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The paper focuses on inventory management in a distribution company, particularly on modeling and optimizing stock level of purchased and sold goods. Inventory theory consists of different optimization models, however, it turned out that their application in specific situations is not simple and needs to be more or less modified. The paper presents new designed inventory optimization model that modifies theoretical models. The goal of the paper is first to present the modified inventory optimizing model and second...

One of the most important expressions of the current structural changes in the developed countries is the growing importance of the tertiary sector (also known as the service sector), which has been recorded primarily over the past twenty years. Currently, the OECD countries produce in services about 70 percent of the added value and the development of this share has continued to have a growing trend [1]. Prosperity of the country as a whole is thus significantly affected by the performance of companies providing ...

The article is devoted to the problem of improvement of methodology for the analysis of urban territories, allowing taking into account economical, environmental and social considerations in their sustainable development. In particular, the authors touch upon the problems of identifying the best alternatives and constraints in the development of strategy of individual urbanized areas or areas of large cities development. The main purpose of the research is algorithmization of the process of formation of input data...

Energy efficiency enhancement is one of the most important courses of works realization that is aimed at the increase of enterprises competitiveness in various industries and fields of activity, which is of particular importance in a globalizing world economy. One of the deterrents, which restrains activities enhancement processes in the field of energy saving and energy efficiency increase, is a relatively low priority problems to be solved compared to the other problems of enterprise development. The paper propo...

Increase in food quality leading to higher customer satisfaction is not a straightforward objective of the firm whenever an increase in quality is related to an increase in costs. The purpose of this paper is to determine whether providing high quality food products generally yields higher profit for the firm than pursuing the opposite, when university students are the consumers. This paper approaches the relationship between customer satisfaction and firm profitability from the perspective of the satisfaction-pro...

This paper investigates the development of Lithuanian intra-industry trade. The purpose of the research is to estimate the changes of Lithuanian intra-industry trade development under existing conditions. Seeking to define the changes of Lithuanian intra-industry trade, the basic methods of intra-industry trade measurement, the changes of intra-industry trade development and the importance of intra-industry trade on the development of trade structure between Lithuania and the EU are analyzed in this article. For m...

Companies from various industries are looking to find the right “formula” towards improving performance and profitability without putting at risk the relationship with their customers. Specialized industries such as golf course sector require a special approach for pricing policies and rate fencing due to high seasonality, capacity constrain and high operational costs. The purpose of the study is to investigate if rate fences can be implemented in the two golf course locations analyzed. Based on the outcome of...

In the article we proposed the definition of the vector of human potential development which connects social orientation of economics, processes of post-industrialization and of globalization. Social orientation represents the main goal of socio-economic development, a way of its achieving is represented by post-industrialization and globalization is a criterion of more effective use of resources. The realization of principles of socially oriented economics promotes a progress of society and of an individual in th...

The poverty and income inequality indicators in Latvia are among the highest in the European Union, which indicates its social stratification and polarisation. The mathematic calculations show that there is a risk that the number of low-income individuals might gradually increase over the next years and their number may be estimated at 372 thousand in 2015. However, any forecast on the number of low-income individuals can be considerably affected by changes in wages, the unemployment rate, labour emigration, and t...

Religious tourism is one of the most wide-spread forms of travelling in terms of its volume but also of its extent. Study of the religious tourism is significant in terms of its protection of cultural heritage, its historical aspect as well as in terms of its contribution to the regional development. A comprehensive view on the status of using Slovakia's great potential for religious tourism is absent; a systematic research of religious tourism on the national level is unsatisfactory. Available studies and analysi...

Transnational corporations grew up rapidly in 90s years of 20th century. They have acquired very strong position in world economy and started to play an important role in influencing particular national economies. Transnational corporations affect host economies through two channels – by foreign direct investment and international trade. Objective of the paper is to estimate the importance of foreign direct investment inflow, export and import on labour productivity and unemployment (two most common factors in a...

Economy appears to have always been driven and determined by the development of needs, with consumption increasingly viewed as the major tool of needs satisfaction. The article is devoted to the analysis of the impact of global changes on consumption processes with the view to identifying the current trend as towards quantification or, conversely, qualification. The authors outline the evolution of scientific approach to and views on the phenomenon of personal consumption, and resort to scientific research papers ...

In recent years, there has been an increasing need for the development of human capital, which is currently recognized as a further factor of economic growth. However, the importance of human capital has always been influenced by the development of human society. In the past 20 years, the importance of flexible work force, well-motivated and highly skilled has become en revealed. The openness of economy has changed not only our lifestyle but the labor market as well. This is why employers, in accordance with their...

Tourism has a significant influence on the economic and social progress of the territory; therefore the development of this particular industry becomes a priority. The article analyzes the peculiarities of promotional marketing of national Russian tourism product on the domestic and foreign markets, defines basic problems of the industry, and suggests their solutions.

This research is devoted to revision of modern functions of accounting taking into account change of environment and internal potential of registration procedures. It is obvious that development of the public relations objectively promotes improvement and modification of the content of the main functions of accounting according to modern expectations of interested parties. Traditionally in a control system the accounting performed the following main functions: control, ensuring safety of property, information, fee...

The eurozone crisis represented one of the most important factors influencing the global economic evolution, affecting the comercial exchange dynamics, the financial markets risk perception and the thrust of the economic operators. Due to the unpredictable external environment conditions, the commercial banks operating in Romania were forced to cope with the impairment of the economic potential and the unfavourable evolution of the currency market (altering the real lending demand), the increase of the credit risk...

At present, Romanian academic education financing is at a crossroad. The effects of the regulatory changes occurred in 2011 with the adoption of the new National Education Law, as approach of harmonization with the European standards in the area, are still strongly felt. Even though significant progress has been made towards permanent modernizing budgetary resource allocation methodology for education, the percentage of GDP distributions to support this priority area is below the minimum of 6\% provided by the app...

Optimal structure of the equity and debt capital is continually debated topic on theoretical as well as practical level for decades. Financial managers when they make decision about the sources of the company resources are influenced by various factors –from the economic reality of the country in general to specific conditions of individual capital providers. Our contribution is focused on decision making process in selected debt capital's financing of business activities. The aim of the paper is to discuss bene...

This contribution is devoted to the issue of calculating Economic Value Added, as one of the most important business performance evaluation indicators. It elaborates and analyses business value calculation inputs as well as inputs for calculating Cost of Equity. The mentioned issue was solved mainly by application of Capital Asset Pricing Model and build-up model in various scenarios. Risks entering the Cost of Equity are verified with the use of statistical methods. Research sample analysis revealed that when cal...

The monetary policy strategy of the National Bank of Romania is inflation rate targeting. This strategy was adopted in 2005 after making sure that all criteria requested in order to be able to adopt this strategy were fulfilled. Therefore, the main objective of the Central Bank is to ensure price stability, but without neglecting the aspect of sustainable economic growth. In order to achieve this goal, monetary policy transmission mechanism should be well known, as long as the available set of instruments and thei...

Metonymy of public finances stability, framing the European Union (EU) member states budget deficit and public debt into the limits set by the Maastricht Treaty, is closely supervised by the European Commission in the excessive deficit procedure (EDP notification). To prevent the risk of exceeding the annual targets that could means substantial penalties for Government and even exclusion from EU, at national level is compulsory the medium term fiscal and budgetary strategy. An efficient way of monitoring complianc...

The paper deals with the application of methods for financial performance management in enterprises, used for analyses of business entities in the territory of the Czech Republic. Financial performance is one of the key indicators for the determination of competitive position as well as attractiveness for investors. Therefore it is necessary to assess the company performance not only from the quantitative point of view, but also with regard to quality. The common financial performance measurement based on the resu...

The article distinguishes factors determining foreign direct investments and summarizes their classification. It has been determined that the factors may be classified according to various criteria, which depend on the nature of the research and the choice of the researcher. Different classifications may be used in the same research, and the factors may be divided into macroeconomic and microeconomic, general and specific, depending on the investor type or independent of it, important or irrelevant when investing ...

According to the behavioral finance theory, agents act coherently with the Kahneman and Tversky prospect paradigms and may violate those dictated by the rational expected utility. From the point of view of real financial markets' applications, a key question concerns how to eliciting the financial professionals' risk preferences. In this contribution we propose the benchmarking procedure originally set up by Castagnoli & LiCalzi (1996) and Bordley & LiCalzi (2000) that couples sound axiomatic fundamentals with a u...

The paper is focused on problems connected with the application of special law called Sarbanes Oxley Act by the companies in the Czech Republic. The mentioned law regulates issue of internal control in enterprises that could ensure true and fair view of the presented financial statements. This legislation was created in response to bankruptcy of a lot of large companies in the USA at the beginning of the 21st century such as Enron, Parmalat, Tyco etc. that overestimated their financial results. This act has a lot ...

A lack of financial resources is one of the key factors constraining the expansion and growth of enterprises. Such a deficit is particularly obvious with regard to long-term resources. As the internal resources of enterprises are insufficient for financing the corporate investments, external resources are sought-after (bank and trade credits, leasing, share issue, bond issue, private equity). The paper analyzes the option of bond issue, especially as an alternative to bank credits, under the conditions of the Czec...

The current state of economic climate in Russia shows us that it is very important to analyze various schemes of financing investment needs and variants of capital structure decision for the vital industries. Based on the analysis we can make a decision about an optimal financing mechanism.

Large syndicated debt contracts regularly include accounting-based performance pricing provisions that provide firms incentives to manage these measures around the pricing thresholds tied with the interest rate charged on a loan. To examine this inefficiency the study develops a theoretical model that formally analyzes trade-offs between the costs and benefits of discretionary reporting and employs methods of empirical analysis to test predictions of the model. Results of the study indicate that more careful desig...

Currently is very topical the issue of stability and liquidity of banks and banking sectors. In this paper we bring evaluation of the liquidity situation in the banking sector of the Slovak Republic and comparison of main tendencies with the Eurozone. It will focus in particular on whether the current structure of loans as the main generator of profit is appropriately according preferences banks to get the profit in future. Although liquidity is related to the assets and liabilities of banks, the article focuses o...

In this paper the authors enhanced the importance of corporate social responsibility for the economic environment. We firstly made a review of several reference material exposing different research findings of the authors interested in the topic. Consequently, we expressed our own opinions and highlighted the CSR impact over community, without ignoring the risks and the importance of global consciousness. The results of this research show that this concept is not new for companies operating in Romania and our dema...

The aim of this article is to track the process of a corporate capital structure creation, and more specifically it is focused on the investment decisions as the preceding step thereof. The final corporate capital structure depends generally on a large variety of determinants, and the chosen investment decisions are formed by the firm's individual decisions. What are the real motives and causes behind the firm's investment decisions? The empirical research attempts to answer this question, which is concerned with ...

The purpose of this research is to present a known concept - the one of financial performance, but being assessed by means of random variables, which are routinely applied by econometric techniques. The innovation of the article is ensured by showing there would be a correlation between the two simple concepts. The research is fundamental type. An articles database was intensively used in order to assess the frequency of occurrence of the two mentioned notions published together within the same article. After inve...

In recent years - characterized by a dynamic development of the capital and money markets of many countries –there has been an increased need for full, comparable and reliable information on the costs and financial results achieved by companies. In the conditions of Polish economy transformation and progress in the conducting of business, which has been made in the twentieth century and is still continuing, managing a business makes it is necessary to use modern management tools in the field of accounting. Contr...

The problem of capital and its cost was and still is an object of intense discussion in economy. Capital is one of the notions that are often used in the economic sciences but at the same time, it is interpreted in a very different way. It rises a problem to determine its accompanying cost in one definite way. At the beginning, the cost of capital was identified with the cost of obtaining debt capital, in particular with the cost of loan or interest rate. However, this issue has been developing dynamically and cur...

Corporate bonds represent a suitable source of financing capital intensive projects and activities. The key factor determining the effectiveness of a corporate bond issue and affecting its success is the cost of such a corporate bond issue. The paper authors aim to identify expenses relating to the issue of corporate bonds both in the classic and mezzanine forms and, subsequently, quantify their amounts for the current conditions in the Czech economy. The paper defines two basic components of corporate bond issue ...

This paper highlights the evolution and the current trends in the financing of public institutions of academic education in Romania. The investigative approach will begin with a review of the funding modalities, starting with the communist regime until now, following to highlight the evolutionary stages and the important moments in the finance policy reform. We shall pay a particular attention to the changes brought by the new National Education Law, as an opportunity to modernize the old structure of the financin...

Visegrad group is the group of counties that recently entered European Union. They are going through the massive demographic changes. In this article we were investigating its contribution to the insurance market changes. From the methodological prospect we used covariance and correlation matrices to find out whether there is a relation between each determinants and insurance market, then we used logistic regression model to find out significance and after that we tested the model by the Augmented Dickey Fuller (A...

The purpose of the article was to find out factors that affect dividend decisions in Estonian non-financial firms. Our analysis was based on the firm-level data of all Estonian companied for the period 2008-2011. Our dataset includes the period of latest financial and economic crises (2008-2009), which allowed us to analyze the dividend policy in case of extremely negative economic environment. Our database included more than 30 thousand observations. Based on the regression analysis we found that the factors infl...

Tax evasion and tax avoidance distort competition; deform business environment and influence efficiency of taxation. The states may affect the size of shadow economy and thus the amount of tax evasion by their activity as well as by the harmonization of tax legislative at international level. The paper investigates a statistical dependence concerning the relationship of the shadow economy and tax evasion. It is estimated that more than three-quarters of total tax revenue loss in the EU accounts for tax evasion lin...

Value added tax revenues represent almost half of the total tax revenues of public adminstration in Slovakia. Discrepancy between the growth of VAT revenues and the growth of its macro-economic base in recent years can be attributed mainly to the increase of tax evasion as well as to the low efficiency of VAT collection. The efficient tax collection and the total loss of tax revenues as a result of non-declaration and non-payment of VAT stand therefore in the center of attention of the Slovak government. A serious...

There is a growing consensus that focusing on short-term profit or shareholder value leads to poor business results, so businessmen should shift from short-term profit orientation to long-term success. That paradigm shift in business doing is a massive challenge for accounting theory. It requires re-thinking much of accounting methodology. Accounting theory should therefore encompass not only financial and economic data, but also should embed social aspects, among them ethical and environmental issues. In author's...

Slovak banking system began to develop towards a modern European banking system since 1989. During this period Slovakia was part of Czechoslovakia. Reform of banking system started to prepare before the Revolution in 1989. Its implementation took place after 1989. This contribution defines the three main stages of development of the banking system in Slovakia – creation of market conditions, development in conditions of the Slovak Republic and Slovak banking sector as part of banking sector of euro zone. This co...

The article is devoted to the problems of the financial statements analysis, using the method of financial ratios. The choice of the main financial ratios is made having in mind peculiarities of the Russian Federation extractive industries. The recommended standard values of financial ratios are received branch-wise, using the method of hierarchical cluster analysis.

Although for more than a century investors have been almost exclusively interested in funds from countries with mature economies and developed capital markets, nevertheless during the last decade funds from emerging economies have increasingly started to draw investors' attention. High growth rates and frequent abnormal returns make local mutual funds being a strong investment opportunity for sophisticated investors from developed markets and, thus, their performance evaluation being a frequent topic of modern res...

A successful financial management is related to the optimum settings of the asset structure and in particular to the creation of an effective mix of resources for corporate asset financing. During the past years, many scientific theories have been postulated that addressed both the rules for determining the optimal structure of assets and capital resources. Also a number of factors have been analyzed that influence the process of determining the optimal structure of assets and liabilities. In the early days of res...

As the rate of globalisation is rapidly increasing, all the countries are taking the necessary measures to ensure the correct presentation of data about the financial position and performance results of the company. According to the International Financial Reporting Standards and Lithuanian Business Accounting Standards, investment property is valued using the cost or fair value method at one's choice. Therefore, one faces the problem of selecting the appropriate property valuation method so that financial stateme...

Financial statements are generally considered to be one of the primary information sources for stakeholders of companies, whose shares and/or bonds are quoted on the capital market. Due to their significant importance for the financial condition assessment of these entities, the utmost importance is the quality of financial reporting, including in particular the reliability of published financial data. Given the relatively frequently observed inconsistencies and gaps in this field over several years of author's ac...

Establishing and developing a business requires the existence of financial resources. Therefore, in the case of foreign trade business is primarily puts it the problem of the financing of foreign trade activities. Moreover, in international economic relations system, financial and banking techniques to promote economic exchanges with foreign occupies a special place. As a general term, financing involves, regardless of its shape, attracting the funds needed for the business, funds that could be made from its own r...

The aim of this paper was to assess and compare the evolution of two indicators of financial autonomy, to measure regional disparities in financial autonomy and GDP per capita and then investigate the existence of the relation between the financial autonomy of municipalities and the GDP per capita of NUTS 3 regions in Slovakia in the time periods 2005-2008 and 2009-2011, it is before and after the outbreak of the economic crisis. Regional disparities in financial autonomy as well as in GDP per capita were growing ...

Influence of globalization permeates all areas of human activity, it is the matter of technology and human knowledge transfers. Thus it is obvious, that European Union's membership enables rapid development of merger states. Under the economic activities of companies in the international environment, exchange of goods and services becomes an integral part of their economic life and brings necessity for the proper measurement of imported assets, as their value will have a subsequent impact on the reported financial...