Business performance assessment of small and medium-sized enterprises: Evidence from the Czech Republic

Business performance assessment is one of the basic tasks of management. Business performance can be assessed using a number of methods. The basic ones include financial analysis, Balanced Scorecard or Economic Value Added (EVA). The paper is focused on SME business performance assessment based on Economic Value Added, calculated using the INFA build-up model. According to this method, companies were divided into four categories. The first category included companies with a positive EVA value. The second category included companies with negative EVA, but with the economic result above the risk-free rate. The third category included companies with a positive economic result above the risk-free rate. The fourth category included companies with a negative economic result. The model did not include companies with negative equity. The input represented 15 predictors based on their financial statements. The data were normalized and all extreme values, likely caused by a data rewriting error, were removed. Company performance is visualized by comparing Principal Component Analysis and Kohonen neural networks. Compared to similar research, the methods are compared using the data that analyzes the performance of companies. Both methods made it possible to visualize the given task. With regard to the purpose of facilitating the interpretation of the results, for the given case, the use of PC seems to be more appropriate. AcknowledgmentThis study has been supported by the Technology Agency of the Czech Republic under project No TL01000349.

Forecasting economic result of manipulation using game theory modeling

Manipulations are taking place widely on various capital, commodity, derivative and other markets. They are reported regularly and sometimes causing significant losses. But it doesn’t mean that the efforts intended to limit this sort of activity are insignificant. Surveillance budgets, as well as applied fines, are impressing. The annual volume of manipulative attempts and the efforts, intended to deter these attempts, are growing exponentially year after year. The imperfection and low versatility of detection methods are leaving space for successful attempts, making manipulative behavior still attractive. This paper is representing the model, based on the Game Theory and aimed to fit modern requirements of surveillance. The article defines basic problems in manipulation detection and proves model’s capability to solve them. However, the problem is reviewed on a general level allowing to elaborate the versatile model, but not a specific manipulative scenario. At the same time, the model allows complementing it with precise tools defining aspects related to actual manipulation. Manipulation and the shaping of it's economic results are reviewed in-depth, revealing it's core phenomenology.

Forecasting economic result of business logic improvements using Game Theory for modeling user scenarios

A new approach to user behavior modeling based on Game Theory was proposed. It was developed to consider initial intensity, a strategy applied, a profit gained, and resources utilized as inalienable attributes of users' behavior. The approach covers various aspects of users' motivation and rational actions, not only a statistical image of a pool's summary. Additionally, the given model is strongly connected to profit and loss parameters by operating with profit and utilized resources as parts of model inputs. The proposed model can enable efficient modeling aimed to validate an economic result of existing interfaces and assume results of new ones.

Analysis of Motives behind the Usage of Earnings Management in Practice under the Conditions of Global Economy

Research background: Due to the complexity of the issue of global economic result management, the presented paper focused on specific procedures that are used comprehensively in practice in a global environment. The present paper consists of four parts. The first part of the paper deals with the theoretical aspects of the issue addressed. The second part consists of a combination of themes and a description of the methods that are used globally in the economic environment. The third part includes an analysis of countries that were among the largest manipulators of the global economic result from 2009 to 2018. Subsequently, possible impacts on the financial statements are prepared. The fourth part is devoted to the conclusions of the issue addressed. Purpose of the article: The aim of this paper is to compare the motives that lead to the application of results management practices globally in a global environment. Methods: In the processing of the present paper, a descriptive method, comparison and synthesis were used. Findings & Value added: Accounting standards point out that earnings management can be conducted within the regulatory framework as well as in the conflict of the global environment. The result of the present paper is a comprehensive look at the procedures and issues of earnings management with regard to the functions of the financial statements in the global economy.

On the market for “Lemons”: quality provision in markets with asymmetric information

Akerlof’s “Lemons” paper provides a seminal economic result suggesting that, in markets with asymmetric information where product quality is unobservable by consumers prior to purchase and use, the introduction of a low-quality product will drive its higher quality counterpart(s) out of the market. In this paper we identify some empirically relevant cases/conditions under which the introduction of a low-quality product does not drive its higher quality substitutes out of the market but, instead, ends-up coexisting with them.

Problems of the integrative assessment of the competitive advantages of the economic cross model of closing the nuclear fuel cycle

In the article, the authors present a model for making a decision on the introduction of a competitive innovative proposal into the nuclear fuel cycle. The factors of saving on the resource potential of nuclear fuel in the framework of creating a two-component atomic energy are considered. A graphic interpretation of the choice of the technology for closing the fuel cycle in terms of the volume of processing is given. The authors examined the dynamics of the needs of the global economy in energy resources for the period 1865-2015. and market statistics on electricity prices in Russia and the world in 2011-2019. and forecast up to 2024. A mathematical model for determining the optimal ratio between the expected economic result from the development of two-component energy and the costs of its creation is considered. The application of this model gives an economic result, which can be calculated as a synergistic effect of investment for all sectors of the economy over a certain period. The authors calculated the influence of the social factor on the economic result using the formula. Reflected in the article is a nuclear power model formed on the basis of the "economic cross" methodology and a closed nuclear fuel cycle model formed on the basis of the "economic cross" model.

ECONOMIC PRINCIPLES OF TAXATION: PROBLEMS OF DEFINITION AND EMBODIMENT IN THE TAX LEGISLATION OF UKRAINE AND THE EUROPEAN STATES

Today, almost every state feels the impact of the financial crisis and is looking for ways to overcome it. It is obvious that the development of economic relations of any state is influenced by taxation, and through taxes, the state has an impact on the property of individuals and legal entities. At the same time, establishing the optimum level of taxation for both taxpayers and the state is an important factor for economic uplift, ensuring the balance of public and private interests in tax and legal regulation, under which there is a proper financial support for the performance of the tasks and functions by the public authorities with reasonable and justified interference of the state in the right of private ownership of persons by means of the taxes. The construction of the tax system, the amount of taxes and their rates should not depend solely on the funds necessary for the state. This process is also influenced by other factors that find their objectification in the relevant principles, because taxation should be reasonable. The purpose of the article is to characterize certain economic principles, which should be the basis of taxation and which should be defined in tax legislation. This will be performed with the dogmatic method, the methods of analysis and synthesis, the systemic method and the case study method. The basis for building the tax system, determining the amount of taxes, the size of their rates, is in the economic factors, which should be taken into account to ensure the effectiveness of taxation and tax regulation as a whole. They have their reflection in the relevant principles as the initial provisions of taxation, acting as fundamental in regulating tax relations. The range of economic principles, which taxation is based on, and the content of which is currently debated in scientific circles, is as follows: proportionality (taxability), cost-effectiveness of taxation, fiscal sufficiency, economic basis of tax, economic justification for tax. They do not exist in isolation from each other, but constitute a clear system, in which their logical connection and influences are traced. Results. Proportionality as a principle of taxation is determined by analyzing the payer's financial position, the actual ability to pay taxes, and the economic benefit he/she receives in the course of paying taxes and fees (the economic result of the payer). The principle of cost-effectiveness of taxation means that the establishment of taxes and fees should be such that the amount of revenues from their payment to the budget exceeds public expenditure and leads to effective taxation (the economic result of the state). The principle of tax sufficiency provides a reasonable restriction on those public needs that need to be met through taxpaying, since these needs cannot be absolute. The principle of the economic basis of the tax indicates source for its payment, which is formed by the corresponding taxation of transactions or other taxable objects. The principle of economic justification for the tax determines the set of relevant factors that allow to approach the characteristics of taxation in different ways, taking into account certain economic indicators, by ensuring that the balance of private and public interests in tax and legal regulation is achieved. In fact, it combines an assessment of compliance with the principles of proportionality (taxability), costeffectiveness of taxation, tax sufficiency, and the economic basis of tax. The results obtained are original, they will allow to improve the normative provisions before consolidating the principles of taxation in tax legislation.

PECULIARITIES OF MODELING IN AGRICULTURAL PRODUCTION WITH RISK ACCOUNTING

The causes of the risk inherent in any field of human activity, in particular for agricultural production are considered. AIC, in contrast to other branches of production, has a very important specific reason for the appearance of risk - weather conditions. Weather conditions are one of the main factors of the degree of uncertainty for agricultural production. When developing the organization of production of the agricultural sector, the natural and climatic conditions must be taken into account. In the agroindustrial complex, weather risk is most important and the main task of modeling and optimizing agricultural production is the development of ways of taking into account and reducing the weather risk. Economic result, which is an indicator effectiveness production in agriculture economy, depends independent characteristics of weather conditions. The problem of weather economic sustainability and risk far exceeds the problem of productive stability, because not only all agricultural industries, but also the national economy of the country as a whole are closely related to agricultural production. The instability of agricultural production significantly affects all the integral indicators of the national economy, including the volume of the national product. In the agroindustrial complex, weather risk is most important and the main task of modeling and optimizing agricultural production is the development of ways of taking into account and reducing the weather risk. Economic result, which is an indicator effectiveness production in agriculture economy, depends independent characteristics of weather conditions, that is why it is a random variable. This applies to all regions, all forms of ownership, all types of agricultural activities. Weather conditions can not be managed, but they can be adapted to achieve maximum integral result. To do this, you must select the other projects, strategic and tactical solutions with multiple permissible ones. In principle, there is the ability to manage the characteristics of weather resistance economic efficiency. In this case, we must try to obtain the maximum economic effect not only in a separate weather situation, but also during the long term, so that the effectiveness of the production is as possible as possible in relation to the accidental weather conditions in the given climate zone.

STUDY ON CHANGES IN SOME CHARACTERISTICS OF HUMAN CAPITAL IN THE REGION OF STARA ZAGORA

In the recent years, human resources have increasingly been regarded as capital or “human capital”. This trend reflects the ability of human resources to enhance their value and create a higher economic result, both for the separate economic subjects, and within the borders of territorial systems. The objective of the present study is to trace the changes in some quality characteristics of human capital in the region of Stara Zagora in the last five years. To realize this objective, we have applied the method of surveying people in working age by including questions related to improving qualification, motivation, innovativeness and talent of the respondents in the survey conducted in February-March of 2020. The survey results identify some problematic aspects of human capital and create the need for additional large-scale research on the separate regions of the country.