National tax policy in the context of the international economy’s competitiveness

Author(s): Michał Sosnowski / Language(s): English Issue: 2/2016

Globalization of business processes, increasing degree of freedom in terms of trade and progressive economic integration of individual countries are the factors conducive to the formation of various forms of business cooperation which lose their national character, becoming international economic units of growing economic and technical potential. In the following paper, the author focuses the attention on the problem of the impact of the tax system exercised on the economic activity of companies, both in national and international terms. In this context, the issue of the interaction between the tax policy and the real economic sphere in the aspect of the intensification of economic activity and achieving competitive advantage on the international arena has been discussed. The conclusion states that low tax burden may constitute an important factor stimulating investments in a country with a mild tax regime, job creation and dynamic economic growth.

Financiranje malog i srednjeg poduzetništva u Republici Hrvatskoj

Author(s): Mirko Pešić / Language(s): Croatian Issue: 2/2011

The starting point of every entrepreneurial venture is the entrepreneur him/herself. When initiating a venture of any kind, an entrepreneur faces all the factors that have to be organised and overcome on his/her own. The main obstacle on this path is the procurement of sufficient funding to go all the way from the original idea to the finished product, or to the enterprise performing a certain activity. The simplest way is when the entrepreneur has initial capital, i.e. sufficient funds to implement the idea into a finished product or enterprise. However, under today’s influence of globalisation, most entrepreneurs do not have this initial capital or sufficient funds to initiate any kind of entrepreneurial venture. This paper provides an insight and explanations of the most common ways in which entrepreneurs can access funds and how they can finance their business venture. Raising funds is one of the greatest challenges for anyone planning to start an entrepreneurial venture.

Pomoc publiczna dla przedsiębiorstw w Polsce w latach 2007–2013

Author(s): Sylwia Guzdek / Language(s): Polish Issue: 12/2016

State aid in Poland is gradually beginning to take on the character of aid for stimulating social and economic development, one of the fundamental objectives of the renewed Lisbon Strategy. The article discusses state aid granted in Poland in the years 2007–2013. Analysis of the data for the period leads to the following conclusions: the beneficiaries of approximately half of the aid were large enterprises; the most frequently used aid instruments were grants (group A1); regional aid was awarded the most. After Poland’s accession to the EU, its differences from member states began to fade, thanks in part to the EC’s control and supervision of the provision of aid.

EFECTUL ZILEI DIN SĂPTĂMÂNĂ PE PIAŢA DE CAPITAL DIN ROMÂNIA

Author(s): Alexandra Gabriela Ţiţan / Language(s): English Issue: 2/2017

The question whether the stock market shows any anomalies depending on the day of the week has already been extensively discussed in the specialized literature. There are many countries and stock exchanges analysed. The results differ from period to period and from market to market and no final answers were received during the years of research. This paper’s objective is to determine if any day-of-the-week anomaly is present on the Romanian capital market. We envisage a research of the day-of-the-week effect on the Romanian stock market using daily data on equity returns between January 2012 until December 2016 by analysing the Bucharest Exchange Trading Index (BET). The results show that Monday and Thursday effects are present on the Romanian Stock Exchange.

ROLUL POLITICII MONETARE ÎN CONTEXTUL MIXULUI DE POLITICI MACROECONOMICE. ABORDARE CANTITATIVĂ ŞI CALITATIVĂ PENTRU ROMÂNIA

Author(s): Alina Georgiana Ioniţă / Language(s): English Issue: 2/2017

As a result of the recent global economic and financial crisis, it has increased the interest in identifying models that explain the stochastic dynamics of macroeconomic variables and meet the country-specific requirements according to the degree of development and the particularities of the economy. Thus, the purpose of this paper is to analyze a mix of monetary and fiscal policy that would fit Romania's macroeconomic context, given the uncertainty of future shocks and the uncertainty in setting the model parameters.

VARIANTE DE OPTIMIZARE A PORTOFOLIILOR DE ACŢIUNI DIVERSIFICATE INTERNAȚIONAL ÎN CONDIȚII DE RESTRICȚII ALE POLITICII INVESTIȚIONALE

Author(s): Francesca Dana Andreescu,Robert Ștefan Sbîrcea / Language(s): Romanian Issue: 2/2017

The scope of the paper is to compare alternatives to maximizing the returns of internationally diversified stock portfolios having restrains and limitations set by the investment policy, as it is usually the case with portfolios held by institutional investors such as pension funds or undertakings for collective investment in transferable securities. In the portfolio analysis, the financial instruments will be described and grouped using the Principal Component Analysis (PCA) and the hierarchic cluster by Ward method, carrying out a comparison between the optimized portfolio that accept short-selling and another portfolio that do not accept, considering the Sharpe rate. The volatility of the selected portfolio will be measured by EGARCH (1,1). Also, other measures of risk will be applied, such as VaR, we will assess the impact of the volatility regimes on the risk of the portfolio.

INFLUENȚA VARIABILELOR MACRO-ECONOMICE ASUPRA RATEI RISCULUI DE CREDIT ȘI IMPACTUL ASUPRA CAPITALURILOR ȘI LOCURILOR DE MUNCĂ DISPONIBILE

Author(s): Florin Andrei / Language(s): English,Romanian Issue: 2/2017

Given the macro-economic evolution of the past 6-7 years and their impact in the credit portfolios of the financial institutions, an increased interest is shown regarding risk management and early warning systems. The risk management represents an important item in the organization of the credit institutions and an increased supervision is made overthe quality of the credit portfolios.The research paper offers a perspective for the quantification of credit risk over the Romanian banking system illustrated by the VAR model analysis and review. By analysing the results of the VAR model it was observed that the most powerful influence is made by the exchange rate, but also an influence was detected from the interest rate and GDP. The model presented has the scope to define the interactions between the quality of the credit portfolios and the macroeconomic environment from Romania. Having in view the complexity of the data aggregation and their availability, it were used 62 quarterly observations, the sample period being January 2001 - June 2016.The influence of the credit risk in the banking capital and into the available jobs was quantified through a qualitative analysis performed at global level but also on the Romanian banking system.

APLICAREA ANALIZEI TEHNICE ÎN SELECȚIA PORTOFOLIILOR

Author(s): Florin Turcas / Language(s): Romanian Issue: 2/2017

The technical analysis used by all capital market practitioners is avoided by academia, it is theoretically considered insufficient and too inaccurate (intuitive). In the following paper we will show that practical results drawn from the study of historical data may be more realistic and more complex than those offered by traditional statistics. Also, we only use technical analysis to study the correlation between stocks and not to make predictions that, indeed, seem not scientifically justified.

OPINIE PRIVIND EVOLUȚIA ACTIVITĂȚII DE INTERMEDIERE A INSTRUMENTELOR FINANCIARE

Author(s): Laurentiu Baranga / Language(s): Romanian Issue: 2/2017

With the onset of the financial crisis, a number of changes / amendments to European legislation have been made to mitigate the effects of the crisis and to prevent the occurrence of the causes that have led to this situation. In order to remedy these shortcomings, and in order to prevent similar new situations from occurring in the future, a number of changes to the legal framework applicable to services and financial entities have taken place at European Union level.Changes have been made to the legal framework applicable to both credit institutions and financial entities that make up the non-bank financial system. In this respect, the rules and principles laid down in prudential regulations for the banking system have been extended to all entities and financial activities in the non-bank system so as to ensure their widest coverage in order to reduce systemic risk and also to make regulatory arbitrage the most difficult in the future.Regarding the rules and principles of conduct, the process of "unification" has also been made from the non-banking system to the banking system, as well as between different sectors of the non-banking financial system. Moreover, in the process of "standardization" of principles and rules, the specificities and particularities of each category of financial entities or financial activity were taken into account.These legislative changes, combined with the particularities of the European Union's business environment, will in the future lead to significant changes in the financial intermediation activity in terms of financial instruments and services provided to investors.

RSF – un cadru adecvat educației financiare

Author(s): Mișu Negrițoiu / Language(s): Romanian Issue: 1/2016

INDICELE DE STABILITATE FINANCIARĂ estimat de către Institutul de Studii Financiare

Author(s): Ion Stancu,Iulian Panait / Language(s): Romanian Issue: 1/2016

APROXIMAREA PROBABILITĂŢII DE RUINĂ ATUNCI CÂND DISTRIBUŢIA SEVERITĂŢII DAUNELOR ESTE LOGNORMALĂ

Author(s): Simona-Mihaela Iftimie (Chiru) / Language(s): Romanian Issue: 1/2016

The calculation of the probability of ruin is one of the classical problems in actuarial science, the ruin probability being a good indicator of how the insurer manages its assets and liabilities. The purpose of the paper is to illustrate and compare different infinite time ruin probability approximations, studying a heavy-tailed claim size distribution (using MTPL’s line of business claims), namely the lognormal distribution. The case study highlights the results of the empirical analysis obtained by applying a set of approximation methods and also new approaches such as a simulation algorithm based on Pollaczeck-Khinchin formula and the use of the ruin probability in finite time to approximate the ruin probability in infinite time. The study is of increased significance in the following respects: (1) it can support people involved in decision-making process (such as risk managers, actuaries, company’s management) to take decisions and measures regarding the long-term stability of the lines of business; (2) is an analysis that brings new empirical results in the field, being based on real and recent data from the Romanian insurance market.

SOLVABILITATEA COMPANIILOR DE ASIGURĂRI: TESTE ȘI PREVIZIUNI

Author(s): Cătălin Goia / Language(s): Romanian Issue: 1/2016

Solvency II Directive represents the first strategic project which will help determine the solvency local of the all insurance companies and entities in the European and the implementation of this directive will have a major influence on addressing risk, mix of business, pricing, over all operational processes of the insurance industry. The Solvency II will lead to a new approach to the surveillance and this will be based on economic principles for measuring assets and liabilities, and will consider all risks to which they expose the company, using common principles on which is determined the capital. Through this article we try to analyze the way that combines Solvency II aims for a healthy insurance industry and how benefits this field by creating a legal framework which reflects economic principles.

OPTIMIZAREA SELECȚIEI ȘI GESTIUNII PORTOFOLIULUI FOLOSIND MOMENTELE DE ORDIN SUPERIOR

Author(s): Mircea Bahna / Language(s): Romanian Issue: 1/2016

The Modern Portfolio Theory, based on Markowitz's (1952) work proposes a portfolio selection only taking into account the first two moments of a portfolio's return distribution, thus having a lot of critics since the author itself admits the need to use the third and forth moments of the distribution. The absence of the transaction costs to get the equilibrium on capital markets constraints is just one of the many criticised hypothesis. Since only after 90's, and increasingly after 2000 a series of theoretical works started pointing out to the preferences of individual and institutional investors towards skewness and kurtosis we've taken the responsibility of doing this analysis on BSE shares using the PGP methodology. The usage of sustainable indigenous parameters are computed for the selected BSE shares and we conclude that a certain correlation between the selection of shares inside the recommended portfolios and a low sensitivity to the market evolution.

STRUCTURA SISTEMULUI BANCAR ROMANESC ÎN CONTEXTUL ECONOMIC ȘI FINANCIAR ACTUAL

Author(s): Rodica Oana Ionita,Ion Stancu / Language(s): Romanian Issue: 1/2016

The purpose of this paper is to identify the importance of the banking system during the current economic and financial in Romania during 2000-2014. The research is focused on the role of the banking system as a pillar of the financial system in Romania. The research hypothesis is that there are variables owned by the banking sector which gives us warning signals for the periods of distress facing by the financial system. The success is to determine these variables with a sufficient time before the negative effects on the economy, so that they can act to mitigate any potential negative effects that may occur. This is possible if the variables are continuously monitored , thus being a dynamic process and if there are performed professional judgments based on the economic substance of the analyzed variables. The utility model is that once identified these early warning indicators, they can be included in the objectives of monetary policy makers, so that their behavior will be continuously analyzed and monitored to identify potential adverse effects of other economic variables by contagion, as well as on the economy. The paper also presents the importance of the Basel Committe on banking supervision. Analyzing the behavior of key banking variables, we could identify those moments of economic and financial difficulties which were felt on the entire economic system.

Potențialele efecte ale politicilor monetare neconvenționale pe piețele financiare nebancare

Author(s): Adrian Mitroi / Language(s): Romanian Issue: 1/2016

NOILE PRODUSE FINANCIARE TRANZACŢIONATE PE PIAŢA FOREX ȘI IMPACTUL ACESTORA

Author(s): Laurentiu Baranga / Language(s): Romanian Issue: 1/2016

This paper purports to analyze the new trends in terms of foreign currency transactions and, implicitly, the new financial products traded on the Forex market with a view to identifying the category they belong to, namely the category of foreign currency transactions or the category of foreign exchange derivative transactions. Also, the implications of including the new products traded on the Forex market into one of the two categories have been taken into account, both in terms of market microstructure and in terms of investor-wise implications. Thus, the analysis showed that, by changing the destination of the amounts deposited by clients into the settlement account of the Forex services provider, i.e. from amounts deposited with a view to covering the equivalent of purchased foreign currencies into amounts deposited with a view to covering any price difference, financial products such as currency pairs and rolling spot Forex acquire features similar to those of derivatives (such as CFDs). Also, the recognition of these financial products of the Forex market (currency pairs and rolling spot Forex) as derivatives would determine a series of transformations on the microstructure of the market they are traded on, changes that would contribute to a better protection of investors and to a better monitoring and prevention by the supervisory authorities of the potential risks such transactions could induce on the financial market.

Assessment of the financial health of regional emergency medical services in the Czech Republic using the BAMF model

Author(s): Ivana Kraftová,Lenka Kašparová / Language(s): English Issue: 2/2017

The focus of the paper is the evaluation of the financial health of selected public service providers. As part of the research we used a specially designed model of balance-sheet analysis for BAMF municipal companies. Used on a sample of 14 regional providers of emergency medical services in the Czech Republic from 2010–2014, we assessed the level and variability of the aggregate financial health indicator BAMF and its components, five sub-indicators. It turns out that the financial health of these subjects, although displaying significant similarities are not free of extreme values that in practice require more attention, or more precisely, deeper analysis. The authors conclude that the model is relatively easy to apply in practice and can contribute to the better financial health management of public sector bodies. At the same time, the BAMF model can be considered an addition to the theory of financial analysis.

Government Spending Effectiveness and the Quality of Fiscal Institutions

Author(s): Aygun Garaeva,Gulzar Tahirova / Language(s): English Issue: 2/2017

The cyclical behaviors of government spending and output are investigated for the time period 1996-2013, in the sample of 45 countries divided into 3 groups – Western European, Eastern European and CIS countries – with each one of these groups representing a different development stage. The main purpose of the study is to identify the main determinants of the effectiveness of government spending and especially, assess the role of institutional quality. Panel data fixed effects model was used for estimation purposes. In developed countries the main determinant of government spending effectiveness is found to be institutional quality, but access to financial markets is more pronounced in developing countries.

Municipal Bonds in Developing Countries

Author(s): Marija Gogova Samonikov,Elena Veselinova,Ilija Gruevski,Risto Fotov,Risto Binovski / Language(s): English Issue: 2/2017

The developing countries, especially in the Balkans, barely use the municipal bonds as an alternative way of financing their activities. This paper is part of the project “The municipal bonds as an alternative source of financing municipals activities and the effective management of funds, with a special emphasis to the Municipality of Stip, R. Macedonia”. The paper has an important impact, according to both academic and practical perspective. It combines the experts’ academic analysis with the municipals potential in order to facilitate a successful municipal bond emission that would support the local economic growth. The purpose of this paper is to investigate the ability and willingness of the Municipality of Stip to issue municipal bonds. The main hypothesis states that the Municipality of Stip is able to issue a municipal bond as an alternative way of financing its investment activities. The research includes the classical SWOT analysis regarding the Municipality of Stip and continues with a statistical analysis based on correlation and regression relationships within the accounts of the Municipality’s annual reports. The methodological framework is based on quantitative research methods (correlations and regression methods) which result in acceptance of the main hypothesis in the paper - the municipal bonds as an alternative source for funding municipal’s activities are justified, especially if the funds are associated with a specific revenue-generating project. The findings would serve as a basis for the municipal bonds prospect, which would be the ultimate goal of combining the academic knowledge with the practical potential of the Municipality of Stip. The conclusions reveal that this would be the first municipal bond emission in the Republic of Macedonia. However, this fact can serve as an advantage in the market in terms of introducing financial instrument innovation. This paper suggests that the usage of municipal bonds is far away from a risky activity, especially if the funds are invested in revenue-generating projects. Municipal bonds can be a less expensive source of funds for the municipal’s projects, rather than different forms of domestic or foreign borrowings. In this way, municipalities can use this financial instrument to initiate and support local economic growth.