Open Access Article SciPap-2086

by Sara Majid

Abstract: Digitalisation has become a key process for companies to improve their sustainability, yet a clear overview of the challenges and achievements within European Small and Medium-sized Enterprises (SMEs) regarding digitalisation is still lacking in the literature, making it difficult to identify research gaps or quantify the impact digitalisation has on the European SME market. This paper examines digitalisation as an enabler for European SMEs to improve their environmental sustainability and specifically considers the implementation of eco-efficiency measures such as waste reduction and waste management and thus confirms whether digitalisation can enhance eco-efficiency measures or not within European SMEs. The study is based on a bibliometric analysis followed by a systematic literature review. In particular, it first synthesizes the existing state-of-the-art research and summarizes theoretical frameworks, to explain main themes and gaps in the literature published from the year 2020. Selected articles focusing on European SMEs and digitalisation practices in the context of eco-efficiency are revised in detail. This review identifies common challenges and opportunities associated with digitalisation in the context of European SMEs while offering pathways to address the research gaps.

Keywords: Small And Medium Enterprises (Smes), Environmental Sustainability, Europe, Digitalisation Eco-Efficiency, Waste Reduction, Energy Efficiency

JEL classification: O32, Q56, C80, L26, L86, M15

Open Access Article SciPap-2087

by Merle Küttim, Tarvo Niine, Margit Kull, Arseni Kotov, Wolfgang Dieter Gerstlberger, Jelena Hartšenko, Ulrika Hurt

Abstract: Human-driven changes threaten environmental and economic stability, prompting the formulation of sustainability objectives and innovation efforts to mitigate the negative impacts of economic activities. However, the pace of this transition is often seen as slow, and businesses' commitment to sustainable development is frequently deemed insufficient. In this context, the current study explores the motivational factors that drive businesses to adopt and implement sustainable practices. The findings reveal significant differences in how companies approach social and environmental sustainability and balance it with economic goals. To capture the diversity of motivations behind sustainability initiatives, investments, and related preparatory planning, we propose a model of three types of existing development mindsets in companies, distinguishing between “a spreadsheet mindset”, “a mindset of strategic capabilities” and “a value-driven mindset”. This typology serves as a tool for companies to self-assess their motivations as well as for governments to fine-tune sustainability regulations and support mechanisms accordingly.

Keywords: Motivation, Sustainable Practices, Metal Industry, Wood Industry, Qualitative Studies

JEL classification: L21, M14, O32, Q01, Q56, D22

Open Access Article SciPap-2083

by Şaban İbrahim Göksal, Maria Claudia Solarte Vasquez

Abstract: This paper introduces the Blockchain-Based Trustworthy Artificial Intelligence (AI) Supported by Stakeholders-In-The-Loop Model (BCTrustAI.SL) that incorporates sociotechnical components to ensure legal compliance and conformity with the emerging trustworthiness standards for AI systems. BCTrustAI.SL combines features of the Blockchain Framework for Trustworthy AI (BF.TAI), the BlockIoTIntelligence architectural model and the Society-In-The-Loop (SITL) framework, to solve the intangibility problem of the foundational normative notions of robustness, ethicality and lawfulness, and human-centredness, and help them become applicable in practice. The work contributes to the specification and operationalisation of trustworthiness as an AI attribute, highlighting the importance of a precise understanding of its institutional foundations, high order principles and concrete key requirements (data protection, data governance, technical robustness and safety, transparency, accountability, diversity and non-discrimination, and human agency and oversight) deriving from them. On a practical/technical level, BCTrustAI.SL showcases the strengths of combining Blockchain (BC) and AI to address their individual limitations, laying the groundwork for future advancements and practical applications.

Keywords: Trustworthy Ai, Robustness, Ethicality And Lawfulness, Human-Centredness, Blockchain Framework For Trustworthy Ai, Blockiotintelligence Architectural Model, Society-In-The-Loop Framework

JEL classification: M48, O31, O33, O38, K39, M15

Open Access Article SciPap-2055

by Martina Halásková, Renata Halásková, Marek Pomp

Abstract: The R&D sector is one of the important economic phenomena in terms of competitiveness and innovation performance. The aim of the study is to examine the impact of selected R&D indicators on the economic activity of EU countries with emphasis on economic growth and employment in knowledge-intensive service sectors in 2011-2021. The research was carried out using panel data analysis (the fixed effects method) for three models of EU countries (EU27 countries as a whole and EU27 countries divided into two groups according to their innovation performance). The results in the evaluated years confirmed the different (positive/negative) impact of the examined R&D indicators on economic growth and employment in knowledge-intensive service sectors between the different groups of EU countries. In the “Innovation Leaders and Strong Innovators” countries, high-tech exports had the largest positive effect on GDP per capita, and general government expenditures had the largest negative effect. The largest negative effect of government expenditures on tertiary education was found in the case of Employment in knowledge-intensive service sectors. By contrast, in the case of GDP per capita and employment in knowledge-intensive service sectors, the largest negative effect of government expenditures on tertiary education and the positive effect of research and development expenditures were found in the “Moderate Innovators and Emerging Innovators countries”. The findings may be useful for both makers of selected public policies and R&D practitioners in evaluating economic analysis.

Keywords: Economic Growth, Employment, Panel Data Analysis, R&D Indicators, Knowledge-Intensive Service Sectors

JEL classification: C23, O, O11

Open Access Article SciPap-1994

by Nataliia V. Bondarenko, Svitlana A. Vlasiuk, Bohdan S. Huzar, Svitlana A. Ptashnyk, Oleksandr S. Prystеmskyi

Abstract: The article examines the peculiarities of investment inclusion in the credit market of Ukraine and the sources of turbulent processes in the banking ecosystem. The formalized model of the interrelation of endogenous factors of investment lending in the time horizon of multiple signs that reduce the manifestation of destabilization of the banking ecosystem (reduction of liquidity and regulatory capital of banks) and ensure the stability of the inclusion of the credit market is substantiated. A model of the distribution of investment lending risks over time, their assessment and limitation has been developed. For the period of martial law in Ukraine, donors of investment crediting of agriculture and its restoration in the future have been singled out. A multifactor model of investment inclusion of the credit market of Ukraine has been built, which has a set of variables that affect the stable state of the banking ecosystem and ensure the maximum efficiency of the distribution and use of investments in the projects of restoring the economic development of the country.

Keywords: Liquidity, Interest Rates, Banking Ecosystem, Loans, Deposits

JEL classification: E22, E5

Open Access Article SciPap-2007

by Tarlan Ahmadov, Wolfgang Dieter Gerstlberger, Khusbu Rahman

Abstract: In response to global imperatives for sustainability, particularly within the framework of the circular economy (CE), this study examines the adoption of CE practices among manufacturing Small and Medium Enterprises (SMEs) in Estonia. Based on a sample of 78 responses using complete case analysis, this research aims to uncover the configurations of stakeholder pressure (business and social) and collaboration (supply and demand-side) pathways that facilitate successful CE adoption. Drawing on Fuzzy-set Qualitative Comparative Analysis (fsQCA) and Configurational Theory, the study explores how interactions among these factors influence the adoption of CE practices. The empirical investigation, grounded in the Estonian context, reveals three key pathways driving CE adoption: demand-side collaboration, social pressure without direct business pressure, and the combination of business pressure with supply-side collaboration. The findings not only contribute theoretically by advancing configurational approaches in CE research but also offer practical implications for SME managers seeking to adopt CE practice.

Keywords: Small And Medium Enterprises, Circular Economy Practices, Stakeholder Pressure, Collaboration, Fuzzy-Set Qualitative Comparative Analysis

JEL classification: M21, Q01, L25, M1

Open Access Article SciPap-1992

by Mária Liptáková, Veronika Šuliková, Marianna Siničáková, Jana Budová

Abstract: The purpose of the paper is to capture macroeconomic responses of quantitative easing in times of financial and non-financial crisis and to confront the extent of the output responses with the synchronisation of quantitative easing and expansionary fiscal policy. Several methodological approaches have been implemented to achieve this aim. Firstly, bibliometric analysis of scientific papers in the field shows the existence of liaisons between quantitative easing and fiscal policy (government debt) in scientific research. Secondly, cross-correlations and Granger causality tests uncover the effects on GDP, industrial production, inflation, and nominal effective exchange rate in the US, the euro area, and the UK (during the period 2007 - 2022) and Japan (during the period 2000 - 2022). The macroeconomic effects of quantitative easing are the most important in the UK and Japan during the financial crisis and in the US during the non-financial crisis. The findings confirm the idea that quantitative easing has a generally higher causal effect on output (or industrial production) if it is accompanied and supported by fiscal expansion, i.e. after the pandemic (non-financial crisis). The scientific value of the paper is that it fills the gap in current research by demonstrating the macroeconomic effects of the pandemic quantitative easing in Japan and the UK and taking the results in the context of fiscal policy and quantitative easing synchronisation.

Keywords: Granger Causality, Quantitative Easing, Financial Crisis, Non-Financial Crisis, Cross-Correlations

JEL classification: E31, E51, E52, E58, E62

Open Access Article SciPap-1978

by Lucie Herbočková, Vladimír Žítek, Viktorie Klímová

Abstract: City marketing strives to promote a specific city and its parts and emphasises its different characteristics, attractiveness, and competitive advantages. This concept is based on the idea of a high quality of life for its residents and attractive conditions for external target groups. The paper deals with city marketing in Brno, the second-largest city in the Czech Republic. The aim of this paper is to analyse the marketing activities of the city of Brno and to evaluate what image the city has in the eyes of its residents. We conducted a questionnaire survey among 552 residents. In addition to this quantitative approach, we also used qualitative methods, which consisted of interviews with experts from practice. Research has proved that the city is aware of the importance of marketing, but marketing activities have not yet been sufficiently developed. Brno is a city that is considered a good place to live, and the majority of respondents are actively interested in what is happening there. On the other hand, the city's marketing efforts are not visible enough to residents. The research confirms that cities in Central Europe should pay more attention to their marketing. The paper provides policy implications for the implementation of city marketing oriented to residents.

Keywords: Brand, Marketing Strategy, City Marketing, Brno, Residents, Image

JEL classification: M31, P25, R58

Open Access Article SciPap-1939

by Yee Yee Sein, Raymond Darfo-Oduro

Abstract: R&D tax incentives have gained popularity among the OECD countries as a means to improve innovation. However, the impact of R&D tax incentives on innovation has not been commensurate with the tax incentives given. This study aims to analyze the role of R&D tax incentives on firm innovation. Data on innovation and government support in 28 OECD countries was drawn from the OECD database. Ordinary Least Square (OLS) regression analysis is employed in estimating the relationship between R&D tax incentives and firm innovation. The study found that R&D tax incentive is displaced by other R&D support schemes by the government. The study concludes that, even though R&D tax incentives are a good predictor of firm innovation, R&D tax incentives are crowded out by other forms of funding for R&D. In the presence of other government support schemes for R&D, firms divert R&D tax incentives cost savings away from R&D investments.

Keywords: Innovation, Government Policy, R&D Tax Credits

JEL classification: O32, O38

Open Access Article SciPap-1920

by Dinh Van Hoang, Le Thanh Tung

Abstract: This study examines the relationships between dual value such as personal value (environmental concern), and consumption value (green perceived value), and green purchase intentions (GPI) among young Vietnamese consumers in the post-COVID-19 era, exploring the mediating roles of attitude toward green products (ATT) and perceived behavioral control (PBC). The survey involved 283 young consumers who have regularly purchased green products in Vietnam. Utilizing the PLS-SEM methodology, we conducted mediation analyses to thoroughly investigate and test the proposed hypotheses. The results of this study indicate that both environmental concern (ENC) and green perceived value (GPV) positively influence green purchase intention (GPI). Notably, the study demonstrates the mediating role of attitudes toward green products. However, within the proposed model, perceived behavioral control was not identified as a mediator. The findings have significant practical implications for marketers seeking to navigate the evolving purchasing behaviors of young consumers in Vietnam, particularly in shaping their attitudes toward environmentally conscious choices. Understanding the nuanced dynamics uncovered in this research can enable marketers to deliberately influence the preferences and decisions of the environmentally concerned young consumer demographic. This study makes valuable contributions to the existing pro-environmental literature by incorporating the Stimulus-Organism-Response (SOR) framework and the Theory of Planned Behavior (TPB). Consequently, it provides crucial insights into the purchase intentions of young Vietnamese consumers, particularly those who choose green products.

Keywords: Green Attitude, Green Perceived Value, Environmental Concern, Green Purchase Intention, Perceived Behavior Control.

JEL classification: M31, Q56

Open Access Article SciPap-1829

by Krishna T. A., Suresha B, Elizabeth Renju Koshy, Martha Sucharitha M

Abstract: The study aims to examine the impact of three events related to the UK political uncertainties in 2022 on the constituent stocks of the FTSE 100, the benchmark index of the London Stock Exchange (LSE). In addition, the study also investigates the impact of the UK political crisis events on the stock markets of the other major European countries. The market model of the event study methodology was employed to examine the impact of two prime ministerial resignations and one PM appointment event on the selected stock markets. The daily closing price data of the FTSE 100 index, its constituent stocks and the benchmark indices of 14 other major European stock markets were considered as per the event window constructed in the study. The results confirm that the resignation announcement of Boris Johnson and Lizz Truss had positive abnormal returns on the day of the announcement. Subsequently, the announcement of Rishi Sunak as the PM of the UK had a stronger abnormal return on the announcement day. Further, the sector-wise impact analysis confirmed that Financials, materials, Energy, industrial, and real estate sectoral stocks have reacted with positive abnormal returns. Also, when verifying the impact on other major indices in European markets, it is noticed that only for the resignation announcement of Boris Johnson were there positive abnormal returns in benchmark indices of Italy, Netherlands, and Norway. The study confirms that political uncertainties like the prime minister's resignation bring short-run market inefficiency and provide opportunities for abnormal returns. The year 2022 has been one of the extremely uproarious in contemporary British politics, caused by severe political crises and uncertainties. The findings of the study offer some significant implications for the market participants such as traders, investors, portfolio managers and analysts. The findings will provide insights for them to devise trading strategies and risk management and to make investing decisions such that the portfolio of the investors is resilient to such uncertain political events. The study provides evidence of the impacts of one of the most recent political uncertainty events on the stock markets of the United Kingdom. The study identified the three most recent significant political resignation and appointment events that comprehensively capture the period of 2022 political crises in the UK.

Keywords: Political Uncertainties, Political Resignations, Political Appointments, Event Study, Stock Market Indices, Market Reactions.

JEL classification: G14, G15, G40

Open Access Article SciPap-1773

by Powell Gian Hartono, Robiyanto Robiyanto, Georgina Maria Tinungki, Budi Frensidy, Muhammad Yaasiin Raya, Anderson Hidarto

Abstract: This study, which was prompted by the COVID-19 crisis, aims to assess the dividend policies of manufacturing firms, and examine market reactions to these corporate actions. A comprehensive evaluation of robustness was carried out, encompassing sub-period and sub-sample robustness checks, along with consistency testing for various key variable proxies. The effects of dividend announcements on the stock market were investigated across three time periods: 2019 to 2021. The main models indicate a positive dividend policy of manufacturing firms during the pandemic, revealing that the firms maintained or enhanced dividends amidst the pandemic, which was consistent in all sub-period check estimations. Conversely, distinct findings are observed within the Basic and Chemical industry sectors, while the Consumer Goods and Miscellaneous industries align with this study's results. The study also demonstrates the relevance of the findings to dividend signaling theory but not to the pecking order theory. Furthermore, the market reactions to dividend announcements during the 2020 crisis were strong and positive, in contrast to the weaker sensitivity observed in 2019 and 2021. This study bears significant implications for the crisis-time dividend policies for firms, implying that corporations should exhibit heightened responsiveness during such periods to transmit a positive signal to the market amid sluggish stock market activity.

Keywords: Crisis, Covid-19, Dividend Policy, Stock Market Reaction, Manufacturing Companies

JEL classification: G35, C33, G01

Open Access Article SciPap-1891

by Mihhail Kirejev, Wolfgang Dieter Gerstlberger, Tarvo Niine

Abstract: Modern cities are developing exponentially and thus ensuring mobility is one of the key challenges. The solution can be viewed as the determination of optimal vectors of strategic city development, including transport as a sub-system. One dominant theme in respective research discourse is sustainable mobility. A competing concept, “smart mobility”, is fuelled by on-going ICT development, aiming to bring about urban transformation with a data-driven approach. While, to a certain extent, smart approach does provide improvement to quality and efficiency of urban life, resulting also in contribution to sustainability goals, then in terms of philosophical foundation, it appears rather an input-driven approach, whereas the logic of sustainable mobility is driven foremost by outputs. Therefore, in this study, the two approaches are treated as two distinct development vectors. Estonia is a pioneer of digital innovation, so the local transport development can be similarly assumed to be ICT-infused. Our study observes the detailed nature of transport system governance and aims to identify the relationships between smart and sustainable paradigms. The study analyses the governance paths of urban transport systems in a sample of medium and small municipalities in Estonia, by evaluating explicit development strategies. The ensuing analysis of expert interviews using a quasi-binary method contributes to the scientific discussion on the smart and sustainable balance and co-existence with empirical insights to policymakers. The study indicates that a local transport governance paradigm is not only influenced mainly by local socio-economic characteristics and environmental factors but also notably on the competence, knowledge, skills and beliefs of incumbent officials. Furthermore, the established relations between smart and sustainable development indicators provides a basis for assessing balance in transport development concepts, as it is possible to consider the integrated concept “smart and sustainable” as a paradigm evolution.

Keywords: Smart City, Smart Transport Development, Sustainable Urban Development, Smart And Sustainable Governance, Smart Mobility

JEL classification: Q01, R11, R58, G38

Open Access Article SciPap-1870

by Thi Thuy Huong Luong, Attasuda Lerskullawat, Thanarak Laosuthi

Abstract: This paper aims to explore the effect of financial innovation on economic growth in 28 transition countries from 2004 to 2021. Financial innovation is categorized based on the structure of the financial system, including commercial banks, non-commercial banks and financial markets. By applying difference GMM estimation, the research demonstrated a significant positive effect of financial innovation in commercial banks and non-commercial banks on economic growth. The results show that a greater number of financial innovations in terms of products and services, processes, technology and function in commercial banks and non-commercial banks would result in higher economic growth in transition countries. In contrast, financial innovation in financial markets indicates significantly negative effects on economic growth. Introducing complex products in stock and bond markets in underdeveloped financial markets probably lead to the volatility and fragility, reducing economic growth. The results of this research contribute to issuing crucial policies that employ financial innovation as an impulse for spurring economic growth in transition countries.

Keywords: Economic Growth, Financial Innovation, Commercial Banks Innovation, Non-Commercial Banks Innovation, Financial Markets Innovation, Transition Countries

JEL classification: G10, G20, O11, O30, P20

Open Access Article SciPap-1718

by Vojtech Hruby

Abstract: This article outlines a pilot study aimed at exploring the influence of Entrepreneurial Orientation (EO) on Artificial Intelligence (AI) adoption and firm performance within Czech chemical SMEs. With dual aims, the study first evaluates the feasibility of the main research design and secondly develops and validates an innovative instrument for measuring AI adoption. Through a quantitative survey, 107 Czech chemical SMEs were engaged, focusing on the practicality of research methodologies and the initial testing of measurement tools, especially for AI adoption. Despite a modest response rate, the study met its methodological objectives, offering insights into AI integration and EO's complexity within the sector. The initial findings hint at the need for broader engagement strategies in the subsequent study, reflecting the challenges of researching niche markets. Significantly, the creation of the AI adoption tool marks a considerable advancement, addressing a gap in existing research tools. This study not only underscores the importance of pilot testing in social sciences, especially within specialized sectors but also its findings and methodologies serve as a blueprint for future research, emphasizing the adaptation of strategies to industry-specific and geographical peculiarities. By establishing a methodological foundation for in-depth future research, this pilot study promises an enhanced understanding of EO's impact on AI adoption strategies and performance outcomes in the Czech chemical industry, directly addressing a critical research gap.

Keywords: Entrepreneurial Orientation, Artificial Intelligence Adoption, Czech Chemical Smes, Pilot Study Methodology, Measurement Instrument Development

JEL classification: L26, L65, O33

Open Access Review SciPap-1884

by Indu Nain, Sruthi Rajan

Abstract: Robo-advisors have recently gained popularity as an algorithm-based method of simplifying financial management. The present study explores the factors that lead many potential consumers to use Robo-advisors in financial decisions. Adopting a scoping review approach formulated by Arksey and O'Malley, the study examines the factors affecting the acceptance and usage of financial Robo-advisors in different parts of the world. The results suggest that performance expectancy, effort expectancy, trust in technology, financial knowledge, investing experience, cost-effectiveness, facilitating conditions, and intrinsic motivation are positively related to adopting Robo-advisors. On the contrary, anxiety, risk perception, investor age, data security, and behavioral biases negatively influence the investor attitude toward Robo-advisors. This creates a barrier to the diffusion of financial Robo-advisors among the investors. The study concludes by providing recommendations to service providers, policymakers, and marketers for the speedy distribution and acceptance of algorithms for the public's financial decision-making. The study identifies gaps in the existing literature and suggests areas for future research for aspiring academics.

Keywords: Fintech, Artificial Intelligence, Financial Advice, Robo-Advisors, Scoping Review, Technology Adoption

JEL classification: O14, O33, D14, G11, G23

Open Access Article SciPap-1656

by Alejandro Valencia-Arias, Orfa Nidia Patiño-Toro, Manuel Humberto Vásquez Coronado, Olga-Velez Bernal, Elizabeth Zea Marquina

Abstract: Knowledge management is pivotal in analyzing organizational innovation, as it influences the capacity to achieve objectives and engage in corporate decision-making. Nevertheless, its application encounters constraints within small and medium-sized enterprises (SMEs) due to resource and knowledge barriers. Hence, scholarly literature must remain current to offer solutions. Consequently, the study aims to explore trends in knowledge management research within SMEs. To achieve this, a bibliometric analysis is conducted employing the Scopus database, adhering to PRISMA statement guidelines. Excel and VOSviewer software are employed for data analysis. This study's perspective delves into the thematic evolution over time, encompassing both areas of sustained development and emerging trends. The findings underscore significant trends that emphasize the pivotal importance of innovation as a driver of organizational performance and advancement. This emphasis is underpinned by the adoption of open innovation approaches, fostering knowledge transfer and exchange to nurture internal learning. Notably, the study highlights the concepts of knowledge absorption capacity and dynamic capability development as fundamental cornerstones for propelling intellectual capital growth and business model adaptation.

Keywords: Innovation, Open Innovation, Sustainable Development, Bibliometric Analysis, Knowledge Management, Small And Medium Enterprises (Smes), Prisma, Organizational Learning

JEL classification: D83

Open Access Article SciPap-1794

by Bernadin D. Ma, Yudi N. Supriadi, Maria A. Wikantari, Nani Ariani, Dahlia Br. Pinem, Pusporini Pusporini

Abstract: This study aims to determine whether the variables of the Quadruple Helix model can enhance the management performance of MSMEs during the new normal era. The study employs Partial Least Squares Structural Equation Modeling (PLS-SEM) for the quantitative design. The research encompasses a sample of 100 MSMEs from Banten Province, Indonesia. Among the four pillars of the Quadruple Helix model—academic, business, local community, and government—business exhibit the most significant influence on management performance, as evidenced by a coefficient value of 0.311. Additionally, government (0.290), academic (0.201), and local community (0.160) display lower coefficients. These findings imply that local community should engage more actively with MSMEs, while the government should enhance its support through policies. Furthermore, MSMEs should seek to gain valuable insights into management practices from academic. The Quadruple Helix model serves as a comprehensive framework that provides government decision-makers with a holistic perspective. Ultimately, this study has the potential to enhance management practices and shed light on strategies for the survival and resilience of MSMEs in a changing economic landscape during the new normal era. It underscores the critical importance of adopting Quadruple Helix thinking for the continued viability of MSMEs.

Keywords: Msmes, Management Performance, Quadruple Helix, Management Practices, Pls-Sem

JEL classification: L26, O38

Open Access Article SciPap-1812

by Alena Mojsejova, Alisha Marcinová

Abstract: The paper deals with household wealth and its determinants. The attention is drawn to the main causes and determinants which affect wealth and wealth inequality. The comparison between the particular CEE countries is based on the relationship between net wealth and the determinants. The paper emphasizes the impact of the particular determinants on the net wealth of households in Slovakia, Poland, Hungary, and neighboring Austria according to HFCS data. Quantile regression describes an influence of the value of the household's main residence, the value of the household's vehicles, total financial assets, total household gross income, the outstanding balance of mortgage debt, the amount spent on consumer goods and services, substantial inheritance/gift received and gender of the reference person. The results of quantile regression indicate the statistical significance of value of household's main residence as the most significant factor across all observed countries and all quantiles of the population supported by an impact of received inheritance and gifts in the countries apart from Austria. Value of household's vehicles, total financial assets, and outstanding balance of mortgage debt play significant roles. The paper compares the results not only between the countries but also between the determinants, supplementing a picture of the current trends of household wealth in the CEE countries.

Keywords: HFCS, Inequality, Wealth, Cee Countries, Quantile Regression

JEL classification: D14, D31, P52

Open Access Article SciPap-1755

by Bertha Silvia Sutejo, Sumiati -, Risna Wijayanti, Wijayanti, Candra Ananda

Abstract: The purpose of this study was to investigate the influence of positive aand negative emotions on investment decisions during the Covid-19 pandemic, as well as to test risk tolerance as a intervening variable between basic emotions and investment decisions. This study uses endogenous variables, namely investment decisions and exogenous variables, namely positive and negative emotions including anger, sadness, hope, happiness, and fear. As well as the intervening variable, namely financial risk tolerance. Data collection was carried out by distributing questionnaires to 180 young investors in Surabaya, Indonesia. The questionnaire uses a 5-point Likert scale. Hypothesis testing uses a structural equation model. The results of the study indicate that there is a significant impact of positive emotions on investment decision-making. The association in question is mediated by financial risk tolerance. The regulation of the relationship between negative emotions and investment decisions by financial risk tolerance remains unclear. Furthermore, the impact of negative emotions on investment decisions appears to be insignificant. Practical implications of this research help young investors of generation z to manage their emotions, especially in the era of Covid-19. This is because emotions can affect their investment decision making. The originality of this research is a unique study of the positive and negative emotions associated with the investment decisions of young investors in the Covid-19 era. As well as risk tolerance which will strengthen the influence of emotions on investment decisions. The results of the research strengthen the theory of emotional intelligence and the dual process theory.

Keywords: Covid-19, Positive Emotions, Negative Emotions, Investment Decision-Making, Generation Z Investors

JEL classification: G10, G11, G4, G40, G41