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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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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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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
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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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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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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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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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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
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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
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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.
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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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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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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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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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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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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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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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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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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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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.