TESTING EFFICIENCY OF GEORGIAN LARI US DOLLAR EXCHANGE MARKET

Georgian business and academic circles time and again debate whether the exchange rate for the national currency, Lari (GEL), is determined by a free and efficient market or can be predicted and/or manipulated. This paper attempts to resolve that debate. It addresses whether the GEL/US$exchange market is weak form efficient, i.e., are GEL/US$ daily fluctuations truly independent from its past values? In order to test the efficiency of the market we analyzed daily GEL/US$ rates for years 2001 to 2017. The results of statistical tests are mixed. We conclude that in 2006 and for the period 2009-2017 the exchange market is weak form efficient with exception of December 2014. The market was inefficient in other years, in particular in 2007 and 2008. This paper identifies global as well as local reasons which might be the cause of this inefficiency. For 2007 and 2008 the main reasons were (1) irrational market growth globally followed by the financial crisis and (2) an attempt of Georgian ruling elite to create an appearance of solidification of economy. Other reasons were imperfect rules for determining the official exchange rate (revised in 2009) and the absence of transparent interbank trading platform, again before 2009

TOOLS AND MODELS FOR RATIO ANALYSIS BASED ON GEORGIAN COMPANIES DATA

The main purpose of the research is to identify two types of benchmarks required for the financial ratios analysis based on Georgian data. To obtain the benchmarks of the first type - industry average, the financial statements for 2018-2019 years of 131 companies in the manufacturing industry were processed. Due to absence of financial market data, a market imitation study was conducted to obtain the second type of benchmarks – ratios of the high performance companies. To achieve this, a survey of 26 representatives of financial industry companies was conducted through a questionnaire, containing the financial ratios of 9 companies from manufacturing industry. Respondents selected companies whose stock prices, in their opinion, would increase or decrease according to their financial ratios. To check the validity of the results we conducted: a follow-up interview with several respondents, a regression analysis of results, and a financial analysis of two high-rating and three low-rating companies using forecasts and free cash flow valuation. As a result of the research, we obtained two types of benchmarks - industry averages and a set of ratios of "high performance" companies. We saw that none of the coefficients taken separately explain the respondents' choices, and that the survey results are consistent with the forecasts and the analysis of the value of the company. During the research, we developed a methodology on how to identify high-performing companies despite virtually non-existent capital market in Georgia. The methodology can be used for other, similar studies. The results are important for anyone who uses financial analysis. It will be interesting for researchers, for example, to study current processes in economics and companies and, hopefully, will contribute to capital market development in Georgia

Zachowanie przeszłości na dziś: polityka rządu Gruzji w zakresie ochrony dziedzictwa kulturowego w kontekście niepewności politycznej

The protection of cultural heritage does not only have social but political and economic consequences as well. While the contents of a national and personal identity are closely tied to inherited cultural heritage, this heritage, as far as material culture is concerned, requires political support often beyond the means of the countries concerned. International support is rendered by organizations such as UNESCO with its World Heritage List, which includes World Cultural treasures as well as Natural Monuments. Politically, cultural heritage can be either a cohesive force or a divisive one when exploited for political purposes directed towards political hegemony. Economically, the cost of preserving cultural heritage can be a lucrative source of income as a result of the global promotion of cultural tourism. By this research, we can come to the idea that the State should facilitate the community empowerment through preservation and development of the cultural heritage – its organic environment, because without protection of the cultural environment and misusing the opportunities offered by it we cannot achieve the proper – i.e., feasible, sustainable – social and economic development of a country.Ochrona dziedzictwa kulturowego ma nie tylko konsekwencje społeczne, ale także polityczne i ekonomiczne. Podczas gdy zawartość tożsamości narodowej i osobistej jest ściśle powiązana z dziedzictwem kulturowym, dziedzictwo to, jeśli chodzi o kulturę materialną, wymaga wsparcia politycznego często poza zasięgiem zainteresowanego kraju. Międzynarodowe wsparcie udzielane jest przez organizacje światowe takie jak UNESCO – z jego listą światowego dziedzictwa, która obejmuje skarby kultury światowej oraz pomniki przyrody. Politycznie dziedzictwo kulturowe może być pojmowane jako spójna siła, albo i podział, gdy wykorzystywane jest do celów skierowanych na hegemonię polityczną. Z ekonomicznego punktu widzenia istota zachowania dziedzictwa kulturowego może być intratnym źródłem dochodów w wyniku globalnej promocji turystyki kulturowej. Dzięki niniejszym badaniom możemy dojść do przekonania, że dane państwo powinno ułatwiać wzmocnienie pozycji społeczności przez zachowanie i rozwój dziedzictwa kulturowego, a więc naturalnego otoczenia owej społeczności, ponieważ bez ochrony środowiska kulturowego i przez nadużywanie oferowanych przez nie możliwości nie możemy osiągnąć właściwego – tj. realnego, zrównoważonego – rozwoju społecznego i gospodarczego kraju