Zagreb International Review of Economics and Business
Volume XII, Number 2 (November 2009)
ABSTRACTS
Openness and Corruption: A Time-Series Analysis
Muhammad Zakaria
Abstract: The paper empirically examines the relationship between trade openness and the level of corruption in Pakistan using annual time-series data for the period 1984 to 2007. The analysis shows that trade openness negatively affects corruption in Pakistan. The results are robust to controlling for other corruption determining variables and various model specifications. Sensitivity analysis shows that economic development and political liberalization reduce corruption levels. Other explanatory variables i.e. human and physical capital, government expenditures, population, inflation and defense expenditures significantly affect corruption in the expected directions.
Keywords: openness, corruption, economic development, political institutions
JEL Classification: D73, F14, F41
Impact of Globalisation on Harmonisation of Financial Reporting for SMEs
Ivana Mamić Sačer
Nikolina Smrekar
Katarina Žager
Abstract: Small and medium-sized enterprises form a dominant part of the overall economy in most countries, both in developed and in transition or developing countries. Consequently, as a result of globalisation and the increasing role played by small and medium-sized enterprises, the need for harmonisation and standardisation of financial reporting is of particular importance for this segment of entrepreneurship. This paper focuses on financial reporting of small and medium-sized enterprises under the conditions of globalisation, and discusses recent international solutions in the field of financial reporting for small and medium-sized enterprises.
Keywords: globalisation, harmonisation, financial reporting, international accounting standards, SMEs
JEL Classification: M4, F3
Networking of Copreneurs and Small Firm Growth: Personal Sub-networks Analysis
Tina Bratkovič
Boštjan Antončič
Abstract:The focus of this study is on the examination of the structural characteristics of the entrepreneur’s network. We made a contribution to the theory of entrepreneurial networking by focusing on the structural characteristics of the entrepreneur’s personal network with regard to the activity of both the entrepreneur and his or her spouse (the copreneurial team) in the family firm networking, and how does this affect the firm’s growth. Through a thorough analysis of these network characteristics we disclosed the impact of specific structural characteristics on firm growth. The research results show that the involvement of both the entrepreneur and her or his spouse is beneficial in the process of family firm networking and contributes to firm growth.
Keywords: entrepreneurship, copreneurship, copreneurs, networking, family firm
JEL Classification: L26
(I)rationality of Investors on Croatian Stock Market: Explaining the Impact of American Indices on Croatian Stock Market
Domagoj Sajter
Tomislav Ćorić
Abstract: American stock markets are by far the most influential markets in the world, and the abundance of information coming from them is closely monitored all over the planet. However, it seems difficult to rationally explain the immense scope of impact of the US stock indices on a rather small market such as Croatian. Zagreb Stock Exchange quotes Croatian companies that have low international significance, can rarely be perceived as strong regional players, and their connections with the USA (if any) are weak and mostly exceptions to the rule. This study follows the methodology and findings of Erjavec and Cota (2007), as an extension and further examination of the dependency of the Crobex index to the main US indices (DJIA, S&P500, NASDAQ). The econometric study is widened, and the persistent relationship between Croatian and American indices is additionally elaborated using ARIMA and GARCH models. Along with quantitative determination of the interconnectedness three concepts are introduced to explain high correlation and co-movements between Croatian and American indices; global factors, contagion and irrational escalation.
Keywords: ARIMA, GARCH, Crobex, Zagreb Stock Exchange, financial crisis, behavioural finance
JEL Classification: F37, G15
Intra-Industry Trade between Turkey and OECD Countries: A Panel Data Analysis
Ali Sen
M. Ozan Saray
Murat Karagoz
Abstract: The purpose of the present paper is to measure the extent of Turkey’s bilateral intra-industry trade (IIT) with OECD countries, and to test empirically various country-specific hypotheses concerning the determinants of IIT between Turkey and its 28 trade partners in OECD group. The findings reveal that Turkey generally posseses an upward trend and relatively high degree of IIT with these countries. Using panel data the empirical results show that IIT between Turkey and OECD countries are positively related to the country-specific variables, such as per capita income level and economic size, and negatively related to the geographical distance. In contrast to the findings of the much of the IIT studies, the variable of economic integration appears to have decreasing effect on IIT between two sides.
Keywords: intra-industry trade, Turkey, panel data
JEL Classification: F14
The Roles of Internal Communications, Human Resource Management and Marketing Concepts in Determining Holistic Internal Marketing Philosophy
Dubravka Sinčić Ćorić
Nina Pološki Vokić
Abstract: The paper analyses the triad of internal marketing (IM), internal communications (IC) and human resource management (HRM) parallely, which was not the prior interest of academics (so far only the dyads of those concepts were analyzed). The scopes, overlaps and differences between the three concepts are analyzed. By combining three before mentioned concepts a holistic internal marketing philosophy is described. The main conclusions are that a holistic internal marketing philosophy is grounded in a relationship marketing theory, that it does not rely solely on traditional marketing concepts and tools, and that it synergizes on three functional areas (IC, HRM and marketing).
Keywords: internal communications, human resource management, internal marketing, marketing concepts, holistic internal marketing philosophy
JEL Classification: M1, M3, M5
Effective Corporate Income Tax Burden in Croatia
Hrvoje Šimović
Abstract: This paper provides an analysis of corporate income tax (CIT) in Croatia. Given the fact that Croatia implements a consumption-based CIT and a number of tax incentives, the purpose of this paper is to establish the level of effective tax burden on companies in Croatia. In addition to analyzing the basic indicators of the CIT burden, the paper also presents a calculation of the effective tax rate based on the application of the Devereux-Griffith methodology. Apart from the cost of capital, the effective marginal tax rate (EMTR) and the effective average tax rate (EATR), also the EATR will be calculated for cases in which tax holidays are used.
Keywords: effective tax rates, corporate income tax, tax holidays, Croatia
JEL Classification: H25
Managing Environment & Natural Resources: A Challenge for the Future
Niko Koncul
Abstract: Proper management of the environment and natural resources is a formidable task and a challenge that the World faces in the future. The issue has become a debatable subject and a sort of power struggle among vested interests. Priority usage and conservation of a particular resource differs with different stakeholders. Pursuance of selfish economic interests is bound to lead to diminished economic welfare of the society. Going beyond laws, rules and regulation we need to tailor our requirements for a lasting and sustainable economic development.
Keywords: environment, natural resources, sustainable development
JEL Classification: Q56