VOLUNTARY DISCLOSURE OF CASH FLOWS INFORMATION AND COMPANY\u27S CHARACTERISTICS: EVIDENCE FROM THE CROATIAN CAPITAL MARKET

This paper focuses on the voluntary disclosure of cash flows information of Croatian large companies whose shares are listed on the Zagreb Stock Exchange, with the aim to identify characteristics of companies that provide extensive disclosures. In order to conduct the research and test the likelihood that company publicly announces wealth of information about cash flows, three groups of company’s features are defined as variables: accounting data, capital market information and company’s qualitative characteristics. Verification of empirical evidence was provided through the sample of Croatian listed companies using logistic regression analysis. Obtained results indicate that despite the desire of the regulatory authorities that capital market investors receive all relevant information, companies voluntarily disclose information about cash flows very rarely. Those companies are young (i.e. their shares are listed on an organized securities market for a short time) and profitable, with growing net income and growing cash flow from operating activities and usually use indirect method for operating cash flow report. The provision of features of Croatian companies that voluntary disclose cash flow information can be found as contribution of our research, because this topic in a cases of macro-oriented accounting system economies, i.e. bank oriented economies with emerging capital market is still unexplored

VOLUNTARY DISCLOSURE OF CASH FLOWS INFORMATION AND COMPANY\u27S CHARACTERISTICS: EVIDENCE FROM THE CROATIAN CAPITAL MARKET

This paper focuses on the voluntary disclosure of cash flows information of Croatian large companies whose shares are listed on the Zagreb Stock Exchange, with the aim to identify characteristics of companies that provide extensive disclosures. In order to conduct the research and test the likelihood that company publicly announces wealth of information about cash flows, three groups of company’s features are defined as variables: accounting data, capital market information and company’s qualitative characteristics. Verification of empirical evidence was provided through the sample of Croatian listed companies using logistic regression analysis. Obtained results indicate that despite the desire of the regulatory authorities that capital market investors receive all relevant information, companies voluntarily disclose information about cash flows very rarely. Those companies are young (i.e. their shares are listed on an organized securities market for a short time) and profitable, with growing net income and growing cash flow from operating activities and usually use indirect method for operating cash flow report. The provision of features of Croatian companies that voluntary disclose cash flow information can be found as contribution of our research, because this topic in a cases of macro-oriented accounting system economies, i.e. bank oriented economies with emerging capital market is still unexplored

Influence of silicone oil tamponade after vitrectomy on intraocular pressure [Tamponada silikonskim uljem i njezin utjecaj na vrijednosti intraokularnog tlaka]

The aim of this prospective study was to determine the possible influence of the silicone oil tamponade after vitrectomy on the early intraocular pressure (IOP) elevation, which is a major risk factor for developing secondary glaucoma in patients with vitreal and retinal proliferative changes. The research included 110 patients which were allocated in three groups according to the medical history data. The surgical procedures were performed at the Eye Clinic, University of Zagreb School of Medicine. The control group comprised 40 patients who underwent vitrectomy with air or saline solution tamponade. The second group consisted of 40 patients with retinal detachment and proliferative retinopathy who had vitrectomy with silicone oil tamponade and the third group were 30 patients with diabetic retinopathy who underwent vitrectomy and tamponade with silicone oil. The intraocular pressure was measured and gonioscopy was performed in all patients one month before and after vitrectomy. The results showed that there is no statistically significant difference among IOP values before and after vitrectomy in the control group (p = 0.104) as well as in the preoperative IOP values among all three groups of patients. The data analysis determined that in both groups of patients with silicone oil tamponade after vitrectomy, there is a statistically significant difference in IOP values one month after the surgical procedure (p = 0.000). The mean IOP values in those patients a month after vitrectomy were significantly higher compared to the control group (p < 0.05). Comparison of the IOP one month after vitrectomy between the patients with retinal detachment and those with diabetic retinopathy showed no statistically significant difference (p = 0.331) but the qualitative analysis showed that the IOP one month after vitrectomy was 2 mmHg higher in the diabetic retinopathy group. The results suggest that there is no difference in angle width before and after vitrectomy among different groups of patients. Emulsified silicone oil was confirmed in 18% of patients in the retinal detachment group. In 17% of patients in the diabetic retinopathy group the emulsified oil was found in the angle, whereas a 10% of patients had neovascularization of the angle one month after vitrectomy. The IOP elevation in the early postoperative course may be caused by intravitreal instillation of the silicone oil after vitrectomy. Emulsification of the silicone oil may lead to the early IOP rise; especially in the diabetic patients with angle neovascularization which itself can additionally accelerate the development of the secondary glaucoma

The impact of article title on the interpretation of scientific research: a randomized trial

Aims: Interpretation and comprehension of the available health information may be a difficult task for the public, since previous studies have shown that understanding scientific articles can be difficult for lay people. This study aimed to determine whether title incongruence with the conclusions of the study affects readers’ interpretation and understanding of the read content. Methods: We conducted a randomized trial via an online survey using abbreviated summaries of two scientific articles (named “Breakfast” and “Music” trial groups), each of which had a title congruent or incongruent with the conclusion. The participants were adults (n=283), women (81.6%), aged over 30 (53.7%) and with higher education (77.4%); 149 participants took part in the “Breakfast” group, and 134 participants took part in the “Music” group. The primary outcome was text comprehension measured by a correct answer to the question about the conclusion in the summaries. Results: In both trial groups, we found no differences in answer to the questions about whether the title was congruent or incongruent with the conclusion of the summaries. In the “Breakfast” group, an essential predictor factor for a correct answer was a higher score on knowledge dimensions, while in the “Music” group correct answer predictors, except higher scores on knowledge dimensions, were family physician and search of domestic health websites as sources of health information. Finally, the knowledge score was the only predictor in the overall logistic regression model, where data from both groups was merged (Cox & Snell R2=0.32). Conclusion: The title does not affect making of conclusions based on scientific information, which means that people rely on the read article content or some other part of the article other than the title itself. Trial registration: https://osf.io/4f6s

The effects of company characteristics on financial reporting quality – the application of the machine learning technique

Purpose: The paper aims to determine the level of financial reporting quality (FRQ) in listed companies in Croatia, as an example of a macro-based accounting system with an underdeveloped capital market, and identify company characteristics that affect it. The paper systematizes the existing key knowledge of FRQ. Furthermore, it critically analyses the principles and direction of influence of various qualitative and quantitative as well as financial and non-financial characteristics of a company. Methodology: The empirical analyses involve joint testing of the machine learning technique (MLT) and the economic hypotheses. M5 algorithm is applied to identify the factors that influence the quality of voluntary reporting as well as the direction and intensity of their influence. Results: The results show that profitability, stock market listing duration (in years), and company size positively affect the level and extent of FRQ through voluntary disclosure of information in the annual financial reports of Croatian listed companies. In addition, differences in FRQ between different areas of economic activity and depending on the type of auditor were found. Conclusion: Croatian companies should adopt good reporting practices to meet the requirements of the global market and thus contribute to the improvement of the overall transparency system. The same is expected from the relevant regulatory authorities who should encourage full disclosure. The paper provides several scientific contributions: first, the spatial dimension of the research; second, the comprehensive literature review; and third, the MLT application in the research on FRQ. An important practical implication of these findings is that they will help financial statement users in the economic decision-making process

Utječe li produktivnost na profitabilnost poduzeća u industriji prerade mlijeka? Iskustva Slovenije, Hrvatske i Srbije

This paper provides insights into productivity in dairy processing companies in Slovenia, Croatia and Serbia. The aim is to find out whether EBITDA per employee, as a measure of overall productivity as well as labour and capital productivity and their management positively affect company’s profitability. Literature review shows that this issue was relatively neglected, although increase in productivity is regarded as the most important factor in maintaining a competitive advantage in most developed countries. Results obtained show that comprehensive measure of productivity EBITDA per employee has statistically significant positive impact on company’s profitability, the same as productivity management components labour cost competitiveness and capital productivity.Ovaj rad pruža uvid u produktivnost poduzeća iz industrije prerade mlijeka u Sloveniji, Hrvatskoj i Srbiji, kako bi se utvrdilo postoji li pozitivan utjecaj ukupne produktivnosti, produktivnosti rada te produktivnosti kapitala na profitabilnost. Pregled dosadašnje literature pokazuje kako je ova problematika bila prilično zapostavljena, iako je povećanje produktivnosti i u najrazvijenijim zemljana naglašeno kao najznačajniji čimbenik u održavanju konkurentske prednosti. Istraživanjem je dokazan pozitivan utjecaj produktivnosti na profitabilnost, pri čemu je produktivnost mjerena sveobuhvatnom mjerom EBITDA po zaposlenom, te parcijalnim mjerama troškovna konkurentnost rada i kapitalna produktivnost

Obilježje računovodstvenih manipulacija u Hrvatskoj

Investors and other users of financial statements seek for the information that is less likely to be affected by possibilities of financial number games. Accounts manipulations have become an issue of critical importance in today’s capital markets and have been subject of many researches in several countries. However, their features in Croatia are still quite unexplored. In this paper a survey was made with auditors about most frequent areas of accounts manipulations in Croatia. The questionnaire was sent to 274 auditors, but only 54 of them filled it out correctly and return it back. After that, obtained results were compared with archival data extracted from auditor reports published in abbreviate prospects of listing public companies. Prospects of 238 companies listing on the Zagreb Stock Exchange and Varaždin Stock Exchange were reviewed, but only 136 or 57.14% of them provided all data necessary for the analysis. The evidence shows that accounting manipulations are very common praxis in Croatia, especially in area of depreciation policy, write-off of accounts receivable, asset impairments and long-term investments in financial instruments. Beside above mentioned items, auditors pointed out taxes, inventories, revenues, provisions and revalorization as very frequent areas of accounts manipulations.Svi korisnici financijskih izvještaja, a posebice ulagači u stalnoj su potrazi za informacijama koje su što manje podložne “igranju s brojevima”. U današnje vrijeme, računovodstvene manipulacije su postale važan problem na tržištima kapitala i stoga su predmet mnogih istraživanja u različitim zemljama. Međutim, njihova obilježja u Hrvatskoj su još uvijek nedovoljno istražena. U ovom radu su obrađeni rezultati ankete s revizorima o najčešćim područjima računovodstvenih manipulacija u Hrvatskoj. Upitnik je poslan na adrese 274 revizora, ali od vraćenih upitnika samo 54 su u potpunosti točno ispunjena. Nakon toga, rezultati dobiveni anketiranjem revizora su uspoređeni s povijesnim podacima izvedenim iz revizorskih izvješća objavljenih u skraćenim rospektima listanih poduzeća. Analiza povijesnih podataka obuhvatila je 238 poduzeća koja su listana na Zagrebačkoj burzi i na Varaždinskoj burzi, no samo je 136 (57,14%) pregledanih skraćenih prospekata sadržavalo sve podatke potrebne za analizu. Rezultati dobiveni u oba istraživanja pokazuju da su računovodstvene manipulacije vrlo učestala pojava u Hrvatskoj, posebno u područjima politike amortizacije, otpisa potraživanja, umanjenja vrijednosti dugotrajne imovine i dugoročnih ulaganja u financijske instrumente. Uz spomenuta područja, revizori su istaknuli poreze, zalihe, prihode, rezerviranja i revalorizaciju kao učestala područja računovodstvenih manipulacija

MOTIVES FOR ASSET REVALUATION POLICY CHOICE IN CROATIA

The aim of this paper is to research managers’ motives of accounting policy choice for long-term nonfinancial assets. International Financial Reporting Standards (IFRS) allow managers to choose between cost and revaluation model for measurement after recognition. The assumption is that manager’s decision is opportunistic so they use the revaluation model as a device to improve perceptive borrowing capacity of a company, and consequently, to reduce debt cost. Prior studies were mainly conducted in developed, marketoriented economies, unlike Croatia. The contribution of this paper is the research of motives and determinants of asset revaluation policy choice in bank-oriented economies with inactive markets. Furthermore, multivariate logistic regression was not used as a research method in this field of accounting in transition and emerging economies till now. Empirical evidence is provided through the sample of Croatian listed companies and the results show that large, profitable companies with low liquidity ratio, low cash flow ratio and increasing debt are more likely to perform upward revaluation

Uticaj odabranih faktora koagulacije na hemijski sastav seruma dobijenog centrifugiranjem slatkog kazeinskog gela

Technological operations applied during curd processing influence syneresis and total solids content of cheese. Syneresis is not a simple physical process representing whey segregation due to curd contractions. Numerous factors can influence the process of syneresis. The aim of this work was to investigate the influence of various parameters (pH, quantity of CaCl2 added, temperature of coagulation and heat treatment) on induced syneresis. Reconstituted instant skim milk (control samples) and reconstituted instant skim milk heated at 87ºC for 10 min (experimental samples) were coagulated at 30ºC and 35ºC, and pH of 5.8 and 6.2 with 100, 200 and 400 mg/l of CaCl2 added. According to our results, these parameters had significant influence on nitrogen content of serum as well as on the distribution of nitrogen matter from gel into sera. Due to the formation of coaggregates the best rheological properties of gel were obtained for experimental samples coagulated with 400 mg/l of CaCl2 added at pH 5.8 and temperature of 35ºC.Tehnološke operacije koje se primenjuju za vreme obrade gruša, utiču na brzinu sinerezisa i na sadržaj suve materije sira. Sinerezis predstavlja izdvajanje surutke usled kontrakcija gruša i ne predstavlja jednostavan fizički proces. Na brzinu izdvajanja surutke odnosno sinerezis utiče veći broj faktora. U ovom radu je ispitivan uticaj različitih faktora primenjenog termičkog tretmana mleka, pH, količine dodatog CaCl2 i temperature koagulacije na količinu izdvojenog seruma odnosno sinerezis. Rekonstituisano obrano mleko (kontrolni uzorak) i rekonstituisano obrano mleko termički tretirano na 87ºC/10 minuta (ogledni uzorak) je koagulisalo pri različitim temperaturama 30ºC i 35ºC, pH vrednostima 5.8 i 6.2, kao i pri dodatku 100, 200 i 400 mg/l CaCl2. Na osnovu dobijenih rezultata može se zaključiti da ispitivani faktori koagulacije utiču na sadržaj azotnih materija u izdvojenom serumu. Kod oglednog uzorka u kojem je došlo do obrazovanja koagregata proteina mleka najbolje reološke osobine slatkog kazeinskog gela su dobijene pri sledećim uslovima koagulacije: 35ºC, pH 5.8 i dodatku 400 mg/l CaCl2