South East European Journal of Economics and Business
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INTERNATIONAL PORTFOLIO DIVERSIFICATION BENEFITS: AN EMPIRICAL INVESTIGATION OF THE 28 EUROPEAN STOCK MARKETS DURING THE PERIOD 2014–2024
Full text linkThis study investigates the benefits of international diversification in the stock markets of the 28 European countries (the EU and the UK) over two five-year periods: a stable period from 2014 to 2019 and a turbulent period from 2019 to 2024. The analysis draws on the Markowitz mean-variance, Sharpe reward-to-variability, and naive diversification models, based on which different investment strategies were developed and implemented. We find that actively managed portfolios perform significantly better than naively diversified portfolios. The analyzed markets exhibit positive short-term associations, with an average correlation coefficient of 0.29 in the first period and 0.46 in the second period. However, these markets do not show long-term cointegration. Recent crises have reduced diversification benefits, yet significant opportunities for diversification remain. Diversification benefits are almost halved in the second period: average single-market standard deviation can be reduced by 60.5% with investments in 20-indices portfolios in the stable period, and only by 33.7% with the same portfolio size in the turbulent period
LEADERSHIP PROFILE OF CROATIAN PROJECT MANAGERS - INVESTIGATING THE EFFECTS OF STRESS AND FOLLOWERS’ EXPERTISE IN ACHIEVING PROJECT SUCCESS
Full text linkThe purpose of this paper is to investigate the role of stress in demonstrating adequate project leadership and ultimately achieving project success, while also respecting followers’ expertise as the most important context factor. During 2021, the empirical research was conducted on 71 project managers in the Republic of Croatia. Results obtained via SPSS Statistics 23.0 and PROCESS macro v4.0 for SPSS indicate that demonstrated project leadership and followers’ expertise positively affect the project’s success. According to the results, stress, due to its inverted U-shaped nature of effect, does not affect project success, whereas it has a negative moderation effect on demonstrated project leadership by reducing its positive effects on project success. In addition to these results, this paper offers other interesting insights into the relationships between demonstrated project leadership, project manager’s stress, and project success, further filling the identified gap in research. A relatively small sample of project managers and its cross-sectional nature stand out as the main limitations of the empirical research presented in the paper
LABOUR MARKET TIGHTNESS AND MATCHING EFFICIENCY IN DIFFERENT LABOUR MARKET SEGMENTS – DO DIFFERENCES IN EDUCATION MATTER?
Full text linkThis paper analyses the existing educational structures of selected EU member countries and their alignment with the labour market (LM) needs. This study aims to identify potential structural mismatches between the skills taught in schools and universities and the skills and knowledge required in the workplace. To evaluate this educational mismatch, the paper explores the matching needs of employers and unemployed job seekers by using disaggregated national employment office data. The paper examines the selected group of EU countries (AT, HR, EE, SI, ES) from 2010 to 2022, using the Beveridge curves and estimating LM tightness and matching efficiency for different education groups. The results show that differences in education levels result in relatively small deviations from aggregate trends in the LM. Aggregate LM trends strongly impact all education groups in the labour market
BEYOND LINEAR MODELS: FACTORS DRIVING ENVIRONMENTAL ACTION AND CIRCULAR ECONOMY TRANSITION IN WESTERN BALKAN BUSINESSES
Full text linkThis article employs a probit model to analyze the determinants influencing businesses in the Western Balkans to mitigate their environmental impact and assess the feasibility of transitioning to a circular business model. It relies on primary survey data gathered in all Western Balkan countries by professional research agencies in 2022, with a representative sample of approximately 200 businesses per country. The findings reveal that factors such as being an exporting, foreign, innovative, and loan-receiving company increase the likelihood of businesses in the Western Balkans taking measures to reduce their environmental impact. Moreover, being an exporting and loan-receiving company emerges as influential in fostering the belief that a shift to a circular business model is attainable. These insights have profound implications for policymakers and businesses aiming to promote sustainable practices and circular economy initiatives within the Western Balkans. Additionally, this article contributes to policy development and knowledge on environmental and circular practices in developing economies
PORTER-TYPE REGIONAL AGGLOMERATIONS, EXPORT PERFORMANCE, AND INCLUSIVE REGIONAL POLICY: AN EMPIRICAL ASSESSMENT OF TURKISH MANUFACTURING SECTOR
Full text linkThis study aims to evaluate the medium-term impact of regional agglomerations in the manufacturing sector of Turkey on export performance. To this end, we identified Porter-type agglomerations in ISIC two-digit manufacturing sectors for 58 NUTS-3 regions and the 2008-2019 period. In the empirical analysis section, we used a two-way fixed effects panel data model to analyze the effects of these agglomerations on sectoral export performance. The findings indicate that the advantages of Porter-type agglomeration are limited tocertain mid-tech sectors. Also, labor-intensive low-tech manufacturing sectors are found to have no agglomeration advantages in export performance compared to mid-tech sectors. The findings indicate a technology policy need and an inclusive smart specialization strategy (3S) to enhance productivity and export competitiveness
THE RELATIONSHIP BETWEEN WORKPLACE ROBOTS, EMPLOYEE EXHAUSTION, AND TURNOVER INTENTIONS IN THE AGE OF INDUSTRY 5.0: RESEARCH FROM FOUR SOUTHEASTERN EUROPEAN COUNTRIES
Full text linkThis paper examines and analyzes the relationship between workplace robots, employee emotional exhaustion, and turnover intentions within the context of Industry 5.0. Empirical research was conducted from January to May 2024. During this period, a total of 582 respondents from four Southeastern European countries (Serbia, Croatia, Montenegro, Bosnia and Herzegovina) participated in the research. The proposed relationships between variables were tested by using the partial least squares method for structural equation modeling (PLS-SEM, SmartPLS software). The research results confirmed that the emotional exhaustion of employees had a positive relationship with turnover intentions, while workplace robots’ effects were negatively related to employee emotional exhaustion and turnover intentions. Leaders, managers, and human resource professionals may benefit from the findings presented in this paper, especially during the decision-making process on how to reduce the emotional exhaustion of employees by using workplace robots, which, in the end, will result in employee retention
PATRIOTIC TOURISM DEMAND IN ALBANIA: A SYSTEM GMM MODEL APPROACH
Full text linkThis paper aims to evaluate the determinants of international tourism demand in Albania following the existing literature and particulars of the tourism sector in Albania using Dynamic Panel Data from 2011 to 2019. The analysis is conducted on the sample of 20 countries of origin using the Two-Step GMM Model. The analysis highlights the importance of word-of-mouth effect in the tourism industry in Albania marked at the same time by inferior goods and services, as defined by the microeconomic theory. While on the one hand, tourism becomes very useful in terms of social cohesion (converging familiars and relatives), on the other hand, it can support better the general economic development. At the same time, this study underlines the relative importance of Government Spending. The National strategy on tourism must look not only at the tourism demand quantity but mostly at the sustainable and greater added value tourism segments
DETERMINANTS OF FIRM-LEVEL GROWTH: LESSONS FROM THE CZECH REPUBLIC, HUNGARY, AND POLAND
Full text linkThis paper examines the determinants of firm-level growth based on three eastern European countries – the Czech Republic, Hungary, and Poland. We investigate whether there exist common firm-level characteristics that play a significant role in determining firm-level performance across the three countries, and whether development in financial markets can facilitate the growth of individual firms, particularly for firms that require external financing (borrowing). Our empirical analysis shows that in the case of Poland, firm-level characteristics, such as firm age and firm size, turn out to be significant, and that the role of these factors on the sales growth of firms is quite consistent with the findings in the existing literature. The same firm-level characteristics do not appear to be significant in the cases of Czechia and Hungary, which suggests that these factors play a different role in the firm-level growth of these countries. However, a firm’s access to external financing matters for the determining the firm’s growth and its development of financial markets, which enables the firm to have easier access to external sources of financing, thereby especially facilitating the growth of the individual firm that might need external funds. Our findings provide additional empirical evidence on the existing literature that emphasizes the positive impact of financial development on the individual firms’ growth based on a cross-country analysis
RELATIONSHIP BANKING, COLLATERAL, AND THE ECONOMIC CRISIS AS DETERMINANTS OF CREDIT RISK: AN EMPIRICAL INVESTIGATION OF SMEs
Full text linkThis study examines the impact of relationship banking and collateral on the probability of firm loan default in Kosovo. Using a sample of 2,320 loan-level data from an individual bank credit register, findings indicate that stronger firm-bank relationships reduce the probability of default, and tighter credit policies regarding higher collateral requirements and interest rates have the opposite effect. Re-specifying the model to control for the banking sector concentration Hirschman-Herfindahl Index (HHI) and the Net Interest Margin (NIM), the firm-bank relationship is no longer statistically significant. Results show that the crisis negatively impacts credit risk, while HHI positively affects the probability of loan default. This evidence suggests that banking relationship matters only in competitive markets. To test the potential interaction effect between relationship banking and collateral, Fairlie’s (1999) decomposition technique is deployed. Our results imply that high concentration levels in the banking sector render firm-bank relationships relatively less important. This is of utmost importance for SMEs, banks, and policymakers
THE DIRECT AND MODERATING EFFECT OF SOCIODEMOGRAPHIC VARIABLES ON TAX COMPLIANCE BEHAVIOUR
Full text linkThe purpose of this study is to empirically examine whether taxpayers’ age, gender, income, and education level impact their (non)compliance. It expands the analysis through the investigation of the moderating role of selected sociodemographic variables. This research was operated in Croatia and in total it comprised 862 fully completed questionnaires. Based on this sample of individual taxpayers (income tax), to interpret the obtained results, OLS regression analysis was employed. The moderation model has been used to explore the influence of sociodemographic variables on tax compliance. The study discloses several results. First, it demonstrates that taxpayers’ age, gender, and education level are significantly associated with their compliance behaviour. In addition to this, the results confirm moderating role of gender, education level, and income level on chosen tax compliance determinants. The findings of this research contribute to policy implications in understanding the groups that require additional attention to create adequate and efficient fiscal strategies