Aleksandra Praščević and Milutin Ješić
The influence of energy prices on macroeconomic stability is analyzed in this paper. Energy prices represent significant supply-side shocks, which have been leading cyclical fluctuation triggers through economic history. The analysis includes the countries that were the members of the former SFRY, as well as the countries the members of the Višegrad Group. The indicators under observation are presented for the EU27 for the purposes of comparison. In accordance with economic theory, the main conclusion of the paper is that supply-side shocks can be a significant source of cyclical fluctuations and an inflation trigger. Therefore, policymakers have a complex task to minimize the effects of these shocks. Nowadays, when energy prices are reaching historically high levels, the scientific contribution of supply-side shocks can be found in the deep analysis and well-grounded estimations of the role of those shocks in the preservation of macroeconomic stability and the economic policy measures necessary for the minimization of their negative effects.
Mirjana Gligorić Matić and Biljana Jovanović Gavrilović
In this paper, the quantitative aspect of economic growth, i.e. its dynamics, is dealt with. Although it is common to observe the growth rate (intensity) when analyzing the growth dynamics of countries while neglecting growth variability, the fact that covering fluctuations in growth rates has clear motivation and practical significance is presented. On a sample of European countries, including Serbia, growth intensity and stability are analyzed in the paper in order to construct a growth dynamics indicator and an adjusted growth rate based upon these two components. Based upon the two constructed indicators, the position of each country in the sample and in the region (Western and Eastern Europe) which they belong to is analyzed. The detailed analysis and results indicate the importance of this approach when analyzing and comparing the economic growth of individual countries in the medium term and in the long term and when assessing effects on future economic growth and wellbeing.
Henry Emife Monye-Emina1 and Edirin Jeroh2
This study essentially examines the audit effort as a possible determinant of the abnormal audit fees evinced in International Financial Reporting Standards-based financial statements. Therefore, the secondary data were sourced from the audited annual reports and the relevant financial statements of the Nigerian listed banks for the period of observation (2010-2019). An analysis was performed using the relevant techniques that include descriptive statistics, the correlation matrix and panel regression. The findings showed that the IFRS, the client complexity (CPX) and the client size (SIZ) were negatively correlated with abnormal audit fees (ABFEE), whereas joint audit (JAD) recorded a positive correlation with such abnormal audit fees. Lucidly, joint audit showed a stronger relationship with abnormal audit fees, whereas the client size showed a significant, but negative relationship with abnormal audit fees. Similarly, the fact that, with a probability value 0.9494, the relationship between ABFEE and the client complexity was not significant was noticed. Given these research outcomes, it can be concluded that abnormal audit fees are primarily motivated by extra or unexplained audit efforts and the costs associated with them. It is, therefore, recommended that, proportionately with the service(s) rendered, accounting professional bodies should review, harmonize and tactically institute a limit for professional charges through the enforcement of regulated benchmarks for audit fees payable by clients.
Snezana Nestic1, Aleksandar Aleksic1, Jaime Gil Lafuente2 and Nikolina Ljepava3
Enhancing production and sale has a very significant effect on the competitive advantage of any production enterprise. In practice, especially in companies with highly diversified production, products have a different impact on generating revenue. Therefore, operational management pay attention to the products of the utmost importance. The Pareto analysis is the most broadly used product classification method. It can be said that the results obtained by this analysis are still very burdened by decision-makers’ subjective attitudes. This paper proposes a model for selecting products with the biggest impact on generating revenue in an exact way. In the model’s first stage, whether there is a linear relationship between volume demand and a discounted amount is analyzed applying mathematical statistics methods. In the second stage, the Genetic Algorithm (GA) method is proposed so as to obtain a near-optimal set of the most important products. The proposed model is shown to be a useful and effective assessment tool for sales and operational management in a production enterprise.
Khushboo Gupta1, Venkata Ramana Thanikella2, Omkar Singh Deol3 and Kanishka Gupta4
The objective of the current paper is to study the relationship between company financial factors, macroeconomic factors and the market measures of risk of the Consumer Goods Sector of the Indian economy. Systematic, unsystematic and total risks are the measures of the risk used. Dynamic panel data regression techniques have been applied to the data of the companies comprising the S&P BSE FMCG index of the Bombay Stock Exchange (BSE) of India. The time frame established for the study is the period from 2011 to 2020. The results show that on average 89.6 percent of total risk is attributable to the unsystematic portion, whereas the rest is attributable to the systematic portion. Furthermore, both the financial variables and macroeconomic variables can be used to gauge the risk related to investments. Moreover, marketing personnel may justify their expenditure that builds their brand value as these efforts will reduce the risk for investors and increase their wealth. The results of this study are especially useful for business managers, as well as investors, helping them to understand risk and the factors contributing to it, which may provide useful insights regarding cost-of-capital and value-of-firm calculations.
Nada Trivić1 and Bojana Todić2
The theoretical model of a perfectly competitive market leads to the efficient allocation of resources, and one of the assumptions of that model is complete information of market participants. In reality, however, market participants are usually asymmetrically informed. The goal of this analysis is to point out the fact that asymmetric information is almost ubiquitous, and also to point out the consequences of asymmetric information and the possibility of their elimination or mitigation. In addition, the research aim also reflects in achieving a theoretical confirmation of the presence of such asymmetric information and its consequences on the labor market as well, and in an attempt to mathematically formalize such markets, especially the labor market, by modeling the method of calculating wages and the employer’s objective function as an opportunity to overcome the principal-agent problem. The precisely defined research goals determined the structure of the paper, as well as the methodological tools. In order to test and prove the defined research hypotheses in this study and to realize the defined research goals of the study, the methods of theoretical analysis, abstraction, comparison, concretization, generalization, and critical evaluation are used.
Vallari Chandna
Temporary organizations take on numerous forms and can be found within and across traditional organizational forms. With the rise of remote work, born-global organizations and collaborative work, temporary organizations are becoming more prevalent. They are playing critical roles in a host of situations and organizational leaders need to better understand the phenomena so as to be able to navigate and utilize them correctly. In this paper, a conceptual model intended to understand how temporary organizations partially embedded in multiple parent organizations are being faced with unique identity issues is proposed. The individuals involved with such boundary spanning temporary organizations have identity issues due to their multiple identities being at odds with each other. Using the theories of temporary organizational forms and the social identity, the given conceptual framework shows that the dilemmas related to multiple identities can be resolved by: buffering and ordering identities, self-selecting into temporary organizational forms, and acknowledging such multiple identities and allowing them to simultaneously be salient. Additionally, the consequences of a lack of resolution are explored, including reduced group cohesion, lower performance and the unethical behavior on the part of the pro-parent organization.
Maria Rio Rita, Yeterina Widi Nugrahanti and Ari Budi Kristanto
This study aims to examine whether Peer-to-Peer (P2P) lending, financial bootstrapping and government support affect the performance of Micro, Small, and Medium-sized Enterprises (MSMEs) by adding a mediating variable in the form of innovation. Innovation mediation is expected to be able to optimize the influence of government funding and incentives towards improving business performance. This study used an SEM-PLS analysis technique. The study samples were the MSMEs located in the city of Salatiga – Central Java, Indonesia. The results showed that P2P lending and financial bootstrapping had a positive effect on business performance and innovation. While government support had a positive effect on innovation, on the one hand, it had no effect on business performance, on the other. Innovation itself is proven to have an influence on business performance. This study also finds that innovation mediates the effect of P2P lending on business performance, facilitates the effect of financial bootstrapping on business performance and reconciles the effect of government support on business performance.
Aleksandra Bošković
In the digitalization era, traditional organizational success factors have been called into question, so it is necessary to reconsider the established work patterns and find new ways to create sustainable value. Given the fact that, as bearers of knowledge, people are the key drivers of value, it is important to explore possible ways to improve their potential. The research study carried out in this paper is aimed showing that autonomy contributes to the development of employee engagement in the digital environment, especially so in remote working conditions. In that sense, the concept of employee engagement was explained, as a state of high vigor, dedication and absorption. Possible ways to improve engagement through increasing autonomy are pointed out as well. The empirical research has confirmed that autonomy has a positive effect on vigor and dedication as the engagement dimensions. The impact autonomy exerts on vigor is stronger in the employees working remotely in comparison with those who do not work remotely.
Lich Khac Hoang1, Binh Tan Cao2, Kim My Le2 and Dung Thi Thuy Nguyen2
This paper examines the impact of taxes on the economic growth based on classifying countries by GDP per capita and a tax burden. The Partitioning Around Medoids (PAM) technique is used because it is not too sensitive to outliers. Through this multicriteria classification technique, the Generalized Method of Moments (GMM) is employed to analyze the data of the three groups consisting of 63 countries from 2003 to 2017. The results show that most taxes have a positive impact on economic growth in poor countries (Group 1). Interestingly, taxes on goods and services promote economic growth in rich countries (Group 3), rather than having a negative effect, as is concluded by some previous studies. Specially, while the property tax has a negative effect on economic growth in rich countries, its impact is significantly positive in poor countries.