Scientific Annals of Economics and Business 

About: Scientific Annals of Economics and Business is an academic journal published by De Gruyter Open. The journal publishes majorly in the area(s): Monetary policy & Computer science. It has an ISSN identifier of 2501-1960. It is also open access. Over the lifetime, 396 publications have been published receiving 1724 citations.

Socially responsible mutual funds – a profitable way of investing

Abstract: In the presented paper there is analyzed the idea, essence and strategies of socially reponsible investing, there is also made a review of socially responsible mutual fund market worldwide and in the Baltics, and made a research on the relation between financial and social performance of mutual funds. Finally, there are presented results of a comparative analysis of S&P 500 TR and Index Morningstar Moderate Target Risk to their benchmarks. The presented results show the trends of socially responsible market and the effectiveness of socially responsible mutual funds comparing to their benchmarks. The specifics of socially responsible mutual market in the Baltics and research of the link between financial and social performances of mutual funds may lead to the further scientific researches.

Emotional or rational? the determination of the influence of advertising appeal on advertising effectiveness

Abstract: In prevailing competition-based market economy, organizations have to search factors influencing advertising effectiveness. This research aims at developing the model of the influence of advertising appeal on advertising effectiveness. While achieving the aim of the article, the analysis and synthesis of scientific literature is provided. Furthermore, traditional marketing research methods as well as neuromarketing research methods are applied in order to determine the influences of different advertising appeals on advertising effectiveness. As a research result, the model of the influence of advertising appeal on advertising effectiveness is elaborated. Accordingly, this research fills the gap in scientific literature by determining the influences of emotional and rational appeals on print / outdoor advertising effectiveness in the context of convenience product category. Moreover, by answering the research question, the contribution to the field emerges in integrating both marketing theory and neuroscience in order to analyze and evaluate consumer behavior.

The Effect of Credit Risk and Capital Adequacy on the Profitability of Rural Banks in the Philippines

Abstract: This paper examines the credit risk and capital adequacy of the 567 rural banks in the Philippines to investigate how both variables affect bank profitability . Using the Arellano-Bond estimator , we found out that credit risk has a negative and statistically significant relationship with profitability. However, empirical analysis showed that capital adequacy has no significant impact on the profitability of rural banks in the Philippines. It is therefore necessary for the rural banks to examine more deeply if capital infusion would result in higher profitability than increasing debts. The study also implies that it is imperative for the banks to understand which risk factors have greater impact on their financial performance and use better risk-adjusted performance measurement to support their strategies. Rural banks should establish credit risk management that defines the process from initiation to approval of loans, taking into consideration the sound credit risk management practices issued by regulatory bodies. Moreover, rural banks need to enhance internal control measures to ensure the strict implementation of internal processes on lending operations.

Relationship between mission statement and company performance

Abstract: Mission statement is a managerial tool which has the power of directing the behaviour in a company. The important question we can ask is whether the existence of a mission statement is associated with company performance or not. Findings of different studies exploring this relationship are not very conclusive. Besides, mission statements often comprise of different components or dimensions. It seems that relationship between the mission statement and company performance depends on mission statement dimensions as well. In our research based on a sample of 394 Slovenian companies we explore the links between the existences of a mission statement and its components on one side, and different measures of company performance on the other. We recognised value added per employee (VAE) as the only performance measure associated with existence or non-existence of mission statement. Besides, VAE is associated with two possible mission statement dimensions - focus on relationships and focus on company resources

Information Transmission Between Cryptocurrencies: Does Bitcoin Rule the Cryptocurrency World?

Abstract: This paper investigates the information transmission between the most important cryptocurrencies - Bitcoin, Litecoin, Ripple, Ethereum and Bitcoin Cash. We use a VAR modelling approach, upon which the Geweke’s feedback measures and generalized impulse response functions are computed. This methodology allows us to fully characterize the direction, intensity and persistence of information flows between cryptocurrencies. At the available data granularity, most of information transmission is contemporaneous, that is, it occurs within a day. However, it seems that there are some lagged feedback effects, mainly from other cryptocurrencies to Bitcoin. The generalized impulse-response functions confirm that there is a strong contemporaneous correlation and that there is not much evidence of lagged effects. The exception appears to be related to the overreaction of Bitcoin returns to contemporaneous shocks.