rss_2.0Studia Universitatis Babes-Bolyai Oeconomica FeedSciendo RSS Feed for Studia Universitatis Babes-Bolyai Oeconomica Universitatis Babes-Bolyai Oeconomica Feed Spillover and Volatility<abstract><title style='display:none'>Abstract</title> <p>This study investigates the spillover effects of ESG scores from companies operating in the same industry and their impact on stock return volatility. For this purpose, I considered a sample of European listed companies from 2019 to 2022. The results provide evidence of a spillover effect of ESG scores on the ESG ratings of other companies belonging to the same industry. Furthermore, I observed direct spillover effects of the individual Environmental, Social and Governance pillars, with similar magnitudes. I also found that stock return volatility is directly related to ESG scores, including spillover effects.</p> </abstract>ARTICLEtrue Communication as a Success Factor in Project Management in an Universitary Context<abstract> <title style='display:none'>Abstract</title> <p>This paper examines the effectiveness of communication of university students with high school students from all over the country. We look to provide a deeper understanding of how effective communication contributes to the success of a project in the sector of education and we identify some strategies that contribute to the improvement of some key aspects of communication. Thus, we have analyzed the importance of communication both inside and outside the team using three qualitative methods: project case study, document analysis and in-depth interviews with project participants. Our results are relevant for the potential new project participants, but also for the stakeholders in the public education sector in general, who aim to foster the bridge between university and pre-university education. We finally address conclusions and recommendations, which may serve as a guide for future participants and those who want to know how they can benefit from better communication in similar projects.</p> </abstract>ARTICLEtrue Determinants of Transfer Pricing Practices Among Romanian Publicly Traded Companies<abstract><title style='display:none'>Abstract</title> <p>This paper explores the effect of determinants shaping the landscape of transfer pricing practices within intra-group transactions among publicly traded companies in Romania over the period 2022. The research hypothesis focuses on identifying the variables that have a significant impact on transfer pricing in the Romanian business environment. Data collection was conducted manually from various sources, including explanatory notes from annual reports and databases such as Thomson Reuters and Bloomberg. The results reveal that the size of companies, sales, capitalization, foreign ownership, sales growth, and operational profit collectively contribute to the influence on transfer pricing practices. However, individual analysis shows that only sales significantly affect the transfer pricing practice.</p> </abstract>ARTICLEtrue of IFRS Adoption on Financial Statements Value Relevance. A Study of Eastern vs. Western European Countries<abstract><title style='display:none'>Abstract</title> <p>The implementation of IFRS has been a significant milestone in the accounting field, sparking debates among advocates and critics regarding whether the initial objectives were actually achieved in practice. This paper aims to investigate whether the adoption of IFRS has led to an increase in the value relevance of financial statements in both Eastern and Western European countries. The study takes an empirical approach, analyzing companies before and after the adoption of IFRS, and introduces contemporary concepts that can contribute to future research. Policymakers rely on evidence-based policies and often seek impartial and reliable evidence from academic researchers. Given the extensive body of research conducted thus far, this paper seeks to further emphasize the positive impact of IFRS implementation.</p> </abstract>ARTICLEtrue Macroeconomic Dynamics on Financial Markets and Economic Policy: A Cross Country Study for Spillover Effects<abstract><title style='display:none'>Abstract</title> <p>What is the direction and extent of the spillover effects of sovereign bond yields in the European Union and which countries are transmitters and receivers of these effects? The motivation for this research is related to the need to better understand the interconnectedness of European Union sovereign bond markets in the context of rising budget deficits and public debt, as well as recent financial and sovereign debt crises, which have highlighted the importance of bond market interdependencies. The main objective of the paper is to investigate the direction and magnitude of the spillover effects of sovereign bond yields in the European Union and to identify the states that act as transmitters and receivers of these effects. The data used in the analysis include the evolution of the bond markets of the euro area member states and non-monetary union states, to allow comparison and assessment of their interconnectivity. To analyse the interconnectedness of bond markets, methods which provide a suitable analysis framework to assess volatility propagation between countries were used. The research results highlight that most of the contagion effects are concentrated in the peripheral countries, such as Romania, Portugal, Lithuania and Ireland, and the central countries act as transmitters of these effects.</p> </abstract>ARTICLEtrue Impact of Governance Upon Sustainable Development. Empirical Evidence<abstract><title style='display:none'>Abstract</title> <p>This study assesses the effect of governance upon sustainable development. The trends of the Worldwide Governance Indicators (WGI) and the Sustainable Development Index (SDI) are analysed for the 2005 - 2021 period for 161 countries by using Pooled Ordinary Least Squares (OLS) estimations for panel data, the multiple regression modelling. The results emphasize the significant effect of regulatory quality, government effectiveness, political stability, rule of law, control of corruption and voice and accountability on SDI. The results of the research show that governance is a variable that should be taken into consideration for explaining sustainable development level each country may achieve. </p> </abstract>ARTICLEtrue Students’ Behavioral Biases in Regard to Financial Decision-Making<abstract><title style='display:none'>Abstract</title> <p>The purpose of this paper is to examine the factors influencing the appearance of biases in the behavior of university students. The studied biases are herding behavior, overconfidence, mental accounting, loss-aversion, anchoring and introspection. Three main assumptions were formulated, one regarding the relationship between the biases and financial knowledge, another related to the impact of gender, and the third one presuming a possible explanatory power of the Cognitive Reflection Test results in relation with the heuristics. The findings present evidence regarding the significant influencing power of financial knowledge on the behavior of university students from Cluj-Napoca, suggesting that this aspect could be a possible solution in order to diminish the negative effects of some of the behavioral biases examined. Besides the importance of financial knowledge, the results emphasis the explanatory power of gender when considering the errors of herding, overconfidence, mental accounting and loss-aversion, showing that men tend to be more influenced by these errors. The third assumption proved to be false, indicating that the performance of students at the Cognitive Reflection Test does not have a great impact on the presence of the examined biases. </p> </abstract>ARTICLEtrue Nexus Between Foreign Portfolio Diversification and Kinship<abstract><title style='display:none'>Abstract</title> <p>This study seeks to understand the effect of kinship tightness of a society on foreign portfolio diversification. Using data for 42 home investor countries and 44 destination countries for the period of 2004-2021, it is found that investors from more tight-knit kinship societies tend to have smaller proportion of equities invested abroad, thus holding sub-diversified portfolios. The enforcement of these tight kinship societies is based on shame and communal values fostering local monitoring practices which leads to the absence of cooperation and trust, thus reducing stock market participation. It is further shown that kinship tightness can be shaped by enhanced financial literacy, which in turn fosters international diversification. On the other hand, loose kinship societies can be viewed as trust-promoting alternative mechanisms where formal institutions are less effective. </p> </abstract>ARTICLEtrue Monetary Measures During the COVID-19 Pandemic: A Case Study for Central and Eastern European Countries<abstract><title style='display:none'>Abstract</title> <p>The COVID-19 pandemic had major negative repercussions on the countries from Central and Eastern Europe (CEE), which experienced almost similar declines in the economy in 2020. Against this background, central banks from CEE initiated unconventional monetary policy measures aimed at mitigating the economic and social effects of the pandemic. The purpose of this article is to analyse the CEE central banks’ response to the pandemic crisis, i.e., the response of the Czech Republic, Hungary, Poland, and Romania, and to unveil the particularities of the unconventional monetary policy adopted by these states. To achieve this goal, the article presents a chronology of the main decisions adopted by CEE central banks during the pandemic and the dynamics of these central banks’ assets. The main findings suggest that CEE monetary authorities, like major central banks, initiated the first measures to counter the negative effects of the pandemic on the economy in March 2020. All of them cut the key interest rate and injected liquidity through open market operations in order to support lending to the real economy. However, the magnitude of these measures was different depending on the economic and financial systems’ peculiarities. Moreover, not all of them initiated purchases of assets or new lending facilities. </p> </abstract>ARTICLEtrue Effects of Government Expenditure on the Output: A Real Business Cycle Analysis for the Romanian Economy<abstract><title style='display:none'>Abstract</title> <p>One of the most researched topics in macroeconomics is the development and implementation of Real Business Cycle models. This article presents a small Real Business Cycle model, which is built for the Romanian economy, with data from the 2<sup>nd</sup> quarter of 1995 through the 3<sup>rd</sup> quarter of 2022. The main aim of this analysis is to assess the historical influence of exogenous and government spending shocks on economic growth. In order to obtain accurate results, we implemented a Bayesian estimation technique for calculating the parameters of the model. The main findings indicate the significant exogenous shocks effect on the Romanian economy, and the way in which government spending had a positive effect on increasing economic growth for the period between the 1<sup>st</sup> quarter 2000 and the 3<sup>rd</sup> quarter of 2022. </p> </abstract>ARTICLEtrue Behavior in Frontier Nordic Countries<abstract> <title style='display:none'>Abstract</title> <p>This paper investigates herding behavior of investors in three frontier Nordic countries from July 1, 2002 until July 30, 2021, under different market conditions and during three crises that occurred in this period. As estimation methods, we use both OLS and quantile regression and determine that both up and down market, high and low volatility induce a weak herding behavior for at least one quantile in almost all Nordic countries examined, except for Latvia. At the same time, we find that crises determine a more prominent herding behavior in Nordic countries, but do not influent the behavior of investors from Latvia, that tend to remain rational even in stressful conditions.</p> </abstract>ARTICLEtrue Price Impact of S&P 500 Affiliation<abstract> <title style='display:none'>Abstract</title> <p>We examine how abnormal returns and abnormal return determinants change when a company is added to S&amp;P 500. Newly added companies experience a significant increase in abnormal returns around the announcement and addition dates. This increase is accompanied by an improvement in liquidity and a decrease in associated shadow cost. While before their addition, firm-specific abnormal returns can be explained by price impact, they are explained by changes in trading activity during the addition event. Additionally, companies with higher leverage ratios benefit more from index affiliation.</p> </abstract>ARTICLEtrue Impact of Social Norms on Stock Liquidity<abstract> <title style='display:none'>Abstract</title> <p>There is a growing body of research that shows the impact of culture on individual’s financial decisions. We aim to investigate how the strength of social norms and the tolerance for deviant behavior influence stock liquidity. Using a panel of 26 developed and 19 emerging countries we show that there is an inverted U-shaped relationship between the measure of cultural tightness-looseness, developed by Gelfand et al. (2011) and stock liquidity. Additionally, our results suggest that financial literacy has a moderating effect on the relationship between social norms and liquidity.</p> </abstract>ARTICLEtrue European Banks Under the Shock of the Russian Invasion of 2022: An Event Study Approach<abstract> <title style='display:none'>Abstract</title> <p>This paper evaluates the reaction of systemically important banks in Europe to the shock of the Russian invasion of Ukraine in 2022. Using the event study methodology and three of the most commonly used models for estimating theoretical returns (CAPM, Fama-French with 3 factors, Fama-French with 5 factors), we show that banks react differently relative to the event date (February 24, 2022) depending on the country. Overall, systemically important banks recorded massive cumulative abnormal returns in the event window. The results differ at the country level depending on the exposure of the respective banks to Russia, the dependence of countries on Russian gas and oil, and the level of informational efficiency of the markets on which they are traded.</p> </abstract>ARTICLEtrue for Government Spending: Do Our Beliefs About Public Debt Matter?<abstract> <title style='display:none'>Abstract</title> <p>Macroeconomic expectations play a major role in predicting individual choices and behavior. This paper examines the effects of public debt expectations and knowledge on demand for government spending measured by individual preferences. Using a unique survey dataset applied in Central and Eastern Europe, the results show that the most knowledgeable citizens tend to support the increase in public spending. Debt expectations also have a significant impact on public spending preferences: citizens who have negative debt expectations are less likely to support public spending increases. The results shed light on the importance of economic knowledge and information provision for shaping public attitudes about future taxation.</p> </abstract>ARTICLEtrue Decade of Talent Management Practices in Small and Medium Sized Enterprises, A Systematic Review of a Developing Field<abstract> <title style='display:none'>Abstract</title> <p>Talent management (TM) is a relatively new management discipline that has generated considerable interest among scholars and practitioners within the past decade. It has been studied extensively among large enterprises and global organizations, but the practices have received limited investigation among Small and Medium Sized Enterprises (SMEs). This research paper uses a systematic review of the existing literature from 55 papers to present some insights into how TM is defined, conceptualized, and practised. An agenda for future research of SMEs TM is presented to spur further study. The paper uses the PRISMA methodology recommended by (Moher et al., (2009) to search the databases of Web of Science, Scopus, and Google Scholar for papers published within the last ten years between 2011-21. The findings confirm that the study of TM in SMEs is a developing field, and while there has been an encouraging increase in the number of publications in the past 10 years, it still lags behind other fields. Thus, there is a need for researchers and academics to accelerate the pace of research.</p> </abstract>ARTICLEtrue Educational Spending and Human Capital Development in ECOWAS Sub-Region: Implication For Sustainable Development<abstract> <title style='display:none'>Abstract</title> <p>The critical need to create economic prosperity and ensure inclusive and equitable education and lifelong learning for all, especially in developing countries has been the motivation behind the various advocacies by the policymakers and other stakeholders in these countries to achieve the SDGs comes 2030. Meanwhile, ECOWAS sub region is characterized with the lowest human capital development alongside the highest rates of illiteracy in the world despite the continuous rise in government educational spending over the years. Against this backdrop, the role of government educational spending on human capital development in ECOWAS sub-region has been investigated with a view to driving one of the strategic goals of Sustainable Development- inclusive and equitable education and lifelong learning for all. In order to achieve this, annual data from 1990 to 2019 was utilized using a panel ARDL as a technique of estimation. The findings that emerged in this work are summarized as follows; the relationship between government educational spending and human capital development in ECOWAS sub region is more of a long run phenomenon. Therefore, government educational spending and human capital development have a positive and significant relationship in the long run. In the light of the above findings, this study therefore makes the following recommendations for the policymakers in ECOWAS sub region and by extension developing countries, any time the goal of these policymakers is inclusive and equitable lifelong learning via human capital development, the government at levels should embark on sustainable educational spending. In the same vein, these policymakers should be committed to funding of educational sector as stipulated by both the United Nations and the Abuja declaration of 2001, advocating for 26% of annual budget for educational sector in developing countries.</p> </abstract>ARTICLEtrue Development and the Critical Role of HRM<abstract> <title style='display:none'>Abstract</title> <p>The link between sustainable development and human resource management (HRM) has been only recently widely established in the literature. Systematic studies are available but there is a wide range of interpretations and several overlapping terms that often cause confusion to practitioners. HRM practices included in the CSR Programs of a company are often linked with sustainability, business ethics and workplace justice and are often under the terms of sustainable HRM. It is well recognized that HR can play a critical role in enhancing corporate sustainability through policies and practices that benefit its people and society in general and that all these initiatives must be documented and reported to gain visibility and credibility. Lately great emphasis has been placed on the U.N. Sustainable Development Goals (SDGs) and the dimensions of the Environment, Society and Governance (ESG) which form the criteria for documenting and reporting relevant practices implemented by business firms. HRM can play an important role in designing and implementing such practices, especially those linked to society. This paper presents the notion of Sustainable Development, its increasing importance for companies and its link with Human Resource Management. (HRM). It describes and clarifies Sustainable Development Goals (SDGs), their history and the three pillars e.g., Environment, Society and Governance (ESG) which form the basic criteria for organizations to implement and report relevant practices in order to prove their involvement in sustainability. Third, the paper presents the concept of Sustainable HRM, and Sustainable practices implemented by companies in Greece following the 2010 economic crisis and the need for reporting them mainly under the social dimension of the ESG Criteria. To stress the need for the involvement of HRM in sustainability in order to enhance its ethical profile, expand its agenda and improve its role as a strategic partner and a source of competitive advantage.</p> </abstract>ARTICLEtrue Trends and Tendencies in Hungary in the Light of the Experiences of the Latest Cranet Survey 2021<abstract> <title style='display:none'>Abstract</title> <p>The regime change in 1989 marked a significant milestone in the development of human resource (HR) management in Hungary. Changes in the legal, institutional and ownership environment placed significantly different demands on the HR work of companies and institutions. It has become very important for organizations to have access to comparative HR data with other organizations related to HR activities.</p> <p>The Cranet international HR university non-for-profit research network, founded in 1989 in Cranfield, England, has a long tradition in this field. Hungarian researchers have participated in Cranet’s international HR research on four occasions so far. In this article, we aim to present the main features of the Cranet HR research in Hungary in 2021. We review the findings and noteworthy results of the research. Where possible, we compare it with relevant data from the 2014-2016 survey.</p> </abstract>ARTICLEtrue Engagement and Job Burnout in the Context of Teleworking<abstract> <title style='display:none'>Abstract</title> <p>This paper explores the relationship between engagement and job burnout perceived by teleworking employees. The theoretical framework of this paper explains the concepts of telework, work engagement, and job burnout, but also the relationships between these variables. Telework is a “new reality” for many employees, and in this new work context, engagement and burnout must be investigated, especially for entry level employees. We analyzed the relationship between engagement and telework, respectively burnout and telework based on a questionnaire. The results reveal a positive relationship between engagement and telework and a negative correlation between burnout and telework. The research results also show that burnout has a high level among telework employees, and exhaustion is the most pronounced problem.</p> </abstract>ARTICLEtrue