Year 2015, Issue 22
Date published8.5.2015
Table of content
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Bozhidar Bozhinov, Georgi Angelov
APPROACHES AND MODELS FOR MEASURING AND MANAGING COMMERCIAL BANKS LIQUIDITYSummary: The problems related to liquidity management and maintaining optimal levels of liquid assets of banks have become very topical and have stirred the interest of both the regulatory bodies and researchers in the field of banking and... The problems related to liquidity management and maintaining optimal levels of liquid assets of banks have become very topical and have stirred the interest of both the regulatory bodies and researchers in the field of banking and the general public. The pertinence of these problems arises from the importance of banks for the economic development of the national economies on the one hand, and from the possibility for transformation of banking problems into sectoral, national and international financial crises, on the other. The integration and the high level of interdependence of the economies worldwide are the key factors for accumulation of covert negative effects, which may trigger crises under certain conditions. -
Andrey Zahariev, Valentin Milinov
MONITORING AND ANALYSIS OF DEBT AND THE DEBT CRISIS (methodological aspects)Summary: The object of the current study is the public debt, and the subject – the tools for measurement (monitoring), evaluation and analysis of debt under the conditions of a growing global debt crisis. The analysis focuses on two working... The object of the current study is the public debt, and the subject – the tools for measurement (monitoring), evaluation and analysis of debt under the conditions of a growing global debt crisis. The analysis focuses on two working hypotheses: First. Determining the situation in the external sector of an economy is a function of the cumulative expression of the individual analytical balances reported as foreign exchange balances, on the one hand, and the status and trends in its external debt. Second. The debt crisis in the 21st century from a phenomenon typical of developing countries is becoming a global problem, whose solution requires the application of a variety of measures and decisions of national and international nature. The aim of the study is to develop ideas for methodologically sound assessment on an international basis of the current state of public debts as a basis for conducting national and internationally agreed policies for its management. -
Teodora Dimitrova, Ivan Marinov
ASSESSMENT OF FACTORS INFLUENCING THE AMOUNT AND MATURITY PROFILE OF BANK CONSUMER LOANS IN BULGARIASummary: Over the last two decades there has been a substantial increase in theoretical and practical-applied research into the impact of key determinants on the consumer loans that banks offer. Their profitability and credit risk level... Over the last two decades there has been a substantial increase in theoretical and practical-applied research into the impact of key determinants on the consumer loans that banks offer. Their profitability and credit risk level depend on the optimum structuring of credit transactions. Of course this statement should not contradict the compliance with the following two principles: 1) The amount and the term of the bank loan must fully comply with the actual need for funding, and 2) The value of the debt must be ‘secured’ with a sufficient level of creditworthiness. In this paper, the authors commit themselves to a thorough examination and assessment of key factors influencing the maturity structure and the amount of bank consumer loans in Bulgaria. Through a survey they aim to analyze and assess the priority of key determinants that affect the credit policy on the basis of individual opinions of bank experts directly involved in granting consumer loans. -
Aneliya Radulova, Alexandrina Alexandrova
FISCAL CONSOLIDATION IN THE EUROPEAN UNION - NEED AND/OR CHALLENGESummary: This study examines the processes of harmonization of tax systems and double taxation avoidance problems within the European Union, with the understanding that tax harmonization is essential for the efficiency of the common economic... This study examines the processes of harmonization of tax systems and double taxation avoidance problems within the European Union, with the understanding that tax harmonization is essential for the efficiency of the common economic policy within the European Community. It gives an overview of the dynamics and integration proc¬esses within the EU, the harmonization specifics related to direct and indirect taxation and the need for double taxation avoidance within the EU. This scientific study traces the sequence of processes involved in searching for practical recommendations when making decisions in the area of fiscal policy by the Member States, aimed at building a common European space. -
Andrey Zahariev
THE GLOBAL FOREIGN EXCHANGE MARKET AND RESERVE CURRENCIES – MACRO-FINANCIAL ASPECTSKeywords: currency markets, reserve currenciesSummary: The object of research in this study is the foreign exchange market, and the subject – the factors influencing the exchange rates of the leading world reserve currencies. The analysis focuses on the thesis of the increasing role of... The object of research in this study is the foreign exchange market, and the subject – the factors influencing the exchange rates of the leading world reserve currencies. The analysis focuses on the thesis of the increasing role of reserve currencies for the expansion of the transactions on the foreign exchange markets while preserving their ability to rebalance budgetary imbalances in trade flows through the mechanism of floating exchange rates. The aim of this study is to present the up-to-date perspective on evaluation of the factors influencing the exchange rates of the global reserve currencies that are also the basis of the predominant volume of transactions on the global currency markets. -
Plamen Pytev, Nikolay Nikolov, Kaloyan Petkov, Nikola Iliev
STUDY ON THE APPLICABILITY OF INVESTMENT AND PORTFOLIO MANAGEMENT MODELS IN EMERGING MARKETSKeywords: economic value-added – EVA, residual income – RI, alfa returns, active portfolio management, Capital IQSummary: The study aims to test the applicability of three basic investment and portfolio management models in emerging markets in Central and Eastern Europe – the EVA model, RI model and ETF α+ model. Our thesis statement is that the... The study aims to test the applicability of three basic investment and portfolio management models in emerging markets in Central and Eastern Europe – the EVA model, RI model and ETF α+ model. Our thesis statement is that the models established in developed economies are applicable to emerging markets but should be modelled according to the specifics of these markets. Our task was to create modified models that are applicable in the East-European emerging markets. First we tested the economic value-added model (EVA), but we met a number of difficulties in applying it in Eastern Europe, mainly due to some differences in the accounting standards. Therefore, we developed the much simpler RI model, in which with only two modifications we were able to prove its applicability in our markets. Based on this result we then made key changes in the EVA model and as a result we found that both indicators – EVA and RI – can be used as criteria for implementing investment and portfolio management policies. In the final stage of the project we successfully tested the possibility of generating alpha returns in duplicating the WIG220 index, achieving a higher return than the market return. -
Violeta Blazheva
INNOVATION IN THE AGRICULTURAL SECTORSummary: The sustainable development of the European agricultural sector aims to continuously improve the quality of life and well-being of the present and future generations. It is intended to establish a relationship between economic... The sustainable development of the European agricultural sector aims to continuously improve the quality of life and well-being of the present and future generations. It is intended to establish a relationship between economic development, environmental protection and social justice. The purpose of this paper is to study innovation in the economy as a whole and particularly in the agricultural sector in the context of the Europe 2020 Strategy for Smart, Sustainable and Inclusive Growth. It focuses on the following tasks: studying the theory and practice to clarify the specifics and concepts regarding innovation in the economy (including in the agricultural sector); identifying the factors necessitating the introduction of innovation (including in the agricultural sector); covering the European policy in the field of innovation (including in the agricultural sector); proposals and conclusions on the introduction of innovation in the agricultural sector for achieving smart, sustainable and inclusive growth. The object of the study is innovation in the economy and in particular innovation in the agricultural sector (subject of study). The research thesis stems from the need to achieve smart, sustainable and inclusive growth by applying innovation in the context of the Europe 2020 Strategy. This makes it necessary to stimulate the development of competitive and sustainable agriculture and forestry, which ‘achieves more with less’ in harmony with the environment. -
Borislav Borisov, Yuliyan Gospodinov, Evelina Parashkevova Velikova, Kristina Pavlova, Dragomir Marinov
RESEARCH ON THE CAPACITY OF DISTRICT ADMINISTRATIONS IN BULGARIAKeywords: public administration, district administration, processes, assessment, administrative capacitySummary: The purpose of this study is to present the results of a research conducted on the administrative capacity of district administrations in Bulgaria. The object of the study is the internal organizational functioning of district... The purpose of this study is to present the results of a research conducted on the administrative capacity of district administrations in Bulgaria. The object of the study is the internal organizational functioning of district administrations in terms of the concept of continuously improving the work processes and increasing the administrative capacity. The study is based on an objective methodology developed by the team of authors, which includes a multicriterial system for administrative capacity assessment. The results obtained are a basis for presenting some best practices and making recommendations for future activities aimed at setting standards for quality and efficiency of the processes in these territorial structures. The main research thesis is that Bulgarian public sector has a significant potential for improvement and standardization of its internal organizational processes, which in the long term affects not only the quality of the public services provided, but also the district development. -
Dragomir Iliev, Daniela Ilieva, Yordan Neykov, Ivaylo Donchev Beev, Ivan Angelov
SCENARIOS FOR THE DEVELOPMENT OF THE EUROPEAN INTEGRATION AND THEIR POSSIBLE EFFECTS ON THE BULGARIAN ECONOMYJEL: F15Summary: The reality in the European Union makes it necessary to consider various scenarios for the future development of the European integration. The inclusion of the Republic of Bulgaria in the single market makes our country a part of a... The reality in the European Union makes it necessary to consider various scenarios for the future development of the European integration. The inclusion of the Republic of Bulgaria in the single market makes our country a part of a much larger space, which directly affects the economic processes in the country. Therefore, we need to consider the impact of the possible scenarios for the development of the EU and their effects on the development of the Bulgarian economy. The study aims to develop possible scenarios for the future development of the European integration. The formulated tasks are to analyse the geographical orientation of the EU’s foreign trade relations; to analyse the foreign direct investments in the Republic of Bulgaria and their implications for the economy of the country in the context of the European integration processes; to analyse the trends in the European integration processes and their impact on the Bulgarian economy. It supports the idea that the possible scenarios for the development of the European integration are to be reflected in the national integration policy. The study presents a positive, a realistic and a negative scenarios for the European integration and reflects their potential effects on the economy of the Republic of Bulgaria. The study employs graphical and tabular methods, ABC-analysis, SWOT-analysis. -
Borislav Borisov, Yuliyan Gospodinov, Evelina Parashkevova Velikova, Dragomir Marinov
THE PRACTICE OF MUNICIPALITIES IN DEVELOPING PLANNING DOCUMENTS FOR THE PROGRAMMING PERIOD 2014–2020Keywords: public administration, municipal administration, processes, assessment, administrative capacitySummary: The purpose of this study is to present the results of a survey conducted on the planning practices of municipalities in Bulgaria in the development of planning documents for the new programming period 2014-2020. The object of the... The purpose of this study is to present the results of a survey conducted on the planning practices of municipalities in Bulgaria in the development of planning documents for the new programming period 2014-2020. The object of the study are the municipal development plans (MDPs) for 2014-2020 of all 264 municipalities within the country and the subject is the quality of the MDPs and the implementation of the fundamental planning principles in the preparation of strategic documents for local and regional development. The study is based on a set of criteria developed by the team of authors, which provides an opportunity for objective assessment of the quality of the MDPs. The results obtained are a basis for presenting some best practices and making recommendations for future actions, aimed at improving the strategic planning process at municipal level, increasing both the coordination and cohesion between the planning documents of different hierarchical levels and establishing a national body with prerogatives in the field of strategic planning of the regional development. The main research thesis is that the municipal administrations in our country have a significant potential for improvement and standardization of their planning processes, which in the long term influences regional development and the opportunities for generating municipal competitive advantages. -
Mihail Dochev, Anatoliy Belousov, Elena Sheluhina, Galina Chipriyanova, Galya Georgieva
PRACTICALAPPLIED PROBLEMS OF ACCOUNTINGJEL: Ì 41Keywords: accounting, accounting information system, legal regulations, electronic applications, annual accounts, electronic signatureSummary: The subject of the study is an interesting topic for theoretical research and it is up-to-date and useful in practice. The aim of the study is to examine accounting in theoretical and practical aspects as an information system. To... The subject of the study is an interesting topic for theoretical research and it is up-to-date and useful in practice. The aim of the study is to examine accounting in theoretical and practical aspects as an information system. To achieve this aim the following tasks have to be performed: to examine the accounting practice of Bulgarian enterprises and its information opportunities; to examine the degree of application of the electronic signature, electronic banking, electronic invoicing and other electronic applications. The thesis statements are: the fast development of scientific and technical progress requires a change in the accounting information system; the need for comprehensive and timely accounting information requires the extensive use of electronic applications for transmitting and storing information. The results of the study we conducted enable us to outline several major conclusions: 1) accounting is a major information system in an enterprise, accounting information is a means for its effective management; 2) accounting regulations are in a continuous dynamics; 3) the aim of financial reporting is that the information in the financial statements has the property of ‘usefulness’; 4) the use of qualified electronic signature, electronic banking, electronic documents and other electronic applications is increasing, including in connection with the annual closing of accounts and the acquisition of fixed assets from the Operational Programme of the European Union. -
Bogomil Traykov, Veselin Popov, Yuriy Kuznetsov, Emil Tsanov, Angelin Lalev, Asen Bozhikov
VERSION CONTROL SYSTEMS: EVOLUTION, CONCEPT, COMPARATIVE ANALYSISJEL: D80Keywords: version control systems, Apache Subversion (SVN), Microsoft Team Foundation Server (TFS), Git, MercurialSummary: Modern software is becoming increasingly complex while trying to fully meet the incessantly growing requirements of customers. Therefore, one of the main challenges facing software project management is the scalability of the... Modern software is becoming increasingly complex while trying to fully meet the incessantly growing requirements of customers. Therefore, one of the main challenges facing software project management is the scalability of the development process so that it involves multiple developers regardless of their geographic location, and so that it does not affect the quality of the resulting software system. Version control systems are crucial for the achievement of this goal. There are many version control systems offered on the market, thus making it difficult for project managers to select the right solution for their needs because many factors should be considered, such as: the integrated development environment used, the number of team participants, the complexity of the project, etc. The purpose of this study is to develop a multi-factor methodology for version control systems assessment by: analysing the IDEs based on a study of their capacity through building a relevant test laboratory environment; developing an appropriate methodology for selecting version control system environments; applying the developed methodology for assessing the most popular version control software products. We propose a set of assessment indicators, organized into four groups according to the specific nature and variety of the studied characteristics. -
Todor Krystevich, Marusya Smokova
CUSTOMER RESPONSE PREDICTIVE ANALYSIS USING UPLIFT MODELLINGSummary: Traditional customer response models are based on the understanding that marketing campaign effectiveness could be measured by predicting response probabilities of each customer. Such approach seems to be very reasonable and in most... Traditional customer response models are based on the understanding that marketing campaign effectiveness could be measured by predicting response probabilities of each customer. Such approach seems to be very reasonable and in most cases it gives better results than random targeting. A fundamental problem of response modelling is that it does not separate the impact of a campaign from other stimuli and spontaneous responses because response models predict the wrong thing. They model and predict response probabilities, not the change in those probabilities as a result of the given marketing intervention. Following the understanding that traditional response models do not give optimal marketing decisions, the goal of this study is to define, estimate and apply on a real data base uplift model for predicting the change in customer behaviour resulting from marketing action. The specific tasks relate to studying the opportunities of a relatively new and less familiar methodology for identifying hesitant and persuadable customers. The study illustrates the application of the direct approach for uplift modeling and demonstrates its significant advantages over targeting based on uplift models over traditional response models. -
Penka Goranova, Zhivka Tananeeva, Evgeni Todorov, Steliana Vasileva, Dimitar Dimitrov
THE BRAND – A CATALYST FOR SMART AND SUSTAINABLE REGION GROWTHSummary: The study focuses on the relation between the successful branding process and the achievement of sustainable and smart regional growth. The main objective of the project is to analyze the conditions for smart and sustainable growth... The study focuses on the relation between the successful branding process and the achievement of sustainable and smart regional growth. The main objective of the project is to analyze the conditions for smart and sustainable growth in the region in the light of the branding process. The specific tasks of the study are: studying the evolution of the economic growth concept with a focus on the relationship between sustainable and smart growth; studying the branding process in the context of sustainable and smart growth; studying the consumer attitudes towards regional brands, objects of the survey; analysizing the prerequisites for achieving smart and sustainable regional growth in the context of the branding process. The main thesis statement is that the brand as a factor for smart and sustainable growth is an applicable idea in the present-day economic reality in Bulgaria. The results of the project are designed to outline the strategic paths of development for achieving smart and sustainable growth. A specialized website has been developed, which will facilitate and deepen the network partnership in exchanging experience on the implementation of good innovative and investment practices in the sphere of regional branding process. -
Anastasiya Marcheva, Jadvyga Ciburiene, Mariana Lyubenova, Mariela Stoynova
PRINCIPLES FOR RESPONSIBLE MANAGEMENT EDUCATION – A CONCEPT TO BE INTERTWINED IN ECONOMICS, MANAGEMENT AND ADMINISTRATION CURRICULASummary: The findings about the ineffective link between education and business highlight the need for closer contacts between educational institutions and all entities interested in the process of forming the image of an efficient and... The findings about the ineffective link between education and business highlight the need for closer contacts between educational institutions and all entities interested in the process of forming the image of an efficient and socially responsible manager, meeting the requirements of the globalizing business in the XXI century. The purpose of the study is to reveal the opportunities for applying the principles of responsible management through introducing new elements in the education in economics, administration and management in order to create knowledge and skills for leadership and socially responsible management. Main tasks: studying the opportunities for intertwining the PRME in the curricula; specifying margins for improving formal and informal education; presenting good practices. The object of study is the principles of responsible education in management and their intertwining in the curricula of the studied disciplines. The subject of study is the theoretical and practical forms of education in economics, management and administration through which students acquire knowledge, skills and competences as a result of applying the principles of responsible management education. The intertwining of the principles of responsible management education into the theoretical and practical preparation of students in the areas of economics, administration and management is a prerequisite for the preparation of leaders that are responsible for the future is the thesis that is defended. -
Valentin Milinov, Petko Angelov, Marióa Mladenova
ANALYSIS OF DIFFERENCES IN THE ECONOMIC DEVELOPMENT OF THE COUNTRIES OF THE EUROPEAN UNION – BEFORE AND AFTER THE DEBT CRISISSummary: The object of this study is the degree of economic development of EU countries, and its subject is the two major economic indicators selected for comparison – size and growth rate of GDP and the consolidated government debt to GDP... The object of this study is the degree of economic development of EU countries, and its subject is the two major economic indicators selected for comparison – size and growth rate of GDP and the consolidated government debt to GDP ratio. The purpose of the study is to reveal the disparities in the development of the EU countries concerned in the period before and after the crisis. The Tasks set in examining the GDP aim to answer the following questions: ‘What is the size of the GDP expected to be in the current 2014?’, ‘Which of the European countries concerned will have the best performance, relative to GDP in terms of the global economic crisis?’ The main thesis is: Failure to comply with the Maastricht decisions that affect the value of the gov-ernment debt in the European countries concerned does not allow for making effective management decisions and this increases the disparities in their economic development. Main conclusions: Lowering the debt burden in developed countries, where the threshold values of debt and deficit are seriously exceeded, can be achieved by balancing the government budget, improving the methods for risk assessment, expanding the investor base, increasing the liquidity in the market for government obligations and achieving a sustainable GDP growth. Striving to comply with the Maastricht Treaty will help to reduce disparities in the economic development of the European Union countries after the debt crisis.