Year 2017, Issue VOLUME 24 Part I
Date published26.5.2017
Table of content
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Andrey Zahariev, Zhivko Todorov, Kaloyan Petkov, Nikola Iliev, Alexandra Petrova
CONVERGENT APPROACH FOR RISK-RETURN ANALYSIS OF CAPITAL MARKETS IN EU28Summary: The integration of capital markets within the EU poses some very interesting issues to investment management. In this paper we examine the integration process and the effect over the risk-return characteristics of a portfolio... The integration of capital markets within the EU poses some very interesting issues to investment management. In this paper we examine the integration process and the effect over the risk-return characteristics of a portfolio comprised of European stocks. The results show that the information signals from the process of integration can serve as predictors of abnormal return -
Georgi Batashki, Ivan Andreev, Radi Dimitrov, Petya Guteva
APPLIED MODEL FOR ACCOUNTING ANALYSIS OF BUDGETARY ORGANIZATIONSJEL: M 41Summary: The regulatory principles for legality, appropriateness, effectiveness, efficiency and economy of public spending require theoretically sound and practically applicable solutions of some specific problems. A crucial role within this... The regulatory principles for legality, appropriateness, effectiveness, efficiency and economy of public spending require theoretically sound and practically applicable solutions of some specific problems. A crucial role within this process is played by the opportunities for implementation and use of accounting analysis tools for evaluation of results and identification of opportunities for implementation of optimization models for public organizations. Such models are approbated in compliance with the principles of sustainability and transparency of public expenditures of funds from the state budget, the budgets of ministries and agencies, funds extended by the European Union and other international organizations and grant programs. The object of the scientific study is the activity of public sector’s organizations in Bulgaria. The main purpose is to present the theoretical interpretation and practical study of the tools of accounting analysis as a model for optimizing the activity of budgetary organizations -
Bozhidar Bozhinov, Nesrin Uzun
CHALLENGES FACING THE HOUSING CONSTRUCTION FINANCING BY BANKSSummary: The main purpose of this study is by analyzing the business practice in Bulgaria to identify the main problems facing the financing of housing construction, with an emphasis on bank financing. To achieve this objective the following... The main purpose of this study is by analyzing the business practice in Bulgaria to identify the main problems facing the financing of housing construction, with an emphasis on bank financing. To achieve this objective the following should be clarified: (1) the specifics of housing construction; (2) the specifics of the investment process and financing of housing construction; (3) to analyze the status and trends of housing construction under the conditions of a global financial crisis; and (4) to study the situation and the problems facing the financing of housing construction in our country, incl. bank financing. This analysis uses public data from National Statistical Institute, specialized analyses and studies concerning the issues, other publicly available data, results of a conducted online survey (September 2014) on the bank loans offered to finance the purchase or construction of housing, an electronic survey (April 2016) on the state of housing construction in Bulgaria, as well as information from interviews and informal conversations with representatives of construction companies in the field of housing. The online survey was conducted through Google Forms of Google Docs. The data are processed and presented in tables and charts using MS Office Excel 2016 -
Silviya Kostova, Krum Krumov, Penko Dimitrov, Lyubomir Terziev
LEGAL AND METHODOLOGICAL ASPECTS OF PUBLIC PROCUREMENT AUDITSummary: The generated problems in the recent years in the control over public procurement have created preconditions for continuous changes of the legal framework in this specific market segment. In order for maximum effectiveness of the... The generated problems in the recent years in the control over public procurement have created preconditions for continuous changes of the legal framework in this specific market segment. In order for maximum effectiveness of the spent public funds to be ensured in the process of realisation of public procurement, it is necessary to observe the criteria embedded in the essential characteristics of the internal and external audit. These criteria define and reflect the features of the procedures for assignment of public procurement included in the active legal framework, firstly as principles for fulfilment of contracts, and secondly as procedural rules and requirements towards the participants. Therefore it is of significant importance to investigate the methodological specifics of control in its various types and forms, as well as its interrelationship to the implemented systems for financial management and control in the public sector. The thesis argued is that external audit ensures legality and transparency of public money spent. In order to realize the objective, the legal framework and its relationship with the methodology of public procurement control were studied. Through it an assessment is made on the spent public resources in public procurement and the exercised influence over the realisation of the objectives set out in it -
Penka Goranova, Eva Tsvetanova, Evgeni Todorov, Zhivka Tananeeva, Steliana Vasileva
APPLICATION OF DESTINATION MARKETING IN THE CONTEXT OF SUSTAINABLE INTEGRATED URBAN DEVELOPMENT (on the example of the town of Pleven)Keywords: destination marketing, marketing communication strategy, conceptual model, cultural and educational tourismSummary: The purpose of the study is through destination marketing to present the cultural heritage of the city of Pleven by developing an integrated tourism product that will contribute to the realization of the objectives of sustainable... The purpose of the study is through destination marketing to present the cultural heritage of the city of Pleven by developing an integrated tourism product that will contribute to the realization of the objectives of sustainable integrated urban development. Specific objectives: To carry out a theoretical analysis of the nature and characteristics of destination marketing, by studying and defining its role in the process of sustainable integrated urban development; to study, analyze and assess the tourism potential of Pleven’s cultural heritage sites; to define and analyze the factors that are impeding and conducive to the organization of destination marketing for Pleven, to conceptualize a model of integrated marketing communications strategy for promoting the city of Pleven. Basic research thesis: Destination marketing, as part of regional marketing, is an innovative tool used to enhance regional competitiveness and attractiveness in creating a positive image and branding of the city as a destination for cultural and educational tourism. Main results of the study: A model of integrated marketing communications strategy is developed to promote the city of Pleven as a destination for cultural and educational tourism and an electronic platform for promoting the project results and stimulating the interaction of stakeholders is created -
Rositsa Simeonova, Rumyana Mihaylova, Diana Krumova
CHALLENGES FACING THE NEW ACCOUNTING REGULATIONSJEL: M 41Keywords: Accounting regulations, Accountancy Act, National Accounting Standards, types of enterprises, accounting basisSummary: This paper aims to study the new formulations in the accounting regulations that give rise to challenges posed by certain contradictions in their interpretation and potential problems in their implementation. The research tasks that... This paper aims to study the new formulations in the accounting regulations that give rise to challenges posed by certain contradictions in their interpretation and potential problems in their implementation. The research tasks that support the realization of the objective set boil down to: highlighting the new aspects, weaknesses and shortcomings in the Accountancy Act; a critical analysis of the changes made in the system of National Accounting Standards; and opening up opportunities for applying the new AS 42 First-time Application of the National Accounting Standards. The above stated leads to the research thesis: Based on the research done in the field of the new accounting regulations to identify the contradictions, weaknesses and shortcomings in the regulations and to formulate guidelines and ideas for improving them in their future updates. The paper discusses the new aspects in the accounting regulations and the contradictions both in the Accountancy Act and between the Act and the bylaws (NAS), as well as between the NAS General Provisions and the particular accounting standards. It also shows the possibilities for eliminating them, as well as the guidelines for their improvement and highlights the specifics of the new AS 42 First-time Application of the National Accounting Standards and its application -
Dragomir Iliev, Daniela Ilieva, Daniela Tinkova Trifonova
RESEARCH ON THE PROCESSES OF INTEGRATION AND DIFFERENTIATION IN THE EUROPEAN UNIONSummary: The international regional integration and the processes taking place at the economic formations have been the subject of numerous economic, political and sociological studies since the 1950s. The core question that arises, in this... The international regional integration and the processes taking place at the economic formations have been the subject of numerous economic, political and sociological studies since the 1950s. The core question that arises, in this regard, is if there can be noticed occurrence of processes, contradictory to the integration – processes of differentiation and disintegration. The purpose of the study is to examine the processes of integration and differentiation within the European Union and the factors for their occurrence and development. The paper presents an analysis of the European integration process as well as a study on the factors, influencing the stability in the EU. Analyzed are the foreign trade flows of a group of Eastern European countries that are EU members – Lithuania, Latvia, Estonia, Bulgaria, Romania, Slovakia, Slovenia, Poland, Czech Republic, Hungary and Croatia. The direction of the foreign trade connections of these countries with countries within the EU, as well as with non-EU countries, is examined as a factor for development of differentiation in the EU. The paper argues that the redirection of foreign trade flows from a group of certain Eastern European countries that are EU Member States, to non-EU countries, could be examined as a factor for the occurrence of processes of differentiation within the EU -
Violeta Blazheva
FOREST POLICY AND ITS ROLE FOR THE ECONOMIC DEVELOPMENT OF AGRICULTURAL SECTORSummary: The issue of forest policy is topical in terms of the European policy implemented (including in Bulgaria) and the importance of forests and their role in climate change mitigation, the opportunities for employment creation and... The issue of forest policy is topical in terms of the European policy implemented (including in Bulgaria) and the importance of forests and their role in climate change mitigation, the opportunities for employment creation and earning an income from the resources extracted from forest territories, etc. This paper aims to study and identify opportunities for forest policy implementation regarding the economic development of the agricultural sector. It is defined by the following tasks: studying the theory and practice of the relevant issues; familiarizing with the European and national legislation on forest policy; identifying the problems and highlighting the role of the forest sector for climate change mitigation and environment conservation; reflecting the state of the national forest sector; proposals and conclusions regarding the need for sustainable management of the forest sector. The object of the study is forest policy. The subject of the study is the role of the forest policy for the economic development of the agricultural sector. The research thesis follows from the need to implement a consistent forest policy – a prerequisite for the economic development of the agricultural sector -
Vanya Grigorova
POTENTIAL FOR DEVELOPMENT OF MARKETING NETWORKS IN THE TOURISM SECTOR IN BULGARIAJEL: M31Summary: Over the last decade the study of inter-company networks in marketing science has become topical. The concept of these formations is developing, and their manifestations in practice define their specificity and seek opportunities... Over the last decade the study of inter-company networks in marketing science has become topical. The concept of these formations is developing, and their manifestations in practice define their specificity and seek opportunities for their development in economic sectors. Being one of the strategic priorities of the national economy, tourism creates conditions for the emergence of marketing networks, which are the subject of this study. The main purpose of this paper is to bring the major intercompany factors (problems and motivation) that form the development potential of tourism marketing networks in Bulgaria. To achieve this objective the following tasks were performed: to present the concept of marketing networks; to clarify the specifics of these networks in the tourism sector; to characterize marketing activities in the tourism sector in a practical aspect; to reveal the status of existing marketing networks in Bulgarian tourism; to define the key problem areas of developed tourism marketing networks; to clarify the attitudes (motivation) of tourist organizations for participation in marketing networks. The thesis argued is that there is potential for positive development of marketing networks in the tourism sector in Bulgaria. The contributions involve revealing the manifestations of marketing networks in tourism, opening of existing marketing networks and confirming that there are incentives to build and progressively develop marketing networks of tourism companies -
Milen Mitkov, Milen Atanasov
ASSESSING CAPITAL ADEQUACY OF INSURANCE COMPANIES IN BULGARIA AND THE IMPACT OF THE NEW INSURANCE CODE ON THE ACTIVITIES OF INSURANCE INTERMEDIARIESJEL: G22Summary: This study presents the results of a survey conducted in 2016 of the assets and liabilities of insurance companies in Bulgaria. The main purpose of the study is to outline the state of the insurance market in the Republic of... This study presents the results of a survey conducted in 2016 of the assets and liabilities of insurance companies in Bulgaria. The main purpose of the study is to outline the state of the insurance market in the Republic of Bulgaria and the opportunities for improving the activities of insurance intermediaries under the new Insurance Code. It argues that the implementation of the new Insurance Code will increase the financial stability of insurers and will improve the activities of insurance intermediaries. The thesis is proved by solving the following major tasks: - data showing the state of the insurance market in Bulgaria are classified and analyzed; - the dynamics of development of the assets and liabilities of insurers is studied; - the coverage of the solvency margin and guarantee capital of insurance companies in Bulgaria are outlined. The findings are that insurance companies in Bulgaria are financially stable and able to fulfill their insurance obligations. As a result, the credibility of insurers is significantly increased and insurance awareness could be raised -
Nikolay Andreev
THE ROLE OF FISCAL AND MACROPRUDENTIAL POLICY OF THE EUROPEAN UNION IN THE CRISIS AND POSTCRISIS PERIODSummary: The paper focuses on the principles underlying the application of the instruments of fiscal and macro-prudential policy to overcome negative effects in crisis periods. The aim is to explore the instruments of fiscal and... The paper focuses on the principles underlying the application of the instruments of fiscal and macro-prudential policy to overcome negative effects in crisis periods. The aim is to explore the instruments of fiscal and macro-prudential policy applied in the Member States of the European Union both in the crisis and the post-crisis periods and to analyze their effects. The study involves the application of methods of analysis and synthesis, comparison and statistical techniques for analysis and evaluation. The study of the implemented measures found significant changes in tax policies, with a trend of increasing indirect taxes and reducing the tax burden on labour and capital, to stimulate demand and expand the opportunities for consumption by individuals and to stimulate investment by businesses in the post-crisis period. In macro-prudential policy we may conclude that the implemented reforms are projection and consequence of the reforms implemented by the EU to regulate financial markets and ensure financial stability in the community -
Petya Ivanova
ASSESSMENT OF THE EVENT TOURISM IMPACTS ON THE HOST COMMUNITY IN BULGARIAJEL: L83Summary: The main objective of the study is based on a model designed for aggregated assessment of the impacts of the event tourism to analyze and evaluate the main positives and negatives on the host community in Bulgaria. So the goal is... The main objective of the study is based on a model designed for aggregated assessment of the impacts of the event tourism to analyze and evaluate the main positives and negatives on the host community in Bulgaria. So the goal is decomposed in the following research objectives: • Proposing a model for assessing the impacts of event tourism on the host community in Bulgaria. • Analyzing and evaluating the status and impact of event tourism. • Systematizing the main results of the study and conclusions. Research thesis: Event tourism has potential for development in the country. Managed successfully on the basis of objective information regarding the impacts, it could be one of the effective tools for better development of destination Bulgaria. The survey results give enough arguments to support the research thesis. It is found that it is necessary and desirable that the country has more diverse events and that there are reserves to improve the tourism potential of the existing ones. The positive effects of this type of tourism are significantly higher than the negative ones -
Anatoliy Asenov, Desislava Aleksieva, Stanislava Stoyanova, Georgi Rusenov
INNOVATIVE PRACTICES FOR GOOD MANAGEMENTSummary: The concept of good management is directly related to the sustainable development policy. As such, it requires decision-making and regulation of relationships in an environment of uncertainty. In such conditions the achievement of... The concept of good management is directly related to the sustainable development policy. As such, it requires decision-making and regulation of relationships in an environment of uncertainty. In such conditions the achievement of the objective depends on a successful combination of the implemented management tools and practices. Thus innovation and innovative management become a key factor for the success of the organization. The purpose of the study is to review the innovative practices implemented by organizations. The research thesis: The organizational innovation is a key factor for sustainable management of a modern business organization. The authors set the following specific objectives to prove the thesis: 1. To review and analyze the theoretical concepts of innovations in management; 2. To conduct a field research on the existing management innovations; 3. To construct a model of innovative management; As a result of the theoretical and empirical research the following is achieved: • The terminology in the area of innovation and innovative business management is summarized and systematized. • Management innovation is characterized. • An innovative management model is presented. • Organizational innovation is analysed as a precondition for good management. • The achieved results are summarized and specific applied and research results are drawn -
Galin Stefanov
VULNERABILITY OF SMALL OPEN ECONOMIES TO EXTERNAL ECONOMIC SHOCKSKeywords: international propagation of economic shocks, synchronization of national economies, economic growth, economic interdependenceSummary: This paper aims to study the international propagation of economic shocks by adopting the thesis for a causality between the economic growth in a country and the dynamics of the respective indicator in the foreign trade partners of... This paper aims to study the international propagation of economic shocks by adopting the thesis for a causality between the economic growth in a country and the dynamics of the respective indicator in the foreign trade partners of that country. The main tasks of this research are: to develop an econometric model for testing the causal relationship between the economic growth of national economies; to study the influence of a national economy’s openness on its vulnerability to external economic shocks; to study the influence of the national economy’s size on the vulnerability to external economic shocks. A multiplicative regression model is used to establish the specified causality on which the relative size of partners’ economies has a moderating influence. There is a statistically significant relationship between the openness of the national economy and its susceptibility to external economic shocks