rss_2.0Financial Internet Quarterly FeedSciendo RSS Feed for Financial Internet Quarterlyhttps://sciendo.com/journal/FIQFhttps://www.sciendo.comFinancial Internet Quarterly 's Coverhttps://sciendo-parsed-data-feed.s3.eu-central-1.amazonaws.com/6009898065bc035eda944cd1/cover-image.jpg?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Date=20220811T014527Z&X-Amz-SignedHeaders=host&X-Amz-Expires=604800&X-Amz-Credential=AKIA6AP2G7AKP25APDM2%2F20220811%2Feu-central-1%2Fs3%2Faws4_request&X-Amz-Signature=6f020d9f146e44c8f235872f445c3a3bee83de1a977cfdf322a21ee142b5a79d200300The Relationship Between CFO Qualifications and Internal Control Weaknesshttps://sciendo.com/article/10.2478/fiqf-2022-0010<abstract> <title style='display:none'>Abstract</title> <p>This study explores the relationship between CFO qualifications and a firm’s internal control weakness (ICWs). We use three measures for CFO competence: financial/accounting background, seniority, and education. Using a sample of Taiwanese listed firms from 2012 to 2015, the results of this study show a negative relationship between CFO financial/accounting background and seniority with internal control weakness, indicating firms with higher quality CFOs experience a lower number of ICWs. CFO education level, however, is not related with a firm’s internal control weakness. The results imply that capable CFOs can effectively implement a good internal system. The result of this study provides practical and policy implications.</p> </abstract>ARTICLE2022-07-11T00:00:00.000+00:00Are Bankruptcy Models Adequate for Condition Assessment of Companies Listed on Warsaw Stock Exchange?https://sciendo.com/article/10.2478/fiqf-2022-0008<abstract> <title style='display:none'>Abstract</title> <p>The goal of this paper is to present early warning models used in the process of bankruptcy recognition that should meet the terms of good economic condition. Economic condition of a company on a capital market is good when the goal of the business is achieved, namely the increase in value, that occurs with the increase in earnings per share. The results show that the higher scores in a discriminant model, the lower the EPS growth rate. Correlation and linear regression models are applied on a group of observations from companies listed on Warsaw Stock Exchange.</p> </abstract>ARTICLE2022-07-11T00:00:00.000+00:00Mutual Funds’ Cost Persistencehttps://sciendo.com/article/10.2478/fiqf-2022-0009<abstract> <title style='display:none'>Abstract</title> <p>The research aimed to check whether investment fund managers maintain costs similarly from period to period. The research verified the hypothesis that managers maintain costs in the subsequent periods at a similar level. The study used a method based on contingency tables which are used to analyse the persistence of performance. In this study, we replaced performance with costs, assuming that managers also control these values. Costs were defined as: (1) total costs, (2) total costs minus management fees and (3) active management costs (expressed as the active expense ratio). Based on the results obtained, it should be stated that managers maintain costs at a similar level from period to period in the case of the split using the median. On the other hand, the results indicate that the costs were not maintained at a similar level in subsequent periods when broken down into quartiles. Considering the detailed results for funds divided into quartiles, it is clearly visible that most managers keep the costs close to the average value. Less frequently, costs from period to period are changed to be allocated to the extreme quartiles.</p> </abstract>ARTICLE2022-07-11T00:00:00.000+00:00Estonia and Kazakhstan. Financial and Economic Fate of Economies After the Collapse of the USSRhttps://sciendo.com/article/10.2478/fiqf-2022-0014<abstract> <title style='display:none'>Abstract</title> <p>The collapse of the USSR significantly affected the economic and political situation of all the republics which gained sovereignty as a result. Among them were countries such as Estonia and Kazakhstan. This article considers whether these countries have coped with the new political conditions. Using known economic indicators, a comparison was made of the economic and financial situation of both countries, pointing to the potential causes of diversification of their socio-economic development. Currently, Estonia is considered the most developed country of the 15 former members of the USSR, and Kazakhstan is in 5th place. The research carried out in this paper shows that the current economy of Kazakhstan is clearly moving away from that Estonia needs radical measures to achieve economic acceleration. The authors, analyzing the strategic activity of Estonia and Kazakhstan and the independence of financial management, concluded that these have had a significant impact on the current state of economic and financial development of the countries in question.</p> </abstract>ARTICLE2022-07-11T00:00:00.000+00:00Financial Literacy and New Business Entryhttps://sciendo.com/article/10.2478/fiqf-2022-0012<abstract> <title style='display:none'>Abstract</title> <p>The issue of the relationship between financial literacy and entrepreneurship is still not a fully explored research area. On the one hand, there are common views that financial literacy and education in finance are necessary in every individual’s life, and that an insufficient level of financial literacy may result in erroneous economic decisions. On the other hand, research on the impact of narrowly defined financial literacy on business start-up decisions is still rare. As a result, there are no clear indications regarding the need for education in the area of finance in order to stimulate entrepreneurial decisions, including the survival of launched economic undertakings. This article deals with the relationship between financial literacy and chosen entrepreneurial aspects such as 1) Phases of Entrepreneurial Activity; 2) Entrepreneurial potential; 3) Motivation; 4) Involvement in the technology sector; and 5) Business exit reasons. All of the above aspects are embedded in the context of financial literacy. The article sheds light on the relationship between financial literacy and entrepreneurship and creates a background for further attempts to deepen understanding of this issue.</p> </abstract>ARTICLE2022-07-11T00:00:00.000+00:00Household Fuel Choice in Urban Kenya: A Multinomial Logit Analysishttps://sciendo.com/article/10.2478/fiqf-2022-0011<abstract> <title style='display:none'>Abstract</title> <p>This study applied a logistic regression model to determine the odds ratio of selecting clean versus unclean energy as the main household fuel choice. This study also undertook to establish the coefficients of the factors determining household fuel energy choice. A large microeconomic dataset from KIPPRA’s comprehensive study and analysis on fuel use patterns in Kenya (2010) was employed to carry out the analysis. This study employed a multinomial logit regression model to determine the fuel choices and patterns of cooking fuels in urban Kenyan households. The results showed that in addition to income, there are several socio-demographic factors such as education, gender, and age that were important in determining household fuel choice. To encourage clean fuel use, the authorities should carry out public education campaigns, and ensure the availability of these fuels in all areas to avoid harmful effects of biomass fuels and kerosene, and more modern and efficient appliances should be made available at affordable rates to ensure more efficient use of these forms of clean energy.</p> </abstract>ARTICLE2022-07-11T00:00:00.000+00:00The Role of Customs Procedures in Reduction of Maintenance, Repair and Overhaul Costs in the Aviation Industryhttps://sciendo.com/article/10.2478/fiqf-2022-0013<abstract> <title style='display:none'>Abstract</title> <p>Scope of the article will cover analysis of special customs procedures and other facilitations that can be used in MRO business. The two research questions that are answered in the paper are: what customs procedures can be used, how they work and if those can reduce costs of MRO operations significantly. There are two research methodological approaches used in this article: qualitative and quantitative. Results show a great difference in savings between two variants, in which one would present a very basic level of special customs procedures usage and a variant in which all presented possibilities would be applied. Research results showed many possibilities for changes in the customs strategy of a company interested in evolving it and generating savings from many facilitations due to usage of special customs procedures as well as a compact explanation of how the application of a special procedures process looks. This article may be interesting for both: scientists and specialists working in the field of customs as well as for the companies working internationally with a lot of imported materials needed to perform work on an engine or aircraft. The authors’ conclusion is that even small companies might learn a lot from the analysis given in this article, due to the fact that the knowledge gathered here can give a greater understanding of customs knowledge presented in this article, combined with knowledge about other taxes will give an extraordinary advantage on the market for companies in MRO, or a similar industry.</p> </abstract>ARTICLE2022-07-11T00:00:00.000+00:00Comparative analysis of the contribution to the united nations sustainable development goals through non-financial information disclosed by IBEX 35 companieshttps://sciendo.com/article/10.2478/fiqf-2022-0002<abstract> <title style='display:none'>Abstract</title> <p>The purpose of this research is to examine the non-financial key performance indicators contemplated in Directive 2014/95/EU through the prism of the Sustainable Development Goals (SDGs). To do this, the presence of the indicators contemplated in the United Nations 2030 Agenda in the non-financial information disclosed by the groups of companies listed in the Spanish IBEX 35 index in the years 2017 and 2019 has been analyzed. The obtained results show an increase in the presence of SDGs in the non-financial reports of IBEX35 listed companies. Furthermore, the statistical analysis reveals that there are no significant differences in the number of SDGs incorporated as non-financial key performance indicators between the different business sectors. The methodology used in this research also constitutes a tool that can be used to learn about the implementation of social and environmental policies in other companies.</p> </abstract>ARTICLE2022-04-13T00:00:00.000+00:00The impact of IFRS adoption on foreign direct investment in CIShttps://sciendo.com/article/10.2478/fiqf-2022-0007<abstract> <title style='display:none'>Abstract</title> <p>Exploring the relationship between International Financial Reporting Standards (IFRS) and Foreign Direct Investment (FDI) inflows is the main objective of this paper. Although IFRS is identified as a determinant of FDI, a few studies have examined the impact of IFRS on FDI inflows, and it is unexplored as to whether IFRS impacts CIS countries. This paper covers ten (10) IFRS adopted CIS countries from 2000 to 2019 using Ordinary Least Square (OLS) and bias-corrected Least Square Dummy Variable (LSDVC). OLS estimator shows that IFRS positively impacts FDI inflows. However, according to the results of LSDVC, there is a negative relationship between IFRS adoption and FDI inflows. Generally, in developing countries implementing IFRS would lead to FDI enhancement. The negative relationship between IFRS adoption and FDI inflows in CIS countries shows that IFRS is not an essential factor of FDI inflows.</p> </abstract>ARTICLE2022-04-13T00:00:00.000+00:00How do dynamic financing decisions explain the behavior of dividend payout policies?https://sciendo.com/article/10.2478/fiqf-2022-0001<abstract> <title style='display:none'>Abstract</title> <p>The study investigates the factors that influence dividend payout policy in public Pakistani manufacturing companies throughout the timeframe 2010-20. Pooled OLS technique was used for regression purposes, as the majority of companies do not pay a dividend at all or do not do so regularly so all these firms were excluded from the final dataset. The study discovers that dividend payout in listed Pakistani manufacturing firms is significantly affected by ratio of short-debt, ratio of long-debt, ratio of total-debt, life cycle ratio and cash ratio. Similarly, short term debt ratio, ratio of long-debt and life cycle ratio, increase the dividend payout while cash ratio decreases the dividend distribution ratio for publically traded Pakistani manufacturing companies. The policymakers/financial advisors and decision-makers in listed Pakistani manufacturing firms should take into consideration factors such as debt financing, life cycle ratio, and cash ratio in making their dividend policies.</p> </abstract>ARTICLE2022-04-13T00:00:00.000+00:00Can we predict high growth firms with financial ratios?https://sciendo.com/article/10.2478/fiqf-2022-0006<abstract> <title style='display:none'>Abstract</title> <p>This study attempts to predict high growth firm (HGF) status with financial ratios. Measures related to the firm’s effectiveness in using assets to generate profits, EBITDA margin, debt ratio, equity-to-debt ratio and return on assets are associated with HGF status. While the financial ratios improve HGF prediction, prediction remains modest (AUC = 0.627). This study suggests it is difficult to assume a very good HGF forecast from only financial ratios; therefore, the recommendation for researchers and policymakers building models for predicting HGFs is to incorporate non-financial ratio variables, like the intangible innovation and team-related variables. Finally, study suggests a standardized reporting of prediction performance metrics in the out-of-sample and out-of-time simulation for HGF prediction studies.</p> </abstract>ARTICLE2022-04-13T00:00:00.000+00:00Cashless payment system and Covid-19 on the example of the Czech Republichttps://sciendo.com/article/10.2478/fiqf-2022-0003<abstract> <title style='display:none'>Abstract</title> <p>The paper deals with cashless payments during the pandemic situation caused by Covid-19. The aim of the paper will be to use the method of analysis and comparison of selected data to answer the following research question: Has the pandemic caused by Covid-19 contributed to increasing the share of non-cash payments? The authors base their research on the hypothesis that “the pandemic period had a significant impact on the development of cashless payments”. From the performed research, the authors came to the conclusion that based on the methods used, the established hypothesis was not confirmed and the answer to the research question had to be given in the negative.</p> </abstract>ARTICLE2022-04-13T00:00:00.000+00:00The impact of capital structure on bank performace in emerging markets; empirical evidence from GCC countrieshttps://sciendo.com/article/10.2478/fiqf-2022-0005<abstract> <title style='display:none'>Abstract</title> <p>The current literature is equivocal and provides inconsistent evidence about the relationship between firms’ performance and capital structure choices. This study adds the empirical evidence on association between capital structure and bank performance to this inconclusive debate. It uses the data of commercial conventional banks listed on various stock exchanges of six Gulf Cooperation Countries (GCC) i.e. Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The study uses unbalanced panel data of 50 banks operating in these countries during 2012 to 2017, having 299 bank year observations. ROA and ROE are used as performance variables, with total debt ratio as explanatory variables. Bank size, assets tangibility, earnings volatility, growth, GDP growth rate, and inflation rates are employed as control variables. Three regression techniques, pooled OLS, fixed effects and random effects estimations are used to explore the relationship. The results suggest leverage and the control variables have a substantial effect on the performance of banks but are distinctive in nature as per the banking industry compared to non-financial firms.</p> </abstract>ARTICLE2022-04-13T00:00:00.000+00:00The role of soft skills in employability in the financial industryhttps://sciendo.com/article/10.2478/fiqf-2022-0004<abstract> <title style='display:none'>Abstract</title> <p>The purpose of this article is to present and analyze the results of research on soft skills that increase employability in the financial sector. The article presents not only a diagnosis of the importance of soft skills in the banking and financial industry, but also indicates which soft skills may be poised to increase employability, which skills are lacking among new entrants in the job market of the banking and financial industry, and how soft skills training is perceived among industry participants. Finally, the importance of these variables in the banking and financial industry has been compared with their importance in other industries.</p> </abstract>ARTICLE2022-04-13T00:00:00.000+00:00The New Institutional Economics-Main Theorieshttps://sciendo.com/article/10.1515/fiqf-2016-0138<abstract><title style='display:none'>Abstract</title><p>The aim of this article is to show that the New Institutional Economics is an interdisciplinary stream combining economics, law, organization theory, political sciences, sociology, and anthropology. The main theories which are part of the New Institutional Economics are: Agency Theory, Property Rights Theory and Transaction Costs Theory. The basic assumptions of these theories are mentioned in this paper. This article is an introduction to the New Institutional Economics and its main theories. For this purpose, it presents a brief guide for those who are interested in the New Institutional Economics. Finally, the article is accompanied by a short review of examples of empirical studies connected with these theories.</p></abstract>ARTICLE2017-02-09T00:00:00.000+00:00Low Interest Rates do they Revise Household Saving Motives in the Euro Area?https://sciendo.com/article/10.1515/fiqf-2016-0135<abstract><title style='display:none'>Abstract</title><p>This paper presents the impact of decreasing MFI interest rates on household deposits and saving goals in 12 Monetary Union member countries in the years 2009-2015. It analyses tendencies in household deposits (overnight, with agreed maturity and redeemable at notice), and attempts to link them with certain household saving motives (target, retirement and precautionary). The paper identifies those deposit categories which appeared as sensitive to declining interest rates and indicates the Eurozone countries whose populations are expected to revise their savings plans. Precise implications are drawn for target saving motives of households in Austria, Cyprus and Malta. However, in the case of two other motives, the analysis does not conclude on the impact of decreasing MFI interest rates.</p></abstract>ARTICLE2017-02-09T00:00:00.000+00:00A Puzzle of Excessive Equity Risk Premium and the Case of Polandhttps://sciendo.com/article/10.1515/fiqf-2016-0131<abstract><title style='display:none'>Abstract</title><p>The article presents a historical review of the literature related to the empirical problem of excessive risk premium. The risk premium (the difference between the return on equities and risk-free rate) observed in financial markets cannot be reconciled with theoretical models of financial markets - it is too high (“excessive”). We present the original model from the seminal work of Mehra and Prescott (1985), where this problem has been signaled. The article gives an overview of the main trends in the literature concerning this problem, of the proposed solutions and of the extension to the model. Finally, we consider the problem in the Polish context, estimating the original Mehra-Prescott model using data from the Polish financial market.</p></abstract>ARTICLE2017-02-09T00:00:00.000+00:00The Dividend Policy of Real Estate Development Companies Listed on the WSE in Polandhttps://sciendo.com/article/10.1515/fiqf-2016-0137<abstract><title style='display:none'>Abstract</title><p>The aim of the article is to analyze and identify the dividend policy adopted by real estate development companies listed on the WSE. The first regular dividend paid by these entities was in 2007. Only 12% of real estate companies listed on the WSE regularly paid dividends. 48% of the surveyed companies declared that their priority is development and recommended - due to the significant investment needs, and to provide liquidity - leaving their profits in the company. In 40% of the development companies, decisions regarding the distribution of profits bear the markings of residual dividend policy. The economic situation in the construction industry, observed in 2007-2013, was an important factor influencing the financial situation of these companies resulting in dividend policy decisions. Most realtor companies have taken the decision to pay dividends in the years 2008 and 2011. This means that the situation in the previous year was an important factor influencing the decisions regarding the distribution of real estate development company profit.</p></abstract>ARTICLE2017-02-09T00:00:00.000+00:00Currency Competition in the Eurozone: An Answer to the Crisishttps://sciendo.com/article/10.1515/fiqf-2016-0132<abstract><title style='display:none'>Abstract</title><p>The common currency was created as a result of theoretical considerations regarding the functioning of optimum currency areas. This theory refers to a number of benefits as well as costs. It imposes a number of requirements that are necessary for the newly created structure to be considered optimum. The economies of Eurozone countries did not meet these requirements. In consequence, the present functioning of the Eurozone encounters many disturbances - the strong differentiation of the balance of payments is a significant example. The reforms initiated in the European Union and undertaken in response to the financial crisis encompassed the Eurozone countries, yet they only concern financial policy. The adopted strategy of action arouses questions as to its effectiveness. The aim of this article is to present one of the reasons for the Eurozone crisis and a proposal for changing the monetary policy, in particular the exchange rate. In view of this objective, the main hypothesis reads as follows: one of the methods of counteracting the crisis is to introduce currency competition within the Eurozone.</p></abstract>ARTICLE2017-02-09T00:00:00.000+00:00The Effects of Bankruptcy on the Predictability of Price Formation Processes on Warsaw’s Stock Markethttps://sciendo.com/article/10.1515/fiqf-2016-0134<abstract><title style='display:none'>Abstract</title><p>In this study we investigate how bankruptcy affects the market behaviour of prices of stocks on Warsaw’s Stock Exchange. As the behaviour of prices can be seen in a myriad of ways, we investigate a particular aspect of this behaviour, namely the predictability of these price formation processes. We approximate their predictability as the structural complexity of logarithmic returns. This method of analysing predictability of price formation processes using information theory follows closely the mathematical definition of predictability, and is equal to the degree to which redundancy is present in the time series describing stock returns. We use Shannon’s entropy rate (approximating Kolmogorov-Sinai entropy) to measure this redundancy, and estimate it using the Lempel-Ziv algorithm, computing it with a running window approach over the entire price history of 50 companies listed on the Warsaw market which have gone bankrupt in the last few years. This enables us not only to compare the differences between predictability of price formation processes before and after their filing for bankruptcy, but also to compare the changes in predictability over time, as well as divided into different categories of companies and bankruptcies. There exists a large body of research analysing the efficiency of the whole market and the predictability of price changes en large, but only a few detailed studies analysing the influence of external stimulion the efficiency of price formation processes. This study fills this gap in the knowledge of financial markets, and their response to extreme external events.</p></abstract>ARTICLE2017-02-09T00:00:00.000+00:00en-us-1