rss_2.0Financial Internet Quarterly FeedSciendo RSS Feed for Financial Internet Quarterly Internet Quarterly Feed the COVID-19 shock influenced companies listed on the WSE and how they managed their liquidity<abstract><title style='display:none'>Abstract</title> <p>The aim of the article is to analyze the liquidity of non-financial companies listed on the Warsaw Stock Exchange. The article addresses the liquidity of the examined group against the background of the entire market and its relationship with debt, profitability, growth and the risk of bankruptcy, including in the context of the COVID-19 pandemic. The article examines the assertion that COVID-19 influenced the practice of aggressive liquidity management in terms of indebtedness, profitability, value creation, and risk of bankruptcy. The research revealed that public companies behaved differently than the entire sector by pursuing an aggressive management policy and that the pandemic caused an even greater decrease in the static liquidity ratios while cash conversion cycle (CCC) increased. In addition, the decline in EPS growth and the increase in Z-Score during the pandemic could mean that enterprises focused on reducing the risk of bankruptcy rather than maximizing value during the pandemic shock. Before the pandemic, CCC influenced DER, and during the pandemic, static indicators began to play a more important role in the financial strategies of the surveyed companies. The research results add to liquidity theory and its impact on shaping financial strategy, especially during a financial crisis. In addition, an analysis of the impact of liquidity on earnings per share (EPS) growth and Z-Score was conducted. They represent the creation of value and the assessment of the risk of bankruptcy, making this paper particularly insightful. The results obtained provide valuable guidance to decision-makers managing liquidity and debt in corporate finance.</p> </abstract>ARTICLEtrue of the payment discipline of trade-licence holders regarding social insurance contributions in the Slovak Republic<abstract><title style='display:none'>Abstract</title> <p>Guarantee of autonomy and stability of economic subjects from the government can be considered an important gauge of state security. Due to the financial, migration and energy crisis, we can observe a notable increase of social problems, which gives more importance to the policy for social security of the population. In this article we address the ongoing problem of an excessively high number of debts owed to the Slovak Social Insurance Agency in recent years. The social security system for trade-licence holders, its financing and the method of enforcement are briefly characterised. The development of the payment/non-payment of taxes and levies to the Social Insurance Agency is tracked against the background of legislative changes. In the conclusion, the ineffectiveness of selected legal provisions and processes of exacting taxes and social security contributions is evaluated in terms of their impact on the financial disciplines of trade-licence holders in the Slovak Republic. Severity of the deficit in money collected on social insurance poses a threat in several areas, such as providing social security to all citizens in some required quality as guaranteed by the government, or sustainability of the public finance which poses a risk for the whole economic security of the country.</p> </abstract>ARTICLEtrue pension products: A multidimensional approach<abstract><title style='display:none'>Abstract</title> <p>The study analyzes and assesses the economic and linguistic complexity of individual retirement products in Poland. For this purpose, an original multidimensional approach was used and various research methods were applied. We analyzed 75 out of 86 individual pension products (IKEs and IKZEs) offered in Poland in the first half of 2017, covering our analysis of nearly 90% of Poland’s market of individual pension products. We performed the nonparametric Spearman’s rank correlation analysis, we used hierarchical cluster analysis, analysis of variance, and a chi-square test to verify if there was a statistical relationship between the clusters and the type of financial provider and the type of individual pension product (IKE or IKZE). We also built also a map of the products that shows their economic and linguistic complexity. We find that high-fee products tend to have the most complex fee systems, suggesting that the complex fee system may be a strategy used by the providers of individual retirement products. Our results also indicate that individual retirement products are too complex for most individuals.</p> </abstract>ARTICLEtrue impact of website performance on business sales<abstract><title style='display:none'>Abstract</title> <p>In this study, we aimed to investigate the financial implications of website performance on restaurant visitor traffic. It is crucial to address the current challenges faced by the restaurant industry, such as decreasing diner numbers due to rising prices, which can have a negative impact on the financial results of companies. Recognizing the significance of maximizing profitability, especially for small businesses operating in a highly competitive industry, we sought to explore the potential of website performance as a driver of increased visitor traffic and daily menu sales. We conducted a two-month field experiment in which we measured morning website visits and daily lunch menu sales for a restaurant with a slower website and one with a quicker website. However, we did not find any statistically significant increase in visits to the restaurant as a result of improving the website’s speed. We conclude that there may be other ways to improve daily menu sales beyond website speed. The restaurant industry is highly competitive, and small businesses in particular need to carefully consider how to allocate their resources in order to maximize profitability. The results of our study suggest that investing in website redesign as a means of increasing visitor traffic may not be the most effective tactic for small restaurants. Our research highlights the importance of conducting experiments and gathering data to inform decision making, as it can help small businesses in the restaurant industry to make more informed choices about how to allocate their resources. By understanding the factors that do and do not impact sales, small restaurants can make more informed decisions and achieve their business goals.</p> </abstract>ARTICLEtrue interrelationship of working capital: The role of financial bootstraping and government support<abstract><title style='display:none'>Abstract</title> <p>This study aims to investigate the effects of financial bootstrapping and government support on working capital, as well as the moderating role of entrepreneurial orientation towards the impact of working capital on financial performance. The study was conducted on 260 MSME owners in the food and beverage sector in Semarang, Surakarta, and Salatiga, in Central Java Province, Indonesia. By using a Partial Least Squares-Structural Equation Modeling (PLS-SEM) analysis, the determinant effects and consequences of working capital were determined. The findings of this study indicate that financial bootstrapping and government support are proven to have a significant positive effect on working capital. Working capital has a significant positive effect on financial performance, but entrepreneurial orientation is not confirmed to moderate the effect of working capital on financial performance.</p> </abstract>ARTICLEtrue methodological approach to optimizing financial resources to increase the level of economic security in a dynamic external environment<abstract><title style='display:none'>Abstract</title> <p>The purpose of the article is to present a new approach to the optimal selection of financial resources to increase the level of economic security in a dynamic external environment. The scientific question arises as to which of the possible options is optimal, taking into account the dynamism of the external environment and security needs. The object of the study is the economic safety of industrial companies. The methodology is based on modern methods of system analysis, multi-criteria evaluation and paired comparison. The main result of the study is the proposed approach to assessing resource support for the implementation of a security mechanism, which, based on the actual limitations of human, organizational and financial resources at the disposal of most Ukrainian enterprises, can significantly improve the efficiency of their use without reducing the effectiveness of actions which are aimed at increasing competitiveness. The study has limitations, since it only takes into account the specifics of enterprises in the industrial sector of this economy, and therefore the options for financial resources are adjusted accordingly.</p> </abstract>ARTICLEtrue impact of the enterprise financial risk management function on financial performance in Bosnia and Herzegovina<abstract><title style='display:none'>Abstract</title> <p>Adequate enterprise financial risk management (EFRM) represents a leading competitive advantage of enterprises that determines market survival and business success in an uncertain global environment. Over time, EFRM has become a constituent part of integral business dealings of enterprises and one of the strategic functions of enterprise management. The main purpose of the paper is to explore the effects of the EFRM function/system on the financial performance of enterprises in Bosnia and Herzegovina (BiH). The basic source of data in the research was collected by means of a structured questionnaire. The target population in the research consists of large enterprises that have continuously operated in the territory of BiH (2013-2017). The selection of enterprises was made applying a random sampling method and contains 72 enterprises. Appropriate descriptive and inferential statistical methods were used in the data analysis and panel data analysis was used to assess effects of EFRM function on financial performance. The scientific contribution of the paper is reflected in the fact that the research is pioneering for Bosnia and Herzegovina with the analysis of effects of the EFRM function on enterprise financial performance (EFP). The results show that there are no systematic, statistically significant differences between large enterprises that engage in risk management (‘hedgers’) and enterprises that do not engage in risk management (‘non-hedgers’) in BiH.</p> </abstract>ARTICLEtrue Symbolism in Finance<abstract> <title style='display:none'>Abstract</title> <p>Colour symbolism plays an important role in everyday life and science. The subject is interdisciplinary and receives significant attention in the literature. It is increasingly entering the field of economics and finance. The authors are the first to research the connotations and symbolism of colours in finance. The following research aims to: identify and determine the meaning of colours in connection with the word “finance”, determine the popularity of the use of particular colours in relation to the word “finance”, and identify the most popular subject areas in the literature related to the most commonly used colour in finance. Bibliometric and textual analyses were adopted as research methods. The main research conclusions are as follows. Of the 14 colours examined, only green, blue, brown, black and white showed connotations accurately portrayed in the text. Apart from the colour black, the symbolism is universal and unambiguous. For black, the symbolism is twofold, with one of the meanings going back to historical times. The dominant colour is green. The main research areas pursued under “green finance” include investing in and financing environmentally friendly projects (including various types of technology), developing financial instruments to support environmentally friendly activities and supporting clean energy projects.</p> </abstract>ARTICLEtrue determinants of green finance and effect on the banking sector<abstract> <title style='display:none'>Abstract</title> <p>This study examines the prerequisites and challenges faced by local and foreign commercial banks in Türkiye in supporting green business initiatives. This study uses backward logistic regression analysis to identify variables affecting green financing practices using annual data from Turkish deposit banks from 2012 to 2021. This study addresses the growing interest in understanding the role of commercial banks in promoting green finance and contributes to the existing literature by revealing the current efforts of Turkish commercial banks in this area. The main findings show that factors influencing green financing practices are derivative financial assets, loans, tangible assets, equity capital, company size, female representation on boards, presence of audit committees and company experience. The study highlights the relationship between these factors and green financing methods adopted by depository banks. It is worth noting that the assets of these banks were built within the framework of green financing and practices such as green buildings, green loans and green bonds were introduced. In addition, the size and experience of custodian banks help influence their green financing practices. The findings provide a framework for policy makers, practitioners and academics who wish to gain a deeper understanding of the dynamics of Turkish financial institutions and green finance.</p> </abstract>ARTICLEtrue of public education expenditure efficiency across Lithuanian municipalities<abstract> <title style='display:none'>Abstract</title> <p>Efficiency of education expenditure is the ability to maximize the educational achievement given the resources invested. Although public education expenditure tends to increase, yet this does not necessarily guarantee high quality of education services. This study aims to assess public education expenditure efficiency of Lithuanian municipalities and to identify the factors explaining its variations. The study used data for 2013-2019 from 60 Lithuanian municipalities. Corrected Ordinary Least Squares method was employed for public education expenditure efficiency assessment and regression analysis was used to determine its influencing factors. Inputs included financial (public expenditure for education and maintenance) and nonfinancial (composition of teachers, occupied area, etc.) variables. Passing ratio of Lithuanian (national) language and math exams were used as efficiency outputs. The context variables represented environmental factors of educational achievements, such as number of business entities, users of social housing, libraries, and culture centres as well as municipalities’ overall financial autonomy. Results of the research are ambiguous. When assessed by the overall passing of the exams, the efficiency was high, scoring 86-90%. But when evaluated by passing exams with the highest scores, it did not even reach 40%. Two types of public expenditure were identified as the most influential factors - public expenditure for education with the negative trend, and municipality own financing with the positive influence on the public education expenditure efficiency. Such results support the decentralization of public education expenditure management and call for alternative output measures in the Lithuanian public education system.</p> </abstract>ARTICLEtrue dynamic relationship between BTC with BIST and NASDAQ indices<abstract> <title style='display:none'>Abstract</title> <p>The significance of digital investment has grown substantially, enabled by advancing technology, which provides digital monitoring of investment instruments. Consequently, analyzing these instruments has become imperative. In particular, investors are inclined to compare new investment opportunities with well-established global stock markets, seeking to capitalize on their advanced financial literacy. This study aims to employ econometric analysis to explore the dynamic relationship between Bitcoin and the BIST100 and NASDAQ 100 indices. The time frame for this investigation spans from January 1, 2017, to March 10, 2022. Stationarity was confirmed through unit root tests (ADF, PP, KPSS, ZA, FADF, and FFFFF ADF) for the subsequent utilization of Autoregressive Conditional Variance Models. Additionally, Generalized Autoregressive Conditional Variance and Dynamic Conditional Correlation Tests were conducted. Results from the Dynamic Conditional Correlation Test model revealed no statistically significant dynamic conditional correlation between Bitcoin and BIST 100. Conversely, a negative and significant dynamic conditional correlation emerged between Bitcoin and NASDAQ 100. Investors should not only monitor the market but also review academic studies before making investment decisions. In this regard, this study holds significant importance. The study is limited to the BTC, BIST, and NASDAQ indices. Researchers interested in the topic can increase the dataset to further enrich the study.</p> </abstract>ARTICLEtrue COVID-19 Affected Corporate Dividend Decisions: Novel Evidence from Emerging Countries<abstract> <title style='display:none'>Abstract</title> <p>The study aims to investigate the corporate dividend policy decisions in emerging countries during the COVID-19 pandemic. Our sample consists of 5,869 publicly listed firms from 29 emerging countries to explicate the observed trends in dividend policy during the pandemic. Logistic regressions are used to investigate the main factors that drive the propensity to change dividend payouts. Our analysis reveals that most firms opted to either increase or decrease their dividends, with a minority proportion deciding to maintain dividends. Notably, our findings demonstrate that firm profitability is the main driver of all types of dividend changes, except when firms opt to maintain or decrease dividends. Moreover, we find that when firms reduce dividends by over 70%, profitability emerges as a crucial determinant, thus bolstering the signaling hypothesis. The results are robust to sample size sensitivity and different levels of dividend changes. The findings of the study might have practical implications for corporate managers and policymakers in designing dividend decisions and policies under uncertain conditions. This research underscores the impact of the COVID-19 pandemic on corporate dividend policy in emerging countries and emphasizes the need to consider the level of dividend changes in exploring the dividend puzzle.</p> </abstract>ARTICLEtrue Volatility Prediction Using GARCH and LSTM Models<abstract> <title style='display:none'>Abstract</title> <p>This study aims to predict the ESG (environmental, social, and governance) return volatility based on ESG index data from 26 October 2017 and 31 March 2023 in the case of India. In this study, we utilized GARCH (Generalized Autoregressive Conditional Heteroskedasticity) and LSTM (Long Short-Term Memory) models for forecasting the return of ESG volatility and to evaluate the model’s suitability for prediction. The study’s findings demonstrate the GARCH effect inside the ESG return volatility data, indicating the occurrence of volatility in response to market fluctuations. This study provides insight concerning the suitability of models for volatility predictions. Moreover, based on the analysis of the return volatility of the ESG index, the GARCH model is more appropriate than the LSTM model.</p> </abstract>ARTICLEtrue capital vs. foreign capital new enterprise creation: the case of FDI in India<abstract> <title style='display:none'>Abstract</title> <p>The attempt of this paper is to find an empirical relationship between Foreign Direct Investment and New Firms (Paid up Capital) and Gross Capital Formation (proxy for business growth) and Credit to Commercial Sector and Gross Capital Formation using the test of stationarity (ADF, PP, and KPSS methods), Johansen Cointegration and Granger’s Causality. The results show that FDI crowds out creation of new firms and capital formation and it is the Credit flow to the commercial sector that causes Gross Capital Formation at current price. It shows domestic flow of credit is more influential in capital formation rather than foreign capital inflow.</p> </abstract>ARTICLEtrue in business fraud between state-owned and private companies: case of Croatia<abstract> <title style='display:none'>Abstract</title> <p>Fraud presents a serious problem and arising issue for all of society at national and global levels. According to global fraud research conducted by the Association of Certified Fraud Examiners, it is estimated that the average company loses about 5% of its annual revenue due to different types of business fraud. Total estimated annual fraud losses according to global ACFE research reaches about 4.7 trillion dollars. Business frauds also present an important issue for the Croatian economy, business community and society as a whole. Thereby, considerable attention should be given to this issue with the aim of raising awareness throughout society on fraud and its negative and destructive impact on all of society. The main purpose of this paper is to examine differences in fraud characteristics between state-owned and private companies in the Republic of Croatia. Research was based on data on business frauds obtained by the Association of Certified Fraud Examiners Croatia which included 124 respondents. Data were related to frauds that occurred in Croatian companies in 2021 and 2020. In this paper we focused on fraud characteristics such as fraud loss, type of fraud, fraud duration and methods of fraud detection in order to determine whether fraud in privately owned companies differs significantly from fraud in state-owned companies. Research results revealed how differences in fraud characteristics among privately and state-owned companies exist. Based on a sample of Croatian companies that were victims of fraud, it is noted how fraud in state-owned companies lasts longer and creates greater loses in comparison to fraud in private owned companies. Moreover, data related to estimated fraud loss and fraud duration were statistically significant in terms of differentiating these two groups of companies. Based on data on discriminatory variables a logistic regression model correctly classified 78.46% of companies in the group of companies that are privately or state-owned.</p> </abstract>ARTICLEtrue role of impartial administration in financial sector performance: A comparative study of Latin America and Sub-Saharan African countries<abstract> <title style='display:none'>Abstract</title> <p>Emerging nations are often distressed if their current administration and governance do not align with social and national needs. Among these worries, there is the fear of public funds misconduct and corruption in the nation’s major institutions. Indeed, inadequate administration results in embezzlement of funds, tax evasion, and low bureaucratic quality in all sectors. This study was undertaken to address the role of impartial administration specifically in the financial sector. The research considered a sample size composed of 12 countries from Latin America and Sub-Saharan Africa in the period of 2000 to 2021. The net interest margin was considered a proxy for financial performance measurement. Additionally, an ordinary least squares and quantile regression was performed to record the effect of the variables on financial sector performance. Within this context, the findings exhibited different outcomes for these regions. For instance, in the Latin America region, the results revealed that public sector theft, bureaucratic quality, corruption level, local government index, and inflation have a negative impact on the performance of the financial sector while impartial public administration demonstrated a positive impact on financial performance. On the other hand, the Sub-Saharan African region demonstrated that bureaucratic quality, local government index, and inflation have a significant and positive impact on financial performance, whereas executive embezzlement and theft, corruption level, and government final expenditures were shown to negatively influence financial performance. Finally, the study’s findings provides insights into the policies and strategies to implement in order to support the financial framework.</p> </abstract>ARTICLEtrue management team diversity impact on financial performance: Evidence from VW Group affiliated firms<abstract> <title style='display:none'>Abstract</title> <p>Diversity within top management teams (TMTs) has significant implications for firm financial performance, particularly in dynamic industries like the automotive sector. This paper analyzes the relationship between TMT diversity and financial outcomes in companies associated with the Volkswagen Group, operating in an intensely competitive market marked by technological advancements. This comprehensive paper synthesizes studies investigating the correlation between TMT diversity and financial performance within the automotive domain. Employing quantitative approaches, these studies assess demographic factors such as gender, age, ethnicity, and educational background. The analysis unveils distinct patterns of impact. Gender diversity within TMTs exhibits a positive influence on financial performance, with heightened profitability and increased market value being notable outcomes. Age diversity shows a nuanced trend, with moderate levels enhancing strategic decision-making capabilities and fostering innovation. Increased ethnic diversity within TMTs is associated with elevated innovation and overall firm performance. Furthermore, educational diversity within TMTs is found to bolster firm performance, underscoring its pivotal role in strategic decision-making and innovation. By offering a comprehensive synthesis of TMT diversity’s connection to financial performance within the Volkswagen Group’s context, this paper contributes novel perspectives. The study emphasizes the methodologies utilized, outlines key findings, and underscores the original contributions made by existing research. This study illuminates the profound influence of TMT diversity on shaping strategic decisions and fostering innovation in the automotive sector. Importantly, it highlights the crucial role of TMT diversity in driving positive financial outcomes.</p> </abstract>ARTICLEtrue assessment of the risk mitigating factors in Ghana’s Bank Industry<abstract> <title style='display:none'>Abstract</title> <p>To maintain financial stability, banks need to recognize, assess, and mitigate potential losses, thus making risk control critical for long-term profitability as well as avoiding unexpected losses. This research examines the risk mitigating factors and performance of Ghanaian domestic banks in terms of capital adequacy, bank size, bank efficiency, and profitability, along with their association with systemic risk in the bank sector, as measured by the Z-score: Insolvency Risk - (µROA) plus capital asset ratio (equity capital divided by sum of all assets further divided by the standard deviation-(ƠROA) with a higher score for banks as a measure of bank stability. The study further explores the relationship between this ratio and the explanatory variables for a sample of 11 banks operating in Ghana between 2010 and 2021. Analysis of the data using the fixed effects model shows that profitability and bank efficiency are significant and affect the stability of banks positively. Bank size, on the other hand, is significant but negatively affects the stability of banks. Bank profitability is critical to stabilizing and protecting the banking sector from external shocks; as a result, this study suggests that bank management apply prudent practices to profitability-driven indicators and that the banking sector regulations be congruent with macro-prudential policies.</p> </abstract>ARTICLEtrue assesment as a stage of risk management in enterprise in tourism sector<abstract> <title style='display:none'>Abstract</title> <p>Risk management is a complex process that requires company managers to have very good knowledge of its organizational structure on the one hand and on the other hand, in order to achieve a good management, it is necessary for the respective manager to have sufficient long-term experience during which the manager has monitored the processes of company management and its susceptibility and change under the influence of various factors. The overall risk management process goes through three main stages: identification of risks, analysis and assessment of risks and risk monitoring. Each stage is a compilation of complex procedures through which the problems and risks for the respective enterprise are determined and overcome. For this reason, the strictness, importance and significance of each stage cannot be accurately determined. Due to the limited scope of the article, the research is focused only on one of the main problems in risk management, namely the study of the standard deviation of the risk in the process of assessing and analyzing the risks in tourism sector enterprises. The article has the following structure: Introduction, References review, Methodology, Results and Discussion. Two hypotheses are presented for testing and research. Proving these two hypotheses through the application of the mathematical toolkit for risk assessment gives the innovativeness of the article and its authorial identity, which distinguishes it from other publications in the field of tourism sector. The obtained results of this article can serve the managers of tourism companies to improve their work in the management of hotels. The process of identifying, testing, evaluating and analyzing risks is complex, requiring managers to have sound knowledge of finance, accounting, economics and management. This article can provide them with guidance for solving specific problems and making managerial decisions about risk management.</p> </abstract>ARTICLEtrue in a foreign exchange market and solutions<abstract> <title style='display:none'>Abstract</title> <p>Exchange rate and its related risk management are too important for main participants in foreign exchange markets. There are many approaches developed in the literature for studying risk management say arbitrage detection, say finding replication portfolio. However, in the current paper, arbitrage opportunities are studied using the game theory perspective. This paper proposes different types of games played in a specified foreign exchange market in the presence of three exchange rates. Proposed games are exchange rate games in two cases of no arbitrage and existence of arbitrage, optimal stopping game, the arbitrage game, threshold strategies used in global game and Non-cooperative exchange rate game. Most of cases, the bang-bang rule of optimal control is used for finding the Nash equilibriums (NE). However, simulated and stochastic approximation (SA) solutions are also given. Most highlights of the current paper are: (I) considering two types of arbitrage opportunities, simultaneously, (II) translating arbitrage detection as game theory concepts, (III) solving the problem using techniques of optimal control theory. Finally concluding remarks are proposed.</p> </abstract>ARTICLEtrue