/pdf/the-economic-approach-to-law-3x1zmvsxn8.pdf

The economic approach to law

This paper examines the robustness of explanatory variables in cross-country growth regressions. It employs a variant of Leamer’s (1983, 1985) extreme-bounds analysis. My results confirm Levine and Renelt’s (1992) conclusion, but identify more variables to be robustly correlated with economic growth. Of 25 explanatory variables tested, I find 8 to be significantly and robustly correlated with long-term growth over the 1990-2010 period. The strongest evidence is for the investment ratio, government consumption share in GDP, the rule of law, and the Sub-Saharan dummy. I also find strong empirical evidence for conditional convergence, which is consistent with the neoclassical growth model.

A Sensitivity Analysis of Cross-Country Growth Regressions: Is 1990-2010 Different?

Economic growth and renewable and non-renewable energy consumption: Evidence from the U.S. states

Predicting the risk of financial distress of enterprises is an inseparable part of financial-economic analysis, helping investors and creditors reveal the performance stability of any enterprise. The acceptance of national conditions, proper use of financial predictors and statistical methods enable achieving relevant results and predicting the future development of enterprises as accurately as possible. The aim of the paper is to compare models developed by using three different methods (logistic regression, random forest and neural network models) in order to identify a model with the highest predictive accuracy of financial distress when it comes to industrial enterprises operating in the specific Slovak environment. The results indicate that all models demonstrated high discrimination accuracy and similar performance; neural network models yielded better results measured by all performance characteristics. The outputs of the comparison may contribute to the development of a reputable prediction model for industrial enterprises, which has not been developed yet in the country, which is one of the world’s largest car producers.

https://www.mdpi.com/2071-1050/12/10/3954/pdf

Predicting Financial Distress of Slovak Enterprises: Comparison of Selected Traditional and Learning Algorithms Methods

Prediction of the financial difficulties of companies has been dealt with over the last years by scientists and economists worldwide. Several prediction models mostly focused on a particular sector of the national economy, have been created also in Slovakia. The main purpose of this paper is to create new prediction models for small and medium-sized companies in Slovakia, based on real data from the Amadeus database from the years 2016–2018. We created prediction models of financial difficulties of companies for 1 year in advance and also a model for 2 years prediction. These models are based on the combination of two methods, discriminant analysis and logistic regression that belong, among others, to the group of the most commonly used methods to derive prediction models of financial difficulties of the companies. The overall prediction powers of the combined model are 90.6%, 93.8% and 90.4%. The results of this analysis can be used for early prediction of the financial difficulties of the company, that could be very useful for all the stakeholders.

Business Failure Prediction for Slovak Small and Medium-Sized Companies

Tourism is one of the most important industries in the Mediterranean countries, which strongly contributes to the economic activity, capital investment and job creation. Therefore, the purpose of this paper is to examine the determinants influencing profitability of hotel companies in selected Mediterranean countries. Thereby, dynamic panel data models are estimated on an extensive dataset for the period from 2007 to 2015. The paper provides evidence on differences among internal profitability determinants of hotel companies operating in tourism competitive countries. The results indicate that the cash flow to operating revenue has a statistically significant and positive impact on profitability in all observed countries. The total asset turnover ratio is significant for all countries except Portugal, while labour productivity is significant only for Spain, which is also the country with the highest turnover per employee. The solvency ratio is positively related to profitability, except for Greece as the most indebted country. Size proved to be significant for hotels in Spain and Portugal, while age is the variable by which the countries mostly differ, as findings show a different impact of underlying variable on hotel profitability. Findings provide information to shareholders that would ensure profitability of hotel companies operating in different countries.

/pdf/profitability-determinants-of-hotel-companies-in-selected-h4brjg9qyl.pdf

Profitability determinants of hotel companies in selected Mediterranean countries

The majority of research papers dealing with corporate failure and
insolvency in transition countries use a combination of financial ratios
in investi

/pdf/modelling-the-impact-of-macroeconomic-variables-on-aggregate-58slaqrz8i.pdf

Modelling the impact of macroeconomic variables on aggregate corporate insolvency: case of Croatia

The authors analyze the relationship between GDP, imports-coverage ratio (NEX), FDI and gross fixed capital formation (GFC) in selected CEE countries by using an error correction model. The empirical results confirm a positive long-run influence of the imports-coverage ratio, FDI and GFC on GDP growth for all of the countries, except Croatia. In the case of Croatia, there is a significant negative feedback between FDI and GDP growth in the long run and a positive one in the short run. By using B. Horvat’s research on this subject, a logical explanation of this sort of paradoxical behavior is suggested. The second uncommon result is the long-run positive relationship between GDP and the imports-coverage ratio. The obtained result speaks in favor of a conservative approach to running a national economy, where the current account and the imports-coverage ratio are taken into account and the economic growth is achieved through slower but stable, internally driven growth.

/pdf/a-vecm-approach-to-detangling-growth-exports-imports-and-fdi-jujnxc1w8r.pdf

A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries

Using an extensive dataset of over 44,000 firms for a period that includes an economic upswing and a recession, this article examines how time-varying, firm-specific variables and changes in the macroeconomic environment affect the probability of firms’ financial distress. Traditional single-period approaches used to predict financial distress are based on unrealistically restrictive assumptions and cannot dynamically account for changes in financial indicators and macroeconomic conditions. Therefore discrete-time hazard models (using logit and cloglog) are applied; these indicate that the probability of distress is strongly influenced by both ﬁrm-speciﬁc and macroeconomic variables. Although firm-specific variables play an essential role, the results show that macroeconomic variables are important for understanding the fluctuations in the probability of distress over time. Furthermore, the findings provide evidence that both the legal criteria and a firm’s financial health should be considered when ident...

Challenges in Predicting Financial Distress in Emerging Economies : The Case of Croatia

The authors analyze the relationship between GDP, import-coverage ratio (NEX), FDI and gross fixed capital formation (GFC) in selected CEE countries by using an error correction model. The empirical results confirm positive long-run influence of import-coverage ratio, FDI and GFC on GDP growth for all of the countries, except Croatia. In the case of Croatia there is a significant negative feedback between FDI and GDP growth in the long run and positive in the short run. By using B. Horvat research on this subject, a logical explanation of this sort of paradoxical behavior is suggested. Second uncommon result is the long run positive relationship between GDP and import-coverage ratio. The obtained result speaks in favor of a conservative approach to running a national economy, where the current account and the import-coverage ratio are taken into account and countries try to achieve economic growth through slower but stable, internally driven growth.

Ivana Tomas Žiković

Papers

Profitability determinants of hotel companies in selected Mediterranean countries

Modelling the impact of macroeconomic variables on aggregate corporate insolvency: case of Croatia

A VECM approach to detangling growth, exports, imports and FDI knot in selected CEE countries

Challenges in Predicting Financial Distress in Emerging Economies : The Case of Croatia

A VECM approach to detangling growth, export, import and FDIi knot in selected CEE countries