Economics, Finance and Management Review 2024-07-10T16:49:40+03:00 Iryna Mihus Open Journal Systems <p><strong>ECONOMICS, FINANCE AND MANAGEMENT REVIEW</strong>&nbsp;(EFMR) is a peer-reviewed journal that publishes economic research results in the form of scientific articles for worldwide publication.</p> <p>EFMR practices a policy of open access to published content, upholding the principles of free dissemination of scientific information and global knowledge sharing for general social progress.</p> <p>EFMR focuses on research that has a high level of scientific validation of the findings and presents new important information for a wide scientific community.</p> OWNERSHIP STRUCTURE, FINANCIAL REPORTING QUALITY AND THE ROLE OF AUDIT QUALITY: AN EMPIRICAL STUDY IN VIETNAM 2024-07-06T01:16:27+03:00 To Le Nguyen Khoa <p style="text-align: justify;"><em>The issues of ownership structure, audit quality, earnings management, and financial reporting quality have garnered increased attention from the public, professionals, and other stakeholders, especially following numerous corporate scandals in Vietnam. Ownership structure is crucial in enhancing financial reporting quality (FRQ) by serving as an effective internal control mechanism. This study explores how different types of ownership affect FRQ and the role of audit quality. Previous literature has investigated the relationships between ownership types, audit quality, and FRQ. This study aims to integrate these variables into a comprehensive model that describes the impact of ownership structure within a company and audit quality on FRQ. The relationships tested include: ownership structure and FRQ, the mediating effect of audit quality on these relationships, and audit quality and FRQ. Analyzing panel data from 112 Vietnamese listed firms on the Ho Chi Minh City Stock Exchange from 2011-2021, the results revealed that directors' and family ownership positively affect FRQ by reducing earnings management, while institutional ownership negatively influences FRQ. Managerial ownership was found to have an insignificant impact on FRQ. Audit quality partially mediates these relationships and has a significantly positive impact on FRQ, suggesting that high audit quality deters earnings management. This study recommends enhancing the supervisory and monitoring role of institutional ownership in financial statement preparation.</em></p> 2024-06-30T00:00:00+03:00 Copyright (c) 2024 ACCOUNTING IN UKRAINE: TODAY'S CHALLENGES 2024-07-09T15:46:56+03:00 Lyubov Shevchenko Мaryna Shendryhorenko Vira Shepeliuk <div> <p><em>The ongoing military conflict in Ukraine has inflicted significant damage on the nation’s infrastructure and economy, disrupting traditional business operations and necessitating a reevaluation of accounting standards and practices. This disruption highlights the critical role of accounting in assessing damage, supporting recovery efforts, and adapting to a rapidly changing economic environment. As such, understanding the modifications and challenges in accounting during this period is essential for ensuring business continuity and aiding national recovery. This article aims to analyze the organizational, legislative, and regulatory changes in accounting and financial reporting practices in Ukraine during the conflict. It seeks to evaluate how these adaptations address the specific needs of businesses operating under crisis conditions and contribute to sustaining economic activity during periods of instability. The study employs a combination of general scientific methods including analysis and synthesis, induction and deduction, and theoretical generalization. A comprehensive review of recent legislative acts and modifications to the Ukrainian accounting framework provides a detailed understanding of the current accounting landscape and its evolution in response to the conflict. The findings reveal significant legislative adaptations that have simplified tax systems, reduced tax rates, and introduced exemptions aimed at alleviating the burden on businesses. Additionally, the establishment of emergency-specific accounts for recording the financial impacts of the conflict has enhanced the clarity and accuracy of financial reporting. These changes have not only facilitated the immediate survival of businesses but also laid the groundwork for future economic stability and recovery. Looking forward, continuous adjustments and updates to accounting standards will be crucial as the situation in Ukraine evolves. Future research should focus on the long-term effectiveness of these adaptations and explore further modifications to support the resilience and recovery of the Ukrainian economy. The development of robust accounting practices remains a cornerstone of economic recovery and sustainability, serving as both a record of the impacts of the conflict and a foundation for rebuilding efforts. By documenting and analyzing these changes, this article contributes valuable insights into the role of accounting in crisis management and recovery, providing a resource for academics, practitioners, and policymakers involved in navigating and overcoming the challenges posed by the conflict in Ukraine.</em></p> </div> 2024-06-30T00:00:00+03:00 Copyright (c) 2024 CAPITAL STRUCTURE AND ITS DETERMINANTS OF EXTERNAL FINANCING OF SMALL BUSINESSES IN MBEYA CITY, TANZANIA 2024-05-27T10:27:14+03:00 Asheri Mwidege <p style="font-weight: 400;"><em>Small business owners are the breeding ground for medium and large enterprises in the the emerging and developed world economy. However, it is not clear what theories apply in the capital structure of small business owners and determinants of being financed in Mbeya City. The present study assessed the capital structure for small business owners in Mbeya City and its determinant of external financing. Thus, purposive sampling technique was used to select a total of 80 small business owners and employed both descriptive statistics and quantitative approaches. Findings showed that capital structure of small business owners was dominated by internal followed by external sources as startup of businesses. Moreover, findings showed that all predictor variables interest rate, collateral and audited financial records were statistically significant and directly related with the ability of financial institutions in financing small businesses. Based on these findings, it is therefore concluded that interest rate, collateral and audited financial records are the determinants of the financial institutions in financing small businesses. So, results have impact on how small business owners are creative in financing business. This has an implication to policymakers on how to raise creativeness in decision making to ensure business performance. Consequently, findings provide the motive to those who intends to engage in business on how to mobilize capital for sustainable business. Thus, it is recommended that government should create a favorable environment by reducing tax interest rates to increase retained earnings and enable in accessing external funding.</em></p> <p> </p> 2024-06-30T00:00:00+03:00 Copyright (c) 2024 ORGANIZATIONAL AND ECONOMIC TRANSFORMATIONS OF THE AGRICULTURAL SECTOR IN THE POST-WAR PERIOD OF ECONOMIC DEVELOPMENT OF UKRAINE 2024-07-06T01:17:05+03:00 Olena Shust Oksana Nykonenko Nikolett Czipa <p><em><span lang="RU">The agricultural sector in Ukraine plays a pivotal role in the country's socio-economic stability and food security. However, the full-scale war with Russia has significantly impacted this sector, necessitating comprehensive organizational and economic transformations to restore and enhance its functionality in the post-war period. This study aims to propose practical recommendations for the organizational and economic transformations required in the agricultural sector of Ukraine during the post-war economic revival period. The research employs a combination of general scientific methods, including abstract-logical reasoning, monographic and terminological analysis, theoretical generalization, economic and statistical analysis, abstraction, and formalization. These methods facilitate the substantiation of theoretical approaches, formation of conceptual frameworks, identification of development trends, and justification of strategic directions for the agricultural sector's transformation. Despite the crisis induced by the war, the agricultural sector in Ukraine has demonstrated financial stability and adaptability. In 2022, agriculture contributed 8.6% to GDP, though this was a decline from previous years. The sector's share in export structure increased, becoming a crucial source of foreign currency inflows despite logistical challenges. The study identifies structural issues such as over-reliance on low-value-added exports, technological dependencies, and economic vulnerabilities tied to the raw material orientation. Recommendations include diversifying production, enhancing value-added processing, fostering technological advancements, and creating investment funds for structural economic reforms. Further research should explore the long-term impacts of proposed transformations, the role of technological integration in agriculture, and the development of policies that balance agricultural productivity with environmental sustainability. Additionally, investigating the effectiveness of investment funds and economic incentives in achieving structural changes will be critical to ensuring the resilience and growth of Ukraine's agricultural sector.</span></em></p> 2024-06-30T00:00:00+03:00 Copyright (c) 2024 MANAGEMENT OF INNOVATIVE DEVELOPMENT OF ENTERPRISES IN THE SMART ECONOMY 2024-07-09T13:42:22+03:00 Zinaida Zhyvko Myroslava Stadnyk Anastasiia Shehynska Oleg Zhyvko <p style="font-weight: 400;"><em>In the contemporary economic landscape, the concept of a smart economy has emerged as a critical framework for fostering innovation and enhancing the competitiveness of enterprises. This article explores the management of innovative development within enterprises operating in the smart economy, characterized by the integration of digital technologies, intelligent systems, and data-driven decision-making processes. Through a comprehensive examination of existing literature and a mixed-methods research approach, this study analyzes the strategies, tools, and practices essential for enterprises to thrive in a continuously evolving digital environment. The article provides a comparative analysis of domestic and foreign research, highlighting the practical focus of Ukrainian scholars on implementing innovative technologies and managing processes, contrasted with the theoretical perspectives of international researchers on competitive strategies and open innovation. A detailed comparison between the development of the smart economy in Ukraine and Europe is presented, showcasing key metrics, achievements, and challenges. Furthermore, the discussion addresses the positive and negative features of the smart economy, such as enhanced efficiency and productivity, innovation and competitiveness, and issues like digital divide and cybersecurity concerns. The study offers recommendations for improving the mechanisms of managing smart economy development, emphasizing investments in digital infrastructure, promoting digital literacy, fostering public-private partnerships, and ensuring inclusive access. Finally, the article proposes an adaptive mechanism for managing innovative development, incorporating external environment analysis, organizational flexibility, human capital investment, open innovation, and advanced information technology solutions. These insights and recommendations aim to guide enterprises in effectively harnessing innovation to achieve sustainable success in the smart economy.</em></p> 2024-06-30T00:00:00+03:00 Copyright (c) 2024 FIRST RESPONDERS’ CRISIS: HOW AI CAN HELP TO BRING MORE INTERNAL WORKFORCE FOR EMERGENCIES AND SEASONAL WORK FASTER AND AT LOWER COST 2024-05-29T17:55:04+03:00 Tetiana Sydoruk <p style="font-weight: 400;"><em>This article focuses on analyzing crisis situations in emergency response services and the role of artificial intelligence in enhancing their efficiency. The study aims to examine the challenges faced by emergency services and determine how artificial intelligence can help mobilize more internal resources for responding to emergencies and seasonal work.</em> <em>Methodology and methods: the study employed general scientific methods of cognition, such as analysis, synthesis, modeling, and forecasting.</em> <em>The research results indicate that natural and man-made disasters, such as floods, accidents, and terrorist acts, lead to loss of life, suffering, and infrastructure destruction. The main causes of challenges include a wide range of conditions such as weakness, unspecified injuries, changes in mental state, acute pain, general abdominal pain, and other less defined conditions requiring medical assistance. The increase in calls for psychological help points to an escalation of mental health issues among the population. During seasonal changes, there is a rise in the number of calls. In winter, due to harsh weather conditions, dangerous situations related to snowstorms and avalanches occur more frequently.</em> <em>Artificial intelligence can significantly improve the efficiency of emergency response services by allowing for more productive use of available resources. Utilizing specialized mobile applications, chatbots, volunteer training, and AI-powered drones can enhance coordination, resource allocation, and response speed to emergencies. Additionally, AI-based technologies such as predictive systems and route optimization can help overcome geographical challenges.</em><em>The practical significance of the study lies in identifying ways to enhance the efficiency of emergency response services through modern technologies.</em></p> 2024-06-30T00:00:00+03:00 Copyright (c) 2024 INFORMATION AND ANALYTICAL SUPPORT AND TOOLS FOR ASSESSING EMPLOYEE LOYALTY IN ENTERPRISES 2024-07-06T19:24:16+03:00 Kyrylo Zlobin <p style="font-weight: 400;"><em>In the context of increasing competition and dynamic changes in the global economy, employee loyalty emerges as a key factor for the stability and success of enterprises. A high level of employee loyalty correlates with increased productivity, optimized costs for recruiting and adapting new employees, and the strengthening of the company’s positive image. Therefore, the development and implementation of effective methods for assessing loyalty is an urgent need for businesses. This study aims to systematize and analyze modern tools and methodologies for evaluating employee loyalty, identifying their effectiveness and features of application in various conditions and cultural contexts. The research is based on a survey of 525 employees of Ukrainian enterprises using Google Forms in two stages. Methods of questionnaires, interviews, statistical and content analysis were used. The research results confirmed the significance of integrating different assessment methods: from traditional surveys to modern analytical tools. It was shown that the automation of data collection and analysis significantly increases the accuracy of assessments and allows for the identification of deep patterns in employee behavior. The positive impact of corporate social responsibility on employee loyalty was also noted. For further development in this field, it is important to explore the impact of digitalization on loyalty assessment processes, particularly through the integration of artificial intelligence and machine learning. Additionally, it is necessary to study the intercultural aspects of assessment methods and adapt them to the needs of the globalized labor market. The importance of researching hybrid and remote work forms, as well as studying the social and psychological factors that influence employee loyalty, deserves special attention.</em></p> 2024-06-30T00:00:00+03:00 Copyright (c) 2024 THE ROLE OF BOARD STRUCTURES IN INCREASING BANK ACCOUNTABILITY: GLOBAL EXPERIENCE 2024-07-10T01:40:06+03:00 Andriy Push Iryna Mihus <p style="font-weight: 400;"><em>The governance of banking institutions plays a critical role in the stability and integrity of financial systems globally. The structure of the board of directors significantly influences how banks manage risks, comply with regulations, and align operations with the interests of shareholders and other stakeholders. Understanding how board structures differ across regulatory and cultural landscapes is crucial for enhancing bank accountability and performance. This article aims to critically evaluate how various board structures impact the accountability of banking institutions across different global contexts. The goal is to identify effective governance practices that can be adapted to improve bank accountability worldwide. Employing a comparative case study methodology, this research analyzes board structures in banking institutions across continents including North America, Europe, Asia-Pacific, the Middle East, Africa, and Latin America. Data from primary sources like interviews and secondary sources such as regulatory documents and academic articles are synthesized to assess the impact of board configurations on governance and accountability. The analysis reveals that effective board structures often include a high proportion of independent directors, robust audit and risk committees, and a commitment to diversity, which correlate with enhanced accountability and financial performance. However, variations exist due to cultural, economic, and regulatory differences that influence board effectiveness across regions. The findings suggest that while there is a global trend towards standardizing governance practices, local adaptations remain essential. The study recommends that banks and regulators focus on enhancing board independence, diversifying board composition, and strengthening risk oversight to improve governance frameworks. Future governance models should incorporate a dynamic approach to adapt to technological advancements, economic shifts, and societal expectations, ensuring that banking institutions can effectively meet emerging challenges and opportunities.</em></p> 2024-06-30T00:00:00+03:00 Copyright (c) 2024 PECULIARITIES OF SUSTAINABLE DEVELOPMENT IN EU AGRICULTURAL ENTERPRISES: A COMPARATIVE ANALYSIS OF THE BEST PRACTICES 2024-07-10T14:12:14+03:00 Yaroslav Kokhaniuk <p><em>Sustainable development in agriculture is crucial for ensuring long-term food security, environmental health, and economic viability within the European Union (EU). Given the diverse climatic conditions, economic contexts, and cultural traditions across member states, a comprehensive understanding of the peculiarities and regional differences in sustainable agricultural practices is essential for formulating effective policies and strategies. This article aims to provide a comparative analysis of sustainable development in agricultural enterprises across different EU regions. By examining the unique characteristics, implementation strategies, and outcomes of sustainable practices, the article seeks to highlight best practices, identify regional challenges, and propose recommendations for enhancing sustainability in the EU's agricultural sector. The study employs a multi-faceted approach, including a literature review of existing research, policy analysis of the Common Agricultural Policy (CAP) and national policies, in-depth case studies from representative EU countries, surveys and interviews with key stakeholders, and quantitative and qualitative data analysis. This methodology ensures a thorough examination of the various dimensions of sustainable agriculture across the EU. The comparative analysis reveals significant regional differences in the adoption and effectiveness of sustainable agricultural practices. Western and Northern European countries demonstrate high adoption rates of advanced technologies and sustainable practices, supported by robust policies and financial incentives. Southern Europe focuses on water conservation and traditional practices, facing challenges in modernizing their approaches. Eastern Europe shows gradual progress, constrained by economic and infrastructural limitations but benefiting from EU support. Key findings highlight the importance of tailored regional policies, enhanced financial support, and the need for increased knowledge sharing and capacity building. The article concludes with practical recommendations for policymakers, agricultural enterprises, and other stakeholders to harmonize sustainable practices across the EU. These include strengthening and harmonizing policies, supporting research and innovation, improving access to financial resources, enhancing training and education, and fostering multi-stakeholder collaboration.</em></p> 2024-06-30T00:00:00+03:00 Copyright (c) 2024