Year 2014, Issue 2
Date published22.12.2014
Table of content
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Velichko Adamov
IMPROVING THE CAPITAL STRUCTURE OF BANKSKeywords: comparative bank balance sheet, interest-dependent balance sheet items, DuPont banking model, business risk, EPS modeling, shareholder wealth maximizationSummary: This study examines the possibilities for improving the capital structure of banks through analysis of various combinations of long-term debt and equity. The theoretical thesis that banks should maintain a positive capital structure... This study examines the possibilities for improving the capital structure of banks through analysis of various combinations of long-term debt and equity. The theoretical thesis that banks should maintain a positive capital structure has not been ignored for a single moment in the reflections below. Yet, applied techniques and methods indicate that contemporary banking is predominantly based on negative capital structure in which a single unit of equity attracts multiple units of loan capital until reaching maximum levels beyond which the regulatory proportions for funding of banking business are violated. Quite logically, attention is paid to banking risk with reference to banks performance and the efficiency of capital utilisation. In parallel, financial leverage is applied to maximize bank earnings. Through the DuPont model, the capital management of banks develops a systematic tool for measuring the efficiency of decisions related to the development of the financial leverage effect. Based on this a model for the optimization of commercial banks is designed to facilitate bank managers in making efficient financial decisions, which take into consideration market capitalization and the cost of long-term capital resources -
Rumen Vyrbanov
SOCIAL BUSINESS: USING WEB 2.0 AND SOCIAL NETWORKS IN THE BUSINESS OF COMPANIESKeywords: Web 2.0, Social Business, Enterprise 2.0, consumer-generated content, social network, social media strategy, social media marketing, social software, Intranet 2.0, Web 3.0, f-commerce, e-commerce 2.0Summary: Over the recent years Web 2.0 has been at the forefront of high-tech tools and technologies that companies are seeking to use in their business processes. Web 2.0 has emerged as a new wave of business innovation that gives new... Over the recent years Web 2.0 has been at the forefront of high-tech tools and technologies that companies are seeking to use in their business processes. Web 2.0 has emerged as a new wave of business innovation that gives new dimensions to the Internet as a means of communication, cooperation and doing business. This study examines the evolution of the Web in the context of opportunities for implementing technologies in companies’ businesses. Emphasis is placed on the second generation of Web technologies and the social business concept – the new opportunities for adapting and using the Web’s ideas and technologies in companies’ businesses. The nature and specific approaches and strategies of social business are presented as a new generation of technologies capable of achieving an increase in companies’ income and profits, seizing new market niches, as well as increasing sharply the labour productivity of employees and their incorporation into the main goals of the business. The first part analyzes in brief the evolution of the Web technologies and their impact on the business of companies. The focus is on the nature and changes that the second and third generation of technologies (Web 2.0 and Web 3.0) impose on business processes. The second part examines the priority areas for the application of social technologies in business: management of internal corporate communications, design and development of new products and knowledge management (Intranet environment); corporate communications and interactions with external partners and customers (Extranet environment, B2B model); e-commerce (online stores, B2C model). The practical possibilities of the three approaches for using the social networks in e-business are discussed: opening a representation (an online store) on Facebook or another social network, as an addition to the already existing traditional online store; online trading directly in the social network, without an online store; using the social networks as a complement and alternative to the search engines. The third part of the study examines social business as an opportunity to use new social platforms for communication between companies and their customers. The nature of the new concept of social cooperation, which ultimately reflects in higher productivity and returns on investment, is analyzed. The author presents and analyzes several aspects of social business in a company’s activities – marketing in a Web 2.0 environment and working with clients of the company, interactions with business partners, personnel management and knowledge management in the company. -
Lyubomir Ivanov
ANALYSIS OF THE AUTODETERMINATION COEFFICIENT STATISTICAL SIGNIFICANCESummary: The study examines the issue of estimating the statistical signifi¬can¬ce of the autodetermination coefficient. The features of the proposed estimate are identified – bias, efficiency, consistency and sufficiency, and their... The study examines the issue of estimating the statistical signifi¬can¬ce of the autodetermination coefficient. The features of the proposed estimate are identified – bias, efficiency, consistency and sufficiency, and their relation¬ship with the length of the time series and the number of the autocorrelation coeffi¬cients used. Two approaches are proposed for testing the statistical signifi¬can¬ce hypothesis. The first one is used in long time series and involves calcu¬lating the properties of the Wald test (W), the likelihood ratio test (LR) and the Lagrange multiplier test (LM). The second approach is used in short time series on the basis of tabulated boundary values of the autodetermination coeffi¬cient. The study proposes an analysis scheme which was used in stu¬dying the time series of the main indicators of Bulgaria’s demographic develop¬ment for the period 1930 – 2011. -
Rosen Nikolaev
OPTIMISATION OF TRANSPORTATION COSTS FOR DELIVERY OF HOMOGENOUS COMMODITY TO CONSUMERS ALONG THE LOGISTICS CHAINKeywords: cost optimization, transportation problem, transportation, non-linear optimization, linear optimization, homogenous productsSummary: This study examines some issues related to the mathematical modeling of shipment activities for homogenous products along the logistics chain and the economic-mathematical analysis of possibilities for its optimization. To this end,... This study examines some issues related to the mathematical modeling of shipment activities for homogenous products along the logistics chain and the economic-mathematical analysis of possibilities for its optimization. To this end, economic and mathematical models are suggested for the efficient management of transportation costs and costs arising in result of failure to meet the demand of certain consumers. Special attention has been paid to linear and non-linear models in an attempt to formalize the subjective attitude of managers in result of the objective impact of potential losses or the priority given to them due to the shortage of the output to be delivered. The practical need of and the options for applying the proposed economic-mathematical models are presented through comparative analysis and identifying the advantages of certain models through theoretical results based on a specific example from real business practice, which is evidence of their practical significance. -
Yuli Radev
SEQUENTIAL MARKETS AND GENERAL EQUILIBRIUMKeywords: general equilibrium, sequential markets, theory of temporary equilibrium, theory of plans, prices and price expectations, perfect foresightSummary: An increasing number of analysts of the latest financial crisis employ arguments and models from different stages of the evolution of economics. We believe that this is the right approach, since no economic event, financialization... An increasing number of analysts of the latest financial crisis employ arguments and models from different stages of the evolution of economics. We believe that this is the right approach, since no economic event, financialization included, should be viewed as unique or unparalleled. We agree that the answers to most questions relating to the boom-downturn cycle are to be sought in the behaviour of entities involved in the economic process and the so-called extrinsic uncertainty. It seems only logical that similar events should be considered extreme and uncontrollable varieties of typical deviations from normal conditions. Yet, it might prove to be rather misleading to randomly combine economic concepts. Therefore, this paper is an attempt to systematize alternative models of the dynamic equilibrium path around which balanced and sometimes dis-balanced markets temporarily converge. In the framework presented here, extrinsic uncertainty and institutional theory add to the neo-classical idea about markets through the generalizing concept of market disequilibrium.