Year 2015, Issue 2

Date published

12.6.2015

CONTENTS

  • Penka Goranova
    ANALYSIS OF METHODS FOR BRAND EQUITY VALUATION
    JEL: M31, M37
    Abstract: The impact of brands has become more powerful than ever in the contemporary world and brand managers are aware that brand growth and expansion are essential for the increase of sales and the development of companies in general.... The impact of brands has become more powerful than ever in the contemporary world and brand managers are aware that brand growth and expansion are essential for the increase of sales and the development of companies in general. Leading companies like Xerox and Coca-Cola report that brand is as important to their performance as factories, innovations and capital are, since powerful brands attract wealthy customers and investors. The concept of brand equity has been widely employed lately. It refers to the financial worth which adds to the physical properties of tangible assets and of products in particular. Brand equity is in essence the measurement of the value added. The objective of this paper is to present contemporary methods for valuating brand equity and to provide a comparative analysis of their employment. In-depth knowledge about global practices in brand equity valuation is of fundamental importance to designing a successful and efficient branding strategy.
  • Angel Angelov
    CHARACTERISTICS AND APPLICATION OF NON-TARIFF INSTRUMENTS FOR CONDUCTING CUSTOMS POLICY
    Abstract: In order to realize the customs policy of every country, two groups of instruments are used: purely customs instruments - the duty rates for individual products; legally mandated methods for calculating customs values; the... In order to realize the customs policy of every country, two groups of instruments are used: purely customs instruments - the duty rates for individual products; legally mandated methods for calculating customs values; the application (and lack of application) of the principle of the origin of dutiable goods, and non-tariff instruments that are subject to review by this development. The aim of the study is to define the characteristics and consider the application of non-customs instruments which in turn can also be resolved into two groups - one for restricting imports, and the other for stimulating exports. These instruments are also used to achieve other objectives which can be economic, fiscal, social and political. Practice in recent years shows that these are used more often to achieve political goals. Furthermore, this happens at the expense of the first three sets of objectives. The reasons are different. The main one among them is the international commitments made by governments and related to their membership in various trade and customs organizations and agreements such as the WTO (World Trade Organisation), WCO (World Customs Organization), and others.
  • Lubomir Lubenov
    THE DEVELOPMENT AND STATE OF CONTEMPORARY AGRICULTURAL MARKETS
    JEL: Q13, Q17
    Abstract: The aim of this research is to outline some key trends in the development and state of contemporary global and Bulgarian agricultural markets. The research comprises the occurring changes in agricultural markets. The analysis of... The aim of this research is to outline some key trends in the development and state of contemporary global and Bulgarian agricultural markets. The research comprises the occurring changes in agricultural markets. The analysis of on-going transformations includes the state and dynamics of their global dimensions, and the influence of social, technological and other factors. We have analysed the GMO, organic and online markets of agricultural products in relation to their prospects for development on a global scale and at a regional level in Bulgaria. We have ascertained tha,t as a whole, the trends of expanding agricultural markets conventional, organic, genetically modified foods and online - are the result of social transformations and technological development. We have observed a significant delay in Bulgarian agricultural markets compared to the trends and development of world agricultural markets. We have ascertained a strong discrepancy bearing in mind the development of agricultural business in Bulgaria throughout the last decade and a significantly slower development of national agricultural markets, infrastructure and market relations. Particular difficulties exist related to the realization of agricultural produce created in Bulgaria.
  • Marina Nikolova
    THE NEED TO EVALUATE ECOSYSTEM BENEFITS
    JEL: O13, Q57
    Abstract: To preserve our environment means to preserve the soil, the water, and the natural resources, i.e. life on our planet. And indeed, unspoilt nature is not only a prerequisite, but also valuable capital for doing business... To preserve our environment means to preserve the soil, the water, and the natural resources, i.e. life on our planet. And indeed, unspoilt nature is not only a prerequisite, but also valuable capital for doing business successfully, i.e. developing eco-tourism, organic farming, sustainable forestry, etc. On the one hand, managerial decisions which employ environmentally friendly production methods in our country make it possible to manage eco-systems (and bio-diversity in general). On the other hand, eco-systems provide a wide range of useful services and thus improve the quality of our life and create favourable conditions for the long-term well-being of people. The value of eco-systems will increasingly continue to grow in the future, mainly due to the loss of eco-systems. Therefore, the need to evaluate the services provided by eco-systems is becoming more obvious. Conscientious management of natural capital and services provided by eco-systems lead to increased social and economic sustainability not only at a regional and national level, but on a European and global scale as well.
  • Tsetan Pavlov
    APPLICATION OF BEHAVIORAL FINANCE IN MODELING BULGARIAN EQUITY RISK PREMIUM
    JEL: G10, G14
    Abstract: The paper seeks a plausible explanation of the magnitude of equity risk premium, by modeling leading behavioral concepts in the conditions of Bulgarian capital market. Firstly, the fair equity risk premium is derived by basic... The paper seeks a plausible explanation of the magnitude of equity risk premium, by modeling leading behavioral concepts in the conditions of Bulgarian capital market. Firstly, the fair equity risk premium is derived by basic neoclassical consumption-based model. Subsequently, the conducted comparison between fair and empirical risk premium indicates that the demanded compensation by investors for owning Bulgarian stocks cannot be rationally explained, i.e. there is an equity risk premium puzzle on BSE. On this basis, we have applied a behavioral model based on two well-known characteristics of human behavior in conditions of risk and uncertainty loss aversion and narrow framing. Set at reasonable levels of risk and loss aversion, the model has managed to generate risk-free rate and market returns close to empirical levels.