GIKA 2019 Chile

Issues

full text available abstract only
Volume 12 (2018) Volume 11 (2017) Volume 10 (2016) Volume 9 (2015) Volume 8 (2014) Volume 7 (2013) Volume 6 (2012) Volume 5 (2011) Volume 4 (2010) Volume 3 (2009) Volume 2 (2008) Volume 1 (2007)

Volume 12 Issue 1 (2018)

Statistical Properties of Rates of Return on Shares Listed on the German, French, and Polish Markets – a Comparative Study original article

pp. 5-16 | First published in 31 March 2018 | DOI:10.5709/ce.1897-9254.248

Wiesław Dębski, Ewa Feder-Sempach, Szymon Wójcik

Abstract

The financial market and its instruments are subject to numerous studies all over the world. Special attention is duly earned by the multifaceted research and analysis of the behavior of rates of return on shares, as well as shares’ other statistical properties including the beta parameter. Stock stability is considered by dividing the whole market into the bull and bear categories, and the rate of return is studied according to different frequencies of measurement. The purpose of this article is to examine the statistical properties of monthly rates of return for the biggest companies in terms of capitalization and turnover, which were listed on the stock exchange in Frankfurt, Paris, and Warsaw between 2005 and 2015. The basic descriptive statistics of the rates of return as well as the normality and stationarity of their time series undergo analysis. Moreover, hypotheses about equality of the expected value of the rate of return and its variance are subject to verification. This study is also conducted considering the division of the whole market into the bull and bear categories according to two definitions. The obtained results serve to conduct a comparative analysis of the three stock markets enumerated above. The results constitute an introduction to further and more advanced research on the beta parameter and its properties.

Keywords: rates of return of shares; statistical properties; normality and stationarity; equality of mean and variance; German, French and Polish markets

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License .

Selected micro- and macroeconomic conditions of wages, income and labor productivity in Poland and other European Union countries original article

pp. 17-32 | First published in 31 March 2018 | DOI:10.5709/ce.1897-9254.249

Dariusz Fatula

Abstract

The aim of the article is to identify and compare key factors affecting the level of labor productivity, wages, and income in the economies of the EU countries. Among different determinants, the following were considered: overall price level; compensation of employees; participation of the self-employed and their mixed income in GDP; annual hours worked per employer; labor participation rate, particularly before retirement (age 55-64); part-time employment rate, and the contribution of investments. Eurostat data and that of the OECD and the World Bank were used for calculations. The indicators of correlation and a grouping method were also applied. Four groups of countries with a similar level and impact of specific factors were distinguished. The most important conclusion coming from the research is the strong correlation of the relative price level, remunerations and the average worked hours with the labor productivity. Their influence differs slightly in case of the work efficiency figure per employee and the work efficiency figure per one hour worked. Other variables such as the proportion of professionally active people, especially those at the age of preretirement (55-64 yrs. old); the high proportion of part-time workers or the level of capital expenditure have a lesser but relatively strong correlation with the labor productivity of both the employee and the worked hour. Conclusions from the analysis may support the state policy in terms of forming minimum wages and indirect taxation influencing the overall price level and the level of investment in the economy. Such conclusions were formed as recommendations for countries with the lowest levels of work efficiency, remunerations and income. Restrictions to the application of this advice are political conditions, the employment structure in a given country and labor market elasticity.

Keywords: labor productivity, the level of prices, wages

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License .

Financial Sustainability Criteria and their testing in the conditions of the Slovak Non-Profit Sector original article

pp. 33-56 | First published in 31 March 2018 | DOI:10.5709/ce.1897-9254.250

Denisa Gajdová, Helena Majdúchová

Abstract

Socio-economic and political changes after November 1989 have strongly influenced Slovak society, with impacts being observed on almost all areas of economic, political, social and public life. Highly intensive development of the so-called “third sector” has been among these factors. A new legislation framework has been created. Non-profit organizations have become the state’s partners in the area of providing social services not secured by the state, and these organizations have strong economic and social power, influencing the development of the whole society. Today, financial sustainability is one of the fundamental problems in the non-profit sector. This problem has become more important due to foreign capital withdrawal by donors to non-profit organizations, primarily during the 1990s. National support from public sources is limited and is not sufficient for the functioning of non-profit organizations. In non-profit organizations, we emphasize the necessity of the diversity of financial resource structures, ensuring their independence, financial stability and sustainability from both short-term and long-term perspectives. The aim of this article is to establish key criteria for non-profit organizations’ financial sustainability, subsequently investigating these criteria’s dependence and the level of financial source acquisition in a selected sample of Slovak non-profit organizations. We assume that owing to these criteria, non-profit organisations (NPOs) could better formulate their financial strategies, diversify and stabilize their financial sources and transform this strategy into a long-term strategic plan to maintain and develop their entrepreneurial missions.

Keywords: non-profit organization, financial sustainability, criteria of financial sustainability, stability

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License .

Economic News and Household Decisions original article

pp. 57-68 | First published in 31 March 2018 | DOI:10.5709/ce.1897-9254.251

S. S. Vinokurov, A.A. Medved, L. A. Mierin

Abstract

This paper is devoted to the role of information context in the dynamics of consumption/savings decisions. The deviations from the traditional model of rational expectations are investigated, and the hypotheses of the «rational inattention» are tested. The basis for the study was a selection of news from the major Russian TV channels for 2006-2016. This news available to ordinary households in Russia was analyzed. News was defined as negative or positive with special program tools of sentiment analysis. It was found that increased uncertainty (the spread of positive and negative news) leads to the choice of consumption to the detriment of savings, which then reduces the investment base of the economy. The authors analyze the connection of the tonality of news and its changes with the real business cycle. The authors found that the information cycle with some lag correlated with the cycle in consumption/savings decisions in the Russian Federation. The authors conclude that the concept of rational inattention is more acceptable for this case. Based on the study, recommendations are offered for adjusting public policy.

Keywords: cycles, information imperfectness, bounded rationality

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License .

Quality improvement through foresight methodology as a direction to increase the effectiveness of an organization original article

pp. 69-80 | First published in 31 March 2018 | DOI:10.5709/ce.1897-9254.252

Marcin Olkiewicz

Abstract

The aim of this study was to show that quality improvement through foresight can be an instrument for shaping efficiency in an organization. The author of this article presented his own concept of quality improvement in an organization, which can also be a method for the strategic management and development of various aspects of the organization. The universality of the concept as a tool that is supported by the foresight methodology brings tangible results, as shown through “quality foresight” at the micro (unit) level. The case examined indicates that each organization should be analyzed individually while retaining the foresight methodology and process. The study also showed that the application of foresight determines the organizational, management and social changes that influence the innovativeness (including the diversification of technological processes and automation), production dynamics (increase by 260%), sales and quality in the organization. The presented research results indicate that “quality foresight” can potentially become a trend that includes the main strength of quality improvement, the improvement of competitiveness, and the productivity and efficiency in organization development.

Keywords: foresight, quality foresight, improvement, quality, efficiency

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License .

Fiscal policy implementation in Azerbaijan before, during and after the oil boom original article

pp. 81-94 | First published in 31 March 2018 | DOI:10.5709/ce.1897-9254.253

Khatai Aliyev, Ilkin Gasimov

Abstract

This study reviews Azerbaijan’s fiscal policy implementation and discusses its changes before, during and after the oil boom. Specifically, the period prior to 2005 is considered pre-boom, 2005-2014 is considered the oil boom and the years after 2014 are considered the post oil boom period. It is observed that the country’s fiscal policy was only slightly expansionary prior to the oil boom but highly expansionary during the oil boom. However, such expansion has not been sustainable due to being financed mostly by direct transfers from State Oil Fund of the Republic of Azerbaijan (SOFAZ) and taxes on the oil industry. As a result, the post oil boom period is characterized by contraction in the form of sharply decreasing public expenditures and initiatives to increase tax revenues, at least by preventing tax evasion. The expectations for the upcoming years include maintaining a contractionary policy by both decreasing budget expenditures and increasing tax rates or tightening measures against tax evasion. This study helps understand the current and near-term future fiscal policy challenges in Azerbaijan.

Keywords: Fiscal policy; budget expenditures; tax policy; oil boom; Azerbaijan

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License .

On the Cyclical Behavior of Fiscal Policy in Egypt original article

pp. 95-124 | First published in 31 March 2018 | DOI:10.5709/ce.1897-9254.254

Israa A. El Husseiny

Abstract

Optimal fiscal policy is expected to behave in a countercyclical manner to stabilize economies during business cycles. In particular, the public expenditure-to-GDP ratio should go up during recessions and down during expansions, while the public revenues-to-GDP ratio should move in the opposite direction. As a result, the budget deficit-to-GDP ratio should rise during recessions and decline during expansions. While this behavior of fiscal policy is common in most developed countries, the situation is different in developing nations where, due to several financial and institutional factors, a procyclical policy is more common. Using a time series dataset for the Egyptian economy during the period (1981/1982-2013/2014), this study provides empirical evidence that Egypt has not been able to conduct a countercyclical fiscal policy. In addition, the analysis provided by this study indicates that while several financial and credit factors might contribute to this behavior of fiscal policy in Egypt, the institutional and political economy factors seem to have the dominant role in this regard.

Keywords: fiscal policy, cyclical properties, business cycles, output gap, Egypt state’s general budget

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License .