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Multi-dimensional analysis of regional investment attractiveness in Poland
No full textResearch background: A given region\u27s investment attractiveness is a set of conditions that depend primarily on the policy of the country that is the recipient of direct foreign investment, encouraging or discouraging foreign investors from making decisions about locating investments in a given area. These conditions include the economic conditions, the infrastructure, the political and legal system, the business environment, and the sociocultural environment. a foreign investor, the motive for exporting capital abroad is the search for benefits that can be derived from the business activity conducted there, including easier entry into new markets.
Purpose of the article: The main aim of the paper is to distinguish groups of voivodeships (NUTS 2 level) that are relatively homogeneous in terms of investment attractiveness, which is conducive to the inflow of foreign capital and the implementation of investment projects involving foreign capital.
Methods: Distinguishing groups of voivodeships similar to each other in terms of the level of investment attractiveness is made by applying hierarchical cluster analysis. The dendrogram illustrates the hierarchical structure of clusters of similar objects according to the analysed set of variables. The quality of the clustering result is also assessed by determining the silhouette index. Comparative and descriptive analysis of CSO statistics are additional methods used that have contributed to the achievement of the aim of the paper. The research period covers the years 2000?2018.
Findings & value added: The investment attractiveness of a voivodeship is closely related to the level of its economic development. Therefore, the following voivodeships are listed at the top of the investment attractiveness rankings: Mazowieckie, Dolnośląskie, Śląskie, Małopolskie, and Pomorskie. The conducted study has confirmed that the creation of special economic zones and the development of regional smart specialisations contribute to the inflow of foreign capital. It is worth noting that the assessment of investment attractiveness is relative. The comparison of the innovative attractiveness of voivodeships is based on the use of the average value, overestimated by cities, i.e. central hubs, attracting investors. The regional perspective on investment attractiveness using multi-dimensional statistical analysis methods is the added value of the article
Application of selected data mining techniques in unintentional accounting error detection
No full textResearch background: Even though unintentional accounting errors leading to financial restatements look like less serious distortion of publicly available information, it has been shown that financial restatements impacts on financial markets are similar to intentional fraudulent activities. Unintentional accounting errors leading to financial restatements then affect value of company shares in the short run which negatively impacts all shareholders.
Purpose of the article: The aim of this manuscript is to predict unintentional accounting errors leading to financial restatements based on information from financial statements of companies. The manuscript analysis if financial statements include sufficient information which would allow detection of unintentional accounting errors.
Methods: Method of classification and regression trees (decision tree) and random forest have been used in this manuscript to fulfill the aim of this manuscript. Data sample has consisted of 400 items from financial statements of 80 selected international companies. The results of developed prediction models have been compared and explained based on their accuracy, sensitivity, specificity, precision and F1 score. Statistical relationship among variables has been tested by correlation analysis. Differences between the group of companies with and without unintentional accounting error have been tested by means of Kruskal-Wallis test. Differences among the models have been tested by Levene and T-tests.
Findings & value added: The results of the analysis have provided evidence that it is possible to detect unintentional accounting errors with high levels of accuracy based on financial ratios (rather than the Beneish variables) and by application of random forest method (rather than classification and regression tree method)
How the 2020 pandemic affected tax revenues in Russian regions?
No full textResearch background: The 2020 pandemic has proven to be stressful for regional tax systems. However, these systems reacted differently to lockdown and a decline in business activity, which was associated with both their structures and the specifics of their development.
Purpose of the article: The aim of the article is to assess the impact of the 2020 pandemic on tax revenues of Russian regions, as well as to analyze the factors contributing to the resilience of regional tax systems to epidemiological crises.
Methods: The study is based on monthly data from the Federal Tax Service of the Russian Federation on total tax revenues in 83 Russian regions for 2013?2020. For data up to March 2020, we construct stationary time series and plotted ARiMA regressions. Based on them, we forecast tax revenues for the period from April to December 2020, if there were no pandemic. The impact of the pandemic is calculated as the deviation of actual tax revenue from the forecast for the corresponding 9 months.
Findings & value added: We find that the impact of the pandemic on tax revenues varies over time and space. The crisis hit the fiscal system most negatively in the first three full months of the lockdown (April?June 2020). Some mining regions of the Urals, Western and Eastern Siberia, specializing in the extraction of oil and gas, as well as non-ferrous metals, turned out to be the most vulnerable to the pandemic. The most resistant to it are the central and southern regions of the European part of Russia. Calculation of Pearson\u27s correlations shows that the greatest drop in tax revenues occur in regions with a larger share of the mining industry in gross value added and MET in tax revenues, with a higher GRP per capita and an increased level of general economic instability. The smallest decline in tax revenue, or even its growth, is observed in regions with a larger share of personal income tax and property tax in tax revenues, a higher share of trade and processing industries, social sphere and public administration in gross value added, a higher degree of economic diversification and a larger share of small business in total turnover. The obtained results are applicable to manage the resilience of tax systems to epidemiological crises
How innovativeness of family-owned SMEs differ depending on their characteristics?
No full textResearch background: SMEs encounter more survival impediments than larger businesses. Innovativeness is a crucial attribute for smaller firms to overcome these barriers since it positively influences their performance, competitiveness, and capability to operate in the long term. However, depending on firm characteristics, the innovativeness of SMEs might differ.
Purpose of the article: This research investigates whether the innovativeness of family-owned SMEs differs depending on their size, sector, area of activity, and succession on the sample of 350 family-owned SMEs that operate in Czechia.
Methods: The data collected in the Czech Republic in 2020 through the structured self-administered questionnaire were analyzed using Skewness-Kurtosis and Levene\u27s normality tests and Independent Sample T-test to find the differences in SMEs innovativeness depending on their selected characteristics.
Findings & value added: According to the results, SMEs\u27 innovativeness differs depending on their size, industry, and area activity. On the other hand, the analyses confirmed the nonexistence of the differences in SMEs\u27 innovative-ness concerning succession involvement. The region of SMEs\u27 operation, the scope of their activities, and firms\u27 executives\u27 age might be crucial arguments to explain the differences and similarities in these enterprises\u27 innovativeness. Even though the research focuses only on the SMEs located in Czechia, the similarity of the issues all SMEs face when competing with the larger firms worldwide, especially if we take into consideration the countries with a similar level of development and overall institutional business conditions, allows for generalizing our results and might draw readers\u27 attention to this paper. Policymakers, universities, international institutions, and financial institutions might cooperate to create industrial zones, encourage research centers, and provide education and financial support to stimulate SMEs\u27 innovative activities
New patterns in the position of CEE countries in global value chains: functional specialisation approach
No full textResearch background: High servitisation of manufacturing makes it impossible to separate services from manufactured goods properly, which implies difficulties in the assessment of the position of the country on the smile curve, i.e. in the proper assignment of products or services to one of the industrial process steps: pre-production, pure fabrication or post-production services. Therefore, we propose to use the business functions of industries identified with the aid of labour market data rather than the industrial classification of products in order to create a more appropriate measure of the position of countries in GVCs.
Purpose of the article: We aim to identify and analyse the patterns of functional specialisation for eight Central and Eastern European Countries (CEECs) ? the Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovakia and Slovenia ? both at the country and industry level. In addition, we analyse functional specialisation patterns for Germany, which serves as a reference country.
Methods: To assess functional specialisation patterns, we employ the methodology proposed by Timmer et al. (2019a). It allows us to obtain functional specialisation indices for four different business functions ? management, R&D, marketing, and fabrication. To compute them, we combine two sources of data ? domestic value added from decomposed sectoral input-output tables (the World Input Output Database) and the Occupations Database built up by Timmer et al. (2019a).
Findings & value added: Our research shows a very heterogeneous pattern in CEEC countries\u27 position in GVCs by taking into account their functional specialisation at the countries and industries levels. Poland and Slovakia focus primarily on low value-added fabrication processes, the Baltic countries and Slovenia specialise in management services, Hungary and Latvia gain in marketing services, and the Czech Republic and Slovenia win in R&D activities. We indicate that some CEE countries (Poland, Slovakia) could be stuck in a functional trap, and our approach could be a valuable tool for assessing the process of coming out of it
The integration of corporate social responsibility and marketing concepts as a business strategy: evidence from SEM-based multivariate and Toda-Yamamoto causality models
No full textResearch background: This paper integrates the marketing and corporate social responsibility concepts by investigating how the previous studies de-bated CSR as a business strategy. This discussion extended from academics to business practices. Hence, this study investigated the concept of CSR as a business strategy in a multifactorial fashion in the marketing field.
Purpose of the article: This study evaluates the modified model of CSR initiatives as business and marketing strategy and their impact on customers\u27 buying behavior. For this purpose, we have taken dimensions of Carroll\u27s pyramid of CSR as marketing strategies. We have also examined the influence of brand loyalty and cause-related marketing as mediating variables and technology as a moderator between dimensions of Carroll\u27s pyramid and customers\u27 buying behavior.
Methods: We employed modified theoretical & conceptual model for evaluating the direct and indirect hypothesized relationship. We have collected 693 responses from the structured and adapted questionnaire. The survey was done among marketing and senior managers of the Asian pharmaceutical industry. We employed SEM-based multivariate modeling to examine the hypothesized relationship.
Findings & value added: The finding of this research exhibited that dimensions of Carroll?s pyramid of CSR have a positive and significant impact on customers\u27 buying behavior. The results further demonstrated that brand loyal-ty and cause-related marketing positively and significantly impact mediators between CSR dimensions and customers? buying behavior. Finally, the technology has a significant influence as a moderator between exogenous and endogenous factors. The undertaken study demonstrated important theoretical and practical implications. The modified conceptual framework has provided several new dimensions for future researchers to use and replicate in different economic sectors. On the other hand, practitioners of the pharmaceutical industry should incorporate Carroll\u27s CSR pyramid as business strategies to gain the trust and respect of their customers
The nonlinear relationship between financial flexibility and enterprise risk-taking during the COVID-19 pandemic in Taiwan?s semiconductor industry
No full textResearch background: Risk-taking is the basis for sustainable development of enterprise. It was clear that the influence COVID-19 epidemic on the global market economy has increased operational risks for businesses. The semiconductor industry has high operating risks and financial risks. Moderate financial flexibility (FF) can improve the ability of semiconductor enterprises to acquire financial resources in real time, calmly cope with the impact of uncertainties in operation, improve investment opportunities, and enhance sustainable operation. It is therefore interesting to study the influence of FF on enterprise risk-taking (ERT).
Purpose of the article: The aim of the contribution is to explore the effect of FF on ERT within Taiwan?s semiconductor industry amid the COVID-19 pandemic period, and investigate whether ERT varies with semiconductor industry characteristic.
Methods: Data from first three quarters of 2020, from multinational semiconductor firms listed on the Taiwan Stock Exchange (TSE), were collected and analyzed. Fixed effects regression with heteroscedasticity adjustment used to evaluate the influence of FF on the ERT of Taiwan?s semiconductor industry. Furthermore, in order to corroborate and support the reliability of the results, this research also used the different measures of ERT and Quantile regression (median regression) in the research model to check the robustness.
Findings & value added: Empirical results indicate that FF has a U-shaped effect on ERT for multinational semiconductor firms listed on the TSE, particularly within the integrated circuits (IC) manufacturing industry. Additionally, FF also has a U-shaped effect on ERT for the asset-light semiconductor and IC manufacturing industries. This article also suggests that for the asset-light semiconductor and IC manufacturing industries, the optimal inflection points are 1.1397 and 0.9729, respectively. Based on the consequences of this study, it is suggested that Taiwan?s semiconductor industry should reasonably maintain FF and focus on the liquidity risk management for the long term value added, even after the COVID-19 pandemic period
Comparison of factors influencing liquidity of European Islamic and conventional banks
No full textResearch background: The innovation in Shar??ah-compliant banking products has resulted in the rapidly increasing size of assets in Islamic banks worldwide. The assets of such banks have been growing twice as fast as those of conventional banks. Islamic banks do not depend on conventional interest, speculation, or complex derivatives stemming from banking operations. Instead, their actions in respect of profit/risk sharing, and the clarity of the contract are consistent with Islamic Shar??ah principles, which seek to promote a more equal society.
Purpose of the article: This research aims to identify and compare factors influencing the liquidity of Islamic and conventional banks in Europe. Candidate factors are sought amongst profitability, credit quality, credit expansion and capital adequacy indicators.
Methodology: First, relevant financial ratios for 249 observations on Islamic banks and 2,306 observations on conventional banks are selected and compared for the period 2013?2017. Second, liquidity is explained separately for each type of banks by panel data regression to identify its determinants in a comparative context.
Findings & value added: The results indicate that the impact of the net interest margin on the liquidity ratio of Islamic banks is insignificant, which is obviously due to the prohibition of the use of interest (riba). To the contrary, in conventional banking a higher net interest margin results in a reduction in liquidity. Capital adequacy has a positive influence upon liquidity in both types of banks, but in Islamic banking, the influence is 5.4 times greater. The findings strongly suggest that the liquidity of Islamic and conventional banks is affected by different factors
What drives the dividend decisions in BRICS countries?
No full textResearch background: We examine the dividend payout policies across companies listed on the main stock exchanges in Brazil, Russia, India, China, and South Africa (BRICS). Unlike the highly developed capital markets, the literature regarding dividend policy on BRICS? stock exchanges is scarce.
Purpose of the article: The purpose of this paper is threefold: verification of the existence of dividend smoothing pattern; selection of the significant drivers that affect both dividend levels and dividend smoothing; examination of differences between dividend policy of cross- and single-listed companies.
Methods: Based on a dataset of 564 companies that paid dividends for at least 11 consecutive years in the period of 1995?2015, we apply a GMM two-step estimator to assess the speed of dividend adjustment (SOA) coefficient. Further we employ the linear panel regression to indicate the individual and market determinants of the dividend levels and SOAs. In the latter case, we base on time series of the SOAs obtained from the rolling estimation technique. Finally, we conduct separate estimations for cross-listed companies.
Findings & value added: We confirm a moderate level of dividend smoothing within BRICS countries. Among the firm-level characteristics affecting the SOA the most important are: ownership dispersion, age and size of a firm, retained earnings, leverage, long term debt, asset tangibility, liquidity risk ratio, and issuing the depositary receipts (DR). Two relevant market factors are found: market capitalisation and turnover in relation to GDP. Similar characteristics have a significant impact on dividends? levels in the entire sample, whereas in the subsample of cross-listed companies fewer variables are significant. Our paper is the first comprehensive attempt to investigate the dividend policy and determinants of dividend smoothing among BRICS countries
Analysis of socio-economic spatial structure of urban agglomeration in China based on spatial gradient and clustering
No full textResearch background: Previous studies on the economic and social development of urban agglomerations mostly focus on a single primacy comparative analysis and efficiency evaluation. Spatial structure differentiation is an important feature of urban agglomeration. The lack of economic and social analysis on the spatial structure makes it impossible to determine the development positioning of each city in the urban agglomeration, which affects the sustainable economic devel-opment ability of these areas.
Purpose of the article: The objective of the article is to analyze the spatial development law and experience of urban agglomeration, this study explores the practice of economic and population spatial structure of city areas in China. For this purpose, CPUA and its central city Zhengzhou was taken as an example, the spatial gradient structure of example was analyzed.
Methods: Using economic and population data of 32 cities in this region, growth pole theory, and pole-axis theory, the economic and population spatial structure of urban agglomeration, the spatial gradient structure of central cities in urban agglomerations were analyzed with the method of cluster about radiation index.
Findings & value added: (1) In the process of the formation of CPUA, the geo-graphical spatial pattern plays a decisive role in economic and social development. This is an experience from developing countries. (2) CPUA presents a gradient development pattern with Zhengzhou as the center, and economic and social development gradually radiates to the metropolitan area, the core development area, and the character development demonstration area. (3) The economic and social gradients of Zhengzhou, the central city, present the hierarchy rules and characteristics which are driven by the Beijing-Guangzhou-Railway axis and the Longhai-Railway axis. (4) The central city of Zhengzhou still presents insufficient primacy in regional development, which shows that Zhengzhou accounts for 6% of the population of the Central Plains Economic Zone and 14% of GDP, and insufficient agglomeration. Different countries at different stages of economic development have different urban agglomeration development models. The conclusions from China provide new decision-making ideas and methods for spatial structure research and development strategy analysis of urban agglomerations