Budget transparency innovations bring new extent and forms of transparency. The aim of the article is to explore the diffusion of budget explorers, that is, a budget transparency innovation extremely popular in the Czech Republic, and to evaluate their impact on voluntary budget information disclosed.
Careful mapping of the diffusion using a survey of budget explores in 72 former Czech district towns and media analysis shows that the key success factor was its convenience for politicians, as it is attractive, easy to implement and up-to-date demonstration of their transparency. Budget explorers are nowadays a standard extension to accounting software, and their usage is evaluated in several government transparency competitions.
The major benefit of the budget explorers is that they made for the first time publicly available detailed public financial information, changed the standard of best practice and drew some public attention. At the same time, they, unfortunately, narrowed the scope of the budget transparency debate by omitting the importance of the draft budget and introduction of performance measurement.
Marta Postuła and Jacek Tomkiewicz
This article focuses on the effects of corrections to the budgetary policy in eurozone economies. The goal of the text is to check if advancement in implementing modern tools of public management is helpful in the time of fiscal adjustment. We assume that the most important role of a performance approach in conducting fiscal policy is the ability of government to implement active policy meant as structural changes in the composition of public expenditures. In the case of the need to cut general levels of public spending, public sector managers who have knowledge of performance effects of public policies should be able to conduct fiscal adjustment in such a way as to minimise negative outcomes of spending correction on society. The structure of the text is as follows. First, we present some insights on the economic effects of fiscal adjustment. Then, we discuss the concept of performance management presented in the theory and policy agendas of international institutions such as the European Union or the OECD (Organization for Economic Cooperation and Development). Finally, we present the result of an empirical exercise that is designed to combine the level of advancement in implementing performance budgeting (PB) and the social cost of fiscal adjustment in eurozone economies. The most important finding of the research is that PB tools seem to have very limited usefulness in a time of fiscal adjustment. There is no statistical evidence that countries advanced in utilisation of PB tools conduct more active fiscal policy – approach of cutting all expenditures across the border by given percentage rather than looking at priorities and social outcomes of fiscal adjustment dominates in all cases.
Peter Koerver Schmidt
The article analyzes whether the investment in a private equity fund may create a permanent establishment (PE) for foreign investors. The analysis is divided into two main parts, as the question of creating a PE for the foreign investors is considered with respect to both the main PE rule and the agency PE rule. The amendments to the PE definition prescribed in the OECD/G20 BEPS report on Action 7, and incorporated into the 2017 version of the OECD Model with Commentary, are taken into consideration. It is concluded that the final outcome depends on the specific setup of the private equity fund at hand and that some degree of uncertainty may often remain. Moreover, the recent amendments to the PE definition do not appear to have reduced this uncertainty—rather the contrary.
Mladen Knežević, Radojka Kraljević and Jozo Jurković
Tourism, as an economic activity is incorporated in various elements of the culture of receptive destinations, but also in elements of cultural traditions of emitting regions. One part of the approach to observing tourism as a social process lies in the human need for rest, and for establishing emotional balance, which is damaged through repetitive everyday life of neoliberal society and economy, in particular. This kind of approach has created certain stereotypes, where a tourist “must feel good” in the architecture of Dubrovnik, which is larger than life. However, researches have shown that modern tourism, with shortened stay, rushing from one destination to another, does not, in reality, bring the feeling of happiness. There are far more negative emotions being projected, which are questioning if the tourism as business activity is relaxing at all.
R. Saraswathy, Jijo James, P. Kasinatha Pandian, G. Sriram, J. K. Sundar, G. Swarna Kumar and A. Sathish Kumar
The present study involved the utilization of crushed glass as an auxiliary additive in the manufacture of cement stabilized fly ash (CSF) bricks. The bricks were made with 1:1 proportion of fly ash and sand stabilized with 20 % cement. Crushed glass was used as replacement for the fine aggregate in increments of 10 % up to 40 % wherein the sand was completely replaced with crushed glass. The various mix proportions were then moulded into bricks with the addition of water by hand moulding method of forming the bricks and sun dried followed by sprinkle curing over a period of 21 days. The bricks were then subjected to compressive strength, water absorption and efflorescence tests to gauge its performance. The investigation revealed that the addition of crushed glass to the brick mix resulted in an increase in strength of the bricks, however, the maximum strength achieved could not achieve the strength of the control specimen. But the strength was higher than the minimum strength recommended by Bureau of Indian Standards (BIS) for stabilized blocks as well as burnt bricks. It also reduced the water absorption marginally while no efflorescence was seen in any of the combinations. A cost comparison revealed that the optimal combination with crushed glass was able reduce the cost of the brick by 20 %.
One of the most important analytical spheres enabling the diagnostic estimation of intentional changes in a company’s financial result is the area of accrual adjustments of net profit, separated in the cash flow statement prepared using the indirect method. The special cognitive value of accrual differences can be seen when the structure of total accruals is separated by those adjustments that are not directly related to the real activity of the enterprise, and are the result of subjective accounting choices. The main objective of the article is to present the selected econometric models used for examining accrual-based earnings management phenomenon in Poland. The analysis includes following regression models, namely: the Jones model, the Kasznik model, the Dechow-Dichev model and the McNichols model. The empirical studies were conducted among listed companies qualified for the Warsaw Stock Exchange indices: WIG-20 and mWIG-40, whose shares were traded for at least ten years in 1998-2017.
Małgorzata Zaleska and Przemysław Kondraciuk
The aim of this article is to systematise the approach to innovation in the economic theory and to define the indicators used to measure the innovativeness of world economies. The considerations are focused on innovation in the banking sector as it is one of the most innovative sectors worldwide. The identification of the stages of innovation development in this branch is worth emphasising, along with the description of its economic and legal determinants.
Alexandra Ioana Daniela Rus, Monica Violeta Achim and Sorin Nicolae Borlea
The aim of this paper consists in providing a general overview of the notion of intellectual capital as a key to maximizing the corporate performance. Following the researches carried out, we present the delimitations of the intellectual capital in relation with human capital, relational capital and structural capital. In terms of its measurement, we focus on a question which could be a solid base for the next studies: “Can intellectual capital be evaluated?” In this regard, a number of methods (direct and methods based on assets returns), generic model and individual company models were presented, concluding in this way with a hierarchy in terms of utility and their importance.
The main purpose of the article is to motivate experts and researchers in the field of business informatics and logistics to interdisciplinary integration in order to develop a new concept of an information system that will help to strengthen a company's competitive ability. The article analyzes the research carried out between top managers, strategic managers and managers of logistics in the largest Slovenian companies. Two hundred companies were included in the primary survey; 60 managers were selected in a representative sample and at the end 30 leaders in statistical analysis. We sent questionnaires to our managers via e-mail. The data were processed with the statistical program IBM SPSS Statistics 19, as a method we used linear regression and multiple correlation. With the primary survey, we measured satisfaction of the managers with existing information support for logistics and found that logistical, strategic information professionals need to be even more connected, so that management decisions can then be developed and sustained. On the basis of the obtained data, it can be concluded that sufficient investment of funds in the creation of an appropriate information system fosters the development of business logistics. The originality and value of the article are reflected in the interdisciplinary view of the concept of information support of logistics in the development of new products, in the original connections of various business functions, in the possibility of designing new information solutions and in the sustainable development of new services for the market.