Bankruptcy Prediction: The Case of the Czech Republic and Slovakia

Author(s): Martina Sponerová / Language(s): English Publication Year: 0

A considerable number of publications accompanies the research topic of bankruptcy prediction. This has been motivated by the massive toll on SMEs caused by the global crisis of 2007-2009, the recent COVID-19 crisis and the resulting need to update indicators of SME failure. This paper focuses on the Czech and Slovak economies, specifically at small and medium-sized enterprises (SMEs). This article aims to find if different factors could predict bankruptcy for Czech and Slovak companies. There were investigated 574 Czech companies and 889 Slovak companies for the period 2010 – 2018. The resulting findings confirm conclusions of the last year’s literature review. It is most appropriate to construct a financial distress model for a given country or a group of countries with similar characteristics or neighbouring countries. Furthermore, it is advisable to exploit common used financial indicators with a combination of modified indicators to assess the probability of bankruptcy precisely.

Crowdfunding European Game Campaigns – Evidence from 2017 Kickstarter Projects

Author(s): Dominika P. Galkiewicz,Sarinya Jantapan / Language(s): English Publication Year: 0

Crowdfunding is widely recognized as an innovative financing form. It is highly popular with companies and individuals who seek financial support from local and global sources with Kickstarter.com being the most popular reward-based crowdfunding platform. In 2017, with 26 percent most of the crowdfunding money was obtained by projects from the game category (where ca. 45 percent of all campaigns were funded). The objective of this study is to determine factors influencing the success of European projects from the game category on the reward-based crowdfunding platform Kickstarter.com in 2017. The findings show that setting a lower, rather than a higher, funding goal increases the probability to receive more funds. Similarly, fundraisers who communicate interactively with the crowd and keep their supporters updated, e.g. about the progress of their campaigns, new developed game features and rewards, face a higher probability to reach the pre-specified funding goal. The most important determinant is, however, represented by (pre-)selling and offering products such as tabletop games, playing cards or video games as rewards. Such initiatives increase the chances for success by up to 18 percent. Our results are relevant for individuals, founders, and innovative companies intending to initiate a game campaign on Kickstarter.com in Europe.

Young Consumers’ Product Perception and Consumer Motivation Towards Buying Local Products

Author(s): Judit Beke,Marietta Balazsne Lendvai,Ildikó Kovács / Language(s): English Publication Year: 0

An important aspect of sustainable food consumption is the consumption of local food. The concept of local food is often linked to sustainability which is gaining importance in the marketing communication of food brands since it fits in with the conscious consumption intentions of young people. In addition to studying the nature and consumer perception of local products, the study explores consumer motivations of young consumers aged 18-25 using qualitative focus group research method. Based on the results, the products that young consumers are willing and motivated to buy can be identified, and the most important trigger words can also be selected. Qualitative research methods were used to identify the most significant consumer motivation elements among young consumers.

Effects of the Pandemic on the Supply Chain in the Construction Industry

Author(s): Johannes Regner,Milan Fekete / Language(s): English Publication Year: 0

The present study focuses on digitalization strategies within the realm of supply chain management, wherein the focus is set on the specific economic environment of companies in the supply chain of critical infrastructure providers. Digitalization strategies are within this paper discussed concerning supply chain management and its relevance to the ongoing and influential COVID-19 crisis, where digital strategies of collaboration and management became imperative. To address the research question about the state of implementation of digital strategies within this specific industry, a qualitative empirical study was conducted. Experts from companies acting as suppliers of critical infrastructure were interviewed in an online setting regarding their own experiences with the implementation of digital strategies and according to challenges. Within the analysis of these interviews, it became obvious that digital strategies pre-crisis were only rarely implemented, with only one out of seven experts reporting about more advanced strategies. The COVID-19 crisis is described to be an accelerator regarding digitalization, although specific challenges resulting from unclear legal situations and frameworks are reported.

Security of Data and Web Applications during COVID-19

Author(s): Natalija Vugdelija,Nikola Nedeljković,Nenad Kojić / Language(s): English Publication Year: 0

Numerous companies in Serbia have come under attack, including large companies, state-owned companies and institutions. Various security vulnerabilities have been identified, which clearly indicates insufficient education of employees in the field of information systems security, as well as insufficiently developed awareness of the consequences of misuse of unprotected information and vulnerability of systems and applications. This paper lists some security measures, which may prevent unauthorized access to the system and misuse of personal or sensitive data. The paper also lists some examples of attacks using ransomware, which have led to massive data losses. These attacks were carried out via email, which is one of the most common types of malware attack and brings us to the question of whether it is necessary to introduce additional education on the topic of cyber security through the school system.

Evaluation of Digital Transformation of Slovakia

Author(s): Katarína Belanová / Language(s): English Publication Year: 0

This paper aims to evaluate the level of digital transformation of Slovakia by the use of the index of digital transformation provided by the European Commission, as well as to examine the relationship between digital transformation and economic development. Since digitalisation is crucial to businesses, Integration of digital technology, as one of DESI 2020 dimensions, was analysed in more detail. Comparison, time series and correlation analyses are used for assessing the issue. The author found out that Slovakia lags far behind in terms of digitalisation. Slovakia is ranked 22nd of 28 evaluated countries, slightly below the EU – 28 average. All relevant indicators, including Integration of digital technology, have not improved enough to keep pace with the EU average. Moreover, the author confirmed the dependence of digital transformation and economic country performance. The implications of this relationship are of significant importance to policymakers regarding how much support should be given to encourage digital transformation.

Authentication and Validation – Workflow Processes

Author(s): Joao Rocha,Leonilde Reis / Language(s): English Publication Year: 0

All companies are dependent on Information Systems and Communication Technologies for business support to enhance/expand their processes. This article relates to a problem occurring in the field of documentation authentication, highlighting the concerns underlying the use of generic rather than nominal users; the non-establishment of workflow rules that are subject to process improvement, leading to an outdated process and subsequently compromising security rules caused by blocked processes or sharing access to an alternative process in the absence of key stakeholders. The adopted research methodology is Design Science Research, given its characteristics and suitability to the field of research. The main results are the review of the literature in the field of theme as well as incorporating the main causes for the breakdown of security policies caused by the need to follow up a workflow process in each Integrated Management system.

Characteristics of the Development of Nautical Tourism on the Eastern Coast of the Adriatic Sea

Author(s): Srećko Favro,Dora Mužinić / Language(s): English Publication Year: 0

Nautical tourism is nowadays one of the most propulsive forms of tourism. Montenegro, being one of the countries with access to the Adriatic sea, is largely economically behind the others in this group, despite the many natural advantages such as the Bay of Kotor. The proximity and size similarity with Split-Dalmatia County create the possibility of comparing the Montenegrin coast with the latter. For this purpose, the coast of Montenegro is presented in more detail, that is six municipalities together with their existing nautical infrastructure in order to get acquainted with its current state of development. Croatia is one of the most attractive locations in the world, and the most developed charter destination (40%). Among the most attractive and most developed parts of the Croatian Adriatic waters is the Split-Dalmatia County which is similar in area and length to the coast of Montenegro. A review of nautical tourism in Split-Dalmatia County and its better-distributed offer shows a difference in relation to the contradictory uneven development of nautical tourism in Montenegro. Statistical comparison of all relevant data such as financial effects and charter offers in the available part shows the possibilities of development and unused resources of the Montenegrin coast. Finally, this points to the need for quality organization of the nautical system of Montenegro to properly use the rich natural potential to create conditions for setting standards in the industry that has the most successful future.

The Role of Tourism Enterprises in Kosovo

Author(s): Idriz KOVAÇI,Alberta TAHIRI / Language(s): English Publication Year: 0

The purpose of this paper is to assess the importance of the tourism enterprises in Kosovo in the level of satisfaction of tourists visiting Kosovo and in identifying the role played by the restaurant sector in promoting the traditional cuisine of the area, based on local production. The data to carry out this work were provided from extensive and contemporary literature as well as from primary sources, using quantitative research through questionnaires and qualitative research through in-depth interviews with chefs of restaurants operating in the tourist areas of Kosovo.

The State in the Neoliberal Economy and Problems of Modern Society

Author(s): Nenad D. Dugalić / Language(s): English Publication Year: 0

Neoliberalism rejects a society based on tradition, encourages the weakening of state institutions and especially undermines the system of social protection through poorly implemented privatization and thus creates ideal conditions for international corporations to acquire huge capital. This leads to the fact that the state and state bodies can no longer perform their role of regulators on the national market, but practically serve the interests of large international corporations. In recent years, modern society has witnessed the expansion of global crises manifested through climate changes, the imbalance of the global economy and other inequalities, which ultimately through economic poverty leads to an explosion in nature that manifests itself in global pandemics such as this one today. All this requires a special approach and the development of longterm strategies in order to avoid such crises in the future or at least reduce them to the level of tolerability.

The Coronavirus Pandemic and Its Impact upon Companies from Bihor County

Author(s): Ciprian-Beniamin Benea,Adrian Negrea,Adina Sacara Onita / Language(s): English Publication Year: 0

As the pandemic force started to affect the whole world in the first part of 2020, Romania’s economy and society made no exception; as the paper shortly presents the effects and perspectives brought by this pandemic upon humankind, the main focus of the paper is a region in Romania, Bihor county, respectively. It presents how COVID-19 influenced normal economic-social activity, and the way the Romanian government reacted to this global problem, through different instruments, such as subsidies. The main purpose of this article is to present the way COVID-19 affected a region in an Eastern European country and the way the Romanian government searched for a solution in order to reduce the negative influences of this plague. The main method of analysis is based on statistical data collected by and from a regional employment agency from Bihor county (AJOFM-Bihor).

Foreign Direct Investments in North Macedonia and the Balkan Region for the Period 2000–2021

Author(s): Ivona Tasevska,Pece Nedanovski / Language(s): English Publication Year: 0

Having in mind that North Macedonia’s goal is to integrate as much as possible into the global economy, it is particularly important to examine the extent and impact of FDI in North Macedonia. The topic underlines the importance that fulfills the purpose of this research, which is why foreign direct investment is important for a country, the factors that influence its growth and implementation in society. FDI is the driver of productivity, investment and economic growth. In addition, FDI increases the competitive pressure on the domestic market and stimulates technology transfer, innovation and digitalization. Through comparative analysis, we will try to show the movement of foreign direct investment in our country compared to countries in the region.

Small and Medium Enterprises and the Microeconomic Role

Author(s): Delia Rosu / Language(s): English Publication Year: 0

Even if a lot of the businesses depend on authorities (infrastructure, national promotion, etc.) solving the problems is still a microeconomic task. Small and Medium Enterprises (SMEs) have always been recognized as the driver of a critical sector of the economy and the SMEs will continue to remain as the backbone of several countries’ economic development throughout the world. Due to the economic and social importance of the small and medium-sized enterprises (SMEs) for the economy, compared to large businesses, they are supposed to be more vulnerable, riskier, and so it is more difficult to obtain external sources of finance for them. The article aims to evaluate SMEs finance from the perspective of selected domestic and foreign initiatives, as well as to propose the measures for the im¬provement of SME finance.

Modelling of Non-Maturing Liabilities in Survival Period for Liquidity Risk Management Purposes

Author(s): Patrik Mihalech / Language(s): English Publication Year: 0

Correct assessment of banking risks is essential for a healthy banking system and the development of economy. This paper focuses on liquidity risk management, more specifically on modelling of non-maturing liabilities. Liquidity risk emerges as a consequence of uncertainty in terms of future cash inflows and outflows. Due to the fact, that result of a liquidity crisis is not only loss, but directly bankruptcy of financial institutions, liquidity risk belongs among major banking risks. This paper aims to project future cash outflows emerging from corporate deposit accounts without contractual maturity with a focus on stress outflows, in case of crisis. Bootstrap simulation techniques are introduced and performed on anonymized historical time series of cumulative corporate balances of Slovak commercial banks. Stress scenario based on analysis is proposed as entry to the calculation of broader liquidity Survival period indicator.

COVID-19 Research Streams Emerging in International Financial Reporting Standards Related Studies

Author(s): Marcia R.C. Santos,Rui Dias,Paula Heliodoro,Paulo Alexandre / Language(s): English Publication Year: 0

Interpretation for the adoption of the International Financial Reporting Standards (IFRS) became to be challenging for organizations. Over time, these standards are changed to accommodate the improvements identified in accounting rules. COVID-19 pandemic impacted accounting reporting considering that contingencies and risks arising from this health crisis should be reported to stakeholders. In order to provide empirical evidence of the most important COVID-19 related practical and academic issues and challenges addressed by academics when reporting under IFRS, this study applies an automated computer-aided analysis for clustering the bibliometric data published concerning IFRS and COVID-19. The results support academic studies and practitioners by identifying the COVID-19 research streams that received the most attention in 2020. This study also suggests guidelines for future research that derive from past academic contributions.

International Accounting Standards Board: An Examination of the Main Financial and Accounting Topics Addressed in the Literature Related to the COVID-19 Pandemic

Author(s): Marcia R.C. Santos,Paulo Alexandre,Paula Heliodoro,Rui Dias / Language(s): English Publication Year: 0

Changing Perspectives: An Employer’s Branding as a Communication Tool during the COVID-19 Pandemic

Author(s): Tina Tomažič,Anita Kovačič Čelofiga / Language(s): English Publication Year: 0

Many companies and organizations in the labor market are facing “War for talents”. In order to acquire new, and retain existing employees, and, at the same time, to be considered the best employer on the market, more and more organizations are building and managing their own brand of employer. The employer’s branding is most often associated with the activities of Marketing and Human Resources management experts; but, in practice, it often turns out that in the process, an indispensable partner in building the employer’s branding is ignored, i.e. communication experts. Therefore, in this article, we defend the position that employer branding is also a communication skill, which, however, needs to be adapted to the current situation in these turbulent times associated with the COVID-19 pandemic. This includes digitizing and adapting employer branding communication to both the needs of target groups and the requirements of digital processes. Therefore, the paper examined the societal change in work norms caused by the COVID-19 pandemic, to contribute to a more successful and efficient branding of the modern employer as a form of strategic communication in both the virtual and hybrid work environments.

Marketing Manipulation in the 21st Century

Author(s): Tina Vukasović,Kristina Ljubičić / Language(s): English Publication Year: 0

The research assessed aspects of manipulative advertising, their execution, and expected impacts on consumer behavior in general regarding any purchase of a product or service worldwide. The research aims to guide quantitative consumer perception research through carefully designed and efficiently conducted research. The analysis of the collected primary data revealed that manipulation in marketing is very common and that it appears at every step and thus began to be one of the main players when creating marketing ads. Furthermore, respondents expressed concern about manipulative advertising of food brands and preferred that this advertising was often practiced on services as well. Research has proven that there is a largely hidden manipulation that at first glance is not immediately noticeable and is hidden in consumers primarily evokes the emotions of the need for the product, the desire to do the same, and ultimately the purchase.

Negative Migration Balance as an Indicator of Regional Political System Sustainability before and during the COVID-19 Pandemic (The Case Study of the Trans-Baikal Territory).

Author(s): Yulia Matafonova,Tatyana Gordeeva / Language(s): English Publication Year: 0

The article deals with the impact of the COVID-19 pandemic on indicators of migration outflow from the Trans-Baikal Territory and interpretation of the results obtained based on the authors’ theoretical provisions concerning the sustainability of a regional political system (a constituent entity of a federal state). The analysis of theoretical approaches to sustainability of the political system allowed us to formulate the essence of the sustainability towards the regional political system operating within the framework of the federal organization of political and territorial space of the state. The analysis of migration processes and comparison of the results of the similar periods (before the COVID-19 pandemic and during the pandemic) revealed a general trend of non-decreasing migration outflow of the population from the Trans-Baikal Territory. The restrictive conditions of the COVID-19 pandemic had little impact on the quantitative indicators of migration in the Trans-Baikal Territory, without reducing negative migration balance. The obtained results allowed us to conclude that the regional po¬litical system is unstable – it is unable to create comfortable and attractive living conditions for the regional community.

The Use of Liquefied Petroleum Gas (LPG) in the Republic of North Macedonia as a Sustainable Alternative Fuel: Regulation, Condition and Market Participants

Author(s): Serjoza Markov / Language(s): English Publication Year: 0

First and foremost, the main inspiration for a specific issue in this paper is the use of the Liquefied Petroleum Gas – „LPG“ as а sustainable alternative fuel for transport in the Republic of North Macedonia. The questions that arise as a basis are: finding the reason why the progress in usage of alternative fuels is still slow and insufficient in the country and what are the advantages of the „LPG“ as most available fuel of this type, including the reduction of harmful CO2 emissions- as the most important benefit. By summarizing in one place all the theoretical and empirical aspects, we are finding the answer by analyzing the legal framework, the condition and the participants in the market of oil and oil derivatives in the country for the analyzed period of three years (2017-2019). The results and conclusions of the research shall be achieved via comprehensive analysis, and by finding the answers to the posed questions through the: theoretical analysis, the inductive and deductive methods, as well as description methods, whereas the techniques utilized shall be questionnaires, interviews, observations. The goal is achieved through: elaboration of legislation in the Republic of North Macedonia, emphasizing benefits of the LPG as alternative fuel and determination of the obstacles for its usage.