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Aglika Kaneva
ANALYSIS OF THE PROFITABILITY INDICATORS AND THE INDICATORS FOR ASSESSING THE QUALITY OF BANK ASSETS IN EU MEMBER STATES IN THE PERIOD FROM 2007 TO 2017
Summary:
The research paper analyses the profitability of banks in EU Member States -earnings after taxes, return on equity and return on assets. It also reviews the dynamics of the indicators for assessing the quality of bank assets, such as the share of watch exposures and non-performing exposures on loans and advance payments, specific provisions and loan impairments of banks in the European Union and the euro area, since, similar to the profitability indicators, they are strongly affected by financial crises.
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Lyubomir Ivanov
ANALYSIS OF THE AUTODETERMINATION COEFFICIENT STATISTICAL SIGNIFICANCE
Summary:
The study examines the issue of estimating the statistical signifi¬can¬ce of the autodetermination coefficient. The features of the proposed estimate are identified – bias, efficiency, consistency and sufficiency, and their relation¬ship with the length of the time series and the number of the autocorrelation coeffi¬cients used. Two approaches are proposed for testing the statistical signifi¬can¬ce hypothesis. The first one is used in long time series and involves calcu¬lating the properties of the Wald test (W), the likelihood ratio test (LR) and the Lagrange multiplier test (LM). The second approach is used in short time series on the basis of tabulated boundary values of the autodetermination coeffi¬cient. The study proposes an analysis scheme which was used in stu¬dying the time series of the main indicators of Bulgaria’s demographic develop¬ment for the period 1930 – 2011.
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Rumen Vyrbanov
The Business Potential of Social Media Platforms
Summary:
Web 2.0 technologies have changed the business environment and have become a ‘must’ of any business strategy, whether it is a large company or a small and medium-sized enterprise.
Modern social media have a lot of sophisticated tools and technologies that can be successfully used to attract new customers, promote brand (recognizable identity for our product or service), boost sales, increase a company’s website traffic, build effective customer relationships, manage online reputation, facilitate communication with customers, incl. online, optimize search engines, etc. However, at the same time, social media are not just a collection of new tools and technologies – they develop and establish new business models, and require that managers and business owners have a lot of new knowledge and a new way of thinking.
In the social media environment small enterprises can successfully compete with large companies, regardless of the different advertising and marketing budgets. Although modest, the existing experience shows that with an adequate viral campaign organized in the social Web space small and medium-sized enterprises can generate huge traffic to their sites, improve communications with customers and achieve greater sales.
This study attempts to offer practical solutions for using social media in business processes. It focuses on several questions:
• What the Web 2.0 potential is expressed in for businesses and what ad¬vantages it provides;
• What the specific characteristics of social Web space are that are important in the use of Web 2.0 for business purposes;
• What the content behind the term ‘social media’ is and what its business poten¬tial is;
• What the nature and scope of social media is and what reasons justify the huge interest of businesses in them in recent years;
• How Social Media Optimization (SMO) and Social Media Marketing (SMM) can be used in the interest of businesses.
The first part of the study examines the basic characteristics and specific features of the second generation of Web services contributing to the use of Web 2.0 for business purposes. According to the author the new way of interaction and the ease of integration that are characteristic of Web 2.0 are expected to make radical changes in corporate information systems (IS), and hence in the business of companies.
The second part analyzes the nature and manifestation of social media. It gives a brief overview of social media and describes their potential for the development of small and medium-sized businesses, concluding that social media tools can be used successfully to attract customers, increase traffic to the website, boost sales, promote the brand and form a target audience. However, at the same time social media are something more than business tools – they require a new way of thinking, a new ap¬proach to the business of the company and to customers, an orderly and reasoned strategy for working in the new social environment.
The third part presents the capabilities of the two new and still not widely used tools for the popularization of the site in the social media – Social Media Optimization (SMO) and Social Media Marketing (SMM). Companies that will migrate to Web 2.0 have to have a good understanding of SMM tools in order to be able to determine which of them are suitable for a particular business and how to approach their actual use. The author argues that the good performance of the site on the Web and providing more traffic today require an integrated approach in using the various techniques for digital and traditional marketing.
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Mykhaylo Zveryakov
SEEKING AN EXIT FROM THE CRISIS
Summary:
The theoretical conception of an exit from a crisis, which was proposed by the Nobel Prize winner P. Krugman, and the application of its basic positions in seeking ways to get out of the crisis in developed countries and in Ukraine are analysed. A peculiarity of the application of Keynes’ theory in the national economy is demonstrated. The necessity of developing an alternative economic model applicable to Ukraine’s economy is substantiated. Some theoretical approaches to the formation of a new economic model based on a change in the current system of distribution of the aggregate added value in favour of an increase in the rate of accumulation as a necessary condition of steady economic growth are proposed.
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Hrabrin Bashev
THE IMPACT OF MARKET, PRIVATE, COLLECTIVE AND HYBRID MODES OF GOVERNANCE ON AGRARIAN SUSTAINABILITY IN BULGARIA
Summary:
The specific governance systems in different countries, regions, sectors, etc., are a factor which largely (pre)determines the rate and type of socio-economic development. Despite its tremendous theoretical and practical significance, little empirical research has been conducted in Bulgaria, and south Eastern countries in general, of the dominant governance structures in agriculture and their impact on agrarian sustainability. The aim of this study is to adapt the interdisciplinary New institutional economics and to assess the impact which the different modes of governance (market, private, collective, public and hybrid) have upon agrarian sustainability at the current stage of development of our country. The study first presents the methodology of the research. Next, typical governance modes are identified that are employed by Bulgarian farms of different legal type, size, production specialization, environmental position and geographical location, the impact of those governance modes on agrarian sustainability in its economic, social and environmental aspects. In conclusion, recommendations are made about conducting further research and improving public policies and private governance strategies. Agricultural producers employ various combinations of efficient market, private, collective and hybrid modes of governance in their activity and relationships. The factors and modes which contribute the most to raising agrarian sustainability at this stage are: managers’ confidence and initiatives; economic resources and innovation potential; a short-term profit and gains strategy; price level and dynamics; EU payments per area, and informal agreements. The research of the relationship between governance structures and agrarian sustainability should continue further to improve its representativeness and enlarge the scope of the specific modes of governance which farms of different types employ, to assess the impact of institutions upon agrarian sustainability and the effect of governance at different hierarchical levels. The latter, however, requires employing a new type of micro and macro data and close cooperation between different stakeholders.
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Rumen Kalchev
ON SOME ASPECTS OF CONTINUING VOCATIONAL TRAINING IN BULGARIA
Summary:
This study focuses on issues related to continuing vocational training (CVT) in Bulgaria. Its significance in building a knowledge economy is in compliance with modern views. Some key indicators of its scope and importance in EU countries are analyzed. Major problems with continuous vocational training are revealed and the fundamental trends for overcoming them in Bulgaria are outlined
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Wei Bin Zhang
GLOBAL SOCIAL STATUS, NATIONAL SPIRITS OF CAPITALISM, AND ECONOMIC DEVELOPMENT
Summary:
This paper constructs a global economic growth model with endogenous social status, endogenous preferences, and wealth accumulation. The economic system is based the Solow model, the Uzawa two-sector model, and the Oniki-Uzawa trade model. We base our approach to measuring social status on some ideas in the literature of economic growth with endogenous growth. The model is specially based on a model proposed by Zhang (2016). This study considers relative social status as a function of a country’s relative wealth per household with the global average per household wealth. It treats time distribution between leisure and work as endogenous variables. The world economy is composed of any number of national economies and each national economy consists of one capital goods sector and one consumer goods sector. National economies differ in social status, preferences, spirits of capitalism, and productivities. We build the model for -country world economy and express the dynamics with differential equations. We simulate the movement of a 3-country global economy and carried out comparative dynamic analysis with regard to some parameters
-
Daniela Georgieva
Digital Competences of Accountants within the Context of the Fourth Industrial Revolution
Summary:
The aim of this research is to identify the major digital competences that are required for accounting professionals. The focus of the research is on three positions in the National Classification of Professions and Positions (NCPP – 2011) – those of a chief accountant, an operational accountant and a bookkeeper. The objective of the research is to make a comparative analysis of the different classes in the NCPP-2011 and the major digital competences required for them according to the main duties of the people appointed to those positions. Our research approach is based on the methods of logical reasoning, deduction and comparison, as well as analysis and synthesis of the legal requirements which have been adopted at a national and an international level in terms of the competences and professional duties for each position. In addition, an analysis has been made of proposed classifications and identified competences in related economic literature. The propositions and conclusions we give will contribute to raising the awareness of employees, employers and educational institutions about the digital competences and knowledge required from persons practising the profession. The research has been funded by the MES Program ‘Young Scientists and Postdoctoral Students’ through a grant made to the Faculty of Economics and Business Administration at Sofia University. The author would like to acknowledge the support which has been provided through the program.
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Hristo Sirashki
Environmental Strategy and Corporate Governance
Summary:
The issues related to environmental protection and depletion of natural resources potential, as well as the rise of market economy and scientific and technological progress, require a reconsideration of the sources of raw materials and the sources of economic growth. The further development of humanity is only possible within an environmentally sound and sustainable development. The environmental and economic interests of sustainable nature utilization and nature conservation are included in the content of the environmental strategy, which is related to the environmentally sound corporate governance.
Corporate governance is required to provide the necessary impact in order to achieve rational nature utilization and conservation for the future generations.
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Irena Misheva
ENVIRONMENTAL INSURANCE –
A PART OF RISK MANAGEMENT
IN ENTERPRISES UTILISING HAZARDOUS PRODUCTION
Summary:
This study focuses on the problems related to the management and regulation of environmental risks and environmental behaviour in enterprises utilising hazardous production. The main focus is placed on environmental insurance as part of enterprise risk management. Priority is given to the relationship between insurance and risk management in the management structure of business entities. The relationship between enterprise risk management and other types of management in enterprises with hazardous production in relation to environmental protection is also examined. The author analyses the dynamics in the demand for environmental pollution liability insurance by industrial enterprises.
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Hrabrin Bashev, Mimoza Mladenova
The Effects of Implementing European Policiesin Agricultiral Holdings in the Republic of Bulgaria
Summary:
There have been numerous publications in recent years dealing with the various effects of the CAP on holdings in the EU countries. In the Republic of Bulgaria, however, there are not comprehensive assessments of the actual effects of the implementation of CAP on agricultural holdings as a whole and on agricultural holdings of different types. This article presents the results of a comprehensive survey of CAP’s impact on incomes, efficiency, competitiveness and sustainability of agricultural holdings of different legal types, sizes, specialization and geographical location. The approach of the study and the system of criteria and indicators for assessment are presented in details in a previous publication of the authors . In order to assess the effects of the CAP, the authors used formal data of the Ministry of Agriculture and Food, the National Statistical Institute and other sources, primary data of surveys of farm managers and expertise of leading experts in the given sphere.
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Nikolay Ninov
Efficiency of the Social Assistance System in Bulgaria through Planning the Use of European Funds
Summary:
Within the social policy implemented to alleviate the worst forms of deprivation and combat poverty, targeting European Union citizens that are most affected by the socio-economic crisis, and through the Fund for European Aid to the Most Deprived, the European Commission finalized the process of adoption of all national operational programmes for the period 2014-2020 amounting to a total value of 3.8 billion Euros. These funds will be spent on achieving social cohesion and implementing one of the main objectives of the Europe 2020 Strategy – “Lifting at least 20 million people out of the risk of poverty or social exclusion”. The Republic of Bulgaria received 104.8 million Euros to finance social benefits and social services aimed at promoting social inclusion, thereby the national social assistance system is expected to demonstrate greater effectiveness and efficiency in spending them
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Gergana Nikolova
The Non-financial Declaration in the Context of the New Accountancy Act
Summary:
The issue of the Annual Financial Statement is ongoing. Our interest in it was aroused by the adoption of the new Accountancy Act, in force since the beginning of 2016, which first introduced the requirement for preparing and publishing the Non-financial declaration as part of the Annual activity report within the general-purpose Annual Financial Statement (AFS) of entities specified by the law. This study attempts to examine the Non-financial declaration from different aspects in order to reveal its nature, content, purpose and possibilities for improving the information capabilities of AFS. On this basis, conclusions are drawn and options for further research are outlined regarding issues related to the Non-financial declaration.
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Mihal Stoyanov
PROTECTION AGAINST FRAUD IN ELECTRONIC TRADE PAYMENTS
Summary:
The past decades have seen continuous advancements of infor¬mation and communication technologies that have substantially altered economy on a local, national and global scale. The employment of these technologies creates and tranfers to economic entities significant economic and social effects, yet it poses serious challenges to the security of the digital environment. An increasingly complicated issue is that of unlawful activities with payment transactions in trade. This paper reviews the nature of crimes related to payments in the physical and the digital environment; the characteristics of different technological means of safeguarding online payments, as well as some opportunities for improving the safety of individuals when using the Internet to make commercial payments.
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Margarita Marinova, Emiliya Vacheva
FROM THE HISTORY OF TRADE AND BANKING IN SVISHTOV. TRADING-AND-BANKING
(MONEY-CHANGING) COMPANIES AND BANKING HOUSES AND THEIR IMPORTANCE FOR THE TOWN ECONOMY (1878-1912)
Summary:
Based on archival sources not used so far, periodicals and other sources of information, the study reviews the economic life of Svishtov in the period 1878-1912, with an emphasis on the development of trade. Against this background, it examines the issue of re-directing trading capital to banking. The focus of the study is the trading-and-banking (money-changing) companies and banking houses (8 partnerships and 9 sole proprietorships). The study answers a wide range of questions concerning their emergence, institutional characteristics, the nature of the capital mobilized in them; the banking operations and services they offered, with a focus on credit and the circumstances that allowed banking houses at certain periods to make a greater contribution to lending money to local trade and production; the psychological profile of the Svishtov merchant; the reasons why the joint-stock principle did not establish itself firmly and permanently in the economic life of the town. It also reveals the leading role of the Bulgarian National Bank in lending money to local trade and to the two savings joint-stock companies that existed in the 1890s and shows the importance of the banking houses for the development of the town’s economy in three directions – they were subjects in the process of initial capital accumulation; they provided short-term credit and increased the common funds for performing payment operations; they brought stability to the functioning of the banking and lending system especially in times of changes in the central bank’s policy. They also played the role of a ‘financial buffer’ that ensured the survival of companies in times of temporary hardships. The conclusion reached is that being away from joint-stock entrepreneurship, especially in banking, and the inability of local economic forces to create a joint-stock bank, was one of the main reasons for the economic backwardness of the town, beginning at the end of the nineteenth century.
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Plamen Petkov
AN ECONOMETRIC ANALYSIS
OF THE INVESTMENT FUNCTION
FOR BULGARIA ALLOWING FOR THE IMPACT OF STRUCTURAL BREAKS
Summary:
An investment function is a concept or strategy within economics that helps to identify the connection between shifts in the national income and the investment patterns that take place within that particular national economy. The present study uses the Vector Error Correction Model (VECM) to examine the long-run and short-run relationships between investment and some of its key determinants – real gross domestic product, inflation, discount rate and the Composite Financial Development Index. The econometric analysis is based on annual data referring to the period from 1991 to 2011. Three investment functions are estimated – total investment, private investment and foreign direct investment, and each function is analyzed both by not taking and by taking into consideration the structural changes that occurred in the survey period
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Nina Koteva
The Economic Efficiency and Financial Sustainability
of Agricultural Holdings
Summary:
The purpose of this article is to study the levels and trends of some basic indicators characterizing the economic efficiency and financial sustainability of agricultural holdings.
The study is based on official statistical information (NSI, MAF, Eurostat) and covers the period 2006-2013. It uses the following survey methods: systematic and comparative analysis; method of statistical groupings, inductive and deductive methods of analysis.
The survey results show that there is no clear steady upward trend in the efficiency and financial sustainability of agricultural holdings in the country. The economic performance of agricultural holdings growing field crops repeatedly exceed the performance achieved in the other types of holdings, mainly due to the larger sizes of the holdings and the support received rather than the more efficient production. The agricultural holdings growing perennial crops are in the most unfavourable situation.
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Rumen Lazarov
ECONOMIC UNCERTAINTY
AND THE ROLE
OF THE INSTITUTIONAL
FACTOR IN ITS ANALYSIS
Summary:
This article presents an attempt to clarify the understanding of the role played by institutions in relation to economic uncertainty. The aim is to critically analyze and compare the place which this economic phenomenon occupies in neoclassical and institutional analytical models.
The need for the introduction of the institutional factor in a highly formalized orthodox neoclassical analysis model is theoretically justified.
The conclusion is that, under this condition, economic analysis will be able to produce objective results on the basis of which precise conclusions and correct decisions will be made as regards economic policy
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Rumen Georgiev, Milen Velushev
THE INNOVATION STRATEGY AND THE COMPETITIVE POSITIONS OF BULGARIAN ECONOMY
Summary:
As an EU member state, it has become an imperative for Bulgaria to fit in the economic structure of the European Union. In order to promote economic growth, the Union assigned member-states with the task to identify the advantages which will enable them to specialize in the production of goods and services with high added value. Specialization will thus enable member states to focus their effort on consolidating their comparative advantages by employing as an instrument the innovation paradigm. To respond to this challenge, Bulgaria designed its ‘Innovation Strategy for Smart Specialization’ in 2014. The aim of this research is to identify the extent to which the Strategy reflects the real opportunities for the national economy to increase the value added of its production by introducing innovations in specific technological areas stated in the document. The findings of the research indicate that the Innovation Strategy is not in compliance with the underlying logic of the European Commission or the OECD in terms of identifying the economic activities that have real potential as comparative advantages and core competences and where the fastest and most sustainable growth of value added could be expected through the adoption of innovations.
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Hristina Nikolova
INSTRUMENTS FOR ENCOURAGING PUBLIC-PRIVATE PARTNERSHIPS
IN TRANSPORT INFRASTRUCTURE PROJECTS
Summary:
The study presented aims to reveal the potential for expanding and intensifying public-private partnerships (PPPs) in the implementation of transport infrastructure projects. It focuses on the existing instruments for promoting PPPs in transport industry. The article presents an analysis of the European experi¬ence and the results from the application of instruments for promoting PPPs in transport industry. It summarizes the experience of the European Investment Bank in using these instruments, which will become increasingly important after the change in the use of structural funds and the allocation of the EU funding for infrastructure projects after 2020. It also conducts a critical analysis of the possi-ble forms of implementing PPPs in transport industry and defines their benefits and the areas of application. The main problems faced by public and private sectors in the implementation of PPPs as a form of financing transport infra-structure projects in the country are also outlined.
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Kristiyan Hadzhiev
INSTRUMENTS FOR ANALYSIS OF THE EXTERNAL ÅNVIRONMENT THROUGH THE PRISM OF SELF-MANAGED WORK TEAMS
Summary:
The article studies the specific characteristics of the external environment because they create actual possibilities for the introduction of self-management in the functioning of work teams in the Bulgarian organizational practice. An emphasis is put on the organizational context within which self-managed work teams (SMWT) function. The study also identifies the key instruments integrated in the model of analyzing the external environment in the process of transforming traditional work structures into self-managed ones. The article outlines the effects of the direct and indirect environment factors on the various dimensions of SMWT, namely structural characteristics, work and interpersonal processes, etc. The author supports the idea that the sustainable development of the SMWT-concept and the creation of added value for organizations require adequate monitoring of the competitive environment factors (specific micro-environment) and the common environment. This is one of the paradigms of modern management. Changes in the external environment affect the internal integration of the system and vice versa – the damaged internal processes limit the organization’s potential for adapting to the environment.
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Hélène ClÉment Pitiot, Patrick Saint Pierre
Inflation and Labour Capital Distribution: the Viable Compromises
Summary:
Our contribution aims to revisit the well known Goodwin’s model in macroe-conomics by the light of set-valued analysis taking into account state and regulation constraints in a viability program. The model of Goodwin (1967) deals with dynamic in¬teractions between employment and salary levels. It provides endogenous explanations of cyclical trends in dynamical economy. Viability methods enable investigating model properties and revealing appropriate regulation allowing the evolution to ful;ll some pre¬scribed qualitative objective. Then, applying computational methods derived from the Viability Kernel Algorithm, one can stretch the traditional Goodwin model analysis up to the institutional framework of the economy including monetary and budgetary aspects of the regulation policy from the public authorities, namely the state government, the cen¬tral bank and eventually the rivalry between the two boards thanks to dynamical games.
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Hristina Nikolova
INFRASTRUCTURE CHARGES LEVIED IN AIR TRANSPORTION – CURRENT ISSUES AND PERSPECTIVES
Summary:
The paper reviews the progress achieved so far in terms of applying the major principles of levying infrastructure charges in air transportation by analysing the charge rates in the country for access to airports and for air navigation services. It also comments on some problems arising in result of applying the current charge rates and suggests possible solutions. The author of the paper conducts a SWOT analysis that summarises the opportunities for improving charge rates and the immediate benefits which could be obtained as a result of using those opportunities in applying infrastructure charges in air transportation.
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Trayan Yosifov
Competitive Advantages of Adopting Biotechnological Innovations
Summary:
The underexploited potential of the national economy results in a low standard of living and a poor investment environment. Due to the current condition of economic processes, Bulgaria ranks at the bottom in terms of its GDP compared to other EU member-states and is one of the countries with the fastest declining population in the world. Low competitiveness and innovativeness of Bulgarian enterprises underlie the lack of any serious economic progress. This finding is true even for the economic spheres which contemporary biotechnological innovations are based on and in which our country has real advantages in terms of its natural resources and climate. The objective of this research paper is to analyse the main economic aspects of Life sciences and to present some major European accomplishments and partnerships in the pursuit of competitive advantages by enterprises operating in the sphere of biotechnologies.
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Maya Lambovska
A Concept of Team Control in Organizations
Summary:
This study aims to develop the conceptual and methodological foundations for team control in organizations. It presents a concept of team control, which combines classical and modern achievements of a number of management and mathematical theories. The concept is based on a comprehensive toolkit which includes management and advanced mathematical tools from the theory of fuzzy logic and the theory of fuzzy subsets. The study consists of four parts. Part one clarifies the author’s concept regarding the nature and characteristics of a team. Part two elaborates on the conceptual foundations of the team control process. Part three contains the author’s model of team control in an organization. Part four presents the results of testing the model of team control at Todor Kableshkov University of Transport – Sofia.
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Petya Ivanova
CREATIVITY AND SUSTAINABLE TOURISM DEVELOPMENT
Summary:
The article justifies the need for targeted development of destination creativity as a sustainable tourism resource. The economic significance and the way this resource adds value to tourism is outlined.
The role of creativity in tourism development is identified on the basis of the systematization of discussions existing in scientific literature and comparisons between creative and traditional forms of tourism. The specifics of tourism demand and supply of creative tourism experiences are consistently analyzed.
Specific conclusions are made that could contribute to the sustainable development of tourism in Bulgaria based on the analysis carried out
-
Lyudmil Naydenov
Personal and Corporate Income Taxes as Sources of Local Revenues - Opportunities and Challenges
Summary:
The policy of expanding the tax powers of local authorities leads to the optimisation of vertical financial relations in the public sector and improved economic efficiency and public well-being. Within the context of decentralization (administrative and fiscal one, in particular), regional structures should be equipped with access to profitable revenue-generating tax sources. The paper focuses on the applicability of personal income taxes and corporate taxes at a local level. The pros and cons of using the two types of taxes as sources of revenues to municipalities are analysed, the practice of different countries around the world in the sphrere is reviewed, and, based on those, the author proposes the thesis that taxes on labour incomes should be approached as local or parallel taxes, while there are no grounds for including corporate taxes in the category of local or parallel taxes.
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Metody Kanev
THE METAMORPHOSES OF CAPITAL AND HUMAN DEVELOPMENT
Summary:
The paper is an attempt to clarify the importance of the human, the cultural and the social capital and their metamorphoses in result of their mutual complementarity and conversiveness. By becoming major factors of life reproduction in general, they also act as essential organizing principles of the functional and structural model of social self-organisation and performance and human development
-
Stefan Simeonov
A METHODOLOGY FOR TREND ANALYSIS OF STOCK EXCHANGE ACTIVITIES, BASED ON INDICATOR SIGNALS AND FREQUENCY VOLATILITY
Summary:
Different technical and statistical methods and indicators which are usually applied separately are used in market trend analysis. Some of the fundamental principles in technical analysis, as well as a great part of the quantitative indicators are not popular enough. There are unsettled issues regarding the change in the information indicators during the market trend and one can find unexploited potential in the analytical methods, which sets up a necessity for a more thorough and comprehensive study of the primary exchange indicators. Therefore, we propose a comprehensive methodology of market trend analysis, which integrates the signal functions of exchange indicators, statistical variation and frequency volatility by specifying their change throughout the market phases.
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Maya Lambovska
Methodological Features of Risk Management in Internal Control Systems
Summary:
Instruments for an alternative approach to risk management in internal control systems under revolutionary changes in an organization’s development are presented in this paper. The functions and application of instruments for the identification and measurement of the threats to the organization are demonstrated in the first section of the paper. The role and application of instruments to counteract the threats to the organization are explained in the second section of the paper. The instruments proposed in the paper are illustrated with some results from the research project ‘Theoretical fundamentals of an internal standard of measurement and evaluation of threats to organizations’, financed by the National Science Fund of the Bulgarian Ministry of Education and Science.
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Nina Koteva, Desislava Toteva, Emilia Sokolova
Methodological and Methodical Issues of the Economic Sustainability of Agriculture and Agricultural farms
Summary:
Based on a critical review of scientific literature, the category ‘economic sustainability’ is defined as the dynamic development of agrarian systems over a long period of time in line with the changes in the external and internal environment which ensures efficient performance, good financial condition and competitiveness.
We observe the hierarchical levels of the system for assessing economic sustainability to first select the principles, and then the criteria and indicators to be employed in the assessment, so as to reveal the characteristics and the underlying and significant aspects of the performance of the agricultural sector and agricultural farms.
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Maya Lambovska
A PERFORMANCE MODEL
FOR LECTURING TEAMS AT TODOR KABLESHKOV UNIVERSITY
OF TRANSPORT
Summary:
This paper presents an original performance model of lecturing teams at Todor Kableshkov University of Transport, Sofia. The model is based on various managerial, social and behavioural theories. It combines classical and up-to-date theoretical achievements with regulations and established practices at Todor Kableshkov University of Transport. The specific features of the model relate primarily to the indicators proposed for measuring the results of the lecturing teams at the university. The paper consists of two parts. Part one presents the conceptual basis on which the performance model of lecturing teams at Todor Kableshkov University of Transport is developed, as well as the definitions of some basic notions related to the control on teams. Part one also reviews the team model as the basis of the performance model which is proposed. Part two explains the specific features and the determinants of the performance model and introduces the indicators applied to the formation, activity and results of the lecturing teams at the university
-
N. Gushterov
MODELLING CONSUMER BEHAVIOUR ON THE ENERGY MARKET
Summary:
Consumer behavior models make it possible to visually present in charts researched entities and the processes they go through, as well as the changes which occur should some variables which affect those processes change. The objective of this paper is to design a meaningful model which may be employed to describe in detail consumer behavior in the process of purchasing energy. The subject of the research is energy consumers, while its objects are the models which could be employed to describe consumer behavior when consuming energy. The analysis we conducted indicated that in order to accomplish our objective we need to account for emotional responses, norms and social factors and major economic variables (prices, incomes, prices of substitute goods).
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Petya Ivanova
MODERNIZING THE TRANSPORT SYSTEM IN BULGARIA IN ORDER TO PROMOTE TOURISM DEVELOPMENT
Summary:
The scope, the role and the essence of the relationship between tourism and transport are presented conceptually and in terms of their modern aspects, as well as the impact of that correlation upon the development of tourist destinations. We analyse the findings of a quality assessment of the different types of infrastructure in Bulgaria and in several countries which are our immediate rivals as tourist destinations. Evidence is provided to support the thesis that the transport infrastructure in Bulgaria needs to be improved to meet the demands of tourism, including by promoting easier access and mobility, and thus contribute to the image of the country as a sustainable destination. Key aspects for providing more efficient public transport in tourist destinations are identified. The paper also pays attention to strategic transport planning that should meet tourism demands and to improving the coordination between the institutions in both sectors in order to achieve visitors’ satisfaction, especially in terms of transportation.
-
Dimitar Panayotov
New Paradigms – Interactionist Perspectives of Human Behaviour in Organisations and Management
Summary:
The study analyzes interactionist perspectives, combining different approaches, models, and theories about understanding the multiaspect, multifactor and holistic (comprehensive) nature of human behaviour in organisations and management. It also suggests baseline theses about: substantiation of complex research approaches; intersection of paradigmatic lines of different behaviour sciences, concepts, methodologies, and correlations which establish prerequisites for empirical and applied “translation” for acquiring new knowledge, values, and behaviour to encourage human development, strategic and global thinking, human capital and management of talents
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Krassimira Kostadonova Naydenova
SOME CONSEQUENCES OF BULGARIA’S NON-MEMBERSHIP IN THE EURO AREA
Summary:
The accession of Bulgaria to the Eurozone has been a problem for 10 years now, and the non-persistent attempts of the Bulgarian governments have faced the organized opposition of the European institutions. The rules for adopting the European currency are known, but they seem unread, and the political interpretation of the full-scale criteria has placed Bulgaria outside the “inner” European club.
The deprivation of our country from Eurozone membership has not only social or political, but also financial consequences. The annual losses are significant and the national economy, financial markets and society remain only partially integrated.
-
Rosen Nikolaev
OPTIMISATION OF TRANSPORTATION COSTS FOR DELIVERY
OF HOMOGENOUS COMMODITY
TO CONSUMERS ALONG
THE LOGISTICS CHAIN
Summary:
This study examines some issues related to the mathematical modeling of shipment activities for homogenous products along the logistics chain and the economic-mathematical analysis of possibilities for its optimization. To this end, economic and mathematical models are suggested for the efficient management of transportation costs and costs arising in result of failure to meet the demand of certain consumers. Special attention has been paid to linear and non-linear models in an attempt to formalize the subjective attitude of managers in result of the objective impact of potential losses or the priority given to them due to the shortage of the output to be delivered. The practical need of and the options for applying the proposed economic-mathematical models are presented through comparative analysis and identifying the advantages of certain models through theoretical results based on a specific example from real business practice, which is evidence of their practical significance.
-
Yuli Radev
SEQUENTIAL MARKETS
AND GENERAL EQUILIBRIUM
Summary:
An increasing number of analysts of the latest financial crisis employ arguments and models from different stages of the evolution of economics. We believe that this is the right approach, since no economic event, financialization included, should be viewed as unique or unparalleled. We agree that the answers to most questions relating to the boom-downturn cycle are to be sought in the behaviour of entities involved in the economic process and the so-called extrinsic uncertainty. It seems only logical that similar events should be considered extreme and uncontrollable varieties of typical deviations from normal conditions. Yet, it might prove to be rather misleading to randomly combine economic concepts. Therefore, this paper is an attempt to systematize alternative models of the dynamic equilibrium path around which balanced and sometimes dis-balanced markets temporarily converge. In the framework presented here, extrinsic uncertainty and institutional theory add to the neo-classical idea about markets through the generalizing concept of market disequilibrium.
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Tsvetan Dilkov
ENTERPRISE RESTRUCTURING
BY USING PROJECT MANAGEMENT METHODOLOGIES
Summary:
Nowadays restructuring is one of the essential trends practically in every en-terprise activities, focused on successful business, and it is also an effective market tool for increasing its competitiveness.
Restructuring infers the systemic character of enterprise functioning optimization. It involves a multi-aspectual and interrelated set of events, processes and methods starting with a complex diagnostics of the company and reaching to reorganization of both organizational structure and business processes based on the modern management approaches, including quality management methodology, business processes re-engineering, information technologies and systems.
The aim of this publication is to help executives and managers to get a “quality vision” of the practical version of the preparation and implementation process of enterprise restructuring, in which the active or even passive use of some elements of the project management methodology will enable the successful realization of the intended restructuring programme.
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Vanya Hadjieva
THE APPLICATION OF THE CONTROLLING CONCEPT
AS A MODERN MANAGEMENT TOOL
Summary:
Effective governance is a major challenge for today’s managers. The management process is a dynamically changing phenomenon that is dependent on many and varied factors and influences. The controlling concept is a dynamic tool that can comprehensively optimize the management of all hierarchical levels in various governance structures.
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Milen Velushev
THE PROBLEM WITH ECONOMIC GROWTH IN BULGARIA: CAN FOREIGN DIRECT INVESTMENT HELP
Summary:
The Bulgarian economy has consistently ranked as one of the last among the EU countries regarding national competitiveness and factor productivity. Currently, its growth is modest and cannot qualify as a catch-up. A number of analyses have been dedicated to this topic, the results indicating various qualitative and quantitative factors or their aggregates as the cause for this lagging behind. This paper is an attempt to find out whether net foreign direct investment can help to improve the economic growth in Bulgaria. The analysis by Granger regarding the causality relationship between the GDP components and foreign direct investment inflows makes it clear that FDI affects not only government spending, which suggests that they cannot cause a change in the political institutions that determine the economic institutions. In short, at present foreign direct investment cannot be considered a source of economic growth due to the lack of investment in strengthening the market mechanisms by government.
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Venelin Terziev
THE DEVELOPMENT OF THE LABOUR MARKET IN BULGARIA
AND THE IMPACT OF IMPLEMENTED POLICIES REGARDING EMPLOYMENT AND UNEMPLOYMENT
Summary:
The adequacy and timeliness of an implemented policy are crucial for the effective support of changes in the parameters of the labour market and economic development. Considering the time delay of the effects and changes. its duration should not be overlooked in order to develop preventive measures for a timely response. Shortening the period in which the effects of the contemporary crisis are transferred on the labour market, respectively labour demand, reflects not only the degree of elasticity of labour demand to primary markets, but also the flexibility of the implemented policies. This fact has focused attention on the flexibility of labour markets and opportunities through its increase to strengthen the mobility and adaptability of the workforce to the dynamically evolving labour demand.
Considering the features of economic development and the possible impacts on the labour market is gradually becoming an inseparable part of the policy-making process in the labour market. If, in the early periods of the development of the labour market, policies were aimed primarily at tackling the effects of economic reforms on employment, at a later stage labour market policy has a pronouncedly active character and it is aimed at influencing processes or the formation of behaviour among target groups according to pre-planned targets. The functioning labour market is an adequate mechanism of the market environment and the implemented policy is increasingly based on the existing relationships and interactions between the periods of economic development and the labour market.
Regulatory regimes have a certain influence on the development of the basic parameters of the labour market, but overall their impact, and that of the specific policies of the labour market for activation of labour resources, for providing employment and for better labour adaptation of the workforce have effects with limited opportunities towards the balance of labour supply and demand.
The policy on the labour market in Bulgaria during the transition period so far has reflected in varying degrees the needs of the economy . In 1990-2000 this policy was built together with the development of the labour market itself and therefore its nature is mainly preventive. After 2000 the policy of the labour market involves more active programmes and activities that reflect more adequately the changes in the macroeconomic environment and the periods in the economic development. Overall, however, the active policy has a minor and a temporary role in supporting employment and cannot replace investment activities to create jobs. Economic development is crucial for supply and demand in the labour market and for its balance in the different periods of development.
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Ivanka Daneva
THE ROLE OF VOLUNTARY PENSION INSURANCE IN CORPORATE GOVERNANCE
Summary:
The model of corporate governance of human capital in contemporary business organisations is essential for applying the concept of corporate social responsibil-ity, of which supplementary voluntary pension insurance for employees with contributions made by employers is an important element. Supplementary voluntary pension insurance is fully funded and is a way to diversify sources of pension income. Insurance in voluntary pension funds has a marked potential not only to raise the gross replacement rate, but also as an element of the general model for corporate governance of human resources in any company regardless of its core business, yet this potential has not been fully exploited so far. In order to employ it as a factor increasing personnel motivation and to increase its efficiency, a number of prerequisites and specific actions are required.
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Daniela Todorova
THE ROLE OF CONCESSIONS IN TRANSPORT INFRASTRUCTURE DEVELOPMENT
Summary:
In an economic and financial crisis the concession as a business model enables the development and modernization of public state-owned entities.
Transport infrastructure in Bulgaria, which is public state-owned, has its important economic and social role. Its status and prospects for development underlie the demand for transport services. The transport infrastructure modernization can be financed depending on the country’s economic development.
The limitations imposed on central financing, aiming at transport infrastructure improvement, bring forward the concession as an alternative opportunity for improving transport service quality. The present article examines the role of concessions in transport infrastructure development, determining the economic and social benefits stemming from infrastructure projects’ concessions.
Concession is regarded as a successful business formula, combining low risk levels, quality and stringent control over the object of concession.
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Kamen Kamenov
THE SYSTEM
Summary:
This article reviews the philosophy of systems thinking and insightfulness as success factors. It also analyses and describes the characteristics of systems in which people are involved. Furthermore, it suggests ideas for establishing the relationship which binds systems thinking to systems analysis and insightfulness and results achieved in the course of time. The importance of co-active environment for achieving efficient end results is determined, the focus being on establishing corresponding projective behaviour. The advantages and disadvantages of ‘life’ within a system have been identified. Finally, the conclusion has been made that a system creates a sense of security and sets the pace of activities, which are a substantial advantage as opposed to the lack of clearly set obligations and mode of behaviour.
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Rumen Vyrbanov
SOCIAL BUSINESS: USING WEB 2.0 AND SOCIAL NETWORKS
IN THE BUSINESS OF COMPANIES
Summary:
Over the recent years Web 2.0 has been at the forefront of high-tech tools and technologies that companies are seeking to use in their business processes. Web 2.0 has emerged as a new wave of business innovation that gives new dimensions to the Internet as a means of communication, cooperation and doing business.
This study examines the evolution of the Web in the context of opportunities for implementing technologies in companies’ businesses. Emphasis is placed on the second generation of Web technologies and the social business concept – the new opportunities for adapting and using the Web’s ideas and technologies in companies’ businesses. The nature and specific approaches and strategies of social business are presented as a new generation of technologies capable of achieving an increase in companies’ income and profits, seizing new market niches, as well as increasing sharply the labour productivity of employees and their incorporation into the main goals of the business.
The first part analyzes in brief the evolution of the Web technologies and their impact on the business of companies. The focus is on the nature and changes that the second and third generation of technologies (Web 2.0 and Web 3.0) impose on business processes.
The second part examines the priority areas for the application of social technologies in business: management of internal corporate communications, design and development of new products and knowledge management (Intranet environment); corporate communications and interactions with external partners and customers (Extranet environment, B2B model); e-commerce (online stores, B2C model). The practical possibilities of the three approaches for using the social networks in e-business are discussed: opening a representation (an online store) on Facebook or another social network, as an addition to the already existing traditional online store; online trading directly in the social network, without an online store; using the social networks as a complement and alternative to the search engines.
The third part of the study examines social business as an opportunity to use new social platforms for communication between companies and their customers. The nature of the new concept of social cooperation, which ultimately reflects in higher productivity and returns on investment, is analyzed. The author presents and analyzes several aspects of social business in a company’s activities – marketing in a Web 2.0 environment and working with clients of the company, interactions with business partners, personnel management and knowledge management in the company.
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Metody Kanev
The Spontaneity of Social Life and Free Human Choice
Summary:
This article is an attempt to interpret fundamental issues related to the spontaneous formation and the course of social life; the role of free human choice of goals, means and actions; the relationship between the spontaneity of social life and its management. Based on the trends generated by new developments in technology and information and social changes, we proposes the thesis that from spontaneous, social life could become anthropocentrically directed and managed.
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Rositsa Koleva, Stela Kasabova
Statistical Methods of Business Risk Analysis
Summary:
The activities of economic entities are accompanied by a number of risks posed by the changes in the environment in which they operate. Economic theory and practice identify three basic types of risk – investment, financial and economic. The last one is a probability of adverse changes in market and economic conditions that affect the most important financial indicators of an enterprise. Business risk analysis is a system of special knowledge related to studying the economic processes in their mutual relation and dependence. It includes the quantitative measurement of factors determining the dynamics of risk indicators, as well as activities to minimize their impact. This article characterizes statistical methods of risk analysis that are applied in a case study using the measures of dispersion in three public limited companies.
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Silvia Gospodinova
STRUCTURAL CHANGES IN GROSS VALUE ADDED AND THEIR RELATION TO THE ECONOMIC GROWTH OF BULGARIA IN THE PERIOD 1997-2017
Summary:
The changes in the sectoral composition of the economy reflect many processes and are an accurate indicator of the nature and rate of economic development of the state. What is more, sectoral structure is important for the analysis of economic development rate and the patterns and the increase in the productivity of all economic activities.
Sectoral changes are important due to their role in the production pro-cess and the different labour productivity of different economic sectors and activities. Hence, the assessment and the use of the opportunities for accelerated development of the different sectors can contribute significantly to the economic growth and the increase of labour productivity.
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Polya Angelova
MODERN ASPECTS
OF AGRICULTURAL
STATISTICS IN BULGARIA
Summary:
The development of agricultural statistics in Bulgaria over the last two decades has been accompanied by a number of organizational and methodological problems. On the one hand, they are generated by the overall restructuring of the agricultural sector – changes in the form of ownership, land relations, production and industrial restructuring, and agricultural policy, which has led to serious difficulties in carrying out statistical surveys. On the other hand, the preparation of the country for the EU accession imposed institutional and legal harmonization both in the sphere of agriculture and in the sphere of statistics, incl. agricultural statistics. This necessitated the creation of a new specialized institutional structure, a statistics authority which is to carry out statistical surveys in agriculture in line with the European requirements.
The present article focuses on statistical surveys carried out in agriculture with the aim to outline the organizational and methodological framework of modern agricultural statistics in Bulgaria. The emphasis is on their methodological aspects and major elements of their organization – scope, object, frequency, form of carrying out, sources of information.
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Donka Zhelyazkova
STATE AND PROSPECTS
FOR DEVELOPMENT OF LOGISTICS SECTOR CONCENTRATION
IN BULGARIA
Summary:
Logistics sector concentration is viewed theoretically by deducing key characteristics that can be identified as essential in describing modern centres of logistics functions such as: location, size of areas, type of areas, technical specification, additional areas, infrastructure and services. Indicators for assessing the state and level of logistics sector concentration are systematized through applying the grouping and averaging methods. On this basis, a study of the logistics sector concentration in Bulgaria is conducted and some prospects and opportunities for development are formulated.
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Rositsa Chobanova
TERRITORIAL ASPECTS OF INNOVATIVE DEVELOPMENT: CITIES
Summary:
This study discusses the territorial aspect of development through renovation linking it to cities where communication between people, the resultant emergence of problems and prospective solutions are more intensive.
The purpose of this study is to achieve a better understanding of what makes a city innovative and what the problems are in building an innovative city or district. In this context, first, the methodologies for defining, grouping and ranking innovative cities and similar territorial units are characterized. The results of the first comprehensive rankings of innovative cities in the world, Europe and China are presented. The second part of the study is devoted to characterizing debates regarding the European concept for the development of metropolitan areas as innovation centres within the Europe 2020 Strategy. Some ideas for the innovative development of territories in Bulgaria are suggested. The conclusion is that innovative development in a territorial aspect is related to the development of cities and metropolitan areas, which requires regular monitoring, evaluation and well-grounded measures for development, taking into account global good practice.
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Vasil
TERRITORIAL DIFFERENCES BETWEEN THE LIVING STANDARDS IN BULGARIAN REGIONS
AND DISTRICTS (2010–2017)
Summary:
The article reviews differences in the living standard at the level of regions and districts. Living standard is defined and assessed in terms of material living conditions by employing multiple indicators which are grouped in three modules (subject areas): economic development; income and consumption; income inequality and poverty. We employ relevant statistical indicators to measure differences and specific methodology to assess the living standard so that we could rank territorial units according to their distance from the best regional score. The findings of our empirical research of the living standard indicate that: (a) there is a slight trend towards a decrease in the differences between regions, while differences between districts remain the same; (b) there are significant changes in the arrangement of regions and districts according to their scores in the different years of the research; (c) divergent trends are identified in the development of territorial differences measured through the summary scores for the three modules; (d) the living standard has deteriorated in a significant number of the territorial units.
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Mihal Stoyanov
LOW CARBON FOOTPRINT TRADE
Summary:
The impact which trade has on the economy, the performance of business entities and the daily life of individuals is in result of the immense significance and the scope it has acquired as a business activity. Although contemporary trade contributes to the carbon footprint of economic activity on the environment, it also provides a number of feasible opportunities for neutralizing the effect of the carbon footprint. While acting as the intermediaries in the exchange of goods and services, the agents engaged in trade need to develop efficient systems for waste management and resource allocation which, in addition to environmental benefits, will produce commensurate economic effects
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Eduard Marinov
BULGARIA’S TRADE RELATIONS WITH ITS MAIN PARTNERS
IN SUBSAHARAN AFRICA – TRENDS AND PROSPECTS
Summary:
This article aims at presenting the prospects for trade between Bulgaria and Sub-Saharan Africa by analysing the geographical structure of international trade relations with the region. To achieve this firstly it presents Bulgarian trade with Sub-Saharan countries summarizing the trade flow dynamics for the 2003-2015 period, the share of Sub-Saharan Africa in Bulgarian international trade, as well as the commodity structure of the trade flows. The main section of the article thoroughly discusses firstly the major trade products for the leading trade partners, then the dynamics of trade with these countries and finally it analyses the significant cases of trade fluctuations. The conclusion summarizes the main findings which show the increasing importance of Sub-Saharan Africa for Bulgaria’s international trade relations.
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Tsveta Zafirova
Non-Financial Risk Management in Strategic Decision Making
Summary:
Within strategic management, risk is particularly important when choosing alternative strategic decisions. Specialist literature provides a variety of methods and models for determining financial risk. However, the strategic choice is greatly influenced by so-called non-financial risk. It affects the correct choice of a strategic decision. The aim of this study is to propose a methodology for non-financial risk management in strategic decision making, which is based on the theoretical research of scholars, best international practice, and the methodology of strategic management. The proposed methodology, along with its stages, is clearly explained in the study, and will help organizations in making management decisions, including strategic ones.
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Donka Zhelyazkova
THE SUSTAINABLE DEVELOPMENT OF THE BULGARIAN TRANSPORT SYSTEM
Summary:
The paper aims to provide a theoretical overview of the nature of the transport system within the context of sustainable development and to study the framework indicators of the development of freight and passenger transport so as to identify opportunities for improving the infrastructure and applying global practices to the Bulgarian transport sector.
The paper therefore provides a theoretical overview of the nature of the transport system and the sustainable development of decision making to overcome spatial disparities between freight and passengers. The effects and indicators of sustainable development of the transport of passengers and freight have been systematized.
The research focuses on two major areas and has two main objectives: to ensure high mobility of freight and passengers and to reduce the adverse impact of transport on the environment, in line with the ‘Energy consumption as a percentage of the GDP’ indicator and measured through specific indicators. The study also focuses on two other framework indicators ‘Security and safety’ and ‘Environmental indicators’. The analysis is based on official statistics from Eurostat and the Bulgarian National Statistical Institute.
Based on the theoretical overview and the analysis of the empirical data, we have identified local problems as well as opportunities for improving the quality of the transport infrastructure in Bulgaria and adjusting world practices to the situation in Bulgaria in order to contribute to the active implementation of sustainable development ideas to the transport sector in the country.
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Hrabrin Bashev
THE SUSTAINABILITY
OF MANAGEMENT STRUCTURES
IN BULGARIAN AGRICULTURE – LEVEL, FACTORS AND PROSPECTS
Summary:
This paper assesses the sustainability of the farms in our country by applying the holistic approach. We first introduce the methods employed in our research and provide a general description of the farms included in it. Then we assess the integral, managerial, economic, social and environmental sustainability of farms in general as well as that of the different types of farms according to their size, specialization of production, environmental position and geographical location. Finally, we assess the factors for improving the sustainability of farms and present our conclusions about doing further research work and improving the assessment practice in the sec
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Hrabrin Bashev
The Sustainability of Farms
Summary:
The article answers questions like “What is sustainability of farms?”, “What are the mechanisms and modes of managing the sustainability of farms?”, and “How should we assess the sustainability level of farms?”. First, the evolution of the ‘concept’ of sustainable farming is analysed and defined as the ability of farms to maintain their managerial, economic, environmental and social functions in the long run. Second, the principal mechanisms and modes of managing the sustainability of farms are systematically approached. These include the institutional environment, market, private, collective, public and hybrid modes. Next, a system of criteria and indicators is proposed to assess the sustainability level of farms at the contemporary stage of development in Bulgarian agriculture. Finally, an approach to analysing and assessing the management system of farm sustainability is presented.
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Daniela Feschiyan
IMPROVING THE MODEL
OF UNCAPITALIZED ASSETS ACCOUNTING IN PUBLIC SECTOR ENTERPRISES
Summary:
This article focuses on some shortcomings in the model of uncapitalized assets accounting in public sector enterprises. The lack of standardization of the accoun-ting system in public sector enterprises is a prerequisite for the issues discussed. Despite the presence of a number of methodologies and guidelines there is still not a standardized approach for accounting the studied group of assets. The author proposes a sophisticated accounting model and argues that the problem can be solved only by the adoption of accounting standards which should replace the current practice of regulating public sector accounting by instructions and letters. The proposed accounting model will increase the reliability and credibility of accounting information and will ultimately improve accounting methodology
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Velichko Adamov
IMPROVING THE CAPITAL STRUCTURE OF BANKS
Summary:
This study examines the possibilities for improving the capital structure of banks through analysis of various combinations of long-term debt and equity. The theoretical thesis that banks should maintain a positive capital structure has not been ignored for a single moment in the reflections below. Yet, applied techniques and methods indicate that contemporary banking is predominantly based on negative capital structure in which a single unit of equity attracts multiple units of loan capital until reaching maximum levels beyond which the regulatory proportions for funding of banking business are violated. Quite logically, attention is paid to banking risk with reference to banks performance and the efficiency of capital utilisation. In parallel, financial leverage is applied to maximize bank earnings. Through the DuPont model, the capital management of banks develops a systematic tool for measuring the efficiency of decisions related to the development of the financial leverage effect. Based on this a model for the optimization of commercial banks is designed to facilitate bank managers in making efficient financial decisions, which take into consideration market capitalization and the cost of long-term capital resources
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Penka Shishmanova
The Factors of Economic Growth from a Classical Perspective
Summary:
The problems of economic growth have been increasingly taken into account over the last decades, which brings to the fore the issue of the factors that determine it. The dynamics of contemporary economic development requires detailed knowledge and thorough study of this complex set of elements. Over the years they have highly evolved and changed the concept of generating growth. The beginning, however, was set long ago in the past.
This study examines the factors of growth from the point of view of the classical economic theory. The analysis starts with the ideas of W. Petty and the determinants worked out by him – labour and land; it continues with Fr. Quesnay’s views on the power of nature and the crucial role of agriculture; it identifies the main causes of the wealth of nations according to A. Smith with an emphasis on labour productivity; it emphasizes the dynamic changes in the factors according to J. S. Mill; it justifies their triune structure according to J. B. Say and outlines some obstacles to growth according to T. Malthus.
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Radoslav Tsonchev, Stoimenka Tonova
FINANCIAL INNOVATION
AND THE NEW REGULATION
Summary:
The majority of experts and practitioners share the opinion that one of the major reasons for the world financial crisis from the period 2007-2009 is the failure of the market regulation both as statutory framework and professional practice. Unfortunately, the traditional financial doctrine was not in position to adequately assess the high complexity of the modern financial markets. It did not address in detail the essence of the financial innovations and to a certain extent allowed the deregulation and market self-regulation and thus allowing the widespread of such innovations. This survey is an attempt (i) to respond to the need for better understanding of the financial innovations, (ii) to point out and analyze the regulatory challenges caused by the market dynamics and (iii) to assess the steps already taken. It is not by chance that the reforms of the regulatory framework played a major role in the post-crisis period. Their progress in the last two or three years has been remarkable but, in our opinion, there is still a lot left to be accomplished in this field.
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Tatiana Houbenova
THE FISCAL SOVEREIGNTY
AND THE TAX POLICIES OF THE NEW EU MEMBER STATES: THE EMU CHALLENGES AND PROSPECTS
OF FISCAL GOVERNANCE REFORM
Summary:
The paper is focused on issues of fiscal policy coordination in the Euro area and the challenges to the new EU Member States from Central and Eastern Europe in implementation of different national fiscal policy options while preparing for the entry in the EMU. The main research question concerns the evaluation of the impact of the fiscal sovereignty in the new EU Member States in implementing their national tax systems in preparation to join the Euro area. The paper discusses the ways in which the new EU Member States adjust their national tax systems by making better use of introducing the appropriate tax structure and fiscal systems in order to reflect the specific conditions and priorities of the national economic policy and to achieve the required in the EMU sustainability of public finances in medium and long term aspect. The evaluation of options of tax reforms in the new EU Member States is done with regard to the problems of rising fiscal deficits as a result of higher Government expenditures and the reduction of revenues during the Global economic and financial crisis. Conclusions are drawn for the main trends in the EU governance reform and the fiscal sustainability of the EMU Member States.
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Stefan Simeonov, Teodor Todorov
DESIGNING THE INVESTMENT PROFILE OF THE SHARES TRADED ON THE BULGARIAN STOCK EXCHANGE IN THE PERIOD FROM AUGUST 2016 TO DECEMBER 2017
Summary:
The analysis of shares performance is normally focused on risk and yield, while the third investment parameter, market liquidity, is usually ignored. In contrast to the world’s biggest stock exchanges where market liquidity is taken for granted, it seems to be a major issue for developing capital markets, such as the stock exchanges in new Balkan economies. This research paper introduces and employs a model of complex market liquidity assessment of the traded companies. We employ the Frequency Analysis of Volatility to add to the research value of Risk analysis, the coherent alternatives of VaR and the investment profile of traded shares. Based on the complex set of methods employed in our research, we present comprehensive investment profiles of the companies with the highest and the lowest market capitalization which are constituents of the four Bulgarian Stock Exchange indices about the period from August 2016 to December 2017.
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Mihal Stoyanov
CHARACTERISTIC FEATURES OF LOW-COST AIRLINES
AND THEIR DEVELOPMENT IN EUROPE
Summary:
Air passenger transport is essential for society and economy. This article examines the development of the low-cost carriers market in Europe and the specific characteristics of low-cost airlines, which distinguish these airline operators from the other participants in the aviation market. It also analyzes the serious expansion of this market segment in Europe for the period 2005-2013 and formulates recommendations for possible improvement of the business strategy of low-cost airlines.
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Plamen Lyubomirov Dzhaparov
PRIVATE BANKING AND WEALTH MANAGEMENT BETWEEN OPPORTUNITIES AND THREATS
Summary:
Opportunities for banks in the sphere of private banking & wealth management have been continuously multiplying under the influence of the rapid accumulation and concentration of capital on a global scale and the predicted colossal transfer of wealth between generations. Yet, in order to consolidate their leading position in the industry in today’s complex, dynamic and turbulent environment, banks need to adopt totally different solutions and overcome a number of barriers.
Their response to the challenges posed by the ‘invasion’ of new players on the market and to the urgent need to change the profile of financial advisors is of paramount importance.
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Dimitar Kanev
COMMITMENT AS A CONSTRAINT
TO THE PURSUIT OF SELF-INTEREST
Summary:
By applying the behavioural economics approach and the findings of the empirical survey we conducted, this paper analyses constraints on the pursuit of self-interest. The objective is to transfer scientific insights about the impact which general rules of morality have on human activities; to establish what moral standards govern the community we researched and to provide new empirical evidence about the influence which the sense of duty has on human behaviour. Our research supports the thesis that people are governed by their sense of duty; they care about the well-being of other people and act responsibly and responsively, whether or not they benefit as individuals and groups; they also seek to treat others reciprocally and evaluate market phenomena from the perspective of their moral feelings. Unlike the Homo Economicus, real people are more moral, good-natured and attractive when treated in compliance with established moral standards and more immoral, evil and repulsive when treated contrary to them.
