Державне регулювання відносин у сфері банкрутства в національній економіці

Introduction The deepening crisis in numerous business entities of various sizes is due to macroeconomic and domestic political instability, complicated by the consumer credit crisis, as well as tax and administrative pressure. Therefore, the acute problem of bankruptcy of business entities of different sizes and the need to regulate this issue at the state level. Unprofitable business entities of various sizes cause negative consequences for the domestic economy. Aim and tasks. The purpose of the work is to study state regulation of relations in the field of bankruptcy in the economy of Ukraine. Results. The factors, internal and external, preceding the bankruptcy of economic entities. Thus, the external preconditions of bankruptcy are international, economic, political, demographic and others. Internal prerequisites include economic, technical, technological, social and others. The characteristic and gradation criteria of business entities in accordance with legislative acts of Ukraine are presented. It was revealed that the proportion of sales of micro-enterprises is unequal to their share in the total number of enterprises, indicating their negligible contribution to the development of the national economy. According to the results of empirical studies, it was found that during the analyzed period the share of unprofitable enterprises of different sizes is at least a 25%. Such a large number entails not only low financial stability, insolvency and efficiency of business entities themselves, but also inhibits the process of economic growth of the whole country. The application of the method of multivariate discriminant analysis will allow us to draw a conclusion about the financial condition with assigning it a class in accordance with the values of the integral indicator and taking into account the probability of non-fulfillment of obligations, that is, to identify the presence of an unprofitable enterprise and the likelihood of bankruptcy. Conclusions. So, an analysis of the criteria for graduation of business entities made it possible to establish the difference between the administrative and accounting interpretation of the criteria for the attitude of enterprises to various sizes. The dynamics of structural statistics indicators of domestic business entities were monitored, suggesting that individual entrepreneurs make an insignificant contribution to the development of the national economy. Since a quarter of business entities still remain unprofitable, it is necessary to take preventive measures to prevent the loss of solvency by enterprises, one of which is to identify the existence of an unprofitable enterprise and the likelihood of bankruptcy.Вступ. Поглиблення кризових явищ на численних суб’єктах підприємництва різного розміру зумовлено макроекономічною та внутрішньою політичною нестабільністю, ускладненою кризою споживчого кредитування, а також податкового і адміністративного тиску. Тому гостро постає проблема банкрутства суб’єктів підприємництва різного розміру і необхідність на державному рівні регулювання банкрутства, що спричиняє негативні наслідки для вітчизняної економіки. Мета і завдання. Мета роботи полягає у дослідженні банкротства в економіці України. Результати. Встановлено фактори внутрішнього та зовнішнього характеру, що передують банкрутству суб’єктів господарської діяльності. Представлено характеристику та критерії градації суб’єктів господарської діяльності відповідно до законодавчих актів України. Виявлено, що частка реалізованої продукції мікропідприємствами є нерівноцінною їх частці в загальній кількості підприємств, що свідчить про незначний вклад ними у розвиток національної економіки. За результатами емпіричних досліджень встановлено, що протягом аналізованого періоду частка збиткових підприємств різного розміру становить не менше 25%, що спричиняє не тільки низьку фінансову стійкість, неплатоспроможність та ефективність самих суб’єктів господарювання, а й гальмує процес економічного зростання всієї країни. Застосування методу багатофакторного дискримінантного аналізу дозволить зробити висновок про фінансовий стан із присвоєнням йому класу відповідно до значень інтегрального показника та з урахуванням ймовірності невиконання взятих зобов’язань, тобто виявити наявність збитковості підприємства та ймовірність настання банкрутства. Висновки. Отже, аналіз критеріїв градації суб’єктів підприємницької діяльності дозволив встановити різницю між адміністративним та бухгалтерським тлумаченням критеріїв відношення підприємств до різних розмірів. Проведений моніторинг динаміки показників структурної статистики вітчизняних суб’єктів господарювання, дозволив зробити припущення, що фізичні особи-підприємці роблять незначний вклад у розвиток національної економіки. Оскільки чверть суб’єктів підприємництва все ще залишається збитковими необхідним є проведення превентивних заходів з метою недопущення втрати платоспроможності підприємствами та виявлення наявності збитковості та ймовірність настання банкрутства, що робить доцільним використання методу багатофакторного дискримінантного аналізу із визначенням інтегрального показника фінансового стану

The Competitiveness of a Country: Evolution of the Concept

The national competitiveness today is not just an object of large amounts of scientific works but also a popular concept among business leaders, economists and politics. However, wide usage of the concept is not always based on the clearly defined contents of the word. Different meanings of the national competitiveness concept cause a lot of misunderstandings and this is just deepening discussions and requirements to find one definition, clear for everyone. According to this necessity it is important to analyse evolution tendencies of the national competitiveness content because it is not a new phenomenon. The interest why some countries are more competitive than others arose already in XVI century.The article discusses the reasons of growing interest in national competitiveness, reviews historical evolution of the national competitiveness concept and identifies the most important aspects explaining national competitiveness today

Negative screening and sustainable portfolio diversification

[EN] A critical issue for socially responsible investors is the selection of the potential companies to invest in. For retail investors, the easiest and more intuitive option is to apply a negative screening approach to avoid investing in companies with bad reputation. In this line, companies involved in scandals regarding irresponsible activities which have become notorious in the mass media will be excluded from the potential companies. Implementing this process in a consistent and objectivity way is not an easy task, especially with worldwide portfolios. Nevertheless, there already exist complex databases which offer sensitive information to investors. This paper describes one of these databases. Furthermore, the problems of implementing such a negative screening methodology are presented, which are mainly related with the proper diversification of the resulting investment portfolios.Arribas, I.; Espinós-Vañó, MD.; García García, F.; Tamosiuniene, R. (2019). Negative screening and sustainable portfolio diversification. Enterpreneurship and Sustainability Issues. 6(4):1566-1586. https://doi.org/10.9770/jesi.2019.6.4(2)S156615866

What is the cost of maximizing ESG performance in the portfolio selection strategy? The case of The Dow Jones Index average stocks

[EN] Portfolio selection is one of the main financial topics. The original portfolio selection problem dealt with the trade-off between return and risk, measured as the mean returns and the variance, respectively. For investors more variables other than return and risk are considered to select the stocks to be included in the portfolio. Nowadays, many investors include corporate social responsibility as one eligibility criterion. Additionally, other return and risk measures are being employed. All of this, together with further constraints such as portfolio cardinality, which mirror real-world demands by investors, have made the multicriteria portfolio selection problem to be NP-hard. To solve this problem, heuristics such as the non-dominated sorting genetic algorithm II have been developed. The aim of this paper is to analyse the trade-off between return, risk and corporate social responsibility. To this end, we construct pareto efficient portfolios using a fuzzy multicriteria portfolio selection model with real-world constraints. The model is applied on a set of 28 stocks which are constituents of the Dow Jones Industrial Average stock index. The analysis shows that portfolios scoring higher in corporate social responsibility obtain lower returns. As of the risk, the riskier portfolios are those with extreme (high or low) corporate social responsibility scores. Finally, applying the proposed portfolio selection methodology, it is possible to build investment portfolios that dominate the benchmark. That is, socially responsible portfolios, measured by ESG scores, must not necessarily be penalized in terms of return or risk.García García, F.; Gankova-Ivanova, T.; González-Bueno, J.; Oliver-Muncharaz, J.; Tamosiuniene, R. (2022). What is the cost of maximizing ESG performance in the portfolio selection strategy? The case of The Dow Jones Index average stocks. Enterpreneurship and Sustainability Issues. 9(4):178-192. https://doi.org/10.9770/jesi.2022.9.3(9)1781929

Multiobjective Approach to Portfolio Optimization in the Light of the Credibility Theory

[EN] The present research proposes a novel methodology to solve the problems faced by investors who take into consideration different investment criteria in a fuzzy context. The approach extends the stochastic mean-variance model to a fuzzy multiobjective model where liquidity is considered to quantify portfolio's performance, apart from the usual metrics like return and risk. The uncertainty of the future returns and the future liquidity of the potential assets are modelled employing trapezoidal fuzzy numbers. The decision process of the proposed approach considers that portfolio selection is a multidimensional issue and also some realistic constraints applied by investors. Particularly, this approach optimizes the expected return, the risk and the expected liquidity of the portfolio, considering bound constraints and cardinality restrictions. As a result, an optimization problem for the constraint portfolio appears, which is solved by means of the NSGA-II algorithm. This study defines the credibilistic Sortino ratio and the credibilistic STARR ratio for selecting the optimal portfolio. An empirical study on the S&P100 index is included to show the performance of the model in practical applications. The results obtained demonstrate that the novel approach can beat the index in terms of return and risk in the analyzed period, from 2008 until 2018.García García, F.; González-Bueno, J.; Guijarro, F.; Oliver-Muncharaz, J.; Tamosiuniene, R. (2020). Multiobjective Approach to Portfolio Optimization in the Light of the Credibility Theory. Technological and Economic Development of Economy (Online). 26(6):1165-1186. https://doi.org/10.3846/tede.2020.13189S11651186266Acerbi, C., & Tasche, D. (2002). On the coherence of expected shortfall. Journal of Banking & Finance, 26(7), 1487-1503. doi:10.1016/s0378-4266(02)00283-2Ahmed, A., Ali, R., Ejaz, A., & Ahmad, I. (2018). 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Hybrid fuzzy neural network to predict price direction in the German DAX-30 index

[EN] Intraday trading rules require accurate information about the future short term market evolution. For that reason, next-day market trend prediction has attracted the attention of both academics and practitioners. This interest has increased in recent years, as different methodologies have been applied to this end. Usually, machine learning techniques are used such as artificial neural networks, support vector machines and decision trees. The input variables of most of the studies are traditional technical indicators which are used by professional traders to implement investment strategies. We analyse if these indicators have predictive power on the German DAX-30 stock index by applying a hybrid fuzzy neural network to predict the one-day ahead direction of index. We implement different models depending on whether all the indicators and oscillators are used as inputs, or if a linear combination of them obtained through a factor analysis is used instead. In order to guarantee for the robustness of the results, we train and apply the HyFIS models on randomly selected subsamples 10,000 times. The results show that the reduction of the dimension through the factorial analysis generates more profitable and less risky strategies.García García, F.; Guijarro, F.; Oliver-Muncharaz, J.; Tamosiuniene, R. (2018). Hybrid fuzzy neural network to predict price direction in the German DAX-30 index. Technological and Economic Development of Economy. 24(6):2161-2178. https://doi.org/10.3846/tede.2018.6394S2161217824

Assessment of intellectual capital in joint-stock companies

The evaluation of intellectual capital factors is an essential part for the management of joint-stock companies. Many authors indicate that successful intellectual capital management increases value added in joint-stock companies. Nevertheless, intellectual capital is a complex and challenging concept as there is still no clear guidance, what the intellectual capital features and its structural parts are. Theoretical research revealed that scientists accentuate various intellectual capital parts depending basically on the type of their research, on the level of the research (micro, mezzo, macro), variables they selected to investigate and similar. This research paper gives an insight what drivers can be increasing value added in joint-stock companies

Intellectual capital approach to modern management through the perspective of a company’s value added

The importance of value creation in small and medium-sized business companies has always been in focus. The changing environment makes a strong impact on all companies all over the world. Nowadays, the value added, which is created by the company, not only depends on tangible but also on intangible assets. It is not enough just to manage internal resources to be efficient or generate high value added. Knowledge and information as an important tool for the management of the external environment have become a new factor of a company. Since elements of the intellectual capital system are intangible and hardly measurable in company’s value added, this paper aims to create a model for the analysis of the creation of a company’s value added through intellectual capital. Subsequent to the review of literature on value creation and management, the authors proposed a model for value creation through intermediate, which presented three main elements of value added creation