Economics and Management

POSSIBILITIES TO APPLY CLASSICAL BANKRUPTCY PREDICTION MODELS IN THE CONSTRUCTION SECTOR IN LITHUANIA

Rasa Kanapickiene, Rosvydas Marcinkevicius — Tue, 16 Dec 2014 00:00:00 +0200

The paper presents the results of a research of the bankruptcy prediction models’ application in the construction sector in Lithuania. During the financial crisis, many companies in the construction sector went bankrupt. Therefore, the research aims to reveal if conventional bankruptcy prediction models are applicable in this sector. Moreover, Lithuanian researchers have contradictory opinions about the possibilities to apply bankruptcy prediction models. Empirical researches provide conflicting results as well. It should also be noted that earlier Lithuanian researches (1999-2013) featured small samples of companies which could have an impact on great errors of the research results. The above mentioned reasons encourage to evaluate the accuracy of bankruptcy prediction models by examining large samples of companies and evaluating real benefits obtained from the acquired information.

The present study distinguishes by its large sample of companies that was selected for the first time (433 companies that were filed for bankruptcy in 2009-2013 were examined). To achieve the aim of the research, i.e., to evaluate the applicability of bankruptcy prediction models in Lithuanian companies of the construction sector, 5 classical statistical bankruptcy prediction models were chosen: 3 linear discriminant analytical models (Altman, Springate, Taffler) and 2 logistic regression models (Chesser, Zavgren). From Altman models, the Altman model for companies whose shares are not quoted in the stock exchange markets, Altman Z”-Score Model for the service companies and Altman Z”-Score Model for emerging countries were investigated. From Taffler models, Taffler (1973) and Taffler & Tisshaw (1977) models were analysed. The results of the research might be useful for both the executive managers of companies in the construction sector and investors who analyse the problems of the operation continuity.

The type of the article: Research paper.

Keywords: bankruptcy, bankruptcy prediction, bankruptcy prediction models.

JEL Classification: G33.

DOI: http://dx.doi.org/10.5755/j01.em.19.4.8095

FUTURE ORIENTED STRATEGY FOR SMES

Joanna Ejdys — Tue, 16 Dec 2014 00:00:00 +0200

Low level of innovation of the Polish SME sector continues to justify the need for an in-depth study of literature and empirical research on the response to questions about the reasons for the low innovation and ways of improving it? One of the main reasons, indicated in the literature, is the lack of prospective thinking and strategic orientation.

The author investigates the relationship between two constructs: strategic orientation and innovation. Paper is a literature based research, which analysed the impact of strategic orientation on innovation consequences. The review of the literature conducted by the author, on the one hand, was aiming at the identification of the methodological aspects related to the study of the relationship between strategic orientation and innovation, and on the other hand, it was to indicate the direction and strength of that type of relationships.

The conducted literature studies confirmed that the research implemented in this area is mostly of a quantitative nature, where the main tool is a survey questionnaire. The collected research material is often subjected to analysis with the use of the Structural Equations Models (SEM), regression analysis and confirmatory factor analyses. Most commonly, the tests are limited to the analysis of the situation in one country, and the study sample ranges from 100 to 500 units. The presented results of the research often concern the specific sectors of activity, such as: high-tech, financial sector, insurance firms, gardening, hotels) or are of cross-sectorial nature (manufacturing and service enterprises).

DOI: http://dx.doi.org/10.5755/j01.em.19.4.8098

ESSENTIAL LEADERSHIP SKILLS FOR YOUNG PROFESSIONALS IN TIMES OF CRISIS

Dimitra Iordanoglou, Konstantinos Ioannidis — Tue, 16 Dec 2014 00:00:00 +0200

This paper investigates the leadership skills needed for future leaders especially during economic turmoil. Based on an extensive literature review a list of the most important leadership skills was developed and a questionnaire was constructed to be used in structured interviews with experts and young leaders from five European countries (Greece, Latvia, Cyprus, Lithuania, Bulgaria). The results revealed the most crucial skills for future leaders in terms of future employability and during times of crisis. Based on the results, a leadership training programme was developed to train young leaders in these leadership skills.

DOI: http://dx.doi.org/10.5755/j01.em.19.4.8382

STATISTICAL ANALYSIS OF THE ECONOMIC INTEGRATION OF GEORGIA WITH THE EUROPEAN UNION AND PROSPECTS FOR DEVELOPMENT

Nino Abesadze — Tue, 16 Dec 2014 00:00:00 +0200

At the present stage of development the process of integration of Georgia into the world economic system is getting deeper and deeper. That’s why for the formation of the right economic policy of the country it is necessary to assess these processes correctly and analyze the further perspectives.

On the basis of proven statistical methods – statistical observation, grouping and methods of analysis – there have been analyzed the data of foreign trade of Georgia from the Geographical point of view, characterized the dynamic of the export and import stream, the commodity structure of foreign trade of Georgia on the basis of which there have been revealed the positive and negative sides of the current changes in this field.

There have also been discussed the problems of indexes of foreign trade in Georgia. In order to calculate the main characteristics of foreign trade there have been used the stochastic models of the time series. On the basis of models selected as a result of testing the classical methods of regressive analysis there have been done the forecast calculations and on basis of the received results the corresponding conclusions have been reached.

DOI: http://dx.doi.org/10.5755/j01.em.19.4.8531

ANALYSIS OF THE EFFECTIVENESS OF SOCIALLY RESPONSIBLE INVESTING FUNDS IN POLAND

Agata Lulewicz-Sas, Jaroslaw Kilon — Tue, 16 Dec 2014 00:00:00 +0200

The purpose of the article is a theoretical analysis of the concept of socially responsible investing. On the basis of the literature, the essence and the genesis of this concept has been shown in the article, as well as Polish SRI market was presented in a synthetic way. The article attempts to determine the effectiveness of socially responsible investment by example of SRI funds. The analysis includes the following investment funds: Inwestor Zmian Klimatycznych, PZU Energia Medycyna Ekologia, SKOK FIO Etyczny 1, SKOK FIO Etyczny 2, PKO Biotechnologii i Innowacji Globalny and one pension fund – OFE Pocztylion.

On the basis of the literature review it can be assumed that Poland is in the initial phase of development of socially responsible investment. The reason for the low demand for this type of investment may be insufficient knowledge of investors on this topic. What is needed is broad-based information campaign on SRI among individual and institutional investors?

The type of the article: Empirical study

Keywords: socially responsible investment, efficiency, SRI founds.

JEL Classification: A13, G11, G12.

DOI: http://dx.doi.org/10.5755/j01.em.19.4.8101