Year 2014, Issue VOLUME 21
Date published3.6.2014
Table of content
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Bozhidar Bozhinov
IMPROVING THE ‘PERLA’ RATING SYSTEM FOR DISTANCE MONITORING OF COMMERCIAL BANKS IN BULGARIAJEL: G21Summary: The global banking crisis of 2007 raised a number of issues and challenges in the banking sector. One aspect of the debates provoked was connected with the issue of the rating assessments and the methods for objectively measuring... The global banking crisis of 2007 raised a number of issues and challenges in the banking sector. One aspect of the debates provoked was connected with the issue of the rating assessments and the methods for objectively measuring the condition of the banks and the sector as a whole. This problem is also reflected in the thesis statement that an independent and open rating system for assessing the banking sector helps to increase the discipline, competitiveness and stability of the banking sector. This study aims to assess the feasibility of the PERLA system for assessing the banking sector, developed in 2004 by a team at the department of Finance and Credit, and to find ways for improving it and enhancing the degree of its recognition. This is achieved through analyzing the theoretical foundations of the banking analysis and through building rating systems, and evaluation of its applicability under the Bulgarian conditions by improving the PERLA rating system. In the conclusion the author offers an advanced methodology for assessing the state of the Bulgarian banks (ALER(ts)). -
Rumen Erusalimov, Milen Mitkov
E-COMMERCE IN INSURANCE – A FACTOR FOR INCREASING THE COMPETITIVENESS OF INSURANCE COMPANIESSummary: The study presents the results of an empirical study of electronic commerce in insurance, conducted in 2013. The authors argue that the successful implementation of electronic sales in insurance streamlines and improves customer... The study presents the results of an empirical study of electronic commerce in insurance, conducted in 2013. The authors argue that the successful implementation of electronic sales in insurance streamlines and improves customer service in the sector. In addition, it reduces the costs, and the price respectively, of insurance policies and increases their competitiveness in the market. Proving the thesis statement is achieved through solving the following major tasks: - the extent to which insurance companies in Bulgaria use e-commerce is demonstrated through systematized and analyzed data; - the dynamics of development of electronic commerce and the structure of sold on-line insurance products are tracked; - expected benefits of sales realization due to the use of e-commerce by insurers are outlined. It is found out that the companies in Non-life Insurance industry use e-commerce as a promising and convenient way of making purchases and sales of insurance policies and as an important tool to enhance their competitiveness. -
Ivan Marchevski
ASSESSING MARKETING EFFECTIVENESS – PROBLEMS AND POSSIBLE SOLUTIONSSummary: The issues related to marketing effectiveness and linking marketing to a firm’s financial results have been very popular in the economic literature in the past two decades. In this study we try to systemize the accumulated knowledge... The issues related to marketing effectiveness and linking marketing to a firm’s financial results have been very popular in the economic literature in the past two decades. In this study we try to systemize the accumulated knowledge in this area. We define some methodological problems concerning marketing effectiveness assessment. Based on the data accumulated we define the category of marketing effectiveness and outline its manifestations. We argue that marketing effectiveness assessment has to be done in different ways according to the assessment object – a separate marketing campaign or a marketing activity as a whole. We propose to use ‘Return on Marketing Investments’ (MROI) for assessing a single marketing campaign, and the change in the marketing assets – for assessing the marketing effectiveness as a whole (marketing strategy). General models for the two types of assessment are proposed. -
Todor Krystevich, Marusya Smokova
USING PROBABILITY MODELS FOR FAST-MOVING CONSUMER GOODS SALES FORECASTING BASED ON TRANSACTIONAL DATASummary: The interest in modelling the structure of consumer preferences and consumer choice behaviour in order to predict future purchase decisions has a long and rich tradition in marketing. Finding a practical solution to this problem is... The interest in modelling the structure of consumer preferences and consumer choice behaviour in order to predict future purchase decisions has a long and rich tradition in marketing. Finding a practical solution to this problem is becoming increasingly critical with the increased availability of customer transactional individual-level databases. The focus of this paper is on the application of specific class of probability models that are well-suited to meet the rising challenges a marketing manager faces. Our objective is to define, estimate and a priori validate a predictive probability model by aggregating the individual-level purchase history (i.e. purchase frequency and recency). We demonstrate the relatively high performance of NDB and BG/NDB models using transactional data of a cohort of new customers. This supports our thesis statement that probability models are very suitable for identifying and forecasting purchasing behaviour. The availability of precise individual-level predictions concerns any serious attempt to derive customer lifetime value on a systematic basis. -
Petyr Kynev, Iskra Panteleeva, Zoya Ivanova, Nehridzhan Mehmed
MARKET BEHAVIOUR OF INDUSTRIAL BUSINESS ORGANIZATIONS AND ITS RISK ASPECTSSummary: The aim of this study is to examine the market behaviour of industrial business organizations and its risk aspects and formulate ideas to successfully counteract the risks and adverse consequences of their occurrence. In this... The aim of this study is to examine the market behaviour of industrial business organizations and its risk aspects and formulate ideas to successfully counteract the risks and adverse consequences of their occurrence. In this regard, the main tasks are: to examine and summarize the theoretical aspects of market behaviour of modern industrial business organizations; to systematize and analyze empirical data on its risk aspects and propose specific countermeasures. The thesis statement is that early identification and diagnosis of the risks of the market behaviour of the economic entities in industry, and the development of a policy for combating and limiting the negative consequences of their manifestation, are essential for achieving the company goals. As a result, the following were studied: the behaviour that the industrial business organizations demonstrate in the market, and the risks that accompany this type of company activities. Based on data from the empirical study it was found out that business organizations as a whole manage to demonstrate relatively adequate market behaviour. However, the adverse indications of the market environment and the many firm-wide difficulties raise a number of risks. In this context, ideas and recommendations are formulated for better (early) identification and diagnosis of the risks studied and for limiting and reducing the adverse effects of their occurrence. -
Mihail Dochev, Galina Chipriyanova, Galya Georgieva
OPPORTUNITIES FOR DEVELOPMENT OF AN INTEGRATED ACCOUNTING INFORMATION SYSTEM OF ENTERPRISESJEL: M41Summary: The choice of the field of this study was suggested by the fact that the application of information technologies in accounting is an interesting topic for theoretical research and it is up-to-date and useful in practice. The... The choice of the field of this study was suggested by the fact that the application of information technologies in accounting is an interesting topic for theoretical research and it is up-to-date and useful in practice. The objective of the study is to explore the opportunities for developing an integrated accounting information system (IAIS) in the practice of enterprises. To achieve the objective the following tasks have to be performed: to explore the characteristics and elements of IAIS; to justify the need for its creation; to analyze the possibilities and limitations of its implementation; to identify the prerequisites for its active use. The thesis statement is that the development, deployment and use of IAIS have the potential to be a major management information system in the practice of enterprises that will allow faster generating and using the necessary information. The results of the study we conducted suggest several major conclusions how to improve accounting information systems in enterprises: 1) The accounting information system is the most important one in enterprises; 2) Integrated accounting information systems guarantee synthetic and analytical reporting on the performance of enterprises and preparing Annual Financial Statements in compliance with the statutory requirements in every country; 3) Integrated accounting information systems must be adopted as an instrument for current and subsequent analysis and budgeting of the performance of enterprises; 4) Integrated accounting information systems provide the basis for making various managerial decisions. -
Georgi Gerganov, Violeta Blazheva, Viktor Monev, Sevinch Ismailova, Georgi Dimitrov
AGRICULTURAL SIMULATION MODELS IN TEACHING STUDENTS OF ECONOMICSSummary: The issue of the use of agricultural simulation models in teaching economics students is topical in terms of the need to reflect the current trends in the development of education and training. The different models of the economic... The issue of the use of agricultural simulation models in teaching economics students is topical in terms of the need to reflect the current trends in the development of education and training. The different models of the economic policy implemented are discussed in the context of the Common Agricultural Policy of the European Union. This paper aims to study and reveal the potential opportunities for economic simulations that can be implemented in teaching economics students. In order to achieve this aim the following tasks have to be performed: studying the theory to clarify the specifics and the concepts used in the simulation economic models; assessing the state of agriculture and the possibilities for implementing potential economic policy simulation models; studying the potential for using the simulation models in teaching economics students; identifying the problems (factors) that affect the sphere of simulations; an European policy regarding the economic models for implementing the Common Agricultural Policy in agriculture; making conclusions and suggestions for agricultural simulation models in teaching students of economics. -
Krum Krumov, Penko Dimitrov, Diana Krumova, Irina Eftimova
LEGAL, ACCOUNTING AND CONTROL ASPECTS OF PUBLIC PROCUREMENT IN THE PUBLIC SECTORSummary: Public procurements are essential for the allocation of public finances. Budget organizations make their investment expenditures through them. The importance of public procurements for the future of the institutions which function... Public procurements are essential for the allocation of public finances. Budget organizations make their investment expenditures through them. The importance of public procurements for the future of the institutions which function based on their budget credits determines the interest in studying that area. It requires a comprehensive study in three main trends – legal framework, accounting processes and control on the public procurements. The aim of the study is to establish the legal, accounting and control aspects of the public procurement in the public sector. The main tasks are: examining their legal framework; studying the public sector procurement reporting; studying the preliminary control and examining the external control on public procurements. The thesis statement that is defended is that the lawful implementation of public procurements has a significant impact on the publicity and transparency of funds spent from the state budget and the European Union. As a result, the study reached the following conclusions: difficult process of administration, artificial barriers for the candidates, lack of disclosed corruption cases, no effective methods for internal and external control of the procurement process. Changes to the legal framework are proposed, relating to the introduction of electronic procedures, appointment of government experts, new rules for selection of candidates. -
Georgi Ivanov, Diyana Ivanova
STATUS OF THE INTERNAL CONTROL IN MUNICIPALITIES IN THE REPUBLIC OF BULGARIAJEL: Í83Summary: The financial management and control systems (FMCS) of public sector organizations are a key element of their management in compliance with the provisions of the EU acquis communautaire and the legislation in force in our country.... The financial management and control systems (FMCS) of public sector organizations are a key element of their management in compliance with the provisions of the EU acquis communautaire and the legislation in force in our country. Their status is to a large extent indicative of the extent to which public resources and activities are managed in a lawful, transparent, efficient, effective and economical way. The aim of this study was to review the status of the existing FMCS by analyzing the empirical data from an independent external evaluation of these systems conducted by the National Audit Office of the Republic of Bulgaria. The authors argue that an assessment of the status of FMCS is indicative for the degree of their implementation and efficiency in public sector organizations and characteristic of the way first-tier budget disbursing entities control the spending of public resources. The results of the study show that the existing FMCS are not yet fully efficient and have not achieved the desired effect of their operation and certain components of these systems have to be upgraded. -
Yuliyan Gospodinov
STUDY OF PROJECT MANAGEMENT PRACTICES IN THE DISTRICTS OF PLEVEN AND VELIKO TARNOVO IN 2007–2013Summary: The object of the study is the regional development of the districts of Pleven and Veliko Tarnovo, and its subject is the practice of the economic agents located within the target area to develop and manage projects in order to... The object of the study is the regional development of the districts of Pleven and Veliko Tarnovo, and its subject is the practice of the economic agents located within the target area to develop and manage projects in order to attract additional external funding, which would allow them to realize their goals, plans, programmes and strategies. The purpose of this study is to describe and evaluate the practice of economic agents from the districts of Pleven and Veliko Tarnovo to develop and manage projects, and to identify the main problems that beneficiaries faced during the first planning period of Bulgaria’s membership in the EU. The main thesis statement is that the economic agents from both districts have information and experience in project development and management, but not all of them are active enough. Considering the subject, object, purpose, and thesis statement, the study is structured in two main parts. The first part presents some of the main options for accession of the EU funds and reviews the achievements of the economic agents. The second part focuses on the significant problems revealed regarding the organization and publicity for handling funds, and offers suggestions for the improvement of various aspects of project management. -
Penka Goranova, Eva Tsvetanova, Zhivka Tananeeva, Evgeni Todorov
THE POTENTIAL FOR CREATION OF GREEN JOBS IN THE PUBLIC AND PRIVATE SECTOR IN BULGARIASummary: The main objective of the study is to reveal the potential for change and reorientation of the production model in Bulgaria toward a more sustainable economy generating new green jobs and territorial development, which is to... The main objective of the study is to reveal the potential for change and reorientation of the production model in Bulgaria toward a more sustainable economy generating new green jobs and territorial development, which is to integrate the environmental, economic and social stability. The main tasks are: to systematically analyze the approaches and concepts for the development of a green economy and green jobs in the EU and U.S.; to define the term „green jobs”; to examine the prerequisites and barriers to green job creation in Bulgaria, and to study the potential for creation of green jobs in the private and public sectors. The main thesis in the study is that the concept of green economy is applicable in the private and public sectors in Bulgaria. Its implementation will catalyze the process of increasing the competitiveness of the areas that generate green jobs, reduce inter-regional disparities and accelerate the integration of the Bulgarian economy in the European structures. The study emphasizes the main results, namely: the best practices for implementation of green initiatives for sustainable local development and creation of green jobs are outlined, an attempt to quantify the attitudes about the creation of green jobs in the public and private sectors in Bulgaria is made, recommendations for improving the network interaction of stakeholders in the green economy issues are formulated. -
Hristo Sirashki, Ralitsa Hristova, Borislava Slavova
APPLICATION OF ECOLOGICAL STANDARDS IN THE MANAGEMENT OF NATURE USE AND NATURE CONSERVATIONKeywords: management, nature use, nature conservation, ecological standards, environmental managementSummary: The research interest is geared towards the study and application of ecological standards regulating the activities related to nature use, nature conservation and their management. The object of research is a number of operating... The research interest is geared towards the study and application of ecological standards regulating the activities related to nature use, nature conservation and their management. The object of research is a number of operating companies in the mining industry, the manufacturing industry and energetics of the Republic of Bulgaria. The subject of research is the methodological, practical and applied aspects for the application of ecological standards in the management of nature use and nature conservation. The objectives of this paper are related to pointing out some sources of pollution, disclosing the possibilities for nature use and nature conservation and the application of ecological standards. The tasks which we have set are oriented towards systematizing the theoretical bases, researching the objects of research, pointing out the various sources of pollution and formulating conclusions and recommendations. We defend the thesis that the application of a system of ecological standards for nature use and nature conservation enables the improvement of the state of the environment. As a result of the research, we have evaluated the activities in the researched objects and have presented the corresponding conclusions. -
Veselin Popov, Petya Emilova, Petyr Dachev, Iskren Tairov, Boryana Todorova, Tsvetelin Borisov
INFORMATION SECURITY IN BULGARIAN E-COMMERCE SYSTEMSJEL: D80Keywords: electronic commerce, information security, information security threats, protection strategySummary: The provision of information security is one of the greatest challenges that modern information and communication technologies face. To solve the problems in this area it is necessary to perform a complete and profound analysis of... The provision of information security is one of the greatest challenges that modern information and communication technologies face. To solve the problems in this area it is necessary to perform a complete and profound analysis of all real and potential threats and, on this basis, to choose and develop a complete solution. The object of study are the e-commerce systems in the Bulgarian business organizations and the subject of study are the policies, strategies, approaches, methods, techniques and technologies to achieve a high level of security of these systems. The main goal of this study is to prove the thesis statement that effective protection in e-commerce is multi-layered and the new technologies, policies and procedures, laws and industry standards have to be taken into account. The tasks to achieve the goal include: presenting the results of a survey of the current state of e-commerce systems security in the Bulgarian business organizations; defining the problems of information security in e-commerce systems; and presenting a strategy and technology to counter these threats. -
Plamen Petkov, Krasimira Slaveva, Diana Markova, Tihomir Varbanov, Boriana Valcheva, Amelia Krachunova, Daniela Simeonova
STATISTICAL ANALYSIS OF SOCIO-ECONOMIC AND DEMOGRAPHIC DISPARITIES AND INEQUALITIES BETWÅÅN ADMINISTRATIVE REGIONS IN BULGARIAKeywords: interregional and intraregional inequalities and disparities, statistical analysis, structural disparities, economic crisisSummary: The purpose of this paper is to theoretically justify and empirically estimate the regularities in the demographic, social and economic situation of the regions in Bulgaria and to disclose the interregional and intraregional... The purpose of this paper is to theoretically justify and empirically estimate the regularities in the demographic, social and economic situation of the regions in Bulgaria and to disclose the interregional and intraregional disparities and inequalities based on a statistical analysis of the structure, dynamics and their factor determination. To realize the goal several basic tasks are performed, the most important of which are: describing interregional inequalities and disparities by means of the appropriate statistical tools; clarifying and analyzing intra- and interregional inequalities and disparities; examining the regularities in the demographic, social and economic development of the regions through the application of statistical methods for the time series analysis; and estimating the degree of convergence between the regions in Bulgaria, taking into account the impact of the economic crisis through a comparative analysis of the identified trends and patterns. The thesis statement advocated by the authors and confirmed by the results obtained in the study is that the economic crisis increases the degree of inequality between the regions in Bulgaria and intensifies the demographic, social and economic disparities of the population in terms of regions. -
Marina Nikolova, Marusya Stancheva Linkova, Husein Fårhad
PROBLEMS AND PERSPECTIVES OF THE AGRIBUSINESS SUSTAINABLE DEVELOPMENT IN BULGARIAKeywords: sustainable development, environment, environmental policy, environmental regulation, instruments for impactSummary: The present study is based on the thesis statement that it is possible and necessary to develop successful business which takes care of preserving the environment in Bulgaria. With reference to this the objective of the present... The present study is based on the thesis statement that it is possible and necessary to develop successful business which takes care of preserving the environment in Bulgaria. With reference to this the objective of the present research is to study the problems of sustainable development in the country and in particular the prospects of doing sustainable business in the rural regions of Bulgaria. Three sub goals further expand the main objective of the study, namely: to analyze the problems of sustainable use of natural resources; to outline the main trends in the preservation of the environment and biodiversity; and to specify the models and forms of sustainable business development in the country. The specific tasks that the study completes are related to revealing the economic and social advantages of sustainable development, identifying the problems of sustainable use of natural resources in Bulgaria and coordinating the mutual efforts of business agents in the rural regions for achieving sustainable development. The results of the research are as follows: outlining approaches to sustainable use of natural resources within their capacity as a prerequisite of any long-term development by coordinating the political, economic and social systems; suggesting models for sustainable resource use on the basis of organic farming; highlighting the advantages of sustainable agriculture as an opportunity for reducing unemployment, migration processes and local economy development in the endangered regions of Bulgaria. -
Anastasiya Marcheva, Lyudmil Nestorov, Taner Ismailov
FIGHTING POVERTY – THE CHALLENGE FACING THE TEACHING OF ECONOMICS AND MANAGEMENTSummary: The implementation of a comprehensive and integrated approach is a prerequisite for overcoming social exclusion and for breaking the passing on of poverty from generation to generation. Higher education in economics and management... The implementation of a comprehensive and integrated approach is a prerequisite for overcoming social exclusion and for breaking the passing on of poverty from generation to generation. Higher education in economics and management takes an important place in the fight against poverty by providing the necessary knowledge, skills and competencies. Thesis statement: „The improvement of the traditional methods and the introduction of new active methods and modes of study in economics and management provide students with knowledge and skills, which are the prerequisites for getting out of poverty.” Aim: Studying the existing modes of study and opening up opportunities for improvement through the introduction of new elements in teaching economics and management to create knowledge and skills for fighting poverty. Tasks: Studying the characteristics of poverty in Bulgaria; Analyzing the content of economics and management courses and creating new opportunities to include issues related to the fight against poverty; Developing methodological materials containing active forms of teaching and acquiring knowledge and skills. The national policies that can contribute to poverty reduction have to be the basis for developing the components of the course content. The incorporation of these policies in the course content would attract the interest not only of students but of all stakeholders to the educational product of the D. A. Tsenov Academy of Economics. -
Petyr Todorov
A COMPARATIVE STUDY OF THE ACTIVITIES AND THE RESULTS OF THE APPLICATION OF BLENDED LEARNING IN FOREIGN LANGUAGE AND NON-FOREIGN LANGUAGE SUBJECTS TAUGHT AT THE D. A. TSENOV ACADEMY OF ECONOMICS – SVISHTOVJEL: I21Summary: Blended learning is an innovative approach which combines face-to-face and electronic form of learning. For blended learning to be implemented, a virtual learning environment must be created. This environment enables students to... Blended learning is an innovative approach which combines face-to-face and electronic form of learning. For blended learning to be implemented, a virtual learning environment must be created. This environment enables students to perform various tasks and activities in order to improve the quality of their education and achieve higher results. One of the most widespread methods of implementing blended learning is the use of Moodle LMS (learning management system), which enables lecturers to create online content, develop courses, register users and manage the learning process. This form of learning has been successfully implemented over the last few years by lecturers at the Department of Foreign Languages at the D. A. Tsenov Academy of Economics in Svishtov both in language courses and in their work on a series of scientific and research projects. The results of all these activities so far have been positive. So far, however, at the D. A. Tsenov Academy of Economics no comparison has been made between the activities and the results of implementing blended learning in foreign language and non-foreign language subjects. The aim of this research is to ascertain to what extent blended learning is efficient in foreign language teaching and in teaching economic subjects. In carrying out the activities, we created a learning environment and conducted a scientific experiment. The results of the research show that blended learning is applicable in both groups of subjects, which gives ground for working further and expanding the scope of its application at the D. A. Tsenov Academy of Economics, covering more subjects and more forms of education.