Showing papers in "Theoretical and Applied Economics in 2009"

Relationship between occupational stress, emotional intelligence and job performance: An empirical study in Malaysia

Abstract: This study was conducted to examine the effect of emotional intelligence in the relationship between occupational stress and job performance using 104 usable questionnaires gathered from academic employees who work in private institutions of higher learning in Kuching City, Malaysia. The outcomes of testing research hypothesis using a stepwise regression analysis showed that relationship between occupational stress and emotional intelligence significantly correlated with job performance. Statistically, the result confirms that the inclusion of emotional intelligence in the analysis has mediated the effect of occupational stress on job performance in the organizational sector sample.Further, implications and discussion are elaborated.

The Economic Crisis and its Effects on SMEs

Abstract: Romania has ended a high growth cycle. The world economic crisis is worsening with every passing day and Romania increasingly feels the effects of this economic downturn. The sector of small and medium enterprises (SMEs) is the most dynamic in the Romanian economy, but it will also be one of the first to be hit by the global financial crisis the ripples of which have reached Romania as well. SMEs are now considered the most sensitive sector and worst affected by the economic climate. The economic crisis has prompted the member states of the European Union, too, to adopt packages of measures to counteract the effect of the crisis. Here below I will exemplify with the cases of Romania, the Italian Republic, the Federal Republic of Germany, the Slovak Republic and the Republic of Hungary.

Fraud risk management

Abstract: This paper aims to highlight certain aspects of the fraud risk faced by all organizations, regardless of the specific activity. Also, in this work are presented some practical examples in order to show how the risk of fraud is managed. The implications of this risk can be unlimited and may lead to bankruptcy when the organization affected. In general, the risk of fraud is more threatening in times of crisis and also threatens the financial stability of organization.

Modeling Multivariate Volatility Processes: Theory and Evidence

Abstract: This article presents theoretical and empirical methodology for estimation and modeling of multivariate volatility processes It surveys the model specifications and the estimation methods Multivariate GARCH models covered are VEC (initially due to Bollerslev, Engle and Wooldridge, 1988), diagonal VEC (DVEC), BEKK (named after Baba, Engle, Kraft and Kroner, 1995), Constant Conditional Correlation Model (CCC, Bollerslev, 1990), Dynamic Conditional Correlation Model (DCC models of Tse and Tsui, 2002, and Engle, 2002) I illustrate approach by applying it to daily data from the Belgrade stock exchange, I examine two pairs of daily log returns for stocks and index, report the results obtained, and compare them with the restricted version of BEKK, DVEC and CCC representations The methods for estimation parameters used are maximum log-likehood (in BEKK and DVEC models) and twostep approach (in CCC model)

The Transformation of Municipal Services: towards Quality in the Public Sector

Abstract: The development of the public service modernization seeks to facilitate services delivery to citizens, when and where they need them. For it, management and utilization of service quality have special relevancy. In this paper, we are trying to contribute for improving the relations between the small public local administrations and citizens across analysis of the link between quality and satisfaction, beside of analyzing how they relate to citizen’s credibility on institutions. By means of opinions spilt by citizens, obtained results allow us to raise a series of public policies and offers for the improvement of administration service quality, which end up as directly satisfaction and credibility.

Conceptual and Technical Study Regarding Future Accounting Regulation for SMEs in Europe

Abstract: The economic theories and the accounting regulations deriving from them should be reconsidered for SMEs. At global level, there are accomplishments in this respect – IASB IFRS for SMEs – or intentions – European Commission proposals for certain simplifications of the European directives. However, for these actions to be successful, further investigations concerning the theoretical and technical implications are necessary. In this study, we present our opinion concerning the theoretic influences (reconsideration of the conceptual framework) and the technical influences (change in the disclosure requirements and change in the content of the standards, namely recognition and valuation) implied by a standard for SMEs.

Analysis of Main Economic Factors Influence on Romanian Tourists Number Accommodated in Romania, using Anova Method

Abstract: Now, it is indisputable the role, increasingly important, that tourism plays in economic and social development. This is reflected particularly through the tourism movement, which by generating revenue contributes to the creation of GDP. Size of tourist movement can be expressed through the following indicators: number of tourists, the number of check-in for nights, average length of holiday, density of tourist movements, the relative preference for travel, the revenue and the average number of tourists. The aim of this paper is to identify the main influence of economic factors - total income of households and consumer price indices, registered in Romania in the period 2001-2007 -, on the evolution Romanian tourists number accommodated in Romania, using the dispersion analysis method ANOVA.

Public Integrity and Performance of Governance. A Comparative Study for South-Eastern Europe

Abstract: The studies concerning the impact of corruption on the effectiveness of governance are numerous, valorising profound approaches, based on criteria and standards related to good governance, organizational behaviour. The concepts and mechanisms specific for econometrics and statistics provide the quantitative support for qualitative analyses, substantiating public policies, in view to assure effectiveness in performance measurement. For all South-Eastern European countries, the level of development and social organization determines specific ethical behaviours. In this context, the current paper aims a comparative economic and social evaluation of the correlations between corruption, performance and economic freedom in South-Eastern European countries, including Romania. The working hypotheses turn into consideration the following issues: - corruption holds national specific character and the statistic, econometric or sociologic analyses reveal that it is stable during the time; - an effective governance leads to increasing the citizens’ welfare; - if a country is poor and the economic freedom is reduced than the bureaucratic and political system tends to be more corrupted; - the perspective of accession into the EU has led to the perception concerning the reduction of the corruption level. The above hypotheses will be completed and we shall achieve comparative analyses, relevant for the group of South-Eastern European countries. The above quantitative analyses will use both own results of the researches carried out by the authors and public results of World Bank, Transparency International and Heritage Foundation, as well as results of authorities responsible for national statistics. The comparative research is achieved on a 10 years period, comprising also the moment of accession into the European Union for some states.

The Costs of Democracy

Abstract: Elections are the procedural foundations of democracy. We cannot conceive of democracy without elections, but it is equally impossible to imagine elections without money. This book is the first in-depth investigation of the role money plays in Indian politics. Drawing on extensive fieldwork on political campaigns, unique surveys, and creative and innovative data analysis, this book opens readers’ eyes to the opaque and enigmatic ways in which money flows through the political heart of the world’s largest democracy. The contributions in this volume are structured around five central questions: What is the institutional and regulatory context governing the flow of money in politics? What are the sources of political finance? What do campaigns spend on and why do they spend such vast sums? How does money operate at, and interact with, different levels of government? And what are the substantive implications for democracy itself?

The Forest of Romania: a Social - Economic's Dramma

Abstract: Forests were covering at the start of the third millennium around 26.5% of Romania's territory. Comprised into forest zones expanded in all historical provinces of the country, they are representing an important economic resource, an also an essential factor of the man-environment equilibrium. The organization of the rational exploitation of the forestry fund, adopted ever since the XIX Century, was abandoned after the forests nationalization, imposed by the communist regime in 1948. Urbanization and industrialization, held in view by this regime, did not take into account the ecological requirements and neither those linked to the renewal of the natural economic resources. The transition coming after the fall of communism, with pervert economic, psychological and sociological effects, has led to a savage exploitation of the forestry fund, the lack of some compensation measures (re-forestations, young forest protection), under the context of statal authority's dissolution (after the excessive communist authoritarism), having catastrophic consequences: land slides, desertification, pollution. The remake of the forest ownership structure, from before nationalization, is not, as a consequence, sufficient, the putting into possession having to be accompanied, in the goal of remaking the natural harmony of man with his existential environment, by a series of economic, legislative, educational initiatives, which the EU integration could facilitate.

The Relationship between Economic Growth and Money Laundering – a Linear Regression Model

Abstract: This study provides an overview of the relationship between economic growth and money laundering modeled by a least squares function. The report analyzes statistically data collected from USA, Russia, Romania and other eleven European countries, rendering a linear regression model. The study illustrates that 23.7% of the total variance in the regressand (level of money laundering) is “explained” by the linear regression model. In our opinion, this model will provide critical auxiliary judgment and decision support for anti-money laundering service systems.

Aspects Regarding the Development and the Integration of the Corporate Social Responsibility Concept in Firms’ Behaviour. Particularities for Small and Medium-sized Enterprises

Abstract: Starting from the concept of Corporate Social Responsibility (CSR), the purpose of this article is to highlight some of the particularities, at Small and Medium-sized Enterprises (SMEs) level, regarding: socially responsible behaviour and participation in actions related to CSR; type of CSR strategies adopted by SMEs as compared to larger firms; the motivations, benefits and constraints of the social involvement. The ultimate question refers to the existence, nature and implications of a link between the firm size and the aspects mentioned above. These aspects will be presented according to the conclusions of the previous studies conducted in this area of research, the present paper representing therefore a theoretical synthesis of the existant literature.

Minority Shareholders’ Protection: the Romanian Experience

Abstract: This paper performs an analysis of the regulation regarding minority shareholders protection in Romania. The paper estimates the level for minority shareholders protection based on the Pistor, Raiser and Gelfer (2000) index during the period 1996-2008. This index improved from 13 (January 1996) to 17.25 (March 2008) having a maximum value of 17.75 during May 2002- November 2006.

Relational Marketing – the Prerequisite to Implement Tourist Companies’ Marketing Strategies

Abstract: By means of enterprisers’ complex efforts to be oriented towards and take permanent steps to customers’ benefits, relational marketing actually and essentially argues rendering customers loyal by the persuasive qualities of the products supplied, the conditions they are offered in, and a more favourable quality-price ratio than the competitors’. Within relational marketing, marketing managers must set up and implement efficient strategies and programmes in order to attract and keep their customers. In case of losing their customers, it is necessary they explore the causes and try to emotionally or rationally regain them, especially if customers’ strategic value is high to suppliers. The balance between attracting new customers and keeping the current ones has a dynamic feature proved by the change in priorities of the two main concerns during enterprisers’ and products’ progress on the market. The business environment where enterprisers in the Romanian tourism develop their activities is complex and continuously changing. This imposes an increase in the concerns of tourism managers that should take account of the motivations and demands of current and potential tourists, which would be the best way to attract customers and make them loyal.

The Impact of Decentralization on Public Health System’s Results. The Case of Romania

Abstract: This paper examines the impact of decentralization of the public health system on health state of the population by means of an adequate econometric model and data series at development regions level measured by two global indicators, namely infant mortality and life expectancy. The results point out that the number of beds and physicians by 1,000 inhabitants – as two of the independent variables considered – have a positive contribution to the health state, while the effects of decentralization have a pretty low visibility.

Towards a New Approach of the Economic Intelligence Process: Basic Concepts, Analysis Methods and Informational Tools

Abstract: One of the obvious trends in current business environment is the increased competition. In this context, organizations are becoming more and more aware of the importance of knowledge as a key factor in obtaining competitive advantage. A possible solution in knowledge management is Economic Intelligence (EI) that involves the collection, evaluation, processing, analysis, and dissemination of economic data (about products, clients, competitors, etc.) inside organizations. The availability of massive quantities of data correlated with advances in information and communication technology allowing for the filtering and processing of these data provide new tools for the production of economic intelligence. The research is focused on innovative aspects of economic intelligence process (models of analysis, activities, methods and informational tools) and is providing practical guidelines for initiating this process. In this paper, we try: (a) to contribute to a coherent view on economic intelligence process (approaches, stages, fields of application); b) to describe the most important models of analysis related to this process; c) to analyze the activities, methods and tools associated with each stage of an EI process.

The Role of Promotion in Milling and Bakery Products Sales

Abstract: Irrespective of the avenue chosen for the retail of milling and bakery products, a key role in sales growth is the one played by promotion, information of the future customers as to the characteristics of the products, the execution and sale conditions Such information process takes place by means of the promotional mix, consisting of a blend of advertising, sales promotion, public relations tools, trademarks, promotional events, and sales forces The milling and baking industry uses, to certain extent, all the components of the promotional mix Product promotion is central both to sales growth, as well as to educating, advising and informing consumers as to how they can select quality milling and bakery products

A Simple Early Warning System for Evaluating the Credit Portfolio’s Quality

Abstract: The last decade has witnessed the development of a vast literature devoted to the study of several phenomena like banking crises or episodes of vulnerability and distress, characterized by inadequate capitalization, impairment of the asset quality and of the credit institutions' rating. The purpose of this study is to design an early warning system in order to highlight at an earlier stage the likelihood of deterioration of the Romanian banking system credit portfolio's quality. We have applied an econometric model which constitutes a reference for this type of analysis, having as purpose the identification of a significant correlation between increasing weight of bad loans in total assets, on the one hand, and a number of macroeconomic variables and indicators of the banking system, on the other hand.

Simultaneous Equations Models Used in the Study of Some Issues Related to the Corruption and Performance of Services in the Public Health System

Abstract: This paper presents an analysis of some issues related to the corruption and performance of services in the public health. Reform of public health is a complex and lengthy process, which involves different types of institutions and individuals. In this paper, starting from a set of hypotheses, we define a simultaneous equations model to analyze some important issues related to the progress of the reform process in the public health system. This model contains equations regarding the quality of reform in the public health system, the role played by different factors in increasing of the transparency of decisions in the public health system, estimations of the influence of some factors from the public health system in increasing the health education of the population, factors related to corruption and nonacademic behavior in the public health system contributing to the implementation of the reform process in the system and improvement of the quality of the medical act. Parameters estimates have been done through procedures implemented in EViews. Applying Hausman test we compare the results for cases in which the parameters are estimated by the least squares method and the two stages least squares method.

Financial Globalization and the New Capitalism

Abstract: Financial globalization, a complex phenomenon that has multiple facets, is directly influenced by some aspects characterizing the current stage of capitalism. In order to decrypt the set of such interferences, the consequences have been emphasized of the excessive trust in the market mechanisms, the role of deregulation and liberalization in promoting a new economic direction, as well as other theses representing the essence of neo-liberal revolution. The realities specific to the last three decays of the 20 century generated enhanced criticism regarding the myth of pure and perfect transparency, the market inability of self-regulation and the illusion of perfect information. The excesses of neo-liberalism imposed the need for a new paradigm, concretized in the mutations in the nature and mechanisms of capitalism, the domination of finances and knowledge, a paradigm in which market globalization and financial profitability logic are becoming priorities. In the second part of the article the conditions are analyzed that favored the occurrence and expansion of financial globalization, as well as the multiple implications of such over the micro and macro-economical mechanisms. A particular focus is on describing the characteristics of financial globalization in the current phase: the occurrence of new financial players (institutional investors) and tools, markets de-localization and un-intermediated financial operations. As a conclusion, the tendencies are noticed of the financial world economy to become fragile, of fading connections between the financial and the real economy, of enhanced risk for financial accidents to propagate. Based on these observations, the extent is emphasized to which financial globalization provides the possibility of the financial crises to occur and expand.

Value creation analysis. economic value added

Abstract: The origins of the Economic Value Added comes from Hamilton (1877) and Marshall (1890), which showed that companies can create wealth if you manage to earn more than their own capital costs and liabilities. Economic Value Added is an indicator for measuring performance based on real economic profits of the company product, which allows measurement of its success or failure over a period of time is useful to investors who wish to determine how well the product has value to them and can be used for comparative analysis with rapid industrial similar.

Financial analysis versus extra-financial analysis in measuring the performance of the sustainable organization

Abstract: The internationalization of economy through business delocalization, crises, and turbulences of financial markets, the change of the consumers' profile caused by the emergence of the segment of consumers sensitive to ecological topics, the dematerialization of economy, are some of the phenomena that have determined new visions on economical development at worldwide level. The statement of the principles of sustainable development has nowadays subjected organizations to the critical eye of a society ever more careful about ethical values. Specialized literature mentions the declared bankruptcy of "organizational government" mechanisms based exclusively on strictly financial values, and the necessity to "govern companies" through a multi-partner approach, by reconciling the interests of all the stakeholders, based on social responsibility and on pertinent communication that integrates financial, social, and environmental information. The communication requirements that appeared following these changes make the measurement of organizational performance not exclusively related to the criteria of financial self-analysis, but performed in a global manner, through both financial and non-financial criteria, with the latter derived from possessing immaterial assets and from the social awareness of companies. Therefore, financial analysis is subject to a process of renewal, through the emergence and integration of a new component, the extra-financial analysis. Together, these two types of analysis will be able to provide the financial community answers related to: the economical impact of environmental and social elements, risk factors, social and environmental opportunities, and the causes of the difference between the market value and the economic value of an organization (its goodwill). The difficulty in performing an extrafinancial analysis comes from the lack of homogeneity of the practice in the field, from the fact that the reporting system of sustainable development remains a voluntary approach, from the absence of international norms regarding socially responsible investments, and from the existence of extra-financial indicators that are very poorly normalized.

The Efficiency of Implementing SOPHRD in Romania – Evolutions and Perspectives

Abstract: The background of financial and economic global crisis that affects the Romanian economy and society this year leads to new questions regarding the way the funds allocated to Romania through structural instruments support the process of reconversion/reinsertion/ reintegration on the labour market of persons affected by this recessive trend. The slogan of Lisbon Strategy itself on “knowledge based society” determines us to tackle on the problem of the efficient use of structural and cohesion funds allocated to Romania for the programming period 2007-2013, in an equation cost-benefit with positive results for all the social levels. In this way, the expectancies related to the profitable effect of the infusion of Community funds in the human resources development sector should take into consideration the fact that the results will not appear “sine die” as a linear result of the financial forecasts, being necessary to structure, boost and strengthen the whole process specific for the technical and financial management up to the project level. Knowing the genesis of structural instruments in the united Europe after the Second World War gives an important scientific landmark taking into consideration that the current crisis is the most serious phenomenon of recession in the last 60 years in the world. Measures that proved the efficiency in the past decades in some Member States are also valuable elements for positioning Romania in implementing SOPHRD and ensure the premises for perspective guidelines in running future actions in this area. The analyse of the results registered in the first 18 months from the implementation of SOPHRD in Romania offers the informational support for the fundamental of accelerated support measures for the absorption process of Community funds with a view to overcome the crisis we are dealing with. The analyse of labour market and occupational crisis in Romania with a view to identify some possible solutions for overcoming it may be done only in the context of analyzing the situation to the European level and in close connection with the process of the integration of our country in the European Union.

Theoretical and Practical Aspects Regarding the Nulity of Commercial Companies

Abstract: The absence of a Romanian legal definition of the concept of nullity of commercial companies arouses a lot of questions. The delimitation of this concept is very important for a correct establishment of its field of application. In other words, are the cases of nullity of commercial companies regulated only by Law no. 31/1990 or by the provisions of common law as well? Started from the fact that the nullity is not considered by the legislator a simple sanction applicable to the juridical acts but it affects directly the existence of the company and becomes a means to sanction the creation of a legal person by disregarding the imperative legal provisions, we analyzed firstly the Romanian (II) and the EU legal provisions regarding the nullity of commercial companies. The elements of this analyze helped us to qualify the nullity of commercial companies and its effect (III). Finally, through the conclusion formulated we hope to call the attention on the fact that a company, even created through the non-observance of the legal rules, can be viable from economic point of view and it is senseless to make it disappearance.

The effects and cost of bank recapitalization in the context of financial crises

Abstract: Worldwide governments perform considerable financial efforts to support financial sector and the re-launch of lending. The mechanisms vary from the guarantee and purchase of troubled assets till injecting liquidity, by buying securities issued in order to increase financial institutions' equity. The emergence of these measures and their desirability, in the context in which it is based on public funds provided by taxpayers, have originated a lot of debate about the necessity, appropriateness and impact of these interventions. Our paper aims to summarize the main coordinates of programs designed to support banks, implemented by the governments, and the specific concerns of restructuring the financial institutions’ balance.

Developing a Rating Model on a Statistical Basis

Abstract: We consider that, starting from 2007, in order to deal with the competition, the banks from Romania will have to be prepared to take and effectively manage higher risks, both on their own behalf, and on the behalf of their clients, since the transition to the calculation methodology set up by the new Capital Accord (Basel II) is bound to determine the artificial decrease of the solvency indicator. The very conception of this article has been triggered by two significant phenomenons. First, the banks from Romania have become increasingly interested in developing and enhancing methods and procedures of risk assessment. Second, the Basel Committee on Banking Supervision, followed by the European Commission, has imposed a series of standards referring to the estimation of some crucial indicators on a banking level, under the title of „Basel II”: PD (Probability of default), LGD (Loss given default) and EAD (Exposure at default). In this respect, in 2006, the Romanian government enacted the Decree no. 99 (sanctioned and modified by the Law no. 227/04.07.2007), together with a series of regulations. The decree contains new banking regulatory provisions applicable to credit companies starting with the 1st of January, 2007, the date of Romania’s adherence to the European Union.

Institutionalized Social Technologies Index: A Global Perspective

Abstract: This paper presents an index of institutionalized social technologies covering its two main dimensions namely Risk reducing technologies and Anti Rent seeking technologies and in turn covers several social, institutional, political and economic aspects. Specifically it attempted to classify and measure various types of institutions based on a theoretical framework, these institutional indicators are then aggregated to measure cross country institutional qualities of 141 countries. We also test provide a comparison with other major indices.

Transformation-Innovation or Patchwork? Juxtaposition of Public Policy Process and the Role of Leadership in a Chaotic Environment: Is a New Paradigm in the Make?

Abstract: Public Policymaking processes are viewed by some as intertwined relationships of offices, public leaders, and issues, all of which constantly change in a kaleidoscope-like fashion as Gerston (2002) puts it nicely. With historically unprecedented economic debacle now facing US and the world the issue of public policymaking and its implementations come to the fore. At the same time the question of how the leadership of the society at the highest level has played such a decisive dysfunctional role in creating such fiasco and what the potentials are for a turn around occupies everybody’s mind. The tenet of this paper is to examine if new efforts and rescue plans, supposedly for bringing some order to the economy, will eventually result in fundamental and long term social and political changes in the very fabric of both public and market systems. A corollary to this is whether such long term changes – if materialized – would eradicate the old systems, and move toward a real transformation. Issues like the nature and processes of public policymaking, leadership in terms of power, transparency and accountability will be addressed with direct reference to the approaches adopted by Congress and President elect. An analysis of the new direction of public policy making and institutionalizing a kind of transformative leadership that permeate the whole public administration system is the crux of this paper’s argument.