Economics, Finance and Management Review

INVESTMENT MANAGEMENT THROUGH THE PRISM OF THE DEVELOPMENT OF FINANCIAL LEASING FROM THE PERSPECTIVE OF ECONOMIC SECURITY

Mykola Denysenko, Svitlana Breus, Yehor Prytula — Sat, 30 Mar 2024 00:00:00 +0200

The article examines the essence of investment management through the prism of the development of financial leasing from the perspective of economic security, the provision of which in the conditions of the russian-Ukrainian war is simultaneously a requirement, a need, and a guarantee of the existence of the country and its future prosperity. The purpose of the article is the theoretical justification and development of practical recommendations for investment management through the prism of the development of financial leasing from the perspective of economic security. The methodological basis, which allowed to ensure the integrity of the research, is a set of general scientific and applied methods, in particular such as: analysis, synthesis, monographic, abstraction; deductions, inductions, monographic; systematization; theoretical generalization; quantitative and qualitative comparison. The study emphasizes that the state of war between russia and Ukraine has led to a worsening of the situation in all areas of the country's life, and thus had a negative impact on the level of economic security of the state. In this perspective, the article examines the essence of security and related concepts, as well as its relationship with the development of aspects of security theory and the description of the main conditions and factors that generate threats to the economy. The negative changes that occurred in all spheres of the economy and are directly related to the consequences of Russian aggression and the consequences of wars for individual countries in the context of their economic development are considered. Taking into account the issues of the research, attention is focused on the importance of strengthening the role of the state regarding the use of mechanisms of influence on the processes that are currently observed in all spheres of social life and, in particular, the complex use of financial instruments – financial leasing. It was concluded that, taking into account the outlined interrelationship of the "economic security" categories and related concepts, in the context of the research problem, it is appropriate to implement at the state level the best global practices of using financial leasing tools to provide the population with housing with maximum consideration of all externalities, which in the long run will contribute increasing the level of economic security of the state and ensuring the synergistic effect of economic development in the post-war period and the period of post-war reconstruction of Ukraine.

DEVELOPMENT AND RECOVERY MANAGEMENT OF TOURIST DESTINATIONS USING THE EXAMPLE OF KYIV CITY: OVERCOMING CONSEQUENCES OF THE NEGATIVE IMPACTS

Yevhenii Kudriashov — Sat, 30 Mar 2024 00:00:00 +0200

The development of tourism at the destination level is closely linked to its attractiveness, which determines the prospects and opportunities for attracting tourist flows. New trends in the development of modern tourism as a socio-economic, cultural, and communicative institution require regional tourism entities to take appropriate practical measures. Increasing tourist flows requires the creation of an appropriate infrastructure, including the expansion of the network of accommodation facilities, the development of transport links and other services necessary to meet the needs of tourists. Political instability and the lack of a comprehensive, systematic model of tourism management have led to the decline of this sector in Ukraine. The relevance of this topic is driven by the need to develop strategies and management measures to ensure the attractiveness of urban destinations for tourists and to restore the tourism sector in line with international management models and examples of major urban tourist destinations. The main purpose of this study is to analyze the aspects of management, development, and recovery of a tourist destination on the example of Kyiv as part of Ukraine’s economic system in the context of a pandemic and war. The study uses systemic analysis, structural and functional approaches, as well as comparison methods. The study examines the problems associated with a decrease in tourist flow and loss of revenue in the tourism industry due to ineffective management of the tourist destination (pandemic and military operations in the country) and insufficiently developed infrastructure. This made it possible to formulate recommendations for solving problems, namely: improving transport infrastructure and creating and maintaining tourist infrastructure, such as hotels, restaurants and other facilities that will form an open state tourism policy. The concept of spatial-economic management and practical functionality of tourist destinations on the example of Kyiv is developed, provided that modern technologies, approaches, and methods of tourist destinations formation are used, which are components of the model of management of tourist areas development. The results of the study can be used to manage tourist destinations at the international and regional levels.

CHALLENGES FACED BY THE PERSONNEL IN IMPLEMENTING THE E-CRM IN BANKS

Dr. Anitha G. — Sat, 30 Mar 2024 00:00:00 +0200

The advancement in technology, information and communication has forced banks and financial institutions into hard competition. In this new era technology, people and customer are the elements which the banks are concentrating on them to manage customer relationship and success of banking in customer satisfaction. Electronic customer relationship management (e-CRM) is seen to arise from the consolidation of traditional CRM with the e-business applications marketplace and has created a flurry of activity among companies. The purpose of this study is to examine the competitive advantages on e-CRM in financial institutions and banks and obtain better understanding of the e-CRM benefits. A qualitative research approach was used for this study. Empirical data was collected through interviews were conducted with twenty six banks which just sixteen of them are participated. Our findings indicate Accessibility, Convenience, Services quality, Timeliness, and Trust are the most important benefits of E-CRM. We found that implementation of E-CRM bring about the following competitive advantages: Up to date of banks, Preparation of up to date technology, Proliferation of channels, Marketing and Strategic Factors and Fragmentation of customer segment.

PRECIOUS METALS MARKET FORECASTING IN THE CURRENT ENVIRONMENT

Ihor Rumyk, Volodymyr Kuzminsky, Olha Pylypenko, Oksana Yaroshenko — Sat, 30 Mar 2024 00:00:00 +0200

The article analyzes trends in the precious metals market. The general characteristics and assessment of the most popular precious metals are given. The key factors influencing the supply and demand of precious metals are analyzed. Precious metals market forecasts have been developed. An analysis of the state of the world gold market in recent years has been carried out. Using the method of comparative analysis, modern trends in the supply and demand of this precious metal were revealed. The dynamics and structure of world gold reserves are considered. The world's precious metal reserves in different countries were also studied. The potential gold reserves in Ukraine are estimated. The production of precious metals in the world was studied. The rating of countries producing precious metals has been compiled. The leaders in this field have been identified based on the criteria of production capacities and growth rates of precious metals extraction. The structure of consumption of precious metals in the world is analyzed. The factors that lead to an increase in the rate of consumption of precious metals in modern conditions are considered. In particular, an increase in the current rate of commissioning of new solar energy capacities and an increase in the use of electric transport have been identified, which has significantly increased the demand for precious metals in the world. The impact on price dynamics of geopolitical and other economic factors, such as changes in trade relations between countries, currency fluctuations, market crises, changes in the monetary policy of central banks in many countries, and, above all, the increase in interest rates by the US Federal Reserve, was also studied. Considering these and other influencing factors, forecasts of the price dynamics of the precious metals market for 2024 and subsequent years were developed using a graphical method.

BOARD CHARACTERISTICS AND AUDIT QUALITY: EVIDENCE FROM VIETNAM

Tran Thi My Linh, Nguyen Thi Thuy — Sat, 30 Mar 2024 00:00:00 +0200

This study investigates the relationship between key director characteristics, board composition, and audit quality in the context of Vietnamese listed firms on the Ho Chi Minh City Stock Exchange over the period 2015 to 2020. Based on the study of Mustafa et al (2017), we employ a comprehensive dataset comprising 415 firms, we utilize a random effects estimation model to analyze the nuances of these associations. Our findings reveal a noteworthy positive relationship between directors aged 36-55 and 46-55 years old and audit quality, suggesting that the experience and expertise of directors within these age brackets contribute positively to the enhancement of audit processes. Furthermore, our study identifies a significant positive impact on audit quality associated with interlocking directorships, emphasizing the importance of interconnected networks within corporate governance structures. In addition, our results highlight the influential role of boards populated by members holding Master's degrees, indicating a positive correlation between educational qualifications and clients' demand for high audit quality. This insight underscores the significance of academic prowess and specialized knowledge in fostering a climate conducive to rigorous audit practices.

THE EFFECT OF FINANCIAL PERFORMANCE, CRS AND CORPORATE GOVERNANCE ON FIRM VALUE

Le Thien Hai — Sat, 30 Mar 2024 00:00:00 +0200

This research investigates the intricate relationship between financial performance, Corporate Social Responsibility (CSR), Corporate Governance (CG), and firm value within the context of the Vietnamese business landscape. Drawing upon the Efficient Market Semi-Strong Hypothesis, the study delves into the dynamic interplay of these factors to discern their collective impact on firm value. Utilizing a comprehensive dataset and employing robust statistical methodologies, our findings reveal a noteworthy and significant influence of financial performance on firm value. This phenomenon is interpreted through the lens of the Efficient Market Semi-Strong Hypothesis, highlighting the responsiveness of the market to information related to a firm's financial health. Moreover, the study extends beyond financial metrics to explore the broader dimensions of corporate behavior, incorporating CSR and CG as integral components of the analysis. The results underscore the interconnectedness of financial performance, CSR initiatives, and CG practices in influencing firm value. The simultaneous examination of these factors allows for a more holistic understanding of the mechanisms that underpin firm valuation.

FACTORS INFLUENCING SMALL AND MEDIUM ENTERPRISES' DECISION TO APPLY FOR BANK LOANS: A QUANTITATIVE ANALYSIS IN VIETNAM

Do Nguyen Thi My Dung, Chau Thi Thu Ngan — Sat, 30 Mar 2024 00:00:00 +0200

This study investigates the determinants influencing the decision of Small and Medium Enterprises (SMEs) to apply for bank loans. Drawing upon a theoretical framework encompassing human capital, firm attributes, business strategy, and information asymmetry, we develop a model to predict SMEs' propensity to seek bank financing. Employing a quantitative methodology in Vietnam, we utilize a hypothetical-deductive testing approach on primary data collected through questionnaires focusing on loan applications. Our findings reveal several significant factors influencing SMEs' inclination towards bank loans. Contrary to expectations, the business experience of a firm's owner exhibits no significant correlation with the likelihood of applying for a bank loan. However, variables such as the educational background of the firm's owner, firm size, collateral availability, and interest rates on loans exhibit negative associations with loan application propensity. Conversely, factors including the presence of comprehensive business plans and establishment of relationships with bankers during start-up phases demonstrate positive relationships with SMEs' inclination to apply for bank loans. This study contributes to the understanding of SMEs' financing decisions and provides valuable insights for financial institutions in designing tailored lending strategies to meet the diverse needs of SMEs.

IDENTIFYING DECEPTIVE FINANCIAL REPORTING VIA ANALYSIS OF FINANCIAL STATEMENTS: CASE IN VIETNAM

Nguyen Ngoc Phong Lan — Sat, 30 Mar 2024 00:00:00 +0200

Deceptive financial reporting represents a significant worry for the main regulatory bodies overseeing Vietnam's capital market. Both regulatory bodies are continuously enhancing the criteria to ensure thorough monitoring of publicly listed companies. The objective of the current study is to investigate the link between financial statement analysis and fraudulent financial reporting. While numerous researchers have uncovered evidence suggesting the effectiveness of financial ratios in identifying fraudulent financial reporting, others have reached differing conclusions. The majority of these studies were conducted beyond the borders of Vietnam. The sample consists of companies listed in Vietnam, and the data utilized spans from 2011 to 2022. The findings revealed that various financial ratios, including total debt to total assets and receivables to revenue, emerged as significant indicators for identifying fraudulent financial reporting. This suggests that financial ratios could potentially aid in detecting fraudulent activities. These results contribute to the existing body of literature concerning the efficacy of financial ratios in fraud detection.

THE SOCIAL SPHERE IN THE ERA OF DIGITALIZATION: FINANCIAL AND ACCOUNTING ASPECTS

Sat, 30 Mar 2024 00:00:00 +0200

The integration of digital technologies into the social sphere has brought about significant changes in financial and accounting practices. The aim of this article is to provide a comprehensive understanding of how digitalization has reshaped financial and accounting practices within the social sphere. By synthesizing existing literature and presenting empirical evidence, this study seeks to elucidate the opportunities and challenges arising from the digital transformation of the social sphere. This article explores the implications of digitalization for finance and accounting within the social sphere, focusing on five main objectives: examining the impact of digitalization on financial reporting and disclosure practices in social media platforms, analyzing the role of digital platforms in shaping consumer behavior and financial decision-making, assessing the implications of FinTech innovations for accounting processes and financial management, investigating the effects of digitalization on financial inclusion and access to capital for marginalized groups, and exploring the challenges and risks associated with the digitalization of financial and accounting practices. Through a comprehensive literature review, this article provides insights into the opportunities and challenges presented by digitalization in the context of finance and accounting within the social sphere, highlighting the need for robust regulatory frameworks and inclusive policies to maximize the benefits of digital transformation while mitigating associated risks. The results underscore the transformative impact of digitalization on financial and accounting practices within the social sphere. While digital platforms offer unprecedented opportunities for transparency, efficiency, and inclusion, they also present complex challenges that must be addressed. Moreover, the findings highlight the need for regulatory frameworks and industry standards to mitigate risks associated with digitalization and ensure ethical conduct in financial and accounting practices.

SUSTAINABLE DEVELOPMENT AND GREENWASHING: AN ANALYSIS OF SUFFICIENT CONSUMPTION IN THE FASHION INDUSTRY

Olena Naumova, Mariia Naumova — Sat, 30 Mar 2024 00:00:00 +0200

The article examines how the fashion industry has been exploiting marketing tactics that encourage overconsumption and generate a mass consciousness among consumers, where a person's social status is determined by the clothes and accessories they use. However, these tactics have contributed significantly to global environmental pollution and socio-economic issues. The fashion industry has been driven by profit-first interests that rely on cheap materials, accelerated aging of products, aggressive advertising, and an offshoring strategy that provides cheap labor and low tax rates. It is high time that companies reassess their marketing strategies and focus on sustainable development. The current climate crisis demands that companies make informed decisions and take proactive measures toward sustainability. This article revealed the impact of fast fashion marketing on consumer behavior and the environment, highlighting the need for sustainable fashion practices. The article analyzes the initiatives fashion companies take to incorporate sustainability into their core business strategies, for instance, innovative raw materials, recycling, and repair services. The article examines the practice of greenwashing, where companies make false or exaggerated claims about their environmental efforts to appear more sustainable. The article emphasizes the need for companies to encourage consumers to sufficient consumption to stay sustainable and achieve zero emissions to solve climate problems. Achieving and maintaining consumer well-being and social equity are critical goals in today's global business environment. One strategy for achieving these goals is through sufficient consumption, which involves optimizing resource use and reducing waste. Sufficient consumption can be realized by revaluing personal needs and desires, limiting excessive consumption, and minimizing waste. By adopting a mindful and responsible approach to consumption, consumers and companies can promote social equity and cultivate a sustainable business environment.

GLOBAL VALUE CHAINS AS THE MAIN INSTITUTE OF CONTEMPORARY CREATIVE BUSINESS RELATIONSHIPS

Andriy Lyubchenko — Sat, 30 Mar 2024 00:00:00 +0200

Research into the creation and functioning of global value chains helps today's economists, business analysts, and policy makers make informed decisions to improve the global economic landscape and ensure sustainable development for all countries. The article examines the influence of global value chains on the world economy. The work uses the method of the unity of historical and logical analysis. Methods of comparative, causal and functional analysis, principles of system analysis, dialectical approach in the study of processes and phenomena are also used. The concept of the "smile curve" was analyzed to highlight the unevenness of the distribution of added value in different segments of the production chain. They point out that GVS often concentrate maximum value in research and development and post-production services. A study of the "sad smile" phenomenon highlighted that industries moving from mass production to personalization through artificial intelligence technologies may experience cost reduction in the initial and final stages of production. At the same time, companies located in the country of origin receive the greatest added value. The article focuses on the challenges that developing countries face in trying to get out of the "middle-income trap." Such challenges include tariff barriers, concentration of patents on knowledge and financing in these countries. The article argues that the GVS institute contributes to the appropriation of imperialist rent by the countries of the center at the expense of the countries of the periphery. Global chains enable the capital of the North to exploit the cheap labor of the South, keeping their incomes low and affecting their ecology. Recommendations are proposed for effective regulation and redistribution of added value to achieve sustainable global development.