Economic and Business Review (EBR)
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Testing the Hypothesis of the Adequacy of the Distance-To-Default as an Indicator of Changes in Banks’ Risk Exposures
No full textA distance to default indicates the distance measured in standard deviations of the market value of assets from the default point. The hypothesis that distance to default is indicative of changes in the levels of risk of the banking system since it precedes accounting data that indicate similar changes was tested on the basis of selected financial ratios. We have applied a modification developed by Toda and Yamamoto of the standard Granger causality test to see whether there is causality between distance to default and the selected financial ratios. Contrary to expectations, we could only prove Granger causality from lagged values of distance to default (6 – 12 months) to a leverage ratio, whereas we were not able to obtain similar relationship with other ratios
Corporate Financial Reporting in Slovenia: Historical Development, Contemporary Challenges and Policy Implications
No full textSlovenia historically belongs to the continental legal system but has built its corporate financial reporting framework on the principles of measurement and recognition primarily derived from the Anglo-American system. The aim of the article is to present the development of the accounting practice in the transition period in Slovenia and to critically assess the current corporate financial reporting framework in Slovenia. Contingency approach, recognising that best solutions are dependent upon broader setting and that solutions that are effective in one country can be inappropriate in others, is used in the assessment of the current corporate financial reporting framework. The article highlights the challenges related to corporate financial reporting in the context of the Slovenian under developed capital market and deficiencies stemming from the discrepancies between legal and financial reporting frameworks. Although the new Slovenian Accounting Standards 2016 are expected to resolve some of the exposed problematic areas and increase transparency of financial reporting, additional regulatory changes in the field of accounting that are needed to further contribute to corporate financial reporting quality in Slovenia are pointed out
Determinants of Outsourcing Satisfaction: The Case of Slovenian SMEs
No full textIn contrast to large firms, small and medium-sized firms (SMEs) face different kind of challenges in outsourcing. The existing research on SMEs’ outsourcing is sparse and inconclusive. Therefore, the purpose of our paper is to find out whether managers of SMEs are in fact satisfied with outsourcing, and what affects their satisfaction. We conducted an empirical analysis on a sample of 249 Slovenian SMEs. Our study extends the existing knowledge about outsourcing in SMEs, especially in the field of determinants that have an impact on satisfaction with outsourcing. Our first contribution is the improved definition of outsourcing that can be used in all companies regardless of their size. This definition is better suited for the research of SMEs than existing definitions that take into account larger companies. Our second contribution refers to our findings that SMEs mainly perform strategic outsourcing that is based on ad hoc collaboration, which is the opposite of the existing theoretical and empirical findings. This means that companies are exposed to bigger risks and lower satisfaction with outsourcing. We identified and discussed four determinants that affect satisfaction with outsourcing: reasons for outsourcing, credibility criteria (referring to external contractors), risk factors, and outsourcing difficulties (problems). The reasons for outsourcing affect the satisfaction with regard to strategic outsourcing, the credibility criteria have an effect on satisfaction with traditional outsourcing, and outsourcing difficulties affect both
Does a firm’s open innovation mode matter?
No full textOpen innovation enabled smaller firms to become competitive rivals to multinationals since this innovation mode searches outside of firm’s boundaries for commercialization opportunities and leverages the knowledge and initiatives of external sources. The aim of this research is to approach open innovation as a multifaceted phenomenon and to address some of the fundamental questions that arise in the literature on open innovation. Such questions include: Do different open innovation modes exist? Does it matter which open innovation mode a firm chooses? How do different open innovation modes influence a firm’s innovation performance? In seeking answers to these questions, we used quantitative and qualitative research methods. Understanding the contributions of individual open innovation dimension is important for implementing effective decision-making processes. The findings have important implications for CEOs when allocating (scarce) resources to the development of open innovation-related activities. Our findings emphasize the importance of employee involvement for the successful implementation of open innovation. We suggest several steps to be followed when implementing open innovation
Vpliv odnosa med vodjo in zaposlenimi na kontraproduktivno vedenje na delovnem mestu
No full textCounterproductive behaviour, as a form of unethical behaviour, poses a threat to the organisation\u27s reputation, financial performance and also its existence. In this article, we therefore examine the influence of leader-member exchange (LMX), psychological safety and moral strength on counterproductive behaviour to better understand and reduce its occurrence. The results of the analysis (linear regression and mediation-moderation model) on a sample of 116 employees showed that LMX was negatively associated with counterproductive behaviour and positively associated with psychological safety and moral strength. The results also showed that moral strength is positively related to counterproductive behaviour, meaning that individuals with high levels of moral strength also exhibit undesirable behaviour when it should be the other way around. The positive relationship between moral strength and counterproductive behaviour is explained by the idea of negative reciprocity, which is based on the establishment of justice in the case of perceived injustice in the organisation
Standards, Best Practices and Codes of Ethics Impact on IT Service Quality – The Case of Slovenian IT Departments
No full textThe purpose of this paper is to explore the critical success factors while implementing standards, best practices and codes of ethics, what their benefits are when they are put in place, and how they impact the quality of information technology (IT) services. Through an extensive literature review and interview with experts in the field, we identified instrumental determinants. Structural equation modelling (SEM) was used for the case of IT departments in large Slovenian companies to test the presented hypotheses. The study is based on 102 responses from IT managers in large Slovenian companies. The research findings confirmed a positive correlation between the factors considered
Identification of the Equilibrium Exchange Rate Pass-Through Effect in Cointegrated VAR with an Application to the Euro area
No full textThe exchange rate pass-through is of considerable importance for policy makers in open economies. Based on work of Johansen (2002) this paper develops the conditions for the identification of equilibrium pass-througheffect in cointegration framework. In addition, I specify the restrictions for testing the perfect equilibrium pass-through. The method is illustrated on the Euro area data and the pass-through effect of the Euro effective exchange rate. The results show that conditional on the type of economic shocks that lead to a permanent change in the exchange rate, the equilibrium pass-through effect can be both very low and high
Value Investing within the Universe of S&P500 Equities
No full textBy employing financial data screening we show that profitable value investment strategy can be built within the S&P 500 stock universe. We use simple ranking of stocks based on four screens that we identify as good joint candidates to influence stock returns – book-to-market ratio, return on equity, market capitalization and risk of bankruptcy. As expected, our four-variable portfolio consistently beats the market, which points to the fact that investors inefficiently price stocks in the world\u27s most developed capital market. We compare performance of our investment strategy with market performance, and also adjust for risk used in both current conventional asset pricing models – CAPM and Fama & French three-factor model. When comparing performance of our four-variables portfolio strategy to separate single-variable strategies, we find that other strategies record even higher returns. However, returns of such strategies exhibit lower significance levels, and are more volatile than the four-variable investment strategy
Učna motivacija in osebnostne dimenzije – podlaga za oblikovanje strategij uspešnega učenja mlajših in starejših zaposlenih
No full textCorporate survival increasingly depends on knowledge management, and the world of work is characterized by the phenomenon of an aging workforce. Although there is much literature on aging management, little research has been conducted on the learning of older workers. The purpose of this study is to fill this gap and identify the path of forming strategies for successful learning of both age groups. The main findings of the study show that both younger and older workers are motivated to learn. It is recognized that the internal and external factors of motivation to learn and perceived self-efficacy need to be improved, while personality dimensions are important predictors of perceived self-efficacy in learning and thus contribute indirectly to learning outcomes
Exploring the Interplay of an Entrepreneur’s Thinking, Knowledge, and Firm-Level Innovation
No full textThis study investigates entrepreneurs’ individual characteristics in terms of knowledge and thinking skills to better understand the role of these traits in innovation. We use interpretative phenomenological analysis (IPA) to attain deeper insights about entrepreneurs’ cognitive processes and innovation. We propose that knowledge breadth plays an enhancing role in the relationship between an entrepreneur’s knowledge depth and firm innovation. In return, innovation at a firm level is shown to be affected by an entrepreneur’s integrative thinking ability. Implications for practice and future research are discussed