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Galina Zaharieva, Onnik Tarakchiyan, Andrey Zahariev
MARKET CAPITALIZATION FACTORS
OF THE BULGARIAN PHARMACEUTICAL SECTOR IN PANDEMIC ENVIRONMENT
Abstract:
The article is focused on the changes of the market capitalization in the Bulgarian pharmaceutical sector during the COVID-19 pandemic. The aim of the article is to measure and justify the impact of a set of factors that affect the market capitalization of public companies from the Bulgarian pharmaceutical sector in a pandemic environment. The main performance indicator under consideration is the market capitalization of the leading pharmaceutical companies included in the BGBX40 stock exchange index during the two-year pandemic period (from June 2020 until May 2022). For the purpose of the research, a multiple linear regression model (OLS) is employed with the help of GRETL open-source software. Four of the selected eight impact factors are related to the sales of medical products; three are related to COVID-19 statistics and the last is a stock market index. The results from the analyses evidence a strong relationship between the impact factors and the market capitalization of Bulgarian pharmaceutical companies during the pandemic. The coefficient of determination shows that 96% of the change in the market capitalization could be explained by the change in the factors included in the model. The growth of the market capitalization of the studied Bulgarian companies over a period of 2 years is comparable to that of the world leading pharmaceutical companies that offer COVID-19 vaccines.
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Oksana Kiforenko
THE EU POLICIES AS THE PUBLIC ADMINISTRATION TOOL TO INCREASE
THE AGRICULTURAL PRODUCTS EXPORTS
Abstract:
Agriculture is an important source of food for people, forage for animals and raw materials for processing industries. Effective public administration of such an important economy sector as agriculture and all the sectors connected with it is an absolute must for a sustainable development of every single village as well as the whole country/continent/world. The research was conducted with the help of the univariate, empirical and comparative analyses. For better visual representation of the analysis results, such visualization tools as tabular method, bar charts, graphs with markers were used in the research. The trend lines for both products types, being upward either during the researched timeframe or the next two years taken for the projection making, were built with the help of the exponential function, having been chosen from the exponential, linear, logarithmic, polynomial and power ones. The criterion for the choice of the appropriate function was the values of the R² coefficient. The research results testify to the effectiveness of the EU public administration for agriculture and agricultural products exports as well as the correctly created/chosen/implemented strategies/poli¬cies/ini¬tiatives. The research and its results are of great help for public administrators, companies engaged in the international trade for agricultural products of either the EU or any other country outside of the union as well as NGOs, beginners and experienced statisticians and data analysts.
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Olena Stryzhak
THE ROLE OF HUMAN CAPITAL FOR ECONOMIC DEVELOPMENT IN A DIGITALIZED WORLD
Abstract:
The article is aimed at studying the features of the relationship between economic development, human capital and information and communication technologies. The panel sample includes data for 87 countries for 2019. The study uses the World Bank approach to classify countries to groups by income levels. The relationships between the analysed indicators are determined by groups based on the calculation of correlation coefficients. In addition, the paper presents a detailed spatial and graphical analysis of the indicators distribution by groups. The research shows that there are differences between the groups, both in the strength of the relationship and in the distribution of human capital development, digital technologies and GDP per capita. The article also analyses the relationship between GDP and the components of human capital and digital development. The study confirms the heterogeneity of economic development across countries and regions, highlighting differences across groups of countries depending on income levels.
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Krasimir Kulchev
THE INTERPRETATION OF FINANCIAL STATEMENTS IN TERMS OF CONTEMPORARY FINANCIAL ANALYSIS
Abstract:
The evolution of financial analysis is accompanied by an extensive use of indicators whose calculation is based on data provided both by entities in their financial statements and by financial markets. The analysis of data and indicators generated by the capital market is considered to be of primary importance when studying the financial position of enterprises. This view is supported by a substantial number of analysts and, although not applicable to all enterprises, it raises a number of questions, two of them being whether the new analytical indicators are replacing the classic indicators of financial statement analysis and whether financial statements have retained their fundamental role as a primary source of data in studying the financial position of enterprises. The objective of this paper is to answer these questions by approaching the interpretation of financial statements within the context of some unorthodox views about the evolution of financial analysis.
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Borislav Borisov
THE ADMINISTRATIVE CAPACITY INDEX
OF STATE ADMINISTRATION
Abstract:
This paper is based on a research conducted among 80 administration groups of the executive authority. The aim of the survey was to measure the administrative capacity of those groups by 44 indicators. Respondents were selected according to the structure of the state administration formed by the number of employees in each unit of administration. The findings of the research were analysed by computing the average values of the scores of capacity; by employing average weighted values and by determining the uncertainty factor when assessing the capacity of different structures of state administration. We have designed a new, aggregate index for measuring administrative capacity – the Index of the administrative capacity of state administration for good governance. By employing that index, we are able to monitor the systematic progress in terms of current concepts about administrative capacity, applicable to the entire system of state administration.
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Tsetan Pavlov
APPLICATION OF BEHAVIORAL FINANCE
IN MODELING BULGARIAN EQUITY RISK PREMIUM
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 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.
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Andrey Zahariev
ISSUES OF CORPORATE CAPITAL OPTIMISATION IN BULGARIA
Abstract:
The aim of this article is to test a methodology for the optimisation of capital structure in Bulgarian companies, adapted for Bulgarian conditions, on the basis of fundamental company indicators and stock exchange rates over the period 2010 – 2013. A similar methodology provides the answer to a series of questions and solves significant problems faced by business practice, related to the realisation of the main purpose of financial managers in Bulgarian companies – maximising stock wealth. The achievement of this aim is based on the effect of financial leverage on the profit of one share and its stock exchange capitalisation. This research ascertains the complete improvement of post-crisis interest conditions for business credit by financial institutions to companies in our country. Within the range of the research, we identify seventeen separate issues in the field of applied capital optimisation which require precise financial and investment circumstances and appropriate solutions.
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Margarita Nikolova
THE ISSUE OF THE NUMBER
OF HOSPITALS AND THEIR CAPACITY
AND EFFECTIVENESS IN BULGARIA
Abstract:
Over the last decade in Bulgaria medical institutions for health care have functioned in an unsustainable and unfavorable environment. This is particularly true for hospitals in towns or villages as some of them have gone bankrupt, while many of them have terminated their activities.
As regards the number of hospitals per 100,000 people, Bulgaria is among the countries of the EU-27 with a relatively large number of hospitals – over 4.44 per 100,000 people. This is a third more than the average ratio of the EU-27 member states and 50% more than the new EU member states from Eastern Europe. This is why research into hospitals takes into account a problem which is very serious for Bulgaria, namely, the activities undertaken and their effectiveness. This article argues for the thesis that the government must stop the uncontrolled growth of medical institu¬tions for health care and introduce a new system of funding according to which the patient must be treated in a complex way, not according to a clinical pathway, because costs do not meet the real expenses of the treatment of a patient with a particular diag¬nosis.
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Boryana V. Dimitrova, Brent Smith, Trina Larsen Andras
BRAND VALUE CO-CREATION VIA
THE PLATFORM ENTERPRISE
Abstract:
Firms today focus on the development of long-term customer relationships and seek ways to actively involve customers in the marketing process. Platform enterprises such as Amazon, Airbnb, and Uber are spearheading the efforts in this direction by providing a digital platform enabling multiple stakeholders to engage in and contribute to brand value creation. However, scholarly research to date has not yet addressed the question of how platform enterprises can effectively and efficiently operate the network they build in a global market in order to stimulate co-creation and enhance brand value creation. We integrate Porter’s “diamond” with the dynamic capabilities approach and develop a conceptual framework, which helps us better understand how platform enterprises utilize their capabilities to exploit the “diamond” and build an “ecosystem of partners” while fostering innovation and encouraging brand value co-creation.
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Rosen Ivanov Kirilov, Mariya Kazakova
HUMAN CAPITAL AS A FACTOR FOR SUCCESSFUL DIGITALISATION OF LOCAL ADMINISTRATIVE SERVICES
Abstract:
This article focuses on human capital as a key factor in the success of the digitalisation of processes of the local authorities’ activity. The experience gained since the period of Bulgaria's membership in the EU and the significant resources invested in the modernisation of central and local authorities highlight the role of the human factor for the effective implementation and operation of e-government tools. This requires revealing the role of human capital in the successful digitalisation of work processes in local administration. Arguments are given in favour of the thesis that the higher its level, the more efficiently and professionally the necessary organisational changes can be made for the successful implementation of the necessary technologies and the development of e-government.
