The impact of the corruption on the sustainable development of the businesses in South-West Bulgaria

Krastev, Vladislav; Koyundzhiyska-Davidkova, Blagovesta; Atanasova, Irina

doi:10.1051/shsconf/20207406015

Cited by 5 publications

(3 citation statements)

References 19 publications

(19 reference statements)

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“…Nonetheless, not only the statistical methods do play an important role, but there are also perpetual discussions if accounting of market-based information should be used when predicting corporate default (Farooq and Qamar 2019). The research of Li and Faff (2019) reports that relevance of accounting-based information is crucial for enterprises with high information asymmetry while the market-based should be preferred during the financial recession periods (Stefko et al 2019;Krastev et al 2020). The empirical findings of Binh et al (2018) prove that both accounting and market factor, accompanied by changes in the macroeconomic factors, affect the financial distress of enterprises.…”

Section: Literature Reviewmentioning

confidence: 99%

Financial Compass for Slovak Enterprises: Modeling Economic Stability of Agricultural Entities

Valášková

Ďurana

Adamko

et al. 2020

JRFM

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The risk of corporate financial distress negatively affects the operation of the enterprise itself and can change the financial performance of all other partners that come into close or wider contact. To identify these risks, business entities use early warning systems, prediction models, which help identify the level of corporate financial health. Despite the fact that the relevant financial analyses and financial health predictions are crucial to mitigate or eliminate the potential risks of bankruptcy, the modeling of financial health in emerging countries is mostly based on models which were developed in different economic sectors and countries. However, several prediction models have been introduced in emerging countries (also in Slovakia) in the last few years. Thus, the main purpose of the paper is to verify the predictive ability of the bankruptcy models formed in conditions of the Slovak economy in the sector of agriculture. To compare their predictive accuracy the confusion matrix (cross tables) and the receiver operating characteristic curve are used, which allow more detailed analysis than the mere proportion of correct classifications (predictive accuracy). The results indicate that the models developed in the specific economic sector highly outperform the prediction ability of other models either developed in the same country or abroad, usage of which is then questionable considering the issue of prediction accuracy. The research findings confirm that the highest predictive ability of the bankruptcy prediction models is achieved provided that they are used in the same economic conditions and industrial sector in which they were primarily developed.

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Section: Literature Reviewmentioning

confidence: 99%

Financial Compass for Slovak Enterprises: Modeling Economic Stability of Agricultural Entities

Valášková

Ďurana

Adamko

et al. 2020

JRFM

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“…It is also his obligation to organize an information campaign and public discussions in connection with the proposal on which the subscription is conducted. The costs related to the organization of the subscription are financed by citizens and legal entities as a result of the successful earning management [7], which in turn reduces the corrupt influence on business development [8].…”

Section: Forms Of Direct Democracy In Local Self-government In the Rementioning

confidence: 99%

Impact of globalization on the direct participation of citizens in local self-government in the Republic of Bulgaria

et al. 2021

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Research background: The direct participation of citizens in political decision-making in the state is one of the ways to implement the public relations between the political state represented by the authorities of local self-government and administration. In addition to that, the civil society on behalf of the local inhabitants of the municipalities is also part of this process. Purpose of the article: This report aims to examine which forms of direct democracy are most often applied in the system of local self-government and what is the result of them in view of the economic independence of municipalities. The comparative study covers the periods before and after the signing of the European Charter of Local Self-Government in 1995 by the Republic of Bulgaria, as well as the periods before and after the accession of our country to the EU in 2007. These two events play a key role in the impact of globalization processes on the direct participation of citizens in local political decision making. Methods: The methodological tools, used in the research, include the comparative analysis and the comparative-legal method. Findings & Value added: The contribution of the research is expressed in tracking the trend in the application of various forms of direct participation of citizens in local government in the Republic of Bulgaria, in outlining the main shortcomings of legal regulations and factors, favoring or hindering the implementation of these forms, and in formulating proposals de lege ferenda to improve existing legislation.

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“…Their study shows the existence of earnings management in China's agricultural enterprises because of internal demand for earnings management, which not only results in investors losses, but also disrupts the capital market. Krastev et al (2020) warn not only against the disruption of the capital market but also business corruption caused by creative accounting. Pavlovic et al (2018) indicate that the reasons for earnings management should be found in factors like cultural and political factors or the religious attitude or age of board members, not in the gender differences based on Serbian agriculture enterprises.…”

Section: Combined Model Of Earnings Managementmentioning

confidence: 99%

Creative Accounting as an Apparatus for Reporting Profits in Agribusiness

Blazek

Ďurana

Valášková

2020

JRFM

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The economic results of a company are an important tool for many entities, e.g., for internal entities as well as for external entities. As the economic results of a company are often the only source of information that informs the company’s partners about the managerial activities of their company, it is necessary to present these economic results using real numbers. However, companies prefer to achieve better results by applying the principles of creative accounting, which leads to improved economic values being shown to be achieved during an accounting period. The purpose of this article is to apply models that have been developed to detect creative accounting, which occurs under conditions that help enterprises to adjust their financial statements and tax bases and involves using creative accounting techniques to become competitive or to be able to take advantage of deductions. These models were applied to the Slovak Republic’s agriculture, forestry, and fishing sector (sector A), which is highly affected by earnings manipulation. This article provides a numerical expression of companies, which were previously, with some probability level, involved in conducting financial statement manipulation. Subsequently, the results that were obtained have been displayed using receiver operating characteristic (ROC) curves. The outputs of the analysis show that a large proportion of the companies in this sector tend to use creative accounting, which is not only harmful for entrepreneurs and their business partners in sector A, but also for the Slovak Republic at large, as the Slovak government cannot determine whether the reported accounting results reflect a company’s real financial situation.

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The impact of the corruption on the sustainable development of the businesses in South-West Bulgaria

Cited by 5 publications

References 19 publications

Financial Compass for Slovak Enterprises: Modeling Economic Stability of Agricultural Entities

Financial Compass for Slovak Enterprises: Modeling Economic Stability of Agricultural Entities

Impact of globalization on the direct participation of citizens in local self-government in the Republic of Bulgaria

Creative Accounting as an Apparatus for Reporting Profits in Agribusiness

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