rss_2.0Financial Internet Quarterly FeedSciendo RSS Feed for Financial Internet Quarterly Internet Quarterly 's Cover effects of global risk indicators on the MSCI emerging markets index<abstract> <title style='display:none'>Abstract</title> <p>The rising uncertainty in financial markets in the last 40 years has led to the creation of new financial indices that will enable these uncertainties to be defined and measured. For this purpose, the first volatility index created was the VIX Index as an indicator of uncertainty in the stock markets, which was followed by the OVX Index as an indicator of uncertainty in the oil markets and the GVZ Index as an indicator of uncertainty in the gold markets. These volatility indicesare also called “global risk indicators”. The MSCI (Morgan Stanley Capital International) Emerging Markets Index, which is the dependent variable of the study, is an index that is frequently followed by fund and portfolio managers in international markets and used as a benchmark. Therefore, in this study, the relationship between the MSCI EM Index and the global risk indicators for the period 28.03.2011-25.03.2022 was examined by the Toda-Yamamoto Causality Test. Afterwards, impulse-response and variance decomposition tests were applied to the variables. As a result of the study, causality relationships from global risk indicators to the MSCI EM Index were determined.</p> </abstract>ARTICLE2022-09-30T00:00:00.000+00:00‘No poverty’ - sustainable development goals in the light of Polish statistics and social policy activities<abstract> <title style='display:none'>Abstract</title> <p>The purpose of this research is to examine the poverty phenomenon indicators in Poland through the prism of sustainable development. The subject of poverty and its consequences is often omitted in the discussion of sustainable development, or simplified only to social issues, yet it is an important aspect of economic development and implementation of Sustainable Development Goals (SDGs). The study will cover the problem of poverty in Poland, together with the assessment of the potential of implementation of sustainable development goals in terms of poverty eradication, as well as the issue of the impact of social policy activities on SDGs (named as ‘no poverty’) and household finances, both closely related to the risk of poverty. To achieve the aim of the study the authors use statistical data describing the issues of poverty and changes in this area in the period between 2010 and 2020 (or the most up-to-date data available) based on data from the Central Statistical Office in Poland.</p> </abstract>ARTICLE2022-09-30T00:00:00.000+00:00Net operating loss policies in Poland – a tool for tax neutrality and a firm’s antifragility<abstract> <title style='display:none'>Abstract</title> <p>The purpose of the article is to check the impact of Net Operating Loss Policies (NOL) for firms. Net Operating Loss Policies (NOL) are a central fiscal tool because they enable firms to be taxed on their average profitability over time. A complete NOL policy has 4 dimensions: a NOL carry-forward (1), carry-back (2), unlimited in time (3) and with the time value of money (4) taken into account. No country applies a complete NOL policy. To evaluate the impact of all dimensions of NOL policies, Polish firm data from 41 sectors from the BACH database over ten years, from 2011 to 2020, are analysed. The results show that the change observed in the effective tax rate is positive with a complete NOL policy. In such case, firms pay less CIT in total, showing that the state will earn less, but should get more stability from firms which will hoard more cash. More investments or firms with more equity could be reached, strengthening the state’s stability. The variance confirms such intuition, an earlier use of a full or almost full fiscal deficit logically means a higher effective tax rate in years to come (but less in gross terms).</p> </abstract>ARTICLE2022-09-30T00:00:00.000+00:00The impact of the COVID-19 pandemic on the personal finance - a comparative analysis of Poles and Slovaks<abstract> <title style='display:none'>Abstract</title> <p>The COVID-19 pandemic, due to its prevalence, has affected all spheres of socio-economic life, in particular household finances. The aim of the article is to present the impact of the pandemic on the financial situation of Poles and Slovaks who use robo-advisory services, including their financial behaviour and investments. The methodology of the article involves literature analysis, statistical data and the author’s own empirical survey. The empirical study aims to verify the research hypothesis: the COVID-19 pandemic influenced the personal finances of Poles and Slovaks who use robo-advice, although this impact was not the same in all areas of personal finance, nor in relation to investment plans after the pandemic. During the pandemic, most of the respondents had lower expenses, but in the future more than half of the respondents did not plan to change the amount of their expenses. Most of the surveyed people increased their savings during the pandemic. Poles more often admitted that they invested more during the pandemic, while more Slovaks than Poles invested the same amount during the pandemic. On the other hand, the Slovak respondents declared that after the pandemic they intend to invest greater sums than Poles indicated.</p> </abstract>ARTICLE2022-09-30T00:00:00.000+00:00Determinants of operational efficiency: the case of Saudi Banks<abstract> <title style='display:none'>Abstract</title> <p>The study determines the factors that can affect the operational efficiency of Saudi commercial banks. It uses the data of listed banks from the period 2010 to 2017. The panel data estimation technique of pooled ordinary least squares is used with random and fixed effects estimations to find the significant factors. Based on the Hausman test (1978) fixed effects estimation results are used for discussion. The operational efficiency of Saudi banks is influenced by the same factors highlighted for different economies, with a certain exception. Capital adequacy, profitability, and bank size have an adverse influence on operational efficiency. Contrary to this it is positively related to liquidity and asset quality. The results of the study will be useful for policymakers and bank managers to support the effective role of banks in the improvement of the financial sector which is also part of the Kingdom’s vision 2030 development plan.</p> </abstract>ARTICLE2022-09-30T00:00:00.000+00:00Working capital management efficiency: a study of certified firms from the EFQM excellence model<abstract> <title style='display:none'>Abstract</title> <p>Working capital management (WCM) plays an important role in a firm’s value, financial risk, and firm profitability. WCM requires continuous management to maintain a certain level of the numerous components of working capital (WC). The main aim of this study is to estimate the efficiency of WCM of certified firms from the European Foundation for Quality Management (EFQM) Excellence Model. The study also tests the speed to attain each firm’s target level of efficiency using industry norms as the target level of efficiency. The financial data of the Czech certified firms from the manufacturing sector was derived from the CRIBIS database from 2015 to 2020. The efficiency of WCM is measured by utilization index (UI), performance index (PI), and efficiency index (EI). The findings revealed that Gerresheimer Horsovsky Tyn Spol., Miele Technika, and Koyo Bearings Česká Republika efficiently managed WC, as their indexes are greater than 1. The number of efficient firms was the lowest in 2020 based on the year-wise comparison which means that the efficiency of WCM of the firms was severely affected by the coronavirus pandemic (COVID-19). All the β values are lower than one, which signifies that none of the selected firms outperform the manufacturing industry as a whole. The findings of the current research are useful to the management of the firms and recommends that they give importance to the different indexes of WCM and efficiently use the current assets to generate sales.</p> </abstract>ARTICLE2022-09-30T00:00:00.000+00:00What are the internal determinants of return on assets and equity of the energy sector in Turkey?<abstract> <title style='display:none'>Abstract</title> <p>The rapid transformations and developments experienced today have increased the importance of energy resources and sustainable energy. In this context, the success and profitability of the activities of companies engaged in energy production and distribution is an important topic. This study, which was carried out in such an environment, was aimed to determine the financial indicators that statistically significantly affect the return on assets (ROA) and equity (ROE) of companies that produce and distribute oil, gas and electricity in Turkey. In the context of the energy sector, ROA and ROE increase competitiveness and provide companies with an advantage in terms of financial success and sustainability of operations. Considering the increasing importance of energy, it is important to determine the internal factors that have an impact on the profitability of energy companies. The research was carried out on a sample of 16 companies operating in the Turkish energy sector and traded on Borsa Istanbul. A panel linear regression model was used to identify the strongest predictors of ROA and ROE. The study used fifteen ratios that are believed to impact ROA and ROE significantly. According to the results obtained, ROE is influenced by CSR (at the significance level of 10%), QR, LR, RTO, ITR, and TA, and ROA is influenced by RTO, CSR, LR, QR (10%), and PB.</p> </abstract>ARTICLE2022-09-30T00:00:00.000+00:00Economic and financial consequences of war in Ukraine: analysis of development scenarios<abstract> <title style='display:none'>Abstract</title> <p>The war affects the socio-economic state of Ukraine and is the cause of the deterioration of the economic situation of neighboring countries. Under such conditions, there is a need to carry out assessments of economic losses from the conduct of military operations and forecast the main economic indicators for the nearest period, taking into account the impact of the war. The purpose of the study is to calculate the losses to the economy, the destruction of residential facilities and critical infrastructure facilities in the first 100 days of the war, the assessment of the potential volume of the fall in GDP and the calculation of projected fiscal losses. The calculation of GDP reduction was based on the forecasts of the International Monetary Fund, the World Bank Group and the Government of Ukraine. The expected amount of GDP reduction is calculated using the GAP-analysis method, based on the forecasts made by these institutions in the prewar period, and the calculation of the level of GDP during the war. Based on the results of the conducted research, it was established that the economic losses from the war consist not only of the losses incurred and the reduction of GDP volumes, but also of the lost opportunities for development and unearned profits. In addition to the reduction in GDP, Ukraine’s losses are manifested in the increase in the level of public debt, the depreciation of the national currency, the reduction of gold and currency reserves, and the outflow of foreign direct investments<sup>3</sup>.</p> </abstract>ARTICLE2022-09-30T00:00:00.000+00:00The Relationship Between CFO Qualifications and Internal Control Weakness<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?<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 Persistence<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 USSR<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 Entry<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 Analysis<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 Industry<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 companies<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 CIS<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?<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?<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 Republic<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+00:00en-us-1