BH Economic Forum (E-Journal - Faculty of Economics University of Zenica)
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THE SIGNIFICANCE OF R&D ACTIVITIES FOR MANAGING INTELLECTUAL CAPITAL OF ENTERPRISES
Get PDFEnterprises are developing, increasing their profits, value and competitiveness based on successful synergies of human, structural and relational intellectual capital. In addition, R&D (Research and Development) has been acknowledged as a crucial contributor to the competitive advantage on today's competitive market. By performing R&D activities, companies create, develop and use intellectual resources (the knowledge of employees and managers, the knowledge contained in technology and processes), which are valorized on the market and converted into a certain value. R&D is the primary source of knowledge stored within individuals in the enterprise. The most generally used indicators of R&D outputs are patents and innovations, and very important components of structural intellectual capital. Both of these indicators are used to evaluate a company's technological strength and capabilities.
The purpose of this paper is to investigate the relationships and connections between investment in R&D, the components of intellectual capital of enterprises and the efficiency of intangible assets as visible intellectual capital and the efficiency of the total intellectual capital. This paper aims to point out the importance of performing R&D activities for managing of intellectual capital of the enterprises. Correlation and regression analysis were used for that purpose. The results of the analysis show that R&D investments are positively correlated with visible and invisible intellectual capital, and efficiency of intangible assets, while R&D investments have a positive influence on visible and invisible intellectual capital
THE EFFECT OF AGRICULTURAL INVESTMENTS BY GOVERNMENTS ON ECONOMIC GROWTH AND FINANCIAL MARKETS: AN APPLICATION ON DEVELOPED AND DEVELOPING COUNTRIES
Get PDFIn this study, Bound Test Analysis (ARDL) was applied for the period 2001-2016 in order to examine the effects of the Agricultural Orientation Indices (AOI) representing the agricultural investments of countries on the Stock Exchange Index (SE) and Gross Domestic Product (GDP) of developed and developing countries.
To estimate the relations between the variables, yearly panel date series belonging to the period of 2001 – 2016 are taken into account. Accoring to the results of the Bounds Testing Analysis, SE and GDP of the developed, developing and both group countries and AOI comprising all of pair of variables was found significant 1% level of significance. According to the results of the long-term dynamics of ARDL, GDP variable is positively affected by its previous values and negatively by the AOI variable at 1% significance level in the long term for developed, developing and both group countries. According to the results of the short-term dynamics of ARDL, AOI variable has a 1% significance level and a negative relationship on the SE variable. AOI variable has no effect on both SE and GDP variablies in the short term for developing countries. AOI variable does not have a significant effect on the SE variable, while there is and 5% significance level a negative effect on the GDP variable for both group countries
CORPORATE INCOME TAX BURDEN FOR SMES - THE CASE OF BOSNIA AND HERZEGOVINA
Get PDFSmall and medium entreprises (SMEs) play a significant role in economic development of both advanced and developing countries. Some earlier research showed that taxation and compliance costs have a significant effect on economic growth, development and performance of the business sector. For this reason, our research focuses on tax compliance costs imposed on the SMEs in Bosnia and Herzegovina (B&H), which is a transition and post-conflict country with a complex tax system structure. This complexity is particularly highlighted in the direct taxation system, hence the focus of this research is on corporate income tax (CIT) compliance costs. Our methodology is based on simulation of tax complience costs between different entities in BiH – Federation of B&H (FB&H) and the Republika Srpska (RS). Our simulation of the CIT return of a company „X“ in line with the entity law suggests that the effective tax burden is higher in RS than in FB&H entity. This result has an important policy implication for the fiscal authorities in B&H, as very often public discourse goes in the oposite direction to our finding
OKUN’S LAW AND ASSESSMENT OF STIMULUS TO THE ECONOMY OF BOSNIA AND HERZEGOVINA
Get PDFEffects of corona virus pandemics are omnipresent in national economy of Bosnia and Herzegovina. Output and unemployment are probably the most important variables for measuring negative effects of the pandemics from macroeconomic perspective. Different organisations, both national and international, have announced their autumn and winter prognoses of these variables for 2020. None of them are optimistic. Bosnian economy has been hit by the worst recession in the last two decades.
International Monetary Fund approved US$ 361 million in urgent support to BiH in 2020 to alleviate the COVID-19 negative economic consequences. This paper investigates potential economic impact of that financial support with application of simple arithmetic. In the paper the Okun’s law is used as methodological framework to assessing effects of the IMF rapid financial instrument. Relationship between real economic growth and change in unemployment rate is estimated for BiH economy and it served as a basis for analysis of potential impact of the IMF financial support.
Findings of the paper show that the IMF financial support effect amounts to about 3.7% of GDP of BiH. Effects on the unemployment rate are estimated to 2.3 percentage points less from what it would otherwise have been. Since the early estimations of the GDP in BiH indicated deep recession in 2020 this financial support proved to be insufficient stimulus to BiH economy. Decision makers in the country should be aware of their responsibility for providing larger stimulus packages in order to avoid bad economic and social outcomes in the near future
IMPACT OF KEY ACCOUNT MANAGEMENT ORIENTATION ON COMPANY’S NON-FINANCIAL PERFORMANCE
Get PDFKey account management (KAM) in theory is described as a strategic approach distinguishable from account management or key account selling that should be used to endure long-term development and retention of strategic customers. This article presents the importance of key account management orientation in today’s business and how it affects non-financial performance of companies in Bosnia and Herzegovina. Also, we will present results of an ongoing research that aims to identify the influence of key account management orientation on company non-financial performance in different industry sectors. Data were collected from several companies in different industries considering a company as a unit of analysis. Research instrument – questionnaire compromised scales which had been validated and found reliable in previous research. Item total reliability and confirmatory factor analysis will be used to test the reliability and validity of the constructs. Furthermore, structural equation modeling (SEM) technique will be employed to analyze the effects of key account management orientation on company's non-financial performance. It is to be expected that the results of the conducted research show a statistically significant impact of key account management orientation on company's non-financial performance in Bosnia and Herzegovina
MARKETING ACTIVITIES AND SALES OF MACEDONIAN WINERIES IN A CONDITION OF PANDEMIC COVID-19
Get PDFCovid-19 has implications on the overall operation of Macedonian wineries and directly affected the decline in domestic sales and export to international markets. The HORECA sector stopped working completely or partially in all countries. The crisis affected the partial or total cuts of marketing costs, by postponing or canceling planned projects. The wineries failed to sell the planned quantities and were forced to make significantly lower purchases for the 2020 harvest than in previous years.
The paper presents a large number of data received from the Association Wines of Macedonia, Customs Office of the Republic of North Macedonia, Ministry of Agriculture, Forestry and Water Economy of the Republic of North Macedonia, State Inspectorate for Agriculture, Internet articles containing topics relevant to the research. The additional data presented were collected from Macedonian wineries through a questionnaire on operations during the corona crisis.
This paper provides an overview of the problems faced by Macedonian wineries during the corona crisis in terms of marketing and sales, primarily in international markets and analyzes the declined average price and reduced investment in marketing.
Key words: North Macedonia, Macedonian wineries, Covid-19, implications, marketing, win
THE EFFECT OF MATERIALISTIC AND NONMATERIALISTIC MOTIVATIONAL FACTORS TO EMPLOYEES' COMMITMENT TO WORK
Get PDFThe goal of this work is to explore the effects of various factors that affect the employment of graduates of the University of Zenica. Additional analysis of variables as well as links between variables will offer input information that can contribute in the decision-making process of new curriculums. The survey was conducted in the Zenica-Doboj Canton, which involved N = 47 respodenators. To process data the following programs were used: Microsoft Excel, SPSS and SmartPL S3 – SEM program. The verification of the validity and reliability of the measuring scale was carried out by calculating the Cronbach Alaf co-efficiency. The review of the set hypotheses was carried out by Regrasion's analysis of the varians, which of the four hypothesises were three accepted and one rejected. The set hypotheses confirmed that the adopted expertise of graduates, the level of acquired skills and cooperation of the University with the check has a statistically significant impact on the confidentiality of graduates. The organizational abilities of graduates do not have a statistically significant impact on the job ability of graduates of the University of Zenica
DOES THE OLIGOPOLISTIC POSITION OF BANKS AFFECT THE PERFORMANCE OF THE BANKING SECTOR IN THE FEDERATION OF BOSNIA AND HERZEGOVINA?
Get PDFThe level of banking concentration has increased significantly in the banking sector of Bosnia and Herzegovina as a result of the successful completion of privatization, the formation of new banks, the slow transition and rapid liberalization. Rapid liberalization has introduced strong competition in the domestic banking sector on the one hand, while on the other hand there has been an increased concentration of some larger banks in the system.The main goal of this research will be to analyze the correlation between the basic measures of the oligopolistic position of banks and their impact on improving or deteriorating the performance of domestic banks, such as return on assets (ROA), return on equity (ROE) and net interest margin (NIM). The survey period covers the years from 2008: Q1 to 2020: Q4 on a quarterly basis. The following variables were used as independent variables in the model: HHI market concentration index in the context of loans, share of foreign banks in the total ownership structure of banks (FB), bank size (BS) and growth rate of total loans (GRTL).The interdependence of variables in this study was tested via the OLS regression model (FE model as well as GLS model). Both models were suitable for obtaining results via the Hausman test. The results of the research showed that the strongest (positive impact) on the first dependent variable, i.e., on return on assets (ROA), was achieved by the following independent variable: foreign-owned banks (FB). On the other hand, the strongest negative impact was recorded by the following independent variables: the size of the bank (BS) as well as the market concentration index for loans (HHI_loans). The strongest (positive impact) on the second dependent variable, i.e., return on equity (ROE), was achieved by the following independent variables: growth rate of total loans (GRTL) as well as the variable related to foreign-owned banks (FB). On the other hand, the strongest negative impact was recorded by the following independent variables: market concentration index for loans (HHI_loans) and bank size (BS). The third independent variable, i.e., net interest margin (NIM), had the strongest positive impact on the following independent variables: foreign-owned banks (FB) and credit growth rate (GRTL). On the other hand, the strongest negative impact was recorded by the following independent variables: concentrations for credit placements (HHI) and bank size (BS)
INVESTIGATING THE RELATIONSHIP BETWEEN THE SINGLE-NAME CONCENTRATION RISK AND CAPITAL SURPLUS: EVIDENCE FROM THE MACEDONIAN BANKING SECTOR
Get PDFBanks lend large funds to big clients and are exposed to concentration risk. The concentration risk is indirect credit risk exposure for the banks and it might cause large losses in case of default of the big clients. Therefore, prudent banks would increase their capital surplus as the concentration exposure rises in order to preserve their stability against deteriorating performances of the big clients. Thus, this paper investigates the effect of the single-name concentration risk on the capital surplus in the Macedonian banking sector. The analysis was done by employing Vector Error Correction Model on quarterly data 2006q1 to 2018q4. The results suggest that Macedonian banking sector is prudent and increases the capital surplus from 0.65 percentage points (p.p.) to 2.20 p.p., as the single-name concentration risk rises by 1 p.p.. More concretely, a future increase of the banking sectors’ large exposures by 53.7 millions of euros (1 p.p. of the total gross loans as of 2018q4), would require an increase of the capital surplus by minimum amount of 3.1 millions of euros (0.65 p.p. of the minimum capital requirment as of 2018q4), under assumption of not changing both the total gross loans and the minimum capital requirment, compared to 2018q4
ADJUSTMENTS OF BOARD COMPOSITION DURING COVID-19 CRISIS: ANALYSIS OF THE MACEDONIAN COMPANIES
Get PDFThe aim in this paper is to make an analysis of the reported changes in the boards’ composition of the Macedonian stock exchange listed companies during Covid 19 crisis. In order to achieve this objective, secondary data of the companies reports published on the Macedonian stock exchange website were used. The sample consists of 80 companies, and firstly we performed qualitative analysis on the companies’ reports regarding boards’ composition changes. Afterwards, in order to increase the understanding of the factors that determine boards’ composition in Macedonian joint-stock companies, we designed a model to examine the relation of company characteristics, industry characteristics and market perception of company value with board size, board independence and board diversity. The results from our analyses shows that during Covid 19 period substantial number of companies from the sample have made changes in board composition and only 9.38% of the companies that reported change decided to reappoint the same members. However, this does not mean that Covid 19 has been the only factor influencing the changes. Furthermore, one of our conclusions from the presented results in the study is that most of the variations in board/boards size can be explained by the differences in firm characteristics (in particular operating revenues and chosen boards structure), while the variations in board independence can be explained by firm characteristics (in particular operating revenues and chosen board structure) and industry characteristics