SciPap, Volume 29, Issue 2 (2021)

https://doi.org/10.46585/sp2902


Open Access Article SciPap-1342
Forecast of the Development of Sectors of the National Economy in Slovakia
by Peter Burger, Viera Hovančíková

Abstract: This paper aims to estimate the expected development of the share of employees in sectors of the national economy in selected regions of Slovakia (Bratislava, Košice, and Prešov Regions) and in the Slovak Republic as a whole up to 2025. It also predicts which sectors of the national economy (primary, secondary, tertiary or quaternary) will grow in Slovakia in 2020–2025 and which sectors will stagnate or decline. The results predict a steadily declining share of people employed in the primary and secondary sectors in Slovakia and in the self-governing regions investigated. In contrast, the share of the quaternary sector in total employment is likely to increase up to 2025 both in Slovakia and in the Bratislava and Košice Regions. The share of employees in the tertiary sector is expected to grow in Slovakia, but at the same time it is confirmed that in the Bratislava Region there is a gradual reallocation of employees working in the services sector and an increase in the share of employees working in the quaternary sector at the expense of the tertiary sector. This expected development of the shares of employees in the individual sectors and, in particular, the increase in the share of employees in the quaternary sector are in line with the reallocation of the shares of employees in the sectors of the national economies of the developed EU countries, especially the countries of Western and Northern Europe.
Keywords: Sectoral Division, Sectoral Change, Share Of Employees, Quaternary Economy, Employment Trends, National Economy.
JEL classification: O11, O14, J21

Open Access Review SciPap-1341
Disadvantages of Patent Performance Indicators in Performance-Based Research Funding Systems
by Ivan Vershinin

Abstract: Although the use of patent indicators in statistics has been under discussion for a long time, there are surprisingly very few studies devoted to explaining the use of patent indicators as performance indicators in performance-based research funding systems. The widespread assumption is based on the perception that patents have some recognizable value as an element of innovation process and this value is undoubtedly transferred to patents that are created in order to fulfill performance indicators. However, there is still no established distinction in the literature between patent indicators used in statistical analysis and patent performance indicators used as goal setting and evaluation tools in the context of performance-based research funding systems. This article is aimed at filling the gap and seeks to clarify the theoretical validity of the use of patent performance indicators in such context. Based on the review of the literature, the article compares the results of seminal works on the nature of patenting and patent indicators to the purposes of its use as patent performance indicators in performance-based research funding systems. The results demonstrate at least five arguments in favor of the statement that the use of patent indicators in the context of performance-based research funding systems requires rethinking.
Keywords: Research Policy, Performance-Based Research Funding Systems, Public Research Organizations, Performance Indicators, Patent Indicators, Side Effects, Moral Hazard
JEL classification: I23, I28, O38, O31, O34

Open Access Article SciPap-1315
Practical Strategies to Improve National Competitiveness
by Denis Syromyatnikov, Pavel Konev, Mikhail Popov, Naila Sultanova

Abstract: Today, the global community is faced with a new vision of the economy that aims to coordinate public policies with the purpose of ensuring sustainable growth to facilitate economic recovery under the current conditions and after the COVID-19 pandemic. The purpose of the study is to create a basic typology of strategies to improve national competitiveness in the context of globalization. The research methodology includes a comparison of economic development models and strategies for different countries around the world and an analysis of data from international organizations. The benchmarking of national strategies is based on the measurements’ evaluation for three groups of the GCI index components. The originality of the study stems from the fact that it proposed choosing a strategy for the development of the national economy with account taken of the level of its economic development. The strengths and weaknesses of competitiveness in the profile of the economy are identified and, whereby, a strategy to increase national competitiveness is chosen, according to the results of this analysis. The results of the study showed that the American model of economic development is the most competitive one among the examined models. In addition, the paper shows that the application of practical strategies for social integration, as well as mergers and acquisitions, will contribute to enhancing the national competitiveness in the context of economic growth and raising the living standards of the population. The findings of this research provide practical guidance for related professionals attempting to choose a suitable public policy to form effective and holistic national strategies and monitor the country’s progress over time.
Keywords: Strategic Decisions, Market Globalization, Identity Politics, Optimal Balance, Economic Models
JEL classification: M21, F01, F63

Open Access Article SciPap-1289
The International Monetary System: New Evidence Concerning a Transition to Multipolarity
by Vojtěch Sadil, Juraj Sipko

Abstract: This article focuses on the transition of the international monetary system to a multipolar structure. The international monetary system continuously evolves, reflecting developments in the world economy. The main problem of the current international monetary system is its dependence on one key currency which still remains the US dollar. The authors of this study address the issue of a transition towards a multipolar system by examining currency concentration. The primary objective of this work is to establish whether or not the current international monetary system shows signs of transitioning towards multipolarity. To achieve this, the authors have used tools measuring the level of market concentration. The change of polarity of the international monetary system is analysed with concentration ratios and the Herfindahl-Hirshmann index. The theoretical part focuses on definitions of key terms essential for this study, such as international monetary system, currency polarity, global currency, and currency concentration. For the practical part, data were sourced from the databases of global institutions, namely the International Monetary Fund (IMF), Bank for International Settlements (BIS), Society for Worldwide Interbank Financial Telecommunications (SWIFT) and the European Central Bank (ECB). This part focuses on a period of time between 2001 and 2019, and the results indicate that the current international monetary system shows signs of transitioning towards a multipolar structure. The level of currency concentration of the key reserve currencies dropped slightly, although not enough to cause a qualitative change of the current international monetary system. This study may serve as a base for future research on this topic.
Keywords: International Monetary System, Currency Concentration, Multipolarity, Global Currency, Exchange Rates.
JEL classification: F01, F33

Open Access Article SciPap-1283
Risk-Return Based Performance Evaluation of Stocks in BIST 100 and KOMPAS 100 Indices of Borsa Istanbul and Indonesian Stock Exchange
by Hüseyin Öcal , Anton Abdulbasah Kamil

Abstract: This study aims to provide empirical insights into stocks' performance in the BIST 100 index of Borsa Istanbul and KOMPAS 100 index of the Indonesian Stock Exchange. The risk-free rates and top 100 stocks closing price data of Borsa Istanbul (BIST) and Indonesia Stock Exchange (IDX) have been examined. The Daily data between July 1, 2015, and June 30, 2020 are used. The Sharpe ratio and normal distribution tests are employed in the analysis. The study results have revealed that the portfolio's return consisting of positive low-five and top-five average Sharpe ratio stocks generally has beaten the Indices under review except that a positive low-five average Sharpe ratio stocks portfolio built from KOMPAS 100 constituents during bearish market. Besides, the average Sharpe ratio of each stock in the positive low-five and top-five portfolio has been greater than the average Sharpe ratio of the Indices. Moreover, the portfolio's return with the positive top-five average ratio Sharpe ratio stocks has outperformed the return of the portfolio with positive low-five average Sharpe ratio stocks. We recommend that the Sharpe ratio is computed for every six months or three months for BIST 100 and KOMPAS 100 stocks since the return data follow a more normal distribution in shorter periods.
Keywords: Portfolio Investment, Sharpe Ratio, Risk And Reward, Normal Distribution, Kompas 100, Bist 100
JEL classification: B26

Open Access Article SciPap-1282
The Impact of Sensory Marketing on Street Food for the Return of International Visitors: Case Study in Vietnam
by Sinh Duc Hoang, Zuzana Tučková

Abstract: This research was conducted to check the impact of factors related to sensory marketing on street food to the return of international visitors in Ho Chi Minh city (HCMC). The study applied the PLS-SEM model to estimate with five scales groups of factors related to sensory marketing (such as visual, tactile, auditory, olfactory, and flavorful factors). And using the surveyed and cleaned up data with reliable information of 250 international tourists in HCMC in 2020. The research results found that all factors in the proposed research model have a positive statistically significant effect on visitor satisfaction on street food. And then, street food satisfaction continues having a positive effect on the return to HCMC. The degree of influence of Sensory marketing factors on street food to Visitor satisfaction in descending order is as follows: (1) The smell of street food; (2) the sound of the food and drink shops, street vendors; (3) taste of street food; (4) sight of street food; (5) Tourist’s touch to the equipment and street vendors. This paper contributes to provide more empirical evidence to fill the current research gaps regarding the impact of sensory marketing on revisit decisions in Vietnam. Moreover, this really usefull for HCMC tourism to build a marketing strategy, design marketing programs on cuisine suited to promote, attract more international tourists to return in the future.
Keywords: Sensory Marketing, Visitor Satisfaction, Revisit Decisions, Return Decision, International Tourists, Street Food, Ho Chi Minh City.
JEL classification: M31, Z32

Open Access Article SciPap-1280
A Hybrid Fuzzy Approach for Industry Competition Analysis
by Valeriy Balan, Vasyl Pryimak, Inna Tymchenko

Abstract: We offer a hybrid approach to strategic diagnostics of the industry competition based on the application of M. Porter’s model of five forces, tools of logical-linguistic modelling, and fuzzy-set theory. Two complementary calculation schemes were developed to assess the level of competition in the industry. The first of them is based on fuzzy multicriteria analysis using the Fuzzy SAW method, the second is based on the construction of a logical-linguistic model with fuzzy expert knowledge bases and the use of fuzzy inference using the Mamdani algorithm. Fuzzy numbers in triangular form with triangular membership functions are used to represent the linguistic assessments of experts, and the CoA (Center of Area) method is used to defuzzify the obtained values. The study proposes to implement the model in the form of a framework in Excel. The model consists of units for entering information received from experts in the form of linguistic assessments of the factors importance of each of five forces of M. Porter’s model and forces themselves and linguistic assessments of the influence level of each of these factors, transformation unit of these estimates into fuzzy numbers, written in a triangular form with the corresponding membership functions, aggregation blocks of fuzzy estimates, a unit for determining the weighting of the factors of each of the 5 forces and the importance of each of these forces, a unit for calculating fuzzy values of the influence level of each of the 5 forces of the M. Porter’s model and the general level of competition in the industry, unit for the implementation of fuzzy inference according to the Mamdani algorithm, defuzzification unit of these values. The framework allows simulation, depending on the modification of the list of certain factors of the external environment and the correction of experts’ considerations. Fuzzy bar diagrams and a fuzzy pentagon are constructed, which reflect the level of competition in the industry for each of M. Porter’s model, and allow calculating the fuzzy value of the integral level based on a weighted assessment of the impact of each of these forces with the subsequent defuzzification of this value.
Keywords: Fuzzy Sets, Fuzzy Multicriteria Analysis, Linguistic Variables, Term-Set, Porter’s Force Assessment Model, Fuzzy Saw-Method, Logical-Linguistic Model, Fuzzy Knowledge Bases, Mamdani Fuzzy Inference System
JEL classification: C51, C63, D04

Open Access Article SciPap-1279
Social Inclusion and Economic Uncertainty: The Reflection in Public Policy
by Iryna Radionova, Olena Krasota

Abstract: The considered study is based on the idea of the relationship between social inclusion and economic uncertainty. The way these phenomena relate to each other should be reflected in the choice of public policy model. Although social inclusion has various manifestations, it is primarily manifested in the stratification of society by income. The initial generalizations are made on the basis of the analysis of empirical data regarding the relationship between two indicators of differentiation. The authors interpret social inclusion as a phenomenon that implies a decrease in income differentiation against the background of economic indicators improvement. Certain public authority influential factors should be identified to make social inclusion public authority strategic target. A set of endogenous variables has been analyzed according to the Ukrainian data. Neural Networks tools have been used to assess their impact on income differentiation indicators. The differentiation of income in Ukrainian society has been influenced by obvious and hidden variables. The effects of the identified variables on income differentiation have appeared to be multilevel. These variables combined into nodes of interaction. Awareness of these links and nodes of interaction is an important prerequisite for the formation of a public policy model which can ensure social inclusion.
Keywords: Public Policy, Social Inclusion, Economic Uncertainty, Policy Uncertainty
JEL classification: E61, E62, G28, I22, I30

Open Access Article SciPap-1272
Do Converged to IFRS National Standards and Corporate Governance Attributes Affect Accounting Conservatism? Evidence from China
by Oleh Pasko, Fuli Chen, Yarmila Tkal, Mykola Hordiyenko, Oleksandr Nakisko, Inna Horkovenko

Abstract: The purpose of this paper is to examine the effect of the adoption of converged to IFRS national standards on accounting conservatism (AC) and to investigate the effect of corporate governance (CG) attributes (government ownership, management ownership, concentration of ownership, board size, board independence, CEO duality) on АС in China. The large sample of A-share Chinese listed companies, comprising 26,004 firm-year observations form 2925 companies spanning from 2003 to 2019 collected from CSMAR database and analysed using multivariate regression techniques. The study provides empirical evidence testifying to the decrease in AC level after converged to IFRS national standards in China became mandatory. The findings indicate that government ownership, management ownership, concentration of ownership and CEO duality are all negatively associated with AC. By contrast, board size, board independence, has no significant relationship with AC in Chinese institutional settings. Whereas prior studies investigate the IFRS adoption per se, our study examines how national standards converged to IFRS affect AC indicating that converged national standards produce the analogous effect expected from adoption of the genuine IFRS. Moreover, it means that accounting conservatism is inherent also in the standards as opposed to the conceptual framework. Next, our study is also instrumental in identifying the relationship between AC and CG attributes in an underexplored jurisdiction with a significant impact on the world economy - China. These findings can be utilized and be heeded to by managers in the design of companies’ supreme governing body, as well as regulators while proposing legislation/regulations concerning the composition of the board of directors. The results subject to the limitation for a limited range of CG variables and measurement of accounting conservatism applied. Next, the endogeneity problem is not solved as yet, therefore which direction the causality runs from CG to AC or from AC to CG is disputable.
Keywords: IFRS, China, Accounting Standards, Cg, Accounting Conservatism
JEL classification: G34, M41, M14

Open Access Article SciPap-1210
Relationship Between Citizens’ Trust in Local Government and Participation in Local Governance
by Diana Šaparnienė, Iveta Reinholde, Sandra Rinkevičienė

Abstract: The article analyses the relationship between citizens’ trust in local government institutions and participation in local governance. The research results have revealed that citizens’ trust in local government is still low and participation lacks activeness. Civic participation is more active than political participation. According to the research results, the main reasons of absence of participation in local governance are lack of information and knowledge about public participation, lack of information about participation opportunities, lack of communication and response to expressed opinion and suggestions. The results of quantitative research showed that participation and trust dimensions are related. Absence of clear communication and response to citizens expressed opinion and suggestions causes distrust and lower participation. However, the research revealed the weak relationship between the trust in local government and participation in local governance. This fact requires further research.
Keywords: Local Government, Citizens’ Trust, Citizens’ Political And Civic Participation, Local Governance, Democracy
JEL classification: H83

Open Access Article SciPap-1184
Innovation and Bank Efficiency in Vietnam and Pakistan
by Phat-Tien Pham, Boris Popesko, Abdul Quddus, Thi Kieu Ny Nguyen

Abstract: The study investigates the effect of innovation on bank efficiency and the difference in efficiency between Vietnam and Pakistan banks. The balanced panel data from 23 banks (7 banks in Vietnam and 16 banks in Pakistan) in 2011-2019 is aggregated from the State Bank of Pakistan, the Vietstock, the MorningStar, the World Bank, and the website of banks. The quantitative models' estimation result is processed by the Pooled, the Fixed-effect, the Random-effect, and the Generalized Least Square approach, and confirmed again by the Tobit and T-test approach. The outcomes gave that innovation is the negative factor of bank efficiency. With or without the effect of innovation, the bank's efficiency in Vietnam is still lower than in Pakistan. The finding indicates that bank efficiency can be enhanced by increasing bank size instead of innovation, and bank age is the barrier to utilizing innovation for enhancing bank efficiency. Moreover, we found the bank's efficiency in Vietnam can be improved more quickly than in Pakistan by increasing bank assets. The macroeconomic condition is favorable for bank efficiency in both countries.
Keywords: Innovation, Data Envelopment Analysis, Bank Efficiency, Vietnam, Pakistan
JEL classification: G20, G21

Open Access Article SciPap-1171
Investigating the Socio-Psychological Effects of Household Debt Burden: Evidence from Ekiti State, Nigeria
by Ditimi Amassoma

Abstract: High indebtedness is one of the main earnest issues that has befallen households in Nigeria. This has been a great concern to numerous researchers, policymakers, and the government at large. Thence, calls for concern and initiative that should be taken to surmount this challenge. This current study tries to empirically address the gap in the literature of social and behavioral factors which predicts the propelling indices that trigger indebtedness. The findings suggest that socio-psychological factors are key reasons that cause indebtedness. The results revealed that the majority of the households experienced a debt-servicing burden related to stress and stigma via bankruptcy. Also, the study unveils that depression and social norms impact positively on household debt burden. Hence, pointing out that, self-control is crucial to avoid being over-indebted due to the statistical significance of the coefficient of subjective norms. Furthermore, it was discovered from the study that, age group does not significantly impact on debt servicing burden of majority of the households in the study area. Based on the above findings, the study concludes that socio-psychological factors are key reasons that cause indebtedness. Consequently, the study recommends that households should improve their financial planning and management strategies. Furthermore, financial institutions should build a stronger model of credit offerings. Besides, they should also evaluate the household’s level of income and materialism before approving loan applications due to the direct link it has with indebtedness, because, over-indebted households are prone to suffer from psychological defects.
Keywords: Debt, Household, Spss, Socio-Psychological Facors, Age-Group, Stress, Depression
JEL classification: A13, B21, C12, C31

Open Access Article SciPap-1110
Role of Auditor Specialization in Moderating Corporate Governance and Quality of Audit Reporting in Indonesian Manufacturing Companies
by Ewing Yuvisa Ibrani, Yenny Handayani

Abstract: This study aims to examine the effect of corporate governance mechanisms on audit reporting. Whereas the specific purpose of this study was to investigate the impact of the number of audit committees, the role of independent (non-executive) board members, institutional ownership, and ownership concentration on the quality of audit reporting. Besides, this study also examines whether the role of the external auditor's reputation can moderate the relationship of corporate governance mechanisms to the quality of audit reporting. The results of testing of 189 units of analysis of manufacturing companies in Indonesia, obtained evidence that the size of the board of commissioners, the proportion of independent commissioners, institutional ownership influential and significant effect on the quality of audit reporting. Meanwhile, the audit committee, auditor industry specialization, ownership concentration proved not to affect the quality of audit reporting. For testing the external auditor's moderating variable reputation proxied by industry specialization, it turns out that only the relationship between the size of the board of commissioners and ownership concentration on audit reporting quality is proven to be moderated by the auditor industry specialization.
Keywords: Audit Committee, Ownership Concentration, Institutional Ownership, Auditor Industry Specialization, Indonesia, Independent Commissioners
JEL classification: M12, M21, M48, M42

Open Access Article SciPap-1068
What Is the Experience of Companies in Accounting for Impairment of Receivables?
by Marie Paseková, Milana Otrusinová, Miroslava Dolejšová, Zuzana Crhová

Abstract: Account receivables constitute a significant portion of current assets, and the issue of receivables management is studied from many aspects and in many different contexts and levels. The purpose of this paper is to analyse the use of the prudence principle in the account’s receivables area in Czech companies. This research paper aims to evaluate the view of enterprises whether they are willing to make impairment of receivables, what types of impairment they prefer, and how they assess the impairment of receivables. The research was done through a questionnaire survey. We received a total of 185 completed questionnaires. The research was done in 2019 in enterprises from the Czech Republic. Our results show that the enterprises make the impairment of receivables regardless of their sector. The impairment of receivables is more preferred in the medium-sized and large enterprises. The medium sized and large enterprises prefer a combination of tax and non-tax impairment of receivables. At the same time, the medium-sized and large enterprises more appreciate the impairment of receivables as a percentage of the value of particular receivable.
Keywords: Trade Credit, Receivables, Impairment, Tax Impairment, Non-Tax Impairment
JEL classification: M41

Open Access Article SciPap-1062
The Czech Labour Market: Adaptation of Young People to the Advent of Industry 4.0
by Zuzana Dohnalová, Kamil Dobeš, Jan Kramoliš

Abstract: The focus of the paper was to conduct an analysis of the selected qualitative and quantitative aspects of the labour market and the potential ability of the young generation to adapt to the new conditions of their prospective employment. The primary data were obtained in the form of a questionnaire survey. The total of 2,817 respondents were contacted via email containing a research hyperlink. The respondents were secondary school students studying in the Czech Republic. The obtained data were collected in Excel and further processed by statistical methods, the Pearson test using χ quadrate. The option of choosing several occupations was evaluated by means of the so-called professional specialisation index. Secondary data were used to determine the development of trends on the Czech labour market in the current conditions of the Industry 4.0 onset. The respondents most often chose occupations in the fields of technology, industry and construction out of the eleven occupational areas offered. More than a quarter of respondents chose their preferred profession in this area. This is a positive finding in terms of the focus of the economy on Industry 4.0.
Keywords: Czech Republic, Microeconomics, Labour Market, Industry 4:0, Job, Occupation
JEL classification: A, E24, J21, J24, L0