 2020 246 The idea is to try to define the role of innovation in competition analysis. The question is whether competition law needs new tools in order to understand new developments and innovations. The authors argue that competition has its own instruments that can be applied to new models with certain adaptations. Certain regulatory instruments are necessary, but they can be implemented without stifling innovation and the development of new technologies. The authors attempt to offer possible solutions for the existing challenges based on the state of art research. The challenges associated with the market definition and market power are explained. It is argued that competition analyses should acknowledge that innovation is essential for competition in the digital era.
新技术、数字化、算法、大数据、人工智能已经在改变我们的生活和商业习惯。技术革命带来的新产品和新服务正在改变市场和经营者。人们普遍认为，新技术的进步有利于竞争。问题是，竞争模式是否充分，是否准备好应对与新技术相关的挑战。近年来，人们对创新的概念及其在竞争政策和法律中的应用重新产生了兴趣。然而，缺乏对其对竞争政策影响的适当审查。在过去的几十年里，人们试图通过将各种创新模型纳入竞争分析来解释竞争与创新之间的关系。创新手段得到了发展。尽管有了这些发展，但仍然有截然相反的理论方法，从完全忽视竞争法中的创新概念到在竞争分析中制定特定的经济测试。本文将尝试分析和比较竞争与创新交叉的不同方法。在竞争的背景下评估创新的系统理论很少。竞争监管机构一直关注消费者和社会福利问题，而不是创新对竞争的影响。*这项工作得到了里耶卡大学unii -drustv-18-252“社会数字化转型的法律方面”项目的全力支持。** Ana Pošćić里耶卡大学法学院，克罗地亚里耶卡;aposcic@pravri.hr。***阿德里亚娜·马蒂诺维奇，里耶卡大学法学院，克罗地亚里耶卡;adrijana@ pravri.hr。Intereulaweast, Vol. VII(2) 2020 246这个想法是试图定义创新在竞争分析中的作用。问题是竞争法是否需要新的工具来理解新的发展和创新。作者认为，竞争有自己的工具，可以应用于具有某些适应性的新模式。某些监管工具是必要的，但它们可以在不扼杀创新和新技术发展的情况下实施。作者试图根据目前的研究现状，为现有的挑战提供可能的解决方案。解释了与市场定义和市场力量相关的挑战。本文认为，竞争分析应承认创新对于数字时代的竞争至关重要。
{"title":"RETHINKING EFFECTS OF INNOVATION IN COMPETITION IN THE ERA OF NEW DIGITAL TECHNOLOGIES","authors":"Ana Pošćić, Adrijana Martinović","doi":"10.22598/IELE.2020.7.2.10","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.10","url":null,"abstract":"The new technologies, digitalization, algorithms, big data, artificial intelligence are already changing our lives and commercial habits. The technological revolution with new products and services is transforming the market and business operators. There is a general understanding that new technological improvements benefit competition. The question is, whether competition models are adequate and ready to deal with the challenges associated with new technologies. In recent years, there has been a revived interest in the concept of innovation and its application in competition policy and law. However, proper examination of its influence on competition policy is lacking. During the last decades, there have been attempts to explain the relationship between competition and innovation by including various innovation models in competition analysis. The innovation instruments have developed. Despite these developments, there are still diametrically opposed theoretical approaches, from completely ignoring the concept of innovation in competition law to the ones that develop a specific economic test in competition analysis. This paper will try to analyze and compare different approaches to the intersection of competition and innovation. Systematic theories that assess innovation in the context of competition are scarce. Competition authorities have been focused on issues of consumer and social welfare, rather than on the impact of innovation on the competition. * This work has been fully supported by the University of Rijeka under the project uniri-drustv-18-252 “Legal aspects of the digital transformation of society”. ** Ana Pošćić, University of Rijeka, Faculty of Law, Rijeka, Croatia; aposcic@pravri.hr. *** Adrijana Martinović, University of Rijeka, Faculty of Law, Rijeka, Croatia; adrijana@ pravri.hr. Intereulaweast, Vol. VII (2) 2020 246 The idea is to try to define the role of innovation in competition analysis. The question is whether competition law needs new tools in order to understand new developments and innovations. The authors argue that competition has its own instruments that can be applied to new models with certain adaptations. Certain regulatory instruments are necessary, but they can be implemented without stifling innovation and the development of new technologies. The authors attempt to offer possible solutions for the existing challenges based on the state of art research. The challenges associated with the market definition and market power are explained. It is argued that competition analyses should acknowledge that innovation is essential for competition in the digital era.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"30 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"79013920","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 : 2020-12-01DOI: 10.22598/IELE.2020.7.2.9
Clémence Garcia
How should corporate sustainability be addressed in financial reporting? This re search investigates the potential use of capital maintenance as a framework to de velop sustainability reporting. Its claim is that the disclosure of capital should be reconsidered to strengthen corporate accountability. After conducting a historical review of capital maintenance theories, three pur -pose-oriented treatments are identified: the net assets, dynamic and sustainable views. From the viewpoint of stakeholders’ information and corporate social re -sponsibility, disclosure based on the sustainable capital maintenance view would enhance transparency. Furthermore, it would provide a measurement basis that cur rently lacks for subsequent regulation of corporate behavior. Consistently, relevant accounting methods should be developed to complement the loopholes of modern reporting standards. The claim of this research is that sustain able capital maintenance could be implemented by defining and disclosing three key elements of equity: capital contributed by shareholders, retained earnings, and a sustainability reserve, which would reflect the financial assessment of future en vironmental and social risks. Since this reserve would only affect the allocation of retained earnings and not the measurement of performance, it would be compatible with international financial reporting standards.
{"title":"FROM FINANCIAL TO “SUSTAINABLE” CAPITAL MAINTENANCE","authors":"Clémence Garcia","doi":"10.22598/IELE.2020.7.2.9","DOIUrl":"https://doi.org/10.22598/IELE.2020.7.2.9","url":null,"abstract":"How should corporate sustainability be addressed in financial reporting? This re search investigates the potential use of capital maintenance as a framework to de velop sustainability reporting. Its claim is that the disclosure of capital should be reconsidered to strengthen corporate accountability. After conducting a historical review of capital maintenance theories, three pur -pose-oriented treatments are identified: the net assets, dynamic and sustainable views. From the viewpoint of stakeholders’ information and corporate social re -sponsibility, disclosure based on the sustainable capital maintenance view would enhance transparency. Furthermore, it would provide a measurement basis that cur rently lacks for subsequent regulation of corporate behavior. Consistently, relevant accounting methods should be developed to complement the loopholes of modern reporting standards. The claim of this research is that sustain able capital maintenance could be implemented by defining and disclosing three key elements of equity: capital contributed by shareholders, retained earnings, and a sustainability reserve, which would reflect the financial assessment of future en vironmental and social risks. Since this reserve would only affect the allocation of retained earnings and not the measurement of performance, it would be compatible with international financial reporting standards.","PeriodicalId":52280,"journal":{"name":"InterEULawEast","volume":"46 1","pages":""},"PeriodicalIF":0.0,"publicationDate":"2020-12-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"74571357","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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