Fan Yuxian, Yuan Xiaoling, He Songke
This paper represents a study on the dynamic influence of electricity investment on economic growth, which is based on the data from 1953 to 2012, by using the ADF test, the Granger test, the VAR model, the IRF (Impulse Response Function) model and the VEC model. In this research, other factors such as more fixed-asset investment and labor force are involved in the explanatory variables. The results are used to forecast the scenarios of economic growth on different electricity investment projects. The results indicated that electricity investment can strengthen economic growth in a short time when there is a steady equilibrium relationship in the long run. The positive impulse response of economic growth to electricity investment will last for four years. The contribution of electricity investment to economic development has been increasing year by year. The scenario analysis means that an S-shaped electricity investment is better than other investment projects in the promotion of economic growth.
Biljana Jovković
The independent auditor expresses his or her opinion on financial reports, whose primary role is to reduce the asymmetry of information between insurance companies’ management and the existing and potential investors. Through reducing the information risk of the presented financial reports, audit provides the safer making of investment decisions of the users of these reports. In order for this basic function of audit to realize, it is necessary that auditors should collect sufficient pieces of evidence by applying adequate and relevant examination techniques. The goal of this paper is to point at the specific position of audit when an insurance company is a client, and in this regard, at a need for the differentiation of the priorities of individual audit objectives as well as the necessity of the customization of the implemented evidencecollection techniques implemented in an audit engagement with an insurance company simultaneously respectfully referring to the prescribed ordinary procedures imposed by the professional regulation. In the paper, an attempt has been made to comprehensively analyze the effectiveness of individual evidencecollection techniques for the purpose of proving the achievement of each individual objective of the audit as well as their different applicability in the examination of certain balance-sheet positions in financial reports of insurance companies.
Milan Kostić
The concept of the relevant market is very important for the competition policy. The assessment of the market power of the economic entities operating on a relevant market depends on the market size. The relevant market has two dimensions – the production and the geographic ones – hence, there are a relevant product market and a relevant geographic market. The purpose of the paper is to show the possible ways of determining the relevant market boundaries, in an explicit and systematic way, by applying appropriate tests, and on the example of the specific Serbian market. In the paper, two important tests to determine the boundaries of the market have been applied: the Price Correlation Test and the Goods Physical Movement Test (the Elzinga-Hogarty test). The tests are very useful in situations where researchers only possess secondary data and want to determine the boundaries of the market based on them. The disadvantages of the tests, which of course exist, do not diminish their importance; therefore, they are very useful and recommended for determining the scope of the market.
Katja Crnogaj, Karin Širec
High-growth companies, gazelles, are responsible for stimulating economic growth and development through extreme growth rates (employment, income, assets, value-added etc.). Consequently, exploring highgrowth companies may offer valuable insights into promoting dynamic entrepreneurship in contemporary society. In this paper, we are examining high-growth companies and their socio-economic contribution through a company’s size, because the size dimension is an important characteristic affecting the level of employment and making important contributions to employment growth. Based on the national ranking of the 500 fastest-growing companies, based on the income statement data (sales growth in the 5-year period), we compare the gazelles with the average of all Slovenian companies. The findings provide evidence of the gazelles’ considerable contribution to employment and the creation of an added (new) value. Company growth can also be measured on the basis of other parameters and therefore, in one part of our analysis, we limit the use of the measures to the relative employment growth – the DaBeg index. The results have shown that the growth patterns among the companies are very heterogeneous and that innovative fast-growing companies make a valuable socio-economic contribution. As such, gazelles require effective supportive measures of government policies, aimed at encouraging and promoting growth-oriented entrepreneurship.
Nebojša Janićijević
In this paper, the causal relationship between certain dimensions of a national culture and certain organizational change strategies are analyzed. The paper uses two of the four dimensions of national culture, identified by G. Hofstede: the power distance and masculinity–femininity ones. On the other hand, the four organizational change strategies have been differentiated: the coercive strategy, the normative-reeducative strategy, the rational-empirical strategy and the creative strategy. The identified dimensions of national culture and the identified organizational change strategies differ from one another with respect to the same criteria: the distribution of power and task orientation versus people orientation. Based on this fact, it is possible to establish eight hypotheses about a causal relationship between certain types of national cultures and certain organizational change strategies.
Violeta Todorović
The functioning of banks in a deregulated and competitive market environment involves taking growing and complex business risks. Inadequate risk management on the part of bank managers leads to the emergence of problem banks and banking crises. Practically speaking, banking crises stand for an integral part of the development of banking systems in the modern business environment that can be characterized as complex, dynamic, heterogeneous and unpredictable. The negative effects of the bankruptcy of individual banks on the economic system require the timely establishment of adequate regulatory frameworks and undertaking interventionist measures for the rehabilitation of banking problems. The issue of managing banking crises, which has been discussed in the professional domestic and foreign literature for years, has been brought back into focus with the emergence of the global Subprime crisis. Therefore, the paper makes an attempt at a comprehensive analysis of the causes and ways of resolving banking crises. In addition to identifying the causes and substantial differences among the analyzed banking crises, the paper will review the relevance of the applied interventionist measures and the existing regulatory policies.
Darko B. Vuković
The identification and analysis of the indicators of regional competitiveness is the most important phase of the process of measuring competitiveness. However, prior to the measurements, it is necessary to determine whether there is a high correlation between the selected indicators or not. The aim of this paper is to determine whether there is a high correlation between the most important indicators of regional competitiveness or not. The subject of this paper are the indicators of competitiveness in Serbia’s regions, whose values are measured in the 2011-2013 period. For the indicators unrelated to each other or those having no logical mutual influence, no correlation was revealed. On the basis of these results, it turns out that there is a high correlation between the GDP of the region, the number of companies in the region, the number of employees, the extent of the cluster, investments in innovation and confidence in business institutions. The Pearson correlation coefficient statistical method has been used in the estimation. These data, whose measure cannot be achieved through quantitative measurement, have been obtained in the survey.
Danijela Tadić, Aleksandar Aleksić
In the last few decades, the concept of organizational resilience has been developed, and in that manner, it represents an adequate management method for enterprises operating in the conditions of the economic crisis. In this paper, the problem of organizational resilience factors prioritization (ORF) is considered, which represents the first step in the determining of improvement strategies. The ORF ranking is set up as a task of a multi-criterion optimization inclusive of qualitative variables. Management teams at the level of every company assess the relative importance of each pair of business processes and the preference of the ORF within each business process using predefined linguistic expressions. The modeling of linguistic expressions is based on the theory of fuzzy sets. The aggregated values of the considered variables are obtained by applying the fuzzy ordered weighted averaging operator. The vector of a combined ORF priority was determined by using the fuzzy Analytic Hierarchy Process. The proposed model is illustrated by an illustrative example where the used data is obtained from the process of small and medium enterprises (SMEs) operating in central Serbia. It is shown that the developed model is very suitable for making decisions on changing business strategies in order to increase organizational resilience.
Jasmina Bogićević
Due to the internationalization of business and frequent fluctuations in exchange rates, information about the impact of changes in exchange rates on individual companies’ and multinational groups’ financial position and profitability has become increasingly important. Data on the translation effects of both foreign currency transactions and foreign subsidiaries’ financial statements, a company’s exposure to different types of foreign exchange risks and taken currency hedging measures enable many users of accounting contents to obtain a better picture of an entity’s financial position and its profitability. The key issues relate to the choice of the exchange rate to be used in accounting data translation and the financial reporting presentation of translation effects. While the effects of the foreign subsidiaries’ financial statements translation can be shown in the balance sheet and the income statement, the effects of foreign currency transactions translation are incorporated in the income statement. This paper discusses the accounting aspects of the foreign currency transactions translation, an enterprise’s transactional exposure to a currency risk, and the use of financial derivative instruments to hedge against foreign exchange risk.
Vera Gligorijević, Petar Vasić
The aim of this paper is to contribute to the discussion about the impact human resources have on the process of economic development, especially the importance that the educational structure and individual business skills have in the informal economy modernization process and its integrations towards a formal economy. The educational structure of the employed in the informal sector was defined by classifying the workforce according to their education levels, and their individual business skills were determined by analyzing the techniques individuals used in the process of improving competitiveness. The analysis was based on the results of a survey research of the structural characteristics and spatial distribution of the informal economy in the Republic of Serbia conducted on a sample of 310 home-based businesses in 2011. The results have shown that the informally employed are as competitive as the formally employed, the educational structure of the informally employed depends on the type of community and the distance from the center; individual business skills depend on the gender structure of the business owner, apart from the type of community and its distance from the center (metropolitan areas).