"Scientific research" Almanac

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  STRESS TESTING ISSUES IN THE MODERN BANKS WORK

  The present article provides critical analysis of the existing practice for carrying out of stress-test in the banking sector in our country and abroad. It provides good grounds for accentuating on a number of unsolved or discussion issues, concerning: significance of the stress-tests; scope and periodicity of their implementation; identification ... The present article provides critical analysis of the existing practice for carrying out of stress-test in the banking sector in our country and abroad. It provides good grounds for accentuating on a number of unsolved or discussion issues, concerning: significance of the stress-tests; scope and periodicity of their implementation; identification of the specific risks, with potential negative effects; scenario modelling with specifying key risk parameters (factors), subject of shocking changes; performance of comparative analysis of the methods for implementing stress-tests and outlining of their advantages and disadvantages; specifics of implementation of the so-called „reverse” stress-tests, etc.

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  RISK ASSESSMENT TOOLS FOR INVESTMENT SELECTION – THEORY AND PRACTICE

  The paper reviews risk assessment for selection of investments in terms of em-pirical derivation and estimation of beta coefficients on the capital market in Bulgaria. It aims to develop some theoretical aspects regarding risk assessment for investment se-lection as well as to provide empirical derivation and trend analysis of the beta ... The paper reviews risk assessment for selection of investments in terms of em-pirical derivation and estimation of beta coefficients on the capital market in Bulgaria. It aims to develop some theoretical aspects regarding risk assessment for investment se-lection as well as to provide empirical derivation and trend analysis of the beta coeffi-cient values of leading Bulgarian public companies included in the SOFIX index. The paper is structured in four main parts according to its subject matter, goal and objec-tives. The first part reviews the current objectives and the theoretical grounds of in-vestment management. The second part focuses on the possibilities to include risk into the investment analysis. The third part analyzes the methodological framework for in-vestment selection. The fourth part presents an empirical study of the beta coefficients of the SOFIX companies for the period 2007-2012, identifies trends and proposes cor-porate grouping according to their capacity to restore market capitalization to the pre-crisis levels. The results show that two of the leading Bulgarian companies (i.e. 13.3% of the total number of companies in the index) have betas exceeding 1.25 (based on monthly data for the period Sept. 2007 - Sept. 2012), seven companies (46.7% of the index) have beta coefficients between 0.75 and 1.25 and six companies (40% of the index) have conservative betas of less than 0.75.

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  MANAGING THE STATE DEBT OF BULGARIA – ISSUES AND CHALLENGES

  Satisfying the public interest in terms of public goods and services has its lim¬its – the resource limitedness in the provision of public goods and services. Since the needs of society and individuals always exceed the available economic resources for their implementation, this necessitates the use of debt and deficit financing tools. This is ... Satisfying the public interest in terms of public goods and services has its lim¬its – the resource limitedness in the provision of public goods and services. Since the needs of society and individuals always exceed the available economic resources for their implementation, this necessitates the use of debt and deficit financing tools. This is particularly true for the state as an economic entity. Moreover, debt financing could be used for the formation and implementation of policies going far beyond the purely economic objectives of any government. Economic theory has already proved that the public debt, its quantity and management processes have an impact on the economic development of the country, consumption, savings and investments. Extending the debt crisis and the cataclysms in financial markets demonstrate the illusory idea of the adequacy of national economies in the management of public debt in the long term. It is objectively necessary to apply established measures as well as to approve new ones. The systematic approach for determining the multifaceted nature of public debt management has an important role in the area of analysis.