Government Securities Market in Kosovo: Overview and Recent Developments

This paper provides an overview of recent developments in government securities market in Kosovo. In contradistinction to similar studies of developed financial markets an analysis of developments in the Kosovo’s government securities market, meets certain difficulties and takes into account a number of assumptions, which are to be specifically noted. The Government of the Republic Kosovo has successfully begun issuance of Treasury bills since January 2012, but market development is still at an early stage. The Central Bank of the Republic of Kosovo maintains, records, trades and settles all government securities transactions through the BES,  which  term  includes  the  initial  electronic auction  sales  at  the  primary  auction,  electronic trading  and  the  central  securities  depository.  Most T-bills have been kept by the commercial banks for their own account, and six-month bills have been bought by institutional investors. As a result, no secondary market has yet developed. Capital markets are nonexistent

New Institutional Economics and Economic Development of the Republic of Kosovo

The purpose of this study is the analysis of the new institutional economics according to parameters and criteria that affect the growth and economic development such as free movement of capital, contract enforcement, information costs, risk transfer costs, free competition and their application into practice. Institutional innovation, in terms of establishing more efficient and effective institutions, can only be done if there is support of the whole society, but given the limitations set forth in Kosovo, as possible change of the Constitution, some laws and other internal and external restrictions, the achievement of this goal is difficult. Because of the very specific and serious past, and also very long delay in the process of transformation and transition, the economic development and new institutional economics in Kosovo, according to almost all development indicators has significantly stagnated in comparison with the countries of the European Union and Western Balkans. Economic growth and development implies a very complex and multidimensional process, influencing many factors such as economic, technological, institutional, political, social and cultural. Economic growth depends on political institutions and their capacity to define in a more clear and acceptable way its common goals. Given the political dimension of the capacity of the state, certainly should be considered also the institutional approach of development i.e. political dimensions of the institutions that support economic development.&nbsp

A Theoretical Review on the Relationship between Working Capital Management and Company's Performance

The purpose of this paper is to discuss the relationship between working capital management (WCM) and company’s performance as well as related determinant factors based on literature review. It aims to identify gaps in the current body of knowledge which justify future research directions. Working capital management has attracted serious research attention in the recent past, and has become a hot topic since the financial crisis of 2008. Working capital management is a topic that has been well-known in science as well as in business practice for a long time. At the same time, its presence in the literature is still comparatively low, concentrating on the analysis of the link between WCM and company’s performance with the help of publicly available data and key figures from the annual financial statements. Especially in view of the growing volatility and uncertainties in the credit and financial markets that have been observed for a number of years and the corresponding increase in regulatory capital in the area of ​​external capital raising, the company's focus increasingly shifts to internal liquidity generation from the operating business on the structure of working capital. However, in order to take account of this increased interest in design, a stronger focus on qualitative empirical investigations is necessary from a scientific point of view, which has so far only been sparsely represented in the literature. Besides this, the review of empirical studies explore the avenue for future and present research efforts related to the subjects matter

Effects of capital markets development on economic growth of Western Balkan countries

Through this research paper we have tried to elaborate the issue whether capital market development is an alternative towards economic growth and economic prosperity of developing countries in general, the Western Balkan countries in particular. The focus of the paper is to study the effects of proper functioning of capital markets and their im-pact on increasing the level of savings, capital investments and in locating relevant resources for long-term financing of the economy. The research paper presents positive and negative arguments, linking the establishment and development of a capital market and its impact on economic development of developing countries, particularly Western Balkan countries.

A Theoretical Review on the Relationship between Working Capital Management and Company's Performance

The purpose of this paper is to elaborate the relationship between working capital management (WCM) and company’s performance as well as related determinant factors based on literature review. It aims to identify gaps in the current body of knowledge which justify future research directions. Working capital management has attracted serious research attention in the recent past, and has become a hot topic since the financial crisis of 2008. Working capital management is a topic that has been well-known in science as well as in business practice for a long time. At the same time, its presence in the literature is still comparatively low, concentrating on the analysis of the link between WCM and company’s performance with the help of publicly available data and key ratios from the annual financial statements. Especially, in view of the growing volatility and uncertainties in the credit and financial markets that have been observed for a number of years and the corresponding increase in regulatory capital in the area of external capital raising, the company's focus increasingly shifts to internal liquidity generation from the operating business on the structure of working capital. However, in order to take account of this increased interest, a stronger focus on qualitative empirical investigations is necessary from a scientific point of view, which has so far only been sparsely represented in the literature. Besides this, the review of empirical studies explore the avenue for future and present research efforts related to the subject matter

New Institutional Economics and Economic Development of the Republic of Kosovo

The purpose of this study is the analysis of the new institutional economics according to parameters and criteria that affect the growth and economic development such as free movement of capital, contract enforcement, information costs, risk transfer costs, free competition and their application into practice. Institutional innovation, in terms of establishing more efficient and effective institutions, can only be done if there is support of the whole society, but given the limitations set forth in Kosovo, as possible change of the Constitution, some laws and other internal and external restrictions, the achievement of this goal is difficult. Because of the very specific and serious past, and also very long delay in the process of transformation and transition, the economic development and new institutional economics in Kosovo, according to almost all development indicators has significantly stagnated in comparison with the countries of the European Union and Western Balkans. Economic growth and development implies a very complex and multidimensional process, influencing many factors such as economic, technological, institutional, political, social and cultural. Economic growth depends on political institutions and their capacity to define in a more clear and acceptable way its common goals. Given the political dimension of the capacity of the state, certainly should be considered also the institutional approach of development i.e. political dimensions of the institutions that support economic development

Elements indicating stock price movements: the case of the companies listed on the V4 stock exchanges

Stock markets stand as a financial mechanism that provides liquidity for firms and offers diversification benefits for investors. Stock markets in the Eastern European countries are weakform efficient which exposes them to speculative prices. This study investigates the influence of the macroeconomic and firm-specific factors on stock prices of the listed companies within the Visegrad Stock Markets. The study employs regression analyses based on a Pooled OLS and Fixed Effect models with year dummies and standard errors clustered at the country level, which are robust to autocorrelation and heteroscedasticity. Data collection consists of 55 listed companies based on the weekly stock prices, from January 2013 till December 2018. The results indicate that total equity is the only significant element that influences the individual stock prices of the companies in the four established models. Additionally, increase in supply of shares declines the current stock prices and the other way around. However, the exchange rate and inflation level indicate a negative influence on the stock prices with weaker significance. The findings show that stock markets of the V4 countries are overall inefficient since important indicators, such as economic activity, debt level, cash flow, firm size, oil, and gold prices have limited influence on the stock price movements

Thе іmpаct of fіnаncіаl rеportіng of Smаll аnd Mеdіum Sіzеd Entеrprіsеs іn Economіc Dеvеlopmеnt of Bаlkаn Countrіеs

Thе іmportаncе of іntеrnаl аnd еxtеrnаl аccountіng аs а sourcе of іnformаtіon for ownеrs аnd mаnаgеrs of smаll еntеrprіsеs аnd thеіr dіffеrеnt stаkеholdеrs іs stеаdіly growіng. It іs of crucіаl іmportаncе thаt thе аccountіng systеms аpplіеd by smаll еntеrprіsеs mееt thеіr аctuаl nееds, provіdіng nеcеssаry іnformаtіon yеt аvoіdіng unjustіfіеd аdmіnіstrаtіvе burdеn. It іs rеcognіsеd thаt аpproprіаtе аccountіng іnformаtіon іs іmportаnt for а succеssful mаnаgеmеnt of а busіnеss whеthеr іt іs lаrgе or smаll.At EU lеvеl, аccountіng lеgіslаtіon іs іn plаcе for lіstеd compаnіеs, і.е. thе Intеrnаtіonаl Accountіng Stаndаrds/Intеrnаtіonаl Fіnаncіаl Rеportіng Stаndаrds аnd for non-lіstеd lіmіtеd lіаbіlіty compаnіеs, thе Fourth аnd thе Sеvеnth Compаny Lаw Dіrеctіvеs і.е. thе Accountіng Dіrеctіvеs. Howеvеr, аt EU lеvеl thеrе іs no аccountіng lеgіslаtіon аpplіcаblе to thosе еntеrprіsеs whіch аrе not lіstеd or аrе not lіmіtеd lіаbіlіty compаnіеs; іn most cаsеs wе would bе rеfеrrіng to smаll еntеrprіsеs.Bеcаusе of thе іmportаncе of аpproprіаtе аccountіng іnformаtіon for ownеrs аnd mаnаgеrs of smаll еntеrprіsеs аnd thеіr dіffеrеnt stаkеholdеrs, іt іs consіdеrеd іmportаnt to аnаlysе thе vаrіous аccountіng systеms аpplіеd іn Mеmbеr Stаtеs іn thе cаsе of non-rеgulаtіon аt EU lеvеl

Assessing the diversification risk of a single equity market: evidence from the largest European stock indexes

Diversification of financial securities is considered a substantial element of portfolio risk. In this context, the construction of an optimal portfolio is an ongoing concern for portfolio managers. This study measures the risk–reward tradeoffs linked to the stock indexes of Germany, Spain, Italy, France, and England. First, the stock indexes are analyzed as individual portfolios and later compared to the hypothetical common equity index. The results show diversification benefits gained from a hypothetical common European stock market. Individual stock prices and trade volumes are collected weekly from January 1, 2008 to December 31, 2018. The results indicate that, on average, the most well-diversified equity indexes are IBEX35, FTSE MIB, and FTSE100. In contrast, DAX, MDAX, and CAC40 on average tend to be less diversified. The diversification risk for DAX, MDAX, and CAC40 decreases from joining a common hypothetical stock market, while for FTSE100, FTSE MIB, and IBEX it increases