Transitions Online_Around the Bloc - Gazprom Ordered to Write Off Huge Chechen Debts – 25 January
Russian energy giant contests arguments the debt is uncollectable and says locals simply don’t want to pay for energy.
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Russian energy giant contests arguments the debt is uncollectable and says locals simply don’t want to pay for energy.
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The country is leading the Baltic drive to declare energy independence from Russia.
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The subject of the paper is to consider the evolution of theoretical approaches to economic rationality as a key principle of economic choice in economic science. Thanks to various theoretical approaches, the category of economic rationality has got a completely different meaning and a much broader meaning than its neoclassical interpretation. The two basic (typical) theoretical models of economic behavior of man are explained and explained: full rationality and limited rationality, which can be irrational (irrational or spontaneous) behavior and institutional (so-called post-rational) behavior.In doing so, a special emphasis is placed on the fragmentation of institutional rationality, which implies institutional pluralism as the most dominant principle of economic and social development. The aim of the paper is to emphasize the importance of institutions in general and for economic development in particular, which is undeniable in contemporary economic literature, as well as the dominance of institutional (post-rational) approach to economic behavior. In addition, the aim of the paper is to briefly explain the underlying reasons for the front, as well as the consequences of non-compliance, respectively the acceptance of monistic institutional improvisations (alternatives of alternative institutions) in place of institutional pluralism. Using the methods of abstraction, induction, deduction, descriptive analysis, and comparisons, the paper attempts to prove the hypothesis that institutional pluralism is the dominant and the only possible modern development principle recommended by non-institutional economic theories (NET), and proves the practice of all economically developed countries in which there is no room for any monistic improvisations (such as neoliberalism, dirigisism, etc.). The plenary emphasizes the beginning of institutional pluralism for social and economic development.
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Bank resources management is a complicated issue and depends on multiple factors. Therefore, a single factor, regardless of how significant it may be, is not sufficient for a rational management of these resources. Since bank resources are so different that it is not possible or necessary to keep all of them under control, the bank usually concentrates on their most important categories. In relation to this, the bank must first define its business politics as a means for achieving the set goals, because it is not possible to achieve them unless the bank resources are not managed in a rational manner.Beside the internal factors, the bank also has to take into account the macroeconomic circumstances and the institutional framework of monetary policy, as well as the factors which effect the focused market segment. The bank business politics has to be adaptable, efficient, and reflective of stability, which implies respecting the phases in the making of the politics and a proper quantification of internal factors, with anticipation of external ones. Since the size of the bank and the geographic range of primary placements, organization, planning and other elements of conducting business are in the authority of the bank resource management, when regarded from the internal aspect, they are the key elements in defining the bank business politics.
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This article attempts to evaluate the state of research, in the national reference literature, on the discriminatory methods for evaluating the financial standing and the risk of business failure. In the reference literature, it is still perceived that discriminatory methods are ascribed, in a manner unauthorized from the methodological point of view, the value of timeless and sector universality. Critical reference has been made to numerous cases of simplifications and methodological errors that occur in the national literature on the subject.
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More and more companies listed on the Warsaw Stock Exchange, as well as developed on capital markets, pay dividends, which amounts to a small extent depend on the profit for the last financial year. To this end, the companies form dividend reserve funds (DRF), which allow them to freer dividend policy. Special attention deserves strategy applied in recent years by the Żywiec Group S.A., which each year a portion of the net profit spends on DRF and at the same time, the dividend is paid with the rest of the net profit for the last financial year and the DRF which was created in the previous year. In the article detailed analysis of this strategy was carried out by showing its impact on independent payments from profit for the last year and by introducing the concept of profit for distribution, which realigns the dividend payout ratio. The hypothesis were verified using Lintner’s partial adjustment models.
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The article presents the results of the original research, conducted by experiment, on the social cause marketing. Their specific objective was to determine the relationship between willingness to pay (WTP) for socially responsible products and perception of their economic value (PEVP) and attitudes towards cause-related marketing (CrM) and affinity of the social cause. An empirical verification of the hypothesis confirmed that those variables differentiate the effects of social marketing activities. The study proves that greater WTP and PEVP will be related to customers who are more friendly towards CrM and for whom the affinity of the social cause exposed in the advertisement is rather bigger than smaller.
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The primary purpose of the article is to describe the development status of social impact bonds in Poland as an innovative instrument for social services financing. Within the framework of the defined purpose realisation, the first part of the article presents the short characteristics of social impact bonds, with particular emphasis on the subject of their activities, i.e. social problems to be solved using them. The second part of the article is focused on discussing the state of work related to launching the first national social impact bonds and social impact bonds accelerator and the characteristics of the implemented projects.
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This study examines the impact of other comprehensive income reporting in mitigating earnings management by using discretionary accruals for a sample of 83 industrial WSE-listed companies over the period of 2009–2016. We apply a panel least square model using year fixed-effects regression. We find that other comprehensive income reporting diminishes the extent of managerial earnings activities. Our findings suggest that a comprehensive income statement may have significant and positive implications for preventing aggressive accounting and helps users of financial statements identify earnings management better.
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The article presents the following research hypothesis: A young generation of adult children of Poles is a net beneficiary of family financial transfers of a non-returnable nature. The article purposes are as follows: analyzing the scale, frequency, and directions of transferring and receiving financial gifts by akin households. The applied research methods included: critical analysis of the subject literature, simple statistical methods, method of a diagnostic survey. The survey studies, conducted in 2018, have shown that 39.9% of Poles provided financial support to their relatives in the last 6 months, while a smaller percentage (28.6%) of respondents declared that in the same period received a monetary donation from the family. Population under the age of 24 represents the only age group which receives more financial support than actually provides. Private financial transfers are predominantly of an intergenerational nature, as the majority of transfers occur between parents and adult children.
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The paper deals with the bankruptcy of enterprises in Poland and the main theoretical aspects of bankruptcy of enterprises in particular. The author analysed correlations between the number of bankruptcies of business entities and selected macroeconomic figures and financial indicators of enterprises in the period 2004–2015. The correlation analysis confirmed the existence of a linear relationship between the number of bankruptcies of enterprises and income from CIT.
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The purpose of the article is to identify changes on the green bond market. Using a sample of 1,202 bonds registered in the Thomson Reuters Eikon database, a statistical analysis using correlation measures, a test of signifiance of differences and basic descriptive statistics was carried out. The study finds an increasing share of corporate issuers and an increase in the diversifiation of the purpose of issuance and the currencies in which the bonds are denominated. There is a small correlation between maturity and the offered coupon or YTM. Compared to similar non-green bonds, they are issued for a shorter time, allowing for more flexible management of the investor’s portfolio.
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When building a financial plan for a household, one usually needs to take many risk factors into account. These are the factors that have an influence on the shape of the future term structure of household incomes and expenditures. The factors may be of very differentiated nature, which means that their impact on the cash-flow term structure may be different both in terms of the underlying mechanism and strength. In this field of research, the existing literature does not provide, however, any proposals of integrated risk measurement. At the same time, the ability to measure risk of household fiancial plans in an integrated way would be very useful, as it would allow to select or compare plans with respect to the joint risk of a plan (to be more precise – the joint risk that the plan will fail to be successfully realized). The aim of this article is to propose a method or methods that would allow to measure fiancial plan risk in an integrated way. The integration should include different risk types, all fiancial goals that have been set by the household, all sources of fiancing and all sub-periods of the long-term life-cycle period of household fiancial planning. The approach, originally proposed by the authors of this article, may not only facilitate comparison of fiancial plans with respect to risk, but it may be also serve as a plan-acceptance decision-making instrument. Integrated risk measures may be also used within the very optimization procedure. They may be parts of the boundary conditions or even be embedded into the optimization function itself.
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In the face of the global financial crisis, many central banks applied non-standard monetary policy instruments. They were activated after lowering short-term interest rates to a level close to zero and after the use of classical tools was exhausted. In the conditions of negative GDP growth, low inflation and zero interest rates, the Czech National Bank decided to use the exchange rate as a non-standard instrument of monetary policy. The activities carried out stimulated economic growth and had a relatively small impact on the level of inflation. The Czech experience allows determining the conditions in which it is possible to apply the exchange rate as an instrument of monetary policy and the expected effects of its introduction.
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The tax on agricultural farms is the agricultural tax, which depends primarily on the usable value of land. The only exception is the so-called special branches of agricultural production. On the basis of personal income tax, they constitute a separate source of income that can be taxed in two ways: based on real income or based on estimated income. The latter method is extremely favorable for taxpayers. Starting from 2016, there has been a change in the regulations regarding the taxation of special branches of agricultural production. They were subject to the requirement to keep accounting books in the situation described in the accounting regulations. In practice, this means losing the ability to determine income based on esti mates. The aim of the article is to indicate the possibility of optimizing the taxation of special branches of agricultural production and risks related to the activity of taxpayers in this area. The achievement of the adopted objective will be possible thanks to the analysis of the legal structures of the Personal Income Tax Act and the Accounting Act and the judgments of tax authorities and administrative courts in Poland.
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The purpose of the article is to identify the motives for the use of convertible bonds on the Polish capital market. Empirical examination of 71 convertible sales carried out by 38 issuers listed on the Warsaw Stock Exchange shows that more than half of convertibles in Poland were issued by undervalued companies in good financial performance to raise funds for new investment projects as a more favorable alternative for the issuance of common stock. Second, one third of convertibles were used by firms in financial distress to support their restructuring process as a cheaper and faster source of backdoor equity financing. Third, every fifth convertible bond was issued for tax benefits available under Polish law regulations.
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The article aimed to identify the main symptoms of Próchnik’s bankruptcy risk. Próchnik announced its liquidation bankruptcy in 2018. Analysis and assessment of Próchnik’s risk of insolvency was based on the Polish models of bankruptcy prediction, and the study covered the activity of the company between 2010 and 2017. The most important identifid risk factors that determined Próchnik’s insolvency were loss of profiability, problems with financial liquidity, diminishing effectiveness of the management of the company’s assets, and poor structure of capital.
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Better processes produce lower costs, higher revenues, motivated employees, and happier customers. Logistics companies operating on very competitive market are continuously seeking opportunities to ensure the process reliability while improving their productivity. Due to increasing process complexity it is necessary to apply a systematic approach to designing, implementation, monitoring and improvement of processes in the organization. Such approach may be realized through Business Process Management (BPM) techniques and tools. An investment in BPM software, coupled with new approaches to project implementation, enables companies to introduce a sustainable business process improvement program. However, the implementation of BPM is not easy because of process complexity and multiplication of interaction specific for each organization. In this paper we propose some teaching frameworks, that can be used during the education process to enhance the practical skills in BPMN and in the application of process management in the field of logistics. Our solution is based on practical cases and BPM worldwide standards. It provides students with the opportunity to use the BPM suites software in complex environment and practice the techniques of modelling and analyzing processes. The presented framework may address many of requirements of learning environments for business process analysts. In the second part of the article we present also the analysis of students’ (attendants’ of BPM classes) opinions about gaining knowledge and skills on BPM. Performed research indicate that young people were keen on business process modeling classes organized in a form of problem-based laboratories and they would like to use learned BPM methods and tools in their future education or work.
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Dynamic technological progress in the field of information technology observed over several years has influenced the development of artificial intelligence. The aim of this article was to show the key issues related to the socially responsible use of artificial intelligence by companies in the modern economy. The author focused on the characteristics of artificial intelligence, a description of selected areas of its application and on showing the benefits, limitations and dilemmas resulting from the use of artificial intelligence in the modern economy. The considerations presented in the article were based on studies of domestic and foreign literature as well as reports of analytical and advisory companies.
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One of the most important goals of economics is to develop policies to improve the economic performance. These policy proposals are effective in the emergence of economic theories. The differences in the policy proposals emerge as a factor that separates the theories from each other. Institutional economic approach as one of the relevant theories argues that the economic performance of countries depends largely on the institutional structures and processes adopted by policy makers. In this study the views of four approaches on the formation of economic and political structure are discussed. These approaches are rational choice institutionalism, sociological institutionalism, historical institutionalism and discursive institutionalism which are the types of new institutionalism.
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