You Learn When It Hurts: Evidence in the Mutual Fund Industry

This paper aims to contribute to the lack of research on the learning process of mutual fund markets. The empirical design is focused on the ability of the Spanish equity mutual fund industry to learn from its important errors. The choice of this industry is justified by both its relevance in the European mutual fund markets and some specific characteristics, such as the concentration and the banking control of the industry, which may affect the learning process. Our main objectives are to identify important trading errors in mutual fund management by applying three independent filters based on the relative importance of each decision, and then testing the evolution of these errors both at the industry level and at the fund family level. We apply the dynamic model of generalized method of moments (GMM), and we find an overall significant decrease in the percentage of important trading errors over time, thereby providing evidence of the global learning process of the industry. In addition, we find that a large number of fund families drive this evidence. Finally, we obtain that the family size and its dependence on financial groups do not seem to play significant roles in explaining the learning process. Therefore, we conclude that fund managers have incentives to learn from their important trading errors, in order to avoid them in future decisions, due to their serious negative consequences on fund performance, regardless of the characteristics of the families to which they belong.

Belgium: Formalization and Incremental Development of a Supervisor with Increasing Powers and Authority

The formalization process of Belgian banking supervision provides an interesting case. Mixed international influences as well as major domestic reforms influenced the direction of formalizing the supervisory system. It began in the middle of the 1930s as a consequence of the economic and financial crisis at the beginning of the decade. The reforms undertaken in 1934 and 1935 transformed the Belgian banking system from a free and unrestricted market, featuring very influential financial groups operating universal banking, to a supervised and more specialized banking system. However, based on our understanding of “formalization,” the process was not completed until the mid-1970s, because newly created formal supervision agency—the Banking Commission—initially functioned with very little resources and powers on a similar basis as its Swiss equivalent. In the post-Second World War era, the Belgian banking supervisor developed significantly, and its influence reached beyond mere prudential supervision. By the mid-1970s, the Banking Commission got involved in monetary and state financing policy, and the agency obtained the supervision of additional financial institutions.

ТЕОРЕТИКО-МЕТОДИЧНИЙ КОНЦЕПТ МОДИФІКУВАННЯ ДЕКОМПОЗИЦІЙНОЇ СТРУКТУРИ ПРОЦЕСУ УПРАВЛІННЯ ЛОГІСТИЧНИМ ЗАБЕЗПЕЧЕННЯМ РОЗВИТКУ ІННОВАЦІЙНОГО СПІВРОБІТНИЦТВА В УМОВАХ ЦИРКУЛЯРНОЇ ЕКОНОМІКИ

The article addresses a range of theoretical and methodological issues related to managing effective logistics support to the development of socioeconomic systems of the national circular-based economic model. It is argued that there is a need to regulate cooperation between socioeconomic systems and build various integration patterns (alliances, clusters, holdings, industrial and financial groups, consortia, innovative partnerships, etc.) which open new opportunities to their participants. The current theoretical and methodological developments in the area of providing logistics support to enhance the development of socioeconomic systems are focused primarily on the microlevel. Unresolved issues of the logistics support to enhance socioeconomic system development at higher levels (meso- and macro-) tend to generate a vast pool of scientific ideas for further innovative research. The purpose of this article is to rethink the existing theoretical, methodical and methodological foundations of logistics support for the socioeconomic system development and to design a qualitatively new conceptual and methodological framework to manage the logistics support to innovative partnerships in a circular economy settings. The findings reveal that the formation of this theoretical and methodological framework is the result of a symbiosis of empirical and theoretical cognitive levels that have certain differences in certain aspects of comparison. The study offers a generalized survey of scientific and philosophical approaches to perceiving socioeconomic processes which provided for using a transdisciplinary paradigm as a theoretical and methodological premises to manage the logistics support to innovative partnerships in a circular economy. To build a common vector of research, it is recommended to use a semantic modeling approach which can be viewed as a converter of natural language, a scientific terminology framework, and a tool to shape a nomological basis in building new theories to explore socioeconomic systems that contributes to constructing a logical semantic model which specifies the mechanism of logistics support to innovative partnerships in a circular economy in terms and definitions of relevant subject areas, including all known logically consistent statements and facts, and is based on certain principles. Based on the research, a relationship between logistics management, innovative partnership development and circular economy has been verified which allowed to develop a theoretical and methodological framework to manage the logistics of innovative partnerships in a circular economy settings. Implementation of the proposed theoretical and methodological framework translates into a comprehensive concept to enhance management of logistics support to further innovative partnership development in a circular economy which makes the foundation of government policy to promote circular economy based on reversible logistics to attain socioeconomic sustainability of the national economy.

STATE OF CONCENTRATION AND MONOPOLIZATION OF THE INSURANCE MARKET OF UKRAINE

The intensity and quality of insurance market development are directly related to the level of competition, concentration and monopolization between insurance companies. Although the insurance market of Ukraine is insignificant in terms of key indicators in comparison with foreign ones, the competitiveness of its insurers is very important to ensure proper insurance protection of policyholders. The article is devoted to the assessment of the processes of concentration and monopolization of the insurance market of Ukraine. The study analyzed the structure of the insurance market by segments, concentration indicators and the Herfindahl-Hirschman index for the market as a whole and for individual types of insurance, gradation of insurance companies by the amount of collected insurance premiums. Based on the assessment, it was determined that the insurance market of Ukraine is generally low concentrated, as well as the sector of risky types of insurance. Among the selected segments of the insurance market, the most concentrated is the CASCO insurance. In the field of health insurance there is a slightly lower level of concentration and monopolization as in the OTSPVVNTZ segment. The market of classical property insurance is the least concentrated. The life insurance segment is characterized by moderate concentration and monopolization. The most powerful insurance companies in the relevant sectors of the insurance market of Ukraine are outlined. Since 2015, the top three leaders of the life insurance market are PJSC “MetLife”, PJSC “Insurance Group TAS” and PJSC “IC UNIСA LIFE”. Virtually unchanged leaders in the field of risk insurance during 2018-2020 were PJSC “IC ARX”, PJSC “IC UNICA” and PJSC “Insurance Group TAS”, which are members of financial groups that include leaders of the life insurance market. In general, the national insurance market is becoming more concentrated, which will be appropriate and accepted benefits while strong market players will not involve their residents, and the state controls these processes.

The sociology and education of the political elite in post-Soviet Georgia

In this paper, the main reasons that led in the post-Soviet period to the process of replacing the ruling classes with the counter-elite are analyzed. In the study, using the dialectical methodology, the authors identify trends and, following them in a logical chain, explain the order of procedures for political elites’ circulation. This paper also focuses on the education factor, which significantly determines the process of formation and circulation of political elites in post-Soviet Georgia. If, in the Soviet period, one of the criteria for the formation and recruitment of local elites was local education, the trend in this direction in post-Soviet Georgia has been changed significantly. Education gained in Western, EuropeanAmerican universities has been one of the defining factors in the formation and recruitment of political elites by Georgia since its independence. However, in Georgia, mainly in Tbilisi, there are educational centers, socalled “elite schools”, the vast majority of which are attended by children of new Georgians, but according to the criteria of skills, 3-4 percent of schools accept students. This is the first phase of education for junior members of local political and powerful financial groups. The second phase is the migration of graduates of these institutions to higher education institutions of Western countries to get an education. Which makes it easier for returnees to the homeland to integrate into the elite structure. In conclusion, those criteria are set out that are necessary factors for replacing the power elite with the counter-elite.

Norway

Norway has made substantial progress in strengthening its framework for financial crisis management and bank safety nets since the 2015 FSAP. The Norwegian authorities have implemented the EU framework. The Bank Recovery and Resolution Directive (BRRD) has been transposed into the Norwegian legal framework mainly by amendments to the Financial Institutions and Financial Groups Act and accompanying regulations. Finanstilsynet (the Financial Supervisory Authority of Norway, FSA) has been designated as Norway’s resolution authority. Resolution financing options were broadened by establishing a resolution fund. While the Deposit Guarantee Scheme Directive (DGSD) has yet to be brought into the European Economic Area (EEA) agreement, Norway has, in fact, already transposed it into the Norwegian law. This provides the Norwegian authorities with a broadened and detailed regulatory framework for dealing with weak banks.

Informal Self-Help Financial Groups and Micro-enterprise Development in Tivland, Benue State Nigeria

Abstract:- Tivland is not developed. About 70% of 3.9 million population in Tivland are small-holder farmers and micro-entrepreneurs who are funded by informal self-help financial groups (ISHFGs), which are not supported by external funding. Using in-depth interviews and participant observation methods, the study sought to identify the major types of ISHFGs in Tivland, how they generate funds, how they are sustained, their role in micro-enterprise development, and their challenges. The study revealed that there are three major types of ISHFGs in Tivland. They generate funds through savings deposits and interests on loans. They are sustained by group trust/cohesion. They have created easy access to micro-credit, and have empowered members for in income generating activities. Their major challenges are limited funds, bad leadership, no networks and external funding. The study concludes that ISHFGs in Tivland need networks for external funding, management/leadership trainings and close monitoring and evaluation of their operations

Public-Private Partnership as a Mechanism for the Development of Transport Infrastructure in Kherson Region

The development of the transport infrastructure of the region remains an important task, which today is solved by means of the mechanism of public-private partnership (PPP). At present, both a sufficient institutional environment and the regulatory support for the implementation of public-private partnership projects have already been created. Kherson region, having an average level of development of transport infrastructure, de facto occupies the near-border position. Therefore, the level of development of infrastructure of the region (in particular, road economy) is of significant strategic importance for the security of the State. The main tasks for the development of transport infrastructure of Kherson region and possible directions of implementation of infrastructure projects are defined. The study showed that only two projects that are not infrastructural are implemented on the basis of PPP in Kherson region. However, the concession of Kherson seaport has been launched – this project is pilot not only in the region, but also in Ukraine. Concluding a concession agreement in seaports is a complex and long-term procedure. Important in the agreement is the determination of the amount of concession payments and the distribution of risks between the project participants. Typically, concessionaires are large international companies (cargo owners or shipowners) or domestic industrial and financial groups that dictate the terms of the contract, so, accordingly, there may be a conflict of interest. This publication defines the essential conditions of this concession project. PPP projects in the road sphere are promising, which should solve a number of problems of the region. The airport «Kherson» is described as a concession object, the scheme of the PPP mechanism concerning it is proposed. It is determined that public-private partnership in the sphere of railway infrastructure is in the process of formation and determination of forms of cooperation.