We put our hypothesis very straightforward, considering the euro area and the whole European Economic and Monetary Union (EMU) banking sector. The paper's central hypothesis that capital adequacy of ...the EMU banking sector influenced credit growth and activities in the nonfinancial sector was confirmed; however, not entirely in all respects expected. We proved that, in general, there was a dependency between banks' capital adequacy and loan growth in the euro area for the observed period Q1 1999 until Q1 2022; yet the correlation coefficient of 0.48 shows a middle positive relationship of variables. At the same time, more than 23% of loans' variability might be explained by variability in capital adequacy. All significance tests proved our results valid. Nevertheless, we saw two very different and slightly controversial dynamics in loan growth and capital ratio during the observed period. Therefore, we were forced to separately continue with an analysis for both time frames: the period before the big financial and economic crisis (Q1 1999 - Q4 2008) and the period starting with the big financial and economic crisis (Q1 2009 - Q12022). The linear regression in the pre-crisis period was almost flat. In contrast, a simple linear regression during the crisis showed a relatively high negative correlation at around -0.6. Therefore, the sub-hypothesis that higher capital adequacy resulted in negative credit growth was supported for the crisis period. We believe that this paper offers the main originality and scientific contribution for this particular finding within the data time series deployment.
We put our hypothesis very straightforward, considering the euro area and the whole European Economic and Monetary Union (EMU) banking sector. The paper’s central hypothesis that capital adequacy of ...the EMU banking sector influenced credit growth and activities in the nonfinancial sector was confirmed; however, not entirely in all respects expected. We proved that, in general, there was a dependency between banks’ capital adequacy and loan growth in the euro area for the observed period Q1 1999 until Q1 2022; yet the correlation coefficient of 0.48 shows a middle positive relationship of variables. At the same time, more than 23% of loans’ variability might be explained by variability in capital adequacy. All significance tests proved our results valid.
Nevertheless, we saw two very different and slightly controversial dynamics in loan growth and capital ratio during the observed period. Therefore, we were forced to separately continue with an analysis for both time frames: the period before the big financial and economic crisis (Q1 1999 - Q4 2008) and the period starting with the big financial and economic crisis (Q1 2009 - Q12022). The linear regression in the pre-crisis period was almost flat. In contrast, a simple linear regression during the crisis showed a relatively high negative correlation at around -0.6. Therefore, the sub-hypothesis that higher capital adequacy resulted in negative credit growth was supported for the crisis period. We believe that this paper offers the main originality and scientific contribution for this particular finding within the data time series deployment.
In most developing countries, small and medium-sized enterprises (SMEs) are an essential segment of the economic composition and crucial players for fostering innovation, growth and prosperity. ...Despite wide agreement among researchers in entrepreneurship and SME management that entrepreneurial and general self-efficacy can positively impact business formation and growth, one aspect of entrepreneurial self-efficacy, i.e., financial self-efficacy, has not been linked to SME performance in terms of SME profitability and growth, or satisfaction of the entrepreneur with their company. This study fills this research gap by uncovering new knowledge about the relationship between the financial self-efficacy of the entrepreneur and elements of SME performance. Data were collected through a structured questionnaire in one European country. Hypotheses were conceptually developed and checked using regression analysis. The results of this research reveal new knowledge about the relationship between financial self-efficacy and performance. The entrepreneur’s financial self-efficacy can matter for the profitability of SMEs, as well as for the growth and satisfaction of micro-SMEs and certain differently defined groups of entrepreneurs or companies.
We proved the main hypothesis of the paper that the methodology of banks’ capital measurement and banks’ capital structure is problematic. In the times of crisis causes many serious problems ...including financing of the future local, regional and global economic developments. We didn’t go here into quantitative correlation; however, qualitative outcome is very obvious. We proved this via the subordination problem. Basel II underestimated many risks that banks were disposed to in the bad times. Tier 2 (hybrids and subordinated debt) played too important role in the total banks’ capital. The private owners of Tier 2 and even some Tier 1 debt instruments were hit the most by the (banking) crisis; the official debt got more seniority. Current Euro-zone crisis has potential to cause additional markets’ volatilities and subordination crisis. Basel III will force banks to have more capital of the best quality. Existing and proposed capital accord system for banks with all details, pros and cons and detailed analysis with pointed out problems and implications on crisis and (future) regional and local economic development is the core of this paper. More Tier 1 will cause more stable conditions for banks financing local, regional and global (economic) developments.
The European Union prepared in 2017 five or even six scenarios of its future path. The central thesis is whether the all-time record high European Union's (further in the text EU) budget for the ...period 2021-27 means certain additional financial deepening of the EU and the EMU with its currency, the euro, and in which scenario it belongs. According to its quantity, quality, and some additional fiscal instruments introduced, we found out that the EU budget means a particular additional deepening of the EU and the EMU. This means the logical continuity of the first scenario and the fifth or even the sixth one. The record EU budget for 2021-27 is 53% higher than its predecessor. It is also revolutionary that the European Commission will, for the first time in its history, use partly financial markets via issuing debt instruments (including a large portion of green bonds) for its realisation. The EU currency, the euro, will also get a proper reference interest rate through this, which was not the case up till this budget. Additionally, the European Union is receiving a new source for its budget, namely, some tax instruments on pollution. Almost 60% of the EU budget expenditures represent EU twins (climate changes/green transition and digitalisation); however, considering some other financial EU instruments (e.g. the missions), this percentage might be even higher.
This paper examines the results of a broader research of the impact of the
implementation of a learning organization on the formation of a positive organizational
identity in the Slovenian ...entrepreneurial practice. On the basis
of an analysis carried out in 2012 on a sample of 132 enterprises in Slovenia,
the authors derived their own definition of organizational learning. With
the aid of factor analysis and a regression model, we established that each
factor defined in this paper independently affects the formation of a positive
organizational identity. However, in the event of joint factors of the learning
organization, only the factor empowerment and organization have a statistically
significant impact on the formation of a positive organizational identity.
The findings from our research are applicable in almost every company in
Slovenia, where the management can use them to form the company’s organizational
identity with the aim of increasing the competitiveness of the
company’s business.
In this paper, we are using the business process reengineering (BPR) concept together with the potentials of mobile information and communication technology (mobile ICT) to interpret the ability for ...better capturing of business changes that construction companies are faced with. Through our intensive examination of reengineering initiative in construction, we find that relatively low emphasis was placed on the opportunity to use information and communication technology (ICT) more progressively throughout the construction processes. We developed a methodological concept ‘Reengineering of the construction process (RCP-model)’ that captures the BPR philosophy as well as potentials of mobile ICT as technical background. Research assumptions were tested with the implementation of the proposed model in a concrete Construction Company in Slovenia. The reengineering project realization is defined from the viewpoint of the given implementation projects and exposure of the elements that affect adoption of BPR and enable evaluation of the attained results of company reorganization. Difficulties and milestones of the reengineering project, the importance of management and coordination of work are also stressed.
Veselinovic Drasko. La Bourse de Ljubljana (Slovénie). In: Revue d'économie financière, n°29, 1994. Les marchés financiers émergents (I) sous la direction de Olivier Pastré. pp. 179-182.
