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Venelin Terziev
COVID-19 AND THE NATIONAL EMPLOYMENT PLAN IN BULGARIA - ANALYSIS AND OPPORTUNITIES
FOR CHANGE
Summary:
This paper is the second part of an extensive study which analyzes and examines the processes on the Bulgarian market that unfold in the emergency situation resulting from the COVID-19 pandemics. The focus is on the state of the labour market before the pandemic crisis and the subsequent changes in the current national employment plan in view of the challenges of the situation caused by COVID-19. It proposes measures and supports actions for restructuring the financial resource for adaptation of the plan to the new challenge to the labour market in Bulgaria.
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Hristina Blagoycheva
Adjusting Unemployment Benefits to the Economic Cycle
Summary:
As a socio-economic phenomenon, unemployment is intrinsic to any market economy. Unemployment benefits provide incomes to individuals who have lost their jobs and the possibility of bearing the severity of risk collectively. The generosity of unemployment benefits may affect the incentives for searching and accepting a job, as well as the duration of unemployment. They could therefore act as an inbuilt economic stabiliser which is adjusted to a particular economic cycle. The article aims to identify potential pros and cons and examine the extent to which unemployment benefits in Europe and Bulgaria successfully act as inbuilt automatic stabilisers.
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Margarita Atanassova
ACTIVE LABOUR MARKET POLICY
IN BULGARIA IN AN ECONOMIC CRISIS CONTEXT
Summary:
In the conditions of economic crisis and decreasing capacity on the part of the business to create and maintain jobs, interest in an active labour market policy in support of employment and human capital through various tools, among which is the National Action Plan for Employment, is increasing. The financial resources for an active labour market policy have increased by more than four times since 2009. They have been invested in initiatives for improving people's opportunities for sustainable employment through additional training, for providing support in job-seeking and in starting one’s own business, for employers' incentives to increase their numbers of staff, etc. This study analyses and systematises a range of characteristics of the on-going active labour market policies in Bulgaria in an economic crisis situation and evaluates their more significant sides both in terms of their quantity but also content and structure in the context of the overall develop¬ment of the economy and human capital. The conclusions concern some key features of employment and the labour force, which should be taken into account in the future formulation and implementation of an active labour market policy in Bulgaria.
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Aglika Kaneva
ANALYSIS OF THE CHANGES IN GROSS LOANS AND ADVANCES AND DEPOSITS IN BANKS IN BULGARIA
Summary:
The article presents a trend model for the loans and advances and the deposits of banks in Bulgaria for the period 2007 – 2019. Assuming that the established trends will persist, the model was used to forecast the future values of the loans and advances and the deposits of these banks in 2020 and 2021.
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Georgi Gerganov, Violeta Blazheva
The Lease and Accounting of Agricultural Land
Summary:
After the restoration of ownership of agricultural land, a significant part of owners choose leasing as the most acceptable form of management. Depending on the legal regulations and the contractual basis, the income from providing agricultural land for temporary use is gained from lease payment and rent.
This article examines the shortcomings of the legal framework which regulates the use of agricultural land through lease/rental agreements and the problems that occur regarding harvest payment.
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Kristi Marinova
Bank Insolvency – Regulatory Challenges and Empirical Evidence
Summary:
Nowadays bank insolvency is a specific field in bank capital management, which requires constant development of the existing regulations and application of new methods and tools for its prevention and early detection. The paper presents a study on bank insolvency in terms of regulato¬ry challenges and empirical evidence for initiation of bankruptcy proceedings against credit institutions. The research thesis is that bank insolvency is a crisis phenomenon in banking practice whose theoretical modelling, regulatory management and empirical investigation require constant improvement of the regulatory framework and supervisory bodies of the central banking institution. The aim of the study was to perform a critical analysis of the evolution of the regulatory framework related to bank insolvency management using empirical evidence from the banking practice in Bulgaria.
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Bozhidar Bozhinov
Banking Security – Major Manifestations and Aspects
Summary:
The article aims to explore the challenges facing the banking security at the beginning of the new millennium, with a special emphasis on new manifestations of threats to the orderly functioning of the banking institutions. In this aspect, the research thesis that stands out is that threats to banking security reflect changes in the economic, technological and organizational environment in which commercial banks operate.
Banking security is seen as a commitment of the banking institution to ensure safe storage and management of their own assets and their clients' as-sets and the related information, as well as ensure the physical security and safety of clients and employees in the bank offices. The main aspects of banking security are related to provision of physical safety of bank assets, employees and customers; providing information safety of bank assets, as well as the related to management information; providing economic (financial) security of the banking institution.
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Ivan Marinov
BANKING CONSUMER CREDIT –
A COMPONENT OF THE “RETAIL BANKING” BUSINESS SEGMENT
Summary:
The topic of bank financing of consumption is widely discussed in the studies of a number of researchers in the field of banking. The loans by which banking companies meet the personal needs of individuals and households have long been an integral part of people's lives and have had a significant role in the economies of most countries around the world.
This paper aims to clarify the essential characteristics and specificities of banking consumer credit in Bulgaria. To implement the goal set by the author, the texts of the legal framework on consumer lending in the country are considered, and also the positions of Bulgarian and foreign authors on the definition of the term “consumer credit” and practically applied manifesta-tions of individual types of loans for current purposes, offered by commercial banks in Bulgaria.
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Tamari Poladashvili
Students’ Perspective Towards to Bologna Process and Employability (Case Study of Bulgaria)
Summary:
The problem of youth unemployment is a global issue. This article discuss in depth the youth unemployment problem. It analyses the characteristics, causes, and consequences of graduate unemployment and examines its relationship to the Bologna Process. A qualitative research has been done with focus group discussions of Bachelor and Master Degree students. The study explores the nature of the labour market for higher education graduates and the main obstacles that youth face on their journey from education to employment. The study aims to determine whether graduate unem¬ployment is a result of shortage of jobs, skills, or lack of coordination. It includes recommendations for involving the government, the managing bodies of higher education institutions as well as employers and career service offices in order to overcome youth unemployment.
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Todor Nedev
BULGARIA’S INDEPENDENT ENERGY EXCHANGE – POSSIBILITIES FOR RISK MANAGEMENT
Summary:
This article discusses the urgent problems of the Bulgarian energy market and its slow transformation from state monopoly to free exchange market. The paper aims at elaborating on the specific aspects of energy trading – basically, and in particular, the characteristics and disproportions imposed by the state and the state-owned energy holdings on the Bulgarian market. Ever since its establishment in 2014, the Bulgarian Independent Energy Exchange (BIEE) has adopted the model and rules of the north energy exchange – Nord Pool. The arguments for this choice have not been discussed publicly, but the necessity of a well-functioning energy exchange market and the need of its daily transparent activity, already in Bulgaria as well, are accepted as proven. The functioning and reliability of the Bulgarian stock exchange, however, are still the subject of certain discussions. What could have happened if the Bulgarian stock exchange had adopted the model of the European energy exchange – EEE?
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Lubomir Lubenov, Anelia Lyubenova
BULGARIA’S FINANCIAL MARKETS IN AGRIBUSINESS – SIZE, STRUCTURE AND DEVELOPMENT TRENDS
Summary:
The aim of the study is to establish the size, structure and financing trends of Bulgaria’s agribusiness. Improving the liquidity and turnover of short-term assets of farms is a goal of paramount importance because it also improves profitability. This necessitates diversification of the sources and instruments to finance the operating capital, such as credits, leasing, factoring, forfeiting, etc. At micro- and macro-level, the provision of information for financial management purposes should be improved to facilitate the access to public and corporate financial markets of short-term and long-term funds for the agribusiness. Public financial markets in Bulgaria’s agribusiness grew steadily from over BGN 1 billion/year during the first reference period of the common agricultural policy of the EU (2007–2013) to BGN 4 billion/year at the end of the 2014–2020 period. They also played an important role in generating reciprocal company financing of over BGN 3 billion/year of over BGN 7 billion/year of all financing in the sector. Structurally, short-term financing accounts for more than 2/3 to 3/4 of all financing.
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S. Danylina
Virtuality of Fictitious Capital in Modern Conditions
Summary:
The article discusses "financialization" – the process of transformation of financial capital into fictitious and virtual capital and its separation from the real manufacturing sector. It shows a tremendous growth in the financial sector in the last decades of the 20th century and the beginning of the new century and growing segmentation of financial instruments due to financial innovations, aimed, among other things, at evading government regulations, which increase their influence on the trends in the real and financial sector, leading to the creation of conditions for the emergence of financial crises and financial "bubbles". We study the market of derivative securities, its dynamics and impact on the economy of Ukraine.
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Daniel Nikolaev
THE IMPACT OF COMMERCIAL BANKS ON CONVERGENCE IN THE EUROPEAN UNION
Summary:
The paper traces the impact of the international, systematically important banks on the state and phenomena observed in the European Union. It comes to the conclusion that international commercial banks further strengthen the convergence in the banking systems of the member states. In the process of disclosure of these relationships, the macroeconomic factors in the European Union have also been analyzed affecting the returns from the main activity of banking institutions aggregated across member states. By sequential use of the regression model and optimization, values representing the local specificities of the individual member-state towards the Union have been reached. Links have been found that suggest a time lag in the effects observed since the crisis in 2008. Both the international banks and the stock market status in the individual member states indicate that international systematically important banks function as a conductor of extreme cross-border phenomena.
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Sofia Benjakik, Badr Habba
THE RELATIONSHIP BETWEEN CHIEF EXECUTIVE OFFICER DUALITY AND BANK EFFICIENCY: EVIDENCE FROM AFRICAN BANKING SECTOR
Summary:
This paper investigates the relationship between CEO duality (one person serving the role of both Chief Executive Officer and chairman of the board) and bank efficiency using Data Envelopment Analysis (DEA). The present study adds to the existing literature by employing panel data of large commercial banks of Africa from 2016-2019. The paper con¬cludes that CEO duality contributes positively to the bank efficiency of the selected commercial banks in Africa. This finding reveals that dual role has a positive and significant influence towards efficiency in commercial banks.
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Valentin Milinov, Tsetan Pavlov
Opportunities to Improve the Portfolio Performance Based on Dividend Strategies and Equity Home Bias
Summary:
The article examines the equity home bias puzzle and the "Dogs of the Dow" dividend strategy under conditions of the Bulgarian capital market. It was found out that local investors hold 74.1% of their portfolios in domestic stocks, although ICAPM suggests weight of 0.007%, and the "Dogs of the Dow" strategy generates annual risk-adjusted hyper-profitability of 11.18%. Following the dividend strategy, combined with good international diversification provides good opportunities to improve portfolio performance.
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Meriem Chafik, Mohammed Nabil El Mabrouki
OPPORTUNITIES AND CHALLENGES OF CROSS-BORDER BANKING: FOCUS ON PAN-AFRICAN BANKS
Summary:
There has been a remarkable increase of the regional banking operations across the African continent over the past two decades. This resulted from macroeconomic improvements and economic growth. As a result, African banks increased their geographical operations to emerge as regional groups holding a considerable market share compared to their historically predominant competitors. However, the literature on the pan-African banking industry to understand better this phenomenon is still scarce, which limits having a bigger and inclusive picture of all the key elements influencing this noteworthy growth. This research paper articulates a review based on previous academic research works, and highlights the most important opportunities that regional banks seized, as well as the challenges they faced in order to lead their cross-border banking operations successfully across the region.
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Desislava Koleva Stefanova
THE DYNAMIC TRANSFORMATIONS ON THE LABOUR MARKET IN BULGARIA IN CONDITIONS OF DIGITAL TECHNOLOGIES AND PANDEMIC
Summary:
This article discusses the main transformations which have occurred in the labour market due to the accelerated processes of digitalization throughout the last two years. In their essence, those changes are caused by the fourth industrial revolution and the ongoing COVID-19 pandemic. The research places the emphasis on the necessity of developing “hybrid” forms of employment based on flexibility and security. Special attention is paid to the necessity of investing human capital in an environment of digital technologies and intensive entering of artificial intellect in labour processes.
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Antonio Dichev
DISCRIMINATIVE ABILITY IN ESTIMATING PROBABILITY OF DEFAULT WITH CERTAIN MACHINE LEARNING ALGORITHMS
Summary:
The article highlights the importance and added value of some machine learning algorithms in assessing default probability. The results of the research highlight the discriminative ability added to many other essential aspects of machine learning in assessing credit risk. These aspects can be identified as specific opportunities and challenges. As for the discriminative ability regarding the analysed sample, the results prove the superiority of machine learning over the traditionally established and known models. For individual business organizations with exposures to credit risk, machine learning could contribute to reducing the credit losses with larger volumes of business transactions.
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Irina P. Kazandzhieva Yordanova
Too Big to Fail Doctrine and the Financial Safety Net
Summary:
The global financial crisis of 2007-2009 has revealed the negative effects of the TBTF doctrine and the need to take measures to limit government intervention in cases of insolvency of systemically important banks. In the EU, such measures were taken mostly in the supervision of systemically important banks, the capital requirements, the capacity of banks to absorb losses by using domestic resources, and deposit gurantee schemes. The study focuses on the development of a financial safety net. Priority is given to deposit guarantee schemes, which are an essential component of the financial safety net. The evolution of deposit guarantee schemes is studied and an analysis of its impact on the TBTF doctrine is made. The survey has shown that the development of deposit insurance has contradictory effects on the TBTF doctrine.
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Veniamin Todorov
EXOGENOUS MACROECONOMIC SHOCKS AS CONTEMPORARY BUSINESS CYCLE DETERMINANTS
Summary:
The article presents the results of a research that aims to test the hypothesis that exogenous macroeconomic shocks affect present-day business cycle dynamics in a way that extends beyond the COVID-19 pandemic and the military conflict in Ukraine. The analysis covers the present-day manifestation of three key types of exogenous shocks - health shocks, oil price shocks and natural disasters. The research showed a lot of evidence that corroborates the hypothesis and hence it is confirmed. The three types of exogenous shocks have played an important role not only for the last two years, but also beyond this time horizon.
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Metody Kanev
ON SOCIAL REALITY, THEORY AND ECONOMICS EDUCATION
Summary:
The article is an attempt to defend the based on the Seneca’s maxim thesis that the present is to fix the past and foresee the future. Employing a broader socio-economic paradigm, it analyses the essence of societal reality and economic reality in particular; the dominance of economic considerations surpassed by time and the necessity for a more comprehensive education in economics. Finally, the solution to the problem is proposed through the enhancement of traditional economic scientific and educational disciplines with inter-disciplinary knowledge.
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Delcho Poryazov
Economy and Society: Highlights
Summary:
The pattern of the economic system has undergone dramatic changes over the past century, especially in terms of global markets. Golden standards are now part of the history. The US dollar has been an international monetary unit since 1944. Sixty years later, the Euro appeared. The trend in the development of economic processes indicates that future global markets will be the product of the national currencies of the countries with the most advanced economies. This trend is promoted by the process of globalization. On the other hand, state intervention in the economy will be indispensable in near future. Not only is there room for such intervention, but the need to intervene is growing more and more immediate. However, it is people who have an essential role to the development of the economy, since no economic system could exist without people. It is people who ‘breathe life’ to the economy. Economy was invented by people for the sake of people, i.e. to provide for their existence. Hence, the focus of economy must be on people. It is the economy which should exist in favour of people, not people who should exist in favour of the economy.
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Lyuben Kirev
Knowledge as an Economic Resource and a Source of Wealth
Summary:
The realisation of knowledge as a major factor in production on the one hand, and also its main product on the other, has provoked the necessity to clarify its nature as an economic category in a knowledge-based economy. This article examines the ambivalent nature of existing knowledge as a public and private source of wealth, the possibilities for transforming it from a private to a public source of wealth through “overflow“, and the pros and cons of possible paths for advancement in the field of research and development. Special attention has been paid to the characteristics of knowledge as an economic category: the specific way of expropriation, preserving usefulness and self-expansion in the process of consumption; changes in the nature and in the mechanism of accumulation and also changes to property relations in a knowledge society; inseparability from the owner as a personalised source of wealth.
In terms of content, the article complements and builds on the ideas put forward by the author in the plenary paper entitled, "Knowledge as an Economic Category” presented during the seventy-fifth anniversary conference at th D. A. Tsenov Academy of Economics in Svishtov.
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Borislav Petrov Lazarov
A STUDY ON THE RELATIONSHIP BETWEEN REGIONAL ECONOMIC DEVELOPMENT AND ROAD NETWORK DENSITY IN BULGARIA
Summary:
The subject of this study is the correlation between road network and regional economic development in Bulgaria. The research hypothesis is based on the presumption that there is a positive correlation between the density of the road network and the regional economic development in Bulgaria. This article aims to analyse the relationship between regional GDP per capita (in BGN) and the density of same-class roads by province (in km.) by means of graphical correlograms.
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Rosen Kolev
INDUSTRY 4.0 AND KAIZEN COSTING 4.0 – OPPORTUNITIES FOR DEVELOPMENT OF COST MANAGEMENT SYSTEMS TOWARDS CIRCULAR ECONOMY
Summary:
The importance of management accounting and cost management systems for industrial enterprises is constantly growing. In the conditions of the fourth industrial revolution, management systems of economic agents need to adapt to the new economic environment. This article is an attempt to present the influence of Industry 4.0 on a specific cost management system - Kaizen costing. Additionally, it presents the possibilities for the application of Industry 4.0 and Kaizen costing in the circular economy, which has become the main economic perspective for the EU countries.
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Teodor Todorov
INNOVATIVE METHODS TO MEASURE THE MARKET RISK OF THE FOREX MARKET
Summary:
The impact of market risk on the performance of economic agents is significant. The focus of this study is on the various models and techniques to quantify the market risk of the FOREX market. The results from the empirical testing of Monte Carlo simulation models, VaR, CVaR, MVaR, VaR historical simulation, and Delta Normal VaR indicate the presence of market risk in the Foreign exchange market. Of these models, the simulation model is the best measure of market risk. Historical simulation and Delta Normal VaR, on the other hand, help diversify risk by building investment portfolios.
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Ventsislav Dikov
INTELLECTUAL CAPITAL AND MARKET CAPITALIZATION
OF PUBLIC COMPANIES
Summary:
Value creation is the main goal of economic agents operating in capital markets. The subject of research are the intangible fixed assets reflecting the intellectual capital of companies. The object of the article are some current issues regarding the assessment of the influence of intellectual capital on the stock market capitalization of public companies listed on BSE - Sofia. The research hypothesis to be tested is formulated as follows: The dynamics of accounting profit can be explained by changes in intellectual capital records, as evidenced by scientific research having its evolutionary development in theory and practice. The aim is to critically review the literature on intellectual capital, value creation and company performance, identifying positive examples from BSE-Sofia of the impact of changes in intellectual capital on the market capitalization of public companies.
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Velin S. Stanev
HISTORICAL PERIODIZATION
OF ADVERTISING – PROBLEMS AND INTENTIONS
Summary:
The article focuses on certain discrepancies in the historical periodization of advertising artefacts and practices, found out when studying the development of advertising in literary sources intended for educational purposes, as well as on the problematic semantics of some of the terms used.
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Metodi Kanev
CAPITALISM AGAINST ITSELF (CRITICAL VIEWS AND INSIGHTS)
Summary:
The pragmatic mass conscience and behavior of individuals towards the achievement of private and public wealth sets the accumulation of capital as its leading motive and factor – it creates jobs, goods and income. As it turns into a lifestyle, it becomes a mass principle of modernity which has led to renaming it to capitalism. This, however, poses the question – does moderniy not problematize the relationships economic – non-economic activities, capital – labor, private – public interests, national – global dependencies? On balance, does it not ignore the moral nature of man contrary to its initial humanistic spirit? The article makes an attempt to defend this hypothesis as it takes into account the views of a number of established social erudite scholars; the judgements are supported by empirical proof leading to the conclusion that by evolving, capitalism all by itself prepares the need of a reorganization of social life on a new basis. As a result of the presented arguments, we reach the conclusion that successful countires will rely primarily on the free multifaceted development of each individual. With a veiw of all this, we need a complete (economic, spritiual, social and legal and political) vision of a positive change which shall harmoniously direct its resources to all spheres of life. This would secure: spirituality – ideas, culture and meaning; economy – material prosperity; morality – virtue; legal and political sphere – social peace, harmonious and just social order.
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Lyudmil Krystev
A Comparative Analysis of Return on Equity in Bulgarian Public
Companies
Summary:
In practice, there are different criteria for the classification of Bulgarian public companies. Public companies are most commonly ranked according to their market capitalisation and realised turnover (the value amount of transactions with shares in a company). In this article, another criterion for the classification of Bulgarian public companies has been proposed. This criterion is the return reached by the shares of public companies. In the article, a comparative analysis of return on equity in Bulgarian public companies in the insurance and banking sectors has been made.
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Rousalin Rousalinov
CUSTOMER-CENTRIC APPROACH FOR FINANCIAL AND ECONOMIC SURVEYS OF PRIVATE SECURITY COMPANIES
Summary:
The subjects of the study are private security companies. Its object is the leading role of the customer-centric approach for financial and economic justification of the successful functioning and development of private security companies. The research hypothesis is that an objective assessment of the financial and economic aspects and the motivation of individuals and legal entities to purchase protection and security services under the conditions of post-epidemic recovery of the economy can be carried out by means of customer satisfaction and service pricing justification surveys. The aim of this article is to present the results of a customer satisfaction survey and the assessment of the financial and economic aspects as well as the motivation of individuals and legal entities to purchase protection and security services under the conditions of post-epidemic recovery of the economy. Structurally, the article includes three main sections: the first section focuses on the circulation of cash flows of private security companies; the second section presents selected elements of the conducted survey; and the third present an analysis of the survey among private security companies where the protection and security services compete and at the same time complement property insurance services. The survey results (based on a multi-crtieria Likert scale) confirm the validity of the "value for money" concept as an important factor for the pricing of private protection and security services. The survey questionnaire successfully compares the services of non-life insurance companies and the services of protection and security companies. The prevailing opinion is in favour of using the services of specialized companies over taking out insurance policies, with 61% of respondents expressing the opinion that hiring a spåcialized protection and security company is a more effective way to ensure property protection to taking out equivalent insurance with a general insurance company.
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A. Pavlov
Concepts for Material Requirements Planning in the Company
Summary:
This article makes a systematic review of modern concepts of the management of material requirements for the company. There is also a consistent debate over the essence and specific technologies for planning the material requirements of the company. Special attention is paid to technology for determining the quantities of firm orders, which determine the quantities to buy in the company concerning the characteristics of the concept of buffer stock. A conclusion has been reached that, when planning the company's material requirements, the concept of buffer stock is easily applicable because planned orders can be defined simply by buffer stock being deducted from the initial balance of stocks available. On the other hand, a buffer period of delivery is somewhat more difficult to apply, because it cannot be obtained by artificially increasing the main period of delivery using some value of security.
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Lubomir Lubenov
MARKETING STRATEGY FOR A PUBLIC LIBRARY
Summary:
Abstract: The aim is to develop a marketing strategy for Regional Library Lyuben Karavelov – Ruse. The funds for the adequate development and survival of the researched library are generally insufficient. State and municipal institutions and structures, as key financial and other partners, do not have sustainable policies and a long-term vision for the development of the library. This necessitates diversifying its funding sources through a marketing strategy. Accordingly, markets are segmented, current and prospective target markets are determined, and approaches for positioning Regional Library Lyuben Karavelov – Ruse are outlined. Marketing tools "8P" (Product, Place, Promotion, Price, Processes, Physical Environment and Evidence, People, Productivity and Quality) and "4C" (Customer, Convenience, Communication, Cost) have been developed to ensure better positioning of the library and the implementation of the strategy.
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Danail Vrachovski
Multi-fund organization of supplementary pension
Summary:
The article is an attempt to study the major issues related to the multi-fund organisation of the pension insurance system in Chile as a social protection model. In a strategic and hypothetical aspect the article reviews, the advantages and disadvantages which may accompany the introduction of the multi-fund system in Bulgaria. The major conclusions regarding the pension model in Bulgaria are related to the opportunities ensuring funds for the supplementary pension insurance at the stages of accumulation and payment of pension benefits.
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Elena Ralinska
Modeling the Sources of Value in Banks and Valuation Through
the Discounted Cash Flow Method
Summary:
We propose an upgrade, adaptation and implementation of a factor model of historical financial analysis, forecasting and valuation of the banking institution through the method of discounted cash flows based on publicly accessible data, which can be applied in the practice. We research the adequacy and plausibility of the approach, its benefits and drawbacks, as we test it on Unicredit Bulbank Ltd, and we apply a comparative valuation app-roach and accounting reference values of control of the obtained results. The research objective is to upgrade and calibrate the model by introducing rest-rictive conditions for forecasting in compliance with the existing regulatory framework and the observations of the practice. For this purpose, we have also introduced a feasible parametrization and we have brought forth relevant recommendations for forecasting the activity of banking financial institutions.
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Boyan Iliev
Multiple Peril Risk Insurance of Agricultural Crops – a Myth or Reality
Summary:
The insurance of agricultural crops is a conservative type of insurance. It is quite rarely that radical organizational changes are introduced. Currently, however, conditions dictate the introduction ofthere are the necessary conditions such changes in the Republic of Bulgaria. Modern development of agricultural production is a prerequisite for changing the methodology of this type of insurance so as to adapt it to the demands of agricultural producers. This article develops the thesis that a similar change might be implemented by transforming the liability of insurance companies from a liability related to certain risks and losses to a liability referring to any risks and losses. In other words, it is possible to make the transition to the so-called multiple peril risk insurance.
Multiple peril risk insurance is considered to be a novelty which has only recently been introduced in EU member-states with advanced economies. Therefore, it is the subject of large-scale discussions. The objective is to choose to introduce such an option that will best correspond to the specific features of the agricultural development and traditions in the Republic of Bulgaria and related insurance practice.
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Lyudmil Krystev
Guidelines for Analysing the Financial Statements of Bulgarian Publicly Traded Insurance Companies
Summary:
Financial statements provide information necessary to analyse and assess the financial position of publicly traded companies. Information users include a wide range of entities, such as creditors, suppliers, customers, investors, external control bodies, etc. This paper promotes the thesis that the information disclosed in financial statements helps investors in their decision to invest in the shares of publicly traded companies. A precise analysis of financial statements may result in a decision to purchase, not to purchase, or to sell some of the stocks of the companies which are subject to analysis. The article focuses on publicly traded companies in the insurance sector.
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Venelin Terziev
THE NATIONAL EMPLOYMENT PLAN IN BULGARIA - POLICIES, PRIORITIES AND NECESSARY CHANGES DUE
TO COVID-19
Summary:
The paper comprises two interrelated parts and focuses on the analysis and study of the processes on the Bulgarian market, which unfold in the emergency situation resulting from the COVID-19 pandemics. In the first part, an attempt is made for a systematic analysis of the current national employment plan, its priorities and the needed revisions thereof in the conditions of a critical situation.
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Rumen Vyrbanov, Krasimir Shishmanov
NEW GENERATION SYSTEMS FOR ELECTRONIC BUSINESS
AND ELECTRONIC PAYMENTS
Summary:
The concept of new generation electronic business (e-Busi¬ness 2.0, Social Business) refers to companies which integrate social technologies and instruments in all business processes, i.e. internal as well as external ( clients, suppliers, business partners), and in this way overcome many of the traditional organisational barriers which slow down the exchange of information and collaboration.
The first part of the article studies the basic characteristics of the new generation of electronic business systems which were formed under the influ-ence of Web 2.0, social media, mobile technologies and cloud calculations. The article also tries to outline the changes in the three main spheres of elec-tronic business: the use of Web 2.0 technologies for managing internal corporate communication, the design and development of new products and knowledge management (the Internet environment), corporate communication and interaction with external partners and clients (Extranet environment, B2M model) and electronic trade (online stores, B2C model).
The second part of the article analyses the possibilities and advantages provided by modern technologies for developing electronic payments, i.e. the use of debit and credit cards, contactless payments, mobile banking and bitcoins.
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P. Dimitrova
Some Aspects of the Accounting Analysis of Loans Granted
by Commercial Banks
Summary:
The accounting analysis performed in banking institutions is of key importance. It is based on information collected exclusively from current and periodic accounting reports. Based on real accounting data, it is found that there are decreased rates of positive growth in credit portfolios. Granted loans are well-secured while at the same time there is also an increase in the percentage of non-performing loans. When assessing the risk of collateral it is possible to propose the use of "above-the-moderate risk." It is considered necessary for banks to maintain information about the liquidation value of mortgages or pledged assets, rather than the market price.
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Plamen Yordanov, Margarita Nikolova, Zhaneta Angelova
ORGANIZATIONAL AND ECONOMIC CHARACTERISTICS OF COMPENSATIONS FOR TEMPORARY LOSS OF CAPACITY TO WORK
Summary:
The insurance for general diseases with temporary incapacity to work has specific features due to the specifics of the risk it covers. Such diseases are very frequent but usually mild and entail specific consequences, such as reduction or loss of income due to sick leaves. The object of research is the insurance for of general diseases and its subject is the organizational framework and the regulations regarding the benefits for temporary incapacity for work. The aim of this study is to investigate the organizational and economic characteristics of benefits for temporary incapacity for work due to general disease in certain of the European Union and formulate guidelines for organizational development and improvement of the social security system in Bulgaria.
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Georgi Angelov
A LIQUIDITY ASSESSMENT
OF THE BULGARIAN BANKING SYSTEM (2009–2013)
Summary:
Liquidity is of great significance for the stability of credit institutions and the banking system as a whole. In normal circumstances, the capital adequacy of banks is determined as a key factor for stability. But, during economic crisis, the susceptibility of credit institutions to a shortage of available cash resources in order to cover depositors’ withdrawals is intensified. This directs our attention toward effective liquidity management. Financial cataclysms on a global scale caused by the crisis in the USA during 2007, and the speedy “infection” of the economies of the developed countries showed that gaps in the management of financial institutions can lead to considerable losses on a world-wide scale.
The aim of this study is to assess the liquidity situation of the Bulgarian banking system based on generally accessible (public) information by applying ratio analysis tools. Through the use of key indicators of liquidity assessment, the trends in its development for 2007-2013 are presented. A general assessment of the liquidity situation for banks in Bulgaria is outlined.
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Teofana V. Dimitrova
EVALUATING THE STRATEGIC POSITION OF AN ORGANISATION THROUGH SPACE ANALYSIS
Summary:
The ability to adequately determine the position of an organisation in its external environment, i.e. in terms of other entities in the sector, is essential for strategic decision making. It helps entities integrate their resources and activities and determines the success and sustainability of the business. This paper deals with SPACE analysis, a tool for analysing the strategic position of companies and evaluating their activity, which is less familiar in marketing management theory and practice. The paper focuses on some of the advantages of the method and systematizes some of the SPACE factors which are most frequently employed to evaluate the strategic position of entities by reviewing Russian and English sources. The method is applied to evaluate the strategic position of an industrial enterprise in the sector of ‘Wine production from fresh grapes’.
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Atanas Vladikov
The EU Labour Market (as Viewed through the Prism of Elasticities)
Summary:
This paper discusses both theoretical paradigms and applications of labour market elasticities within the European Union of 28 member states. The paper is based onto a recent research (2014-2016), conducted by the author upon the effects on the EU-28 labour market, based on general models, explaining behaviour of elasticities of labour supply-demand sets of equilibriums. The paper employs the doctrine of employment-at-will, and therefore, the main theoretical framework for reasoning and explaining the effects on the EU labour market is an adapted Nash Bargaining Equilibrium on the labour market. Based on voluntary searching and matching of interests of employers and employees, the labour market is analyzed through the set of labour elasticities on micro- and macro-levels of the EU economy.
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Bozhidar Bozhinov
Prospects for Early Prognosis of Crisis Situations in the Banking Sector
Summary:
The first global financial and economic crisis of the present century has once again reminded the economists of the vulnerability of the banking system as far as outside shocks are concerned. Problems in the banking sector can be measured in expenses worth billions of Euros in order to support and stabilize most affected countries. In this respect the present article aims at analyzing the options for predicting banking difficulties and problems by means of models focusing on those based on the signal approach. On the basis of a conducted research an attempt has been made to create a mechanism for improvement of the signal-based models for forecasting crisis situations in the banking sector.
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Orlin Yapryakov
RESTRUCTURING AND CONSOLIDATION OF BULGARIAN BANKS – SYSTEM ANALYSIS AND ASSESSMENT
Summary:
In a contemporary market structure, the establishment of a successful and efficient banking system is an issue of high priority. One of the most important factors is maintaining stability in the banking business especially when the country belongs to economic unions comprising certain countries; therefore, destabilization in the national sector might erode the European one. The period of joining the EU has a positive impact on the Bulgarian banking sector, which leads to significant intensity in the restructuring and consolidation of banks in the country during the period 2006–2020. On the basis of this, the banking systems in the country decrease from twenty-nine banks in 2007 to twenty-four in 2020. The undertaken solutions favor the trend in the banking system, which throughout the last years has been sustainable and competitive.
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Nigohos Kanaryan
ENHANCING THE ADJUSTMENTS OF MARKET MULTIPLES FOR BETTER OPERATING EFFICIENCY
Summary:
The study focuses on one of the specific applications of the market approach. The market approach is a valuation method whereby the fair market value of the target company is determined by reviewing comparable companies with similar operational and financial characteristics. The International Valuation Standards (2017) require that a valuer should make adjustments to the selected market multiples. Kasarova, Pramatarska and Lazarova (2009) and Todorov (2015) propose a method for adjusting market multiples for country risk and efficiency when the market approach is applied to emerging markets. We enhance their adjustment approach by removing its inherent restrictions.
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Silviya Todorova Petkova
PROBLEMS AFORE THE CONVERGENCE OF THE PLANNING REGIONS IN BULGARIA
Summary:
In the present article an analysis is made of the achievements and problems faced by the six planning regions in our country, related to their goals for reducing regional disparities. This is achieved through the analysis of key indicators that serve to measure cohesion in each of its three aspects. In this way it will be established whether the EU Cohesion Policy conducted in our country in the first for our country (MFF) 2007-2013 and in the second (MFF) 2014-2020 have an effect and to what extent this effect has the effect of reducing or deepening regional disparities. For the purposes of the study, the mean-absolute deviation (MAD) and the coefficient of variation (CV) were used as tools for quantitative data analysis. The results of the study confirm the thesis of scientists and authors working in the field that there is no significant progress in reducing disparities between regions in our country.
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Elka N. Syarova
CHANGES AND TRENDS IN THE EMPLOYMENT STATUS
OF UNIVERSITY GRADUATES IN BULGARIA AND THE EU
Summary:
This research focuses on the ongoing changes and the new challenges faced by labor in the process of transition to a new type of economy. It is structured in two parts. The first part systematizes the main changes in the characteristics and requirements to labor in the context of the formation of a new economy and the transition to a digital one. The second part makes an empirical analysis and draws up the specific aspects in the dynamics of the indicators of the employment status of university graduates in Bulgaria and the EU which are relevant to the latest changes in the increasing imple¬mentation of more complicated mental labor. By applying methods of fore¬casting, the author brings forward certain short-term trends in the fluctuations of the relative ratio of the employed persons with a university degree in Bulgaria and the EU. The research implements the methods of analysis and synthesis, the means and methods of empirical-descriptive, as well as the econometric analysis.
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Stoyan Prodanov, Stefan Stanimirov
DEVELOPMENT OF THE BULGARIAN INSURANCE MARKET - CRISIS CHALLENGES OF THE DECADE
Summary:
The present study focuses on the development of the Bulgarian insurance market in the second decade of the XX century. It examines the issues of the relationship between the global financial sector, insurance and the phases of economic cycles; the debate on the importance of the financial sector and insurance for the economic development; the establishment of correlations and dependencies between the dynamics of GDP and the dynamics of the Gross Premium Income (GPI) in the general insurance sector in Bulgaria for the period 2007-2019, presenting prospective reflections and assessment of the impact of the global pandemic COVID-19 on the Bulgarian insurance market. The linear model in a realistic scenario forecasts a decline in GPI of 18.2%, in a GDP decline of 9.0%. An additional assessment and forecast made using the model is that a decrease between 12.4% and 25% of GPI from the compulsory motor third party liability insurance (at the indicated level of GDP decline) will have a destructive effect on the Bulgarian model of general insurance, due to the impossibility to perform the social functions of this insurance such as the protection of victims of road accidents.
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Valya Vasileva
Development of Consumer Lending by Non-Bank Credit Companies in Bulgaria
Summary:
The study focuses on consumer loans extended by corporations specializing in lending in Bulgaria during the period March 2008 – September 2018. A brief presentation of the essential features of consumer loans is made and attention is paid to key aspects of statutory regulations of this type of lending in Bulgaria. The main trends in the dynamics of the volume of consumer loans extended by corporations specializing in lending are outlined and their main determinants in the country are worked out. The analysis of non-bank consumer lending is supplemented in a comparative perspective by trends in the dynamics of bank consumer lending. On this basis, the main prospects for growth in the segment of non-bank consumer loans in Bulgaria are presented.
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Baki Huseinov
Human Capital Development – Economic Effects and Market Aspects
Summary:
Human capital is the foundation of modern knowledge for growth, employment and social development. In terms of modern polity, we observe spending of large public resources, providing for both formation of national human capital through the system of government-funded education and long-term preservation of its generated value through the system of health care and social assistance. Seen through the prism of social choice theory, economics and labour market, human capital development is logically defined as a task of paramount importance in any modern political doctrine of social development. The aim of the study is to systematize and critically examine the basic issues related to the process of human capital development in terms of economic growth and labour market
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Dudar Volodimir
Development of the Market for Food Products from Ukraine’s Agricultural Sector
Summary:
The article analyses the development of markets for food products from the Ukraine agricultural sector and the degree of its dependence on imports of food products. The article also outlines the main areas for activating international economic activities and realization of export potential of Ukraine’s agricultural sector specializing in food production. The author advocates the necessity of deepening the processes of integration with main international markets of agricultural food products.
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Tanya Gorcheva
Realising the Concept of Sustainable Management
Summary:
The concept of sustainable business development applied as a management model can multiply positive achievements resulting from business operations. The main objective of this study is to trace the forms of implementation of sustainable management by business operation levels. In order to achieve this, the nature and importance of sustainable management is revealed. The idea of applying sustainable management features an interdisciplinary and multicultural signature that is associated with economic prosperity, a green lifestyle and the social responsibility of all stakeholders in the business, as well as a wide range of community groups. The paper provides a broad-spectrum analysis of the main forms of sustainable management realisation, namely its operation as a standard with a force equal to national law; as good practice, leading to increased competitiveness of entrepreneurs; as an international agreement made possible by the unity accomplished in the realisation of major projects.
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Todor Georgiev
RISK AND RETURN ON INVESTMENTS IN PHOTOVOLTAIC POWER PLANTS THROUGH A PROJECT COMPANY AND LOAN FINANCING
Summary:
Abstract: The aim of this study is to present in detail the risk, financial, and engineering aspects of investments in photovoltaic power plants (PVPPs) based on the most likely scenario for financial and economic development. For investments in PVPPs with a capacity of over 1 MW, the use of the project company approach can be recommended. This approach pursues two basic goals: (1) the construction of PVPPs with optimal installed capacity and product¬ion parameters; (2) achievement of a projected level of sales and profits. Investments in PVPPs logically bear two groups of risks – systematic and unsystematic. Among these risks, attention should always be paid to the dynamics of price levels in electricity markets, which are key to the financial and economic return on investment. These calculations are also particularly sensitive to changes in interest rates when loan financing a project company with high financial leverage.
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Nikola Iliev
Risk Attribution – a Model for Establishing the Impact
of Global Risk Factors
Summary:
The global recession that started in the twenty-first century forced investors to invent or re-discover a paradigm for risk treatment. The solution lies in the risk attribution of historical stock return of listed companies in relation to global macroeconomic factors, its decomposition and research in terms of risk exposure and risk premia. The consistency of this approach enables investors to act as risk managers and macro analysts of equity markets and to predict potential sources of risk for companies, the stock exchange, the economy, and the globalizing world.
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Stoyan Prodanov, Tsetan Pavlov
Comparative Analysis of the Leading Consumption-Based
Asset Pricing Models
Summary:
The article analyzes in depth the consumption-based asset pricing models, and displays most perspective contemporary trends in the field. A conceptual framework of models has been originally presented linking macroeconomic and financial relationships, and mathematical basis of the classic CCAPM has been developed. The paper also brings out the leading approaches for modification of the basic model, overcoming some of its shortcomings, and analyzes the advantages, disadvantages and the ability of consumption-based modern models to recreate empirical correlations in profitability and the risk of financial assets. The leading conclusion of the article is that there is still no convincing rational consensus model to reproduce adequately the characteristics of financial markets. From an econometric perspective, the closest in this endeavour is the model of long-term risk of Bansal and Yaron (2004) and its modifications.
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Veniamin Todorov
STABILIZATION ROLE OF THE MACROECONOMIC POLICY DURING THE COVID-19 CRISIS
Summary:
The article presents an analysis of the role of macroeconomic stabilization policy during the economic crisis caused by the COVID-19 pandemic. The analysis covers both monetary and fiscal policy using data on macroeconomic activity, inflation, the severity of restrictive measures, the level of uncertainty, the degree of financial stress on the financial system, etc. It tests two hypotheses formulated as follows: Hypothesis one is that considering the specific characteristics of the COVID-19 exogenous shock, there was a need for a quick and decisive response by means of a macroeconomic stabilization policy. The second hypothesis asserts that expansionary macroeconomic policies played a key role for the recovery of the economies from the COVID-19 recession and their subsequent growth. Both hypotheses are confirmed.
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Desislava V. Petrovska
STRATEGIC RISK MANAGEMENT
Summary:
The strategic management of commercial companies in times of crisis places a strong emphasis on the management and control of the risk. There is no business activity in the world that is not associated with various types of risk. In a highly competitive and turbulent environment, the clear linking of the business strategy of the firm and its risk management makes it possible to identify and manage the risk of the surrounding environment and the on-going movements within it. Strategic risk management creates a protection value that ensures a sustainable internal environment. This is a continuous process that is embedded in the strategy.
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Zhelao Vytev
Structural Deviations in Bank Deposits in Bulgaria in Times
of Economic Crisis
Summary:
The article reviews bank deposits in Bulgaria. It specifically analyses how changes in the internal structural components of deposit basis and ratios reflect the general dynamics of bank deposits within the unfavourable economic conditions generated by the economic crisis. Attention is drawn to the structural deviations in bank financing from various aspects, which include sources, maturity, volume and currency structure of deposits on the one hand, and structural deviations of deposits, as determined by bank capital, on the other.
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Tanya Gorcheva
State and problems of Bulgarian tourism products
on the European market
Summary:
The article analyses the state of tourism products and services related to destination Bulgaria. This objective is achieved by applying situation analysis which reveals the market positions occupied by Bulgarian tourism products in Europe. The object of research is the nature and characteristics of offering while the subject is connected to the “demand – supply” relation of tourism products for destination Bulgaria within the context of the various problems of tourism business in the country. The article also outlines the possibilities for success based on a critical analysis of results achieved for the period 2001 – 2011 by discussing issues such as the nature and structure of Bulgarian tourism product; the nature of offering of emitting markets important for destination Bulgaria; specific characteristics of offering with regard to tourist packages for organized trips to our country.
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Trayan Yosifov
CONDITION OF THE BANK LOAN MARKET IN BULGARIA
Summary:
While not all domestic businesses are growth-oriented, at some stage of their development they need capital to improve their competitiveness and adaptability to changes of their business environment. The access to affordable bank loans is crucial for the development of many Bulgarian businesses, which face increasing external and internal competition. This is due to the fact that there are virtually no alternative sources of financing in our country. The present study aims to present an analysis of the credit market in the country in view of the key importance of bank monetary resource, which is a major factor for strengthening the competitive potential of Bulgarian enterprises. The article presents an analysis of the domestic bank loan market in terms of the key importance of banks’ financial resource, which is a major factor for raising the competitiveness of the Bulgarian enterprises.
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Petko Angelov
Trends in the Development of Financial Parameters of Banks
in Bulgaria (2008 – 2015)
Summary:
Lending and deposit-taking are key operations to credit institutions. They are of great importance to achieving efficiency in banking. Banking, in turn, should be quantified; a number of factors well-known in banking theory and practice provide the possibility for this. In this respect, the subject of analysis in the study is the profit, profitability, and return of the banks of first and second group in Bulgaria which measure bank efficiency. The purpose of the study is to analyze the bank efficiency for the period 2008 – 2015 on the basis of a ratio analysis and determination of specific values for both groups of banks. As a result of the study, the trends regarding the efficiency of banking in Bulgaria are outlined and the main causes are identified.
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Ivailo Nikolaev Marinov
TRANS-BORDER EXPANSION IN THE QUICK LOANS SECTOR (PROBLEMS AND SOLUTIONS)
Summary:
The enterprises operating in the “quick loans” sector are microfinance institutions. Since they are not banking institutions, they need to adhere to more rigid financial management rules both in terms of fund raising and lending, especially regarding the so called “quick loans” category. The "quick loans" sector is defined as economic activity that, under the terms of the regulatory framework in force, allows a non-banking financial institution to provide unsecured (short-term) loans based on borrower’s income and credit profile and to charge high interest rates and added fees to offset the associated risk. The results of the survey confirm that this sector is a specific segment of the financial services sector that complies with the national regulations and creates a market for financial services that are essentially equivalent to the unsecured short-term bank loans but have profitability and return characteristics that make them competitive to the services offered by commercial banks. The successful of the financial management of these companies is based on their scoring models for assessing the risk of borrower’s default.
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G. Draganov
RISK MANAGEMENT AND RISK TRANSFER REGARDING OBJECTS
OF INTELLECTUAL PROPERTY
Summary:
The aim of the author is to consider an issue which has not been subject to research so far. The article proves that risk management is an important element of the Intellectual Property system. Risk management helps reduce injuries arising from the materialisation of pure and speculative risks.
The article also pays special attention to risk transfer related to intel-lectual products. The article considers insurance transfer to be the most ac-ceptable and therefore the insurance of objects of intellectual property should be introduced into practice.
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Lubomir Lubenov, Anelia Lyubenova, Ivailo Hristakov
FINANCIAL ISSUES AND FUNDING IN THE BULGARIAN BEEKEEPING SECTOR
Summary:
The aim of the study is to establish the amount of funding in Bulgarian beekeeping and their trends. The goal is achived through an analysis of the tendencies and the main sources of financial means. The study analyses the financial support from European and national funds (the National Beekeeping Program, the de minimis scheme, the Rural Development Program) for over BGN 18 million and from commercial banks and own sources for over BGN 3 million. Together they form financial markets for over BGN 21 million a year in Bulgarian beekeeping. The European and state financial resources intended for Bulgarian beekeeping from the country's membership in the EU are increasing in absolute terms, but are decreasing relative to the total funds. Bulgarian beekeeping has gained access to additional funding, which is not proportionate in comparison with other sectors. Additional financial support is needed per hive for the ecosystem pollination service in order to ensure biodiversity and food security in the EU. The financing of the Bulgarian beekeeping will continue to grow steadily.
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Reneta Dimitrova
THE FINANCIAL LITERACY OF CLIENTS – AN IMPORTANT FACTOR FOR BANKS’ SUCCESSFUL DIGITALIZATION
Summary:
The digitalization of banking operations and the opportunities it provides the clients with has been an important aspect of banking for decades. Banks are among the financial institutions that work actively so that they do not lag behind the global e-business which is moving forward. Successful banking digitalization depends on numerous factors whereas one of them is clients’ financial literacy which significantly predefines how the process of banks’ digital transformation would continue. The research is aimed at outlining banking digitalization’s dependency on the literacy level of clients and the policies to be implemented so that it is successful.
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Neno Pavlov, Radoslav Gabrovski
FRAGMENTS OF THE LIFE AND WORKS OF THE FOUNDER
OF ACADEMIC EDUCATION IN INSURANCE IN BULGARIA
Summary:
The aim of the article is to commemorate and pay tribute to the renowned scientist and practitioner Prof. Veleslav Gavriyski, DSc. It highlights the most significant facts and events from his biography outlining his extensive studies in prestigious universities in the country and abroad and emphasizing his role as a co-founder and the first head of the only insurance department in Bulgaria. Moreover, it describes Prof. Gavriyski’s role as a pioneer in the fields of theory (economics) of insurance, reinsurance and insurance law in Bulgaria with his remarkable contribution to the writing of the first fundamental university textbooks and manuals in these fields. In 1996, Prof. Veleslav Gavriyski, DSc Foundation was established in acknowledgement of the contribution and support of this remarkable scientist for the development of the national insurance and social security sectors in the country.
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Aleksandyr Ganchev
Hedge Funds – Evolution and Perspectives
Summary:
The article reviews and analyses the origins of the hedge fund sector and its development on a worldwide scale. The study reveals that hedge funds had arisen long before 1949 and shows that global financial crises do not occur due to hedge funds because the latter only exploit economic development disparities, the imperfections of financial systems, the inadequate regulatory frameworks or the inefficient financial market regulations that are already in place. The article shows that, although the development of the hedge fund industry is very sensitive to financial crises, their popularity as investment instruments has been increasing rather than decreasing since the last global economic crisis of 2008.
