Scientific Annals of Economics and Business
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The Role of Car Aesthetics on Consumers’ Decisions: An Example from Romania
Get PDFVisual impact is essential when consumers are assessing car preferences. The purpose of this paper is to present a holistic model focusing on car aesthetic dimensions and its impact on consumers’ purchase decisions. Our findings are based on a questionnaire completed by 388 participants and analyzed with SPSS and AMOS. The results show not only that the aesthetic dimensions such as color, shape and sound influence the processing stimuli, but also the significant and positive relationships established between the stimuli and the purchase decision. Also, this study can guide marketers when developing an effective marketing strategy. As our research focuses on the Romanian market, testing our framework in different cultures is strongly encouraged.JEL Codes - M31; M2
Capital Maintenance Evolution using Outputs from Accounting System
Get PDFDecision making based on information provided by an enterprise accounting information system, is essential for sustainable development and enterprises growth. Besides widely used prediction models for an assessment of the financial distress, there is also a useful indicator of a capital maintenance evolution, that provides a deeper view to the enterprise growth or decline compared to traditional performance measures. The aim of the contribution is to develop a model for assessment of a capital maintenance evolution using available accounting outputs. Our constructed model and coefficient for a capital maintenance evolution CMEOPNN has been developed using the multi-layer (triple) artificial neural network with a feedforward signal transmission by a backpropagation method and an activation function is a sigmoid function. For construction our model we used 663 Slovak enterprises sample out of 5 most frequented industry sectors with a unified structure of the provided information in the financial statements for 2014-2017.JEL Codes - M21; M41; G3
Audit Quality: A Bibliometric Analysis (1981-2020)
Get PDFThe increase in the number of studies on audit quality and the interest of both researchers and authorities in the subject in recent years has been the motivation of the study. Bibliometry was chosen as a method in the study because it provides the opportunity to look at the literature of the area studied from a broad perspective. The study aims to make a bibliometric analysis of studies published in English in the field of social sciences in the Scopus database on audit quality (AQ). This analysis covers 1419 articles from 1981 to March 2020. It has been determined that academic research on AQ has increased dramatically since the 2000s. ‘Audit quality’, ‘audit fees’, ‘earning management’ issues are up-to-date in the studies carried out; Researches on ‘Public Company Accounting Oversight Board' (PCAOB), ‘financial reporting’ and ‘audit committee’ turned out to be on the rise. The country that gets the most citation on the subject is USA. It was also concluded that numerous non-authors frequently collaborated amongst them to contribute to the development of the field. In addition, although there are publications using a qualitative research method with the increasing number of publications with AQ, it is the first bibliometric and social network analysis in the study area. While this study helps to create the conceptual framework that still causes controversy in the field of AQ; It can be a guiding resource in determining future studies and regulations.JEL Codes - C00; M4
See Now, Buy Now Model: A Passport to Fashion Brand Equity
Get PDFIn a market accentuated by globalization and digital consolidation, high fashion brands start to rethink the way of producing, communicating and distributing their supply, adopting the See Now, Buy Now (SNBN) model to guarantee the possibility of instant gratification. Literature has been scarce concerning SNBN as a new paradigm of contemporary fashion, more particularly, in what concerns its relationship with brand equity. This study seeks to identify the critical variables of SNBN and analyze its feasibility in production and consumption of fashion. It has applied a mixed and sequential methodology. The Portuguese case is worth analysing because of its similarities with countries where the fashion and creative industries' role is still uncertain, but still often mentioned and talked about. The results suggested that there is a positive relation between its adoption and brand equity – in particular a more hybrid strategy of adoption, considering its risks and investments.JEL Codes - M11; M30; M31; O14; 02
Does Fear has Stronger Impact than Confidence on Stock Returns? The Case of Asia-Pacific Developed Markets
Get PDFEmploying data from Australia, Hong Kong, and Japan over the period between January 2004 to December 2017, this study investigates the relationship between investor sentiment and stock returns. We analyze two reversed sentiment indicators, namely Consumer Confidence Index (CCI) and Volatility Index (VIX), in two conversing situations: low and high sentiment. The empirical evidence suggests that sentiment has a significant link with concurrent returns, but its influence seems to wipe out quickly as the little to no return predictability is detected. More importantly, we find that “investor fear gauge” (VIX) generates a more significant contemporaneous effect on market returns than investor confidence. The impact on future returns, on the contrary, is inconclusive since low CCI and VIX dominate the opposite ones most of the time.JEL Codes - G10; G15; G4
Higher Education Funding and Economic Growth: Empirical Evidence from Croatia
Get PDFDeprived of investment in education, no country can expect sustainable economic growth and development. Higher education is particularly a priceless tool in today's era of globalization that requires continuous education to keep up with new knowledge. According to UNESCO (2014), higher education is no longer a luxury; it is essential to national, social and economic development. The impact of education on economic growth is possible to observe within the so-called ‘education led growth hypothesis’. The main aim of this paper it to analyse the higher education size and structure, model and financing sources in Croatia and to test the ‘education led growth hypothesis’ on the example of Croatia. The study will apply the Granger causality test to evaluate if there is any causal relationship between investment in higher education and economic growth in Croatia.JEL Codes - C58; H52; I25; O4
Brexit: An Exploratory Analysis of the Macroeconomic Effects on the British Economy
Get PDFThis paper investigates the effects of the Brexit announcement on the British economy. For this, we use a counterfactual analysis methodology, predicting a set of macroeconomic variables of the British economy in a scenario where the Brexit announcement did not happen and measuring what drifted away from its effective value. To forecast the variables we use the ARIMA method. Our conclusions are that if Brexit had not been announced: i) the exchange rate of the Pound Sterling against the US Dollar would not have had such a sharp depreciation trend; ii) real wage growth would not have been as high after the referendum; iii) the growth rate of the consumer price index would not have had such a strong growth trend and iv) the Gross Domestic Product would have grown at a higher pace and after three years of Brexit announcement it would have been 3% higher.JEL Codes - E17; F13; F1
The Relationship between the Exchange Rate, Interest Rate and Inflation: The Case of Turkey
Get PDFThe purpose of the study is to measure the effects of changes in exchange rates and interest rates on inflation and to determine which of the exchange rates or interest rates has a greater impact on inflation rate following the July 15, 2016 coup attempt in Turkey. Our expectation is that similar to most authors is to find that there is a long-term relationship between the inflation rates and both the exchange rate and interest rates and that the effect of the exchange rate on the Producer Price Index (PPI) is greater than that of the interest rates. Moreover, we expect to find a unidirectional causality relationship between the Interest Rate of Commercial Banks Credit (IRBC), Over Night Interest Rate (O/N) and United States Dollar (USD) and the PPI, but not between the IRBC, O/N, USD and the Consumer Price Index (CPI).JEL Codes - F31; O24; E4; E31; E43; P24; P4
General Patterns and Drivers of Changes in Employment Structure: Evidence from Five European Countries
Get PDFThis paper seeks to answer whether the general patterns and drivers of the sectoral employment shifts depend on a country’s level of development. To accomplish this, we examined employment in Germany, Hungary, Poland, Romania and Ukraine at the national level (1998-2018) using econometric analysis, and at the regional NUTS2 level (2009-2018) using shift-share analysis. We obtained evidence that the general trend is the service sector expansion. Using the ARDL approach and the Granger causality test, we identified long-run unidirectional causality running from income proxies to employment in services in all countries except Romania, where the opposite causality was found. We revealed that household income moderates the impact of urbanization on service sector growth in all countries except Poland. At the regional level, the change in the employment rate in services is explained by the national growth effect and slightly by the industry-mix effect if the active phase of structural changes is completed.JEL Codes - J21; O14; R11; R15; C3
Public Debt and Economic Growth Nexus in the Euro Area: A Dynamic Panel ARDL Approach
Get PDFThis study investigates the relationship between public debt and economic growth using panel data from 10 European Countries. Using a panel ARDL approach, the results show that public debt, government consumption, and the real exchange rate are negatively associated with economic growth both in the short- and long-run. Furthermore, investment and the real interest rate were found to be positively associated with economic growth both in the short- and long-run. Inflation and trade openness were found to have mixed results: both were negatively associated with economic growth in the long run while in the short run the relationship was positive and consistent across groups with a few exceptions. Second, the study results also showed that debt is nonlinear at the 70% threshold only in the long-run while in the short run the results were consistently negative and across groups. The study results have significant policy implications for the Stability and Growth Pact of the Euro area. It is recommended that member states should ensure fiscal sustainability by balancing their fiscal budgets to effectively reduce the accumulation of public debt as well as implementing structural reforms that will improve the efficiency of investment as well as macroeconomic stability.JEL Codes - C23, F34, F43, H63, N1