Eurasian Business and Economics Perspectives

Table of Contents

1. Frontmatter

2. Eurasian Business Perspectives: Management

   1. Frontmatter

   2. Measuring the Enablers of Corporate Managers’ Decisions to Contribute to Non-State Social Protection

      Richmond Baah, Tatjana Volkova, Iveta Ludviga

      Abstract

      The world is fraught with multiple crises but efforts to elicit private sector contributions to society continue to be less fruitful mainly because of two reasons. Firstly, there is limited understanding of what informs corporate managers’ decision to contribute to society in crises periods. Secondly, the concepts of ‘responsibility’ and ‘business case’ which have framed appeals for business contribution to society have been ineffective. Even though wisdom is especially required for corporate decision-making in crisis periods, there is a scant literature on wisdom in corporate decision-making towards society. This research aims to assess the effects of wisdom on corporate managers’ decisions towards non-state social protection in a crisis period. A survey was conducted with 1230 valid responses. Andrew Hayes’s PROCESS Macro was used to conduct a mediation analysis of a serial multiple mediation model. The research finds that wisdom enables corporate managers to take decisions to contribute to non-state social protection in a crisis period. The study identifies wisdom three pathways which integrate to enable corporate managers’ decisions towards societal good. The study contributes to the Social Practice Wisdom (SPW) theory and empirically validates the wise management decision-making model.

   3. A Planning and Control Process for Sustainable Crop Production

      Chun Meng Tang, Lee Yen Chaw

      Abstract

      This study contends that before examining the future state of crop supply and demand, it is necessary to learn from historical crop production trends in order to better understand how crop supply has met demand in the past. This study analysed 30 years of past crop production data from the Food and Agriculture Organization (FAO) of the United Nations. The analyses concentrated on the harvested area and production of five major crop categories for the years 1990 to 2020 in five continents worldwide. The findings show that overall production of cereals, fruits, pulses, roots and tubers, and vegetables worldwide have been trending upwards since 1990. However, the findings are mixed on whether crop production will be sufficient to meet demand in 2050. This study also proposes devising a crop production planning and control process based on the sales and operations planning (S&OP) process in supply chain management to help maintain a balance between crop supply and demand. This study suggests that achieving the target of zero hunger as visualised by the UN’s Sustainable Development Goal No. 2 requires a concerted effort by the relevant stakeholders in the global crop supply chain to closely collaborate in an international crop production planning and control process.

   4. Exploring the Sustainability Model of the Hospitality Firm: The Experience of a Hotel Group in Europe

      Eleonora Cardillo, Maria Cristina Longo

      Abstract

      This paper explores how hotels manage sustainability, recognizing strategies and practices based on the environmental protection and waste reduction. It identifies virtuous paths that can constitute possible models of sustainable business management. We investigate the approach to sustainability of a large company operating in several European countries with a network of more than 250 hotels. We carry out a case study based on questionnaire and reports analysis. We reconstruct the model of sustainability and its implications, considering the environmental impacts, actions and stakeholders social well-being. Findings enhance our understanding how a hotel group deals with the social, environmental and economic issues. Results give insights on how sustainability models work in the hospitality firms. The practical implications concern actions and tools to be adopted by hospitality firms that can effectively implement sustainable business models, especially in the transition phase to sustainability.

   5. Organization–Stakeholder Fit in a Military Context: Conflict Resolution Strategies Between a Military Organisation and Military Family

      Edgars Joksts-Bogdanovs, Iveta Ludviga

      Abstract

      Successful organizations are often those that can effectively manage relationships with stakeholders, especially in times of turbulence and crisis. This conceptual paper aims to integrate organisation-stakeholder fit theory and dual concern theory to mitigate inherent conflict between military organisation and military families. We develop three propositions linking the conflict resolution strategies between stakeholders to organisation-stakeholder fit related outcomes. We argue that applying compromise or accommodation strategies lead to lower partner satisfaction and lower well-being of the military and their families. We thereby emphasize that collaboration strategy will lead to organisation-stakeholder fit and thus achieve value congruence and strategic complementarity in this organisation-stakeholder interaction. Looking at the cooperation of stakeholders through the prism of the military organisation and the military family creates a more extreme context and can therefore broaden the vision of how to deal with conflicts between the organisation and its stakeholders. Finding and applying successful and effective solutions to the inherent conflict between stakeholders in the military environment can improve the performance of military personnel, thereby contributing to achieving the overall objectives of the organisation and meeting the public interest.

3. Eurasian Business Perspectives: Marketing

   1. Frontmatter

   2. Improving the Purchase Intention by a Color Brand: Verification for Mazda’s Kodo Design

      Takumi Kato

      Abstract

      Many companies strengthen their perceived value of products by consistently using the same color. The most representative example is Tiffany Blue, which emotionally connects customers and brands and contributes to their differentiation from competitors. In the automotive industry, Mazda consistently promoted Soul Red based on the concept of the KODO design (soul of motion design). In other words, consumers perceive it as a branded color rather than just a color. Some such cases are found in business, but academic literature is surprisingly scarce. This study formulated the following hypothesis in the Japanese market: consumers who are attracted to Soul Red, developed by Mazda’s KODO Design brand, have a high purchase intention for that brand. This hypothesis was supported by applying propensity score matching to the responses of an online survey. This study suggests that it is important to make efforts to brand the colors themselves rather than showing them as they are. Hence, practitioners should define not only styling but also color brands under the design brand and consistently appeal to increase the competitiveness of the entire product. Treating color in this way would be more effective than treating it objectively.

   3. Managing Social Responsibility for Health: Challenges in Using Digital Marketing for the Promotion of Paid Services of Healthcare Institutions

      Paula Gurtina, Santa Bormane

      Abstract

      The study reflects the trend in the influence of digital tools on consumers regarding the choice of paid services in healthcare institutions. The topicality of the research topic is related to the growing advantages of using digital marketing as well as its wide range of uses, which allows to reach consumers more conveniently and quickly, including regarding paid healthcare services. Yet it does not reduce the social responsibility risks associated with information access for a certain part of society. The goal of the study was to identify which digital marketing tools would positively contribute to the patients’ choice in respect of paid healthcare services, through what channels it is most convenient for patients to receive information, and by what criteria patients choose paid healthcare services. The study used the monographic, secondary data, case study, and quantitative analysis (survey by random sampling method) methods. The research data were analysed in cross-sections—by age, gender, education and income level. Overall, the study found differences in terms of the impact of digital tools upon the choice of paid healthcare services among groups of respondents. The consumption of digital tools changes as the respondents’ level of education increases, respondents with a higher education choose more tools than respondents with a lower level of education. The respondents are least affected in their choice by paid online advertising tools, followed by process automation tools and content marketing tools, and most affected by website, followed by customer relationship management tools and e-mail marketing tools.

4. Eurasian Business Perspectives: SMEs and Entrepreneurship

   1. Frontmatter

   2. Understanding the Internationalization Intention of Indonesian Food and Beverages SMEs

      Evy Rachmawati Chaldun, Carissa Tibia Walidayni, Andiva Liesty Amelia

      Abstract

      Globalization has enabled more businesses such as Small and Medium-sized Enterprises (SMEs) to internationalize their product. This study aims to understand what influences internationalization intention within SME owners and how it affects the behavior of SME owners. To understand this behavior, this study utilizes the Theory of Planned Behavior and a qualitative approach with semi-structured interviews as a data collection method. In-depth interviews were conducted with Indonesian Food and Beverage SME owners. Based on the result, SME owners have strong attitudes towards internationalization due to their perspective regarding the importance of internationalization. Subjective norm shows there is a mixed result for some owners. It has a major influence on their internationalization intention while others have a minor influence because they are focusing on their attitude. Through the perceived behavior control point of view, SME owners explain deeper the reason why they can or cannot export their products as well as the degree of their readiness to face the international market. The result of this research creates an addition in literature to an unexplored area of internationalization and understanding the source of SME owners’ intentions. Through this study, we also understand that there is another factor that influences internationalization intention which is not categorized in the Theory of Planned Behavior as an opportunity for future research.

   3. Entrepreneurial Seniors. Inspiring Initiatives in Spain, Finland, Slovakia and Portugal

      José Jesús Delgado Peña, Francisco Marcos Martín Martín, Carla Angela Escudero Gallegos, Abraham Nuevo López

      Abstract

      Social entrepreneurship among older people is of great importance given the ageing of the population and the need to promote active ageing through the creation of enterprises. The main objective of this study is to analyse the main aspects taken into account by older people who have undertaken social entrepreneurship in the field of social economy. Specifically, semi-structured interviews were conducted with four senior entrepreneurs in Spain, Slovakia, Finland and Portugal. The enterprises belong to different areas: livestock, construction, home care, handicrafts, but with the common link of representing good examples in the field of social economy since part of the profits are invested in the local community to ensure the sustainability of the project and the development of the area. The results show the motivations, needs, threats and strengths of senior entrepreneurs, as well as the strategies that have been established to face the general impact that the crisis caused by the Covid-19 pandemic has had on senior businesses.

5. Eurasian Economic Perspectives: Economics of Innovation

   1. Frontmatter

   2. Ascent of Regtech: A Bibliometric Analysis of Regulatory Technology

      Muslehuddin Musab Mohammed, Ahmet Faruk Aysan

      Abstract

      Under the impact of the fourth industrial revolution, the focus towards Regulatory Technology (RegTech) gained traction. The COVID-19 pandemic has further underscored the necessity for adoption of RegTech to synchronize with the new norm of digital transformation. The research collected the scientific literature on RegTech from the database of Scopus since 1988 until April 15, 2021, and deployed the citations, bibliographic coupling, co-citations, co-authorship, and co-occurrence methods through VOSviewer software to conduct the bibliometric network analysis. The research basically aimed to know the influential articles, authors, sources, and countries as an endeavor to identify the areas of interest in RegTech that are well explored by the researchers and the areas of research that need further attention. The findings indicate that until 2016 the focus of research was on ‘Risk management and Fraud Detection’, however since 2016 the focus has been on ‘Effective Supervision and Regulation’ in addition to ‘Technological Advancements’. Moreover, the 5 years period of 2016–2020 has been crucial for the publications on RegTech.

   3. Questioning the Legitimacy of NFT: A Study on Public Engagement in Indonesia

      Ari Okta Viyani, Rangga Almahendra, Istiana Rahatmawati

      Abstract

      NFT (Non-Fungible Token) as a new entity and social construction in the blockchain ecosystem has been widely discussed recently and is still little researched. Our study seeks to understand how the public can accept and engage with NFT. We use institutional theory and legitimacy theory to explain how these entities can be formed, accepted, and influence people’s behavior patterns to explain this phenomenon. This study identifies three distinct types of legitimacy in order to analyze the public’s perception of NFT. This study will investigate the Indonesian public’s engagement with NFT. Data is collected from people involved in the NFT project and those who have bought or sold this entity. The results show that the public engages with NFT entities because of their pragmatic and cognitive preference for NFT. They tend to want quick profits and make quick decisions in investing. They also tend to understand the benefits of blockchain technology. This study also provides findings that the image of crypto companies can affect the process of public engagement on NFT. When the image of a crypto company is high, the relationship between legitimacy and engagement will increase. Still, at a certain point, when the public has known the crypto company, the relationship between legitimacy and engagement is not stronger than before.

   4. More Than 10 Years of Blockchain Creation: Where Are We Now?

      Khalid Ahmed Al-Ansari, Ahmet Faruk Aysan

      Abstract

      To identify how blockchain technology affects current and future research, we carried out a bibliometric overview of journal articles written on blockchain in finance, economics, and social sciences fields. We aimed to answer some of the questions and visualize publications’ trends regarding the advancement of blockchain utilization in the selected fields. We used the Scopus database for the literature research, which resulted in 506 papers by 1278 authors distributed across 79 countries. The data showed that from 2008 till 2021, publishing about blockchain was more significant among conference papers than journal articles by a factor of two. The bibliometric analysis showed the importance of citation regarding published academic articles, the influential authors, the top universities/organizations with blockchain research, and the top countries of articles’ publications on blockchain topics. The study identified Financial Innovation as the most impactful journal, the National Natural Science Foundation of China as the leading funding sponsor on blockchain research, the USA as the highest publication-producing country, and Hong Kong as the top country in the average citation per document produced. Finally, the study analysis identified the 20 most cited articles on blockchain topics from 2008 to early 2021. This study’s investigation and findings could set a preliminary understanding and a road map for those interested in carrying out a bibliometric analysis on any topic.

6. Eurasian Economic Perspectives: Education

   1. Frontmatter

   2. A Definition-Led Structure for Capturing Third Mission at Higher Education Institutions: A Case Study of a German University of Applied Sciences

      Georg Westermann, Carolin Schubert

      Abstract

      Along with their activities in research and education, Institutions of Higher Education (HEI) are increasingly urged to co-operate and exchange with their non-academic environment. Moreover, the UNESCO World Action Program on ESD states that universities take over social responsibility by transferring knowledge into society. The continuum of those Third Mission Activities (TMA) contains part-time education as well as contract research, cultural, ecological and social engagement or the solution of problems of regional companies or public institutions. In that context HEI and their decisionmakers should be able to identify and structure those heterogeneous activities as a first step in order to control them as efficiently as research and education. In this paper a literature-based definition of TMA is presented and applied to develop a three-dimensional structure in which TMA might be systemized and evaluated. The tool is then applied to the case of a German University of Applied Sciences and its 167 heterogenous TMA. The data are collected in two waves of interviews with 57 providers of TMA at this institution. The results demonstrate that the suggested approach can deliver a systematic picture of the Third Mission landscape within a specific HEI. Moreover, in this case study it is shown that it is possible to structure the variety of 167 TMA detected at a HEI according to the goal systems of HEI. Applying the proposed tool can be the starting point to structure, evaluate and compare the TMA of a HEI in order to increase both their effectivity and efficiency.

   3. Exploring Success Factors Underpinning the Delivery of UN SDG-4 Quality Education Projects in Pakistan

      Sidra Shahid, Martyn Polkinghorne, Milena Bobeva

      Abstract

      The global population is rapidly growing, exerting pressure on limited resources and necessitating the prioritization of sustainability. In this context, the United Nations has set 17 Sustainable Development Goals (SDGs) to be achieved by 2030, with quality education (SDG-4) playing a crucial role in empowering individuals and fostering economic growth. Pakistan, with its young and expanding population, faces significant challenges in its educational system, including high dropout rates and gender disparities. Non-Governmental Organizations (NGOs) have played a pivotal role in the development of Pakistan’s education sector, receiving substantial investments from various donors. However, the success of educational projects delivered by NGOs requires effective monitoring and evaluation. This research adopts a case study approach, conducting qualitative interviews with 25 key stakeholders, including NGOs, donors, and government representatives. The study reveals key factors essential for project success, resulting in the development of new understanding which emphasizes the need for projects to be aligned with the project lifecycle. Furthermore, it highlights the importance of addressing genuine community needs, and ensuring community readiness to benefit from educational initiatives. Data collected indicates that a failure to consider these factors can impede project progress. With this new understanding, NGOs and stakeholders can enhance the success of educational projects in Pakistan, aligning with SDG-4 objectives and contributing to inclusive and quality education for all. This research not only provides insights specific to Pakistan, but also offers valuable lessons for educational projects delivered by NGOs globally.

7. Eurasian Economic Perspectives: Growth and Development

   1. Frontmatter

   2. Positioning the Croatian Environmental Kuznets Curve in a European Context

      Djula Borozan, Luka Borozan

      Abstract

      The existence of the environmental Kuznets curve (EKC) has attracted growing research interest worldwide. This paper uses a panel autoregressive distributed lag model to examine the relationship between environmental quality and economic development in Croatia in a European context. Energy consumption, environmental taxes and human capital are treated as control variables. Economic development is measured by real gross domestic product per capita, while environmental quality is proxied by greenhouse gas (GHG) emissions. The statistically significant existence of the U-shaped form is confirmed for the entire sample consisted of European countries in the long run, suggesting that economic development itself cannot reduce harmful emissions. In the short run, on the other hand, there is not enough evidence to validate the existence of this shape, neither for the EU as a whole nor for Croatia. Therefore, the results confirm that the relationship of interest is a long run phenomenon. The results also show that energy consumption, environmental taxes, and human capital significantly influence GHG emissions in the long run. Unlike in the EU, where the effect of these variables is not significant, energy consumption and human capital in Croatia demonstrate statistically significant short-term impacts on GHG emissions.

   3. An Analysis of the Extent of Economic Measures During the Covid-19 Pandemic

      Tomas Fisera, Jan Cernohorsky

      Abstract

      The aim of this paper is to assess the extent of economic measures for 168 countries with a more detailed focus on Sweden, Singapore and the Czech Republic and then to recommend a possible future course of action to governments. We use a database of six indicators characterizing: (i) fiscal measures, (ii) interest rate changes, (iii) macro-financial measures, (iv) other monetary policy measures, (v) exchange rate measures, and (vi) other exchange rate measures. Next, we use our own modification of the economic stimulus index constructed by principal component analysis. Sweden introduced the most extensive economic measures, while the economic measures of the governments of Singapore and the Czech Republic were at about half level. We see the timeliness, adequacy, breadth and consistency of government action as a most economically efficient approach. We recommend the adoption of fundamental reforms, e.g. a higher share of indirect taxes or sustainable financing of pension and health care systems, where increasing the level of taxation in the form of selective consumption taxes can be seen as effective. Another key recommendation is the importance of investing in digital infrastructure to enable, for example, greater flexibility in the labor market or greater efficiency in public administration.

   4. Self-Rated Health Over Time in Greece

      Daphne Nicolitsas

      Abstract

      Self-rated health has been shown to have predictive power for mortality and is thus a useful indicator to summarize the health status of individuals. We use self-rated health (SRH) to investigate how the health status of individuals changed during the severe financial crisis that hit Greece in the 2010s. The data show some deterioration in SRH but no increase in polarization or inequality. Potential explanations for these subdued changes are sought in the developments over time in some of the variables that self-rated health is associated with. More specifically, the increase in unemployment and inactivity during the financial crisis impacted on SRH—more on lowering the probability of being in a very good state rather than in increasing the probability of being in a very bad state. At the same time, however, during the crisis, the percentage of individuals smoking decreased thus compensating the deterioration in SRH from the decline in economic activity. The results presented are nothing more than associations and further research is needed to find causal interpretations of the change in SRH.

8. Eurasian Economic Perspectives: Investment

   1. Frontmatter

   2. Behavioral Intention to Participate in Crypto Investment: The Role of Exchange Reputation

      Rangga Almahendra, Mohd Dimasqi Abandi Asmar, Muhamad Nabawi

      Abstract

      As cryptocurrencies continue to gain mainstream recognition and popularity, social science research is becoming increasingly essential in understanding the factors contributing to their rapid growth and integration into financial investment. Based on the opportunities of this phenomenon, this research will be conducted to look at the antecedents of a person’s behavioral intention to invest in crypto assets. Our research will observe an individual’s choice to invest in crypto assets using social exchange and planned behavior theories. In this study, a construct closely related to crypto assets is also added, namely exchange reputation. We conducted an online survey involving more than 150 crypto asset investors in Indonesia and employed structural equation modeling—partial least square (SEM-PLS). Our research concludes that behavioral intention to participate in the crypto investment depends on how much the investor’s perceived positive impact influences their investment attitude. This study also demonstrates that platform reputation moderates the relationship between attitude and behavioral intention to engage in cryptocurrency investment. Finally, we discovered that the perceived negative impact does not influence the willingness to invest in crypto assets.

   3. The Impact of USDA Wasde Announcements on South African White Maize Futures Prices

      Ayesha Sayed, Christo Auret

      Abstract

      The United States Department of Agriculture (USDA) World Agricultural Demand and Supply Estimates (WASDE) releases monthly reports containing valuable information on agricultural projections and expected production. These reports are frequently used by farmers, millers, commodity traders and suppliers, many of whom use futures contracts to mitigate their exposure to commodity price risk. Through an event study analysis, this paper examines the impact of these reports on white maize futures prices listed on the South African Futures Exchange (SAFEX) for the period November 2013 to October 2022. White maize futures contracts remain the most liquidly traded contract on SAFEX and is the only listed white maize contract traded on a futures exchange globally. Furthermore, previous studies have found significant spillover effects from SAFEX-listed white maize onto maize futures listed in the U.S., Brazil, and Argentina. The results confirm significant price reactions, with return variability significantly different from those observed on days preceding and days following the report’s release. Given the prominence of maize in food and fuel production, the results have important implications for market participants not only across futures markets, but also for those involved in the production and sale of industrial products requiring maize.

   4. Voltaic Money Laundering, the Dark Side of Fintech

      Agnieszka Wójcik-Czerniawska

      Abstract

      A rapid change in the financial industry has been brought about by the development of financial technology (fintech), which has offered convenience, efficiency, and increased accessibility to financial services. There is, however, a darker side to fintech as voltaic money laundering has emerged alongside these benefits. Through fintech platforms, funds are illicitly transferred and concealed through voltaic money laundering. There are several aspects of solar-powered money laundering discussed in the paper, including client differentiation, rapidity of business deals, currency consideration, worldwide transactions, monitoring gaps, disingenuous political behavior, tax avoidance, and a lack of accountability are some of the aspects discussed in the paper. Fintech’s role in enabling illicit financial activities is explored in each aspect. Moreover, the study proposed potential areas for future research on voltaic money laundering and identified limitations in current understandings. There are a number of issues in this regard, including data limitations, fintech’s constantly evolving nature, jurisdictional concerns, technological developments, regulatory implications, as well as the socioeconomic effects of voltaic money laundering. This research contributes to the existing literature on financial crime through its examination of the dark side of fintech and offers insights for policymakers and regulators seeking to combat illicit financial activities within this domain. In the digital age, it is extremely important to understand and address voltaic money laundering.

9. Eurasian Economic Perspectives: Monetary Economics

   1. Frontmatter

   2. The Effectiveness of the Transmission Mechanism’s Credit Channel: A Case Study of the Visegrad Four Countries

      Liběna Černohorská, Pavlína Kalibánová

      Abstract

      This article aims to evaluate the impact of the transmission mechanism’s credit channel in the countries of the Visegrad Four (V4) for the period of 2007 to 2021. The analysis examines the dependence between the selected central banks’ interest rates and the amount of loans provided to nonfinancial business entities (loans) and subsequently the dependence between loans and gross domestic product (GDP) in the V4 countries. The analysis is conducted using time series analysis. The empirical results did not indicate the presence of long-term relationships between the selected variables for the V4 countries. In all the V4 countries, a mutual short-term relationship was seen between the given country’s basic central bank interest rates and the amount of loans provided to non-financial business entities and, at the same time, between loans and GDP. On the basis of these results, it can be stated that the monetary policy transmission mechanism’s credit channel is effective in the V4 countries only in the short term. Monetary policy’s credit transmission mechanism was seen to operate both for the autonomous central banks—in the Czech Republic, Poland, and Hungary—as well as for the National Bank of Slovakia, which is subject to the European Central Bank’s policy.

   3. The Impact of Unconventional Monetary Policy on Economic Activity: Evidence from Europe

      Maciej Bolisega

      Abstract

      The aim of conducted research was to analyze the impact of unconventional monetary policy run by the European Central Bank following global financial crisis. The research comprises period between 2009 and 2021. The main aim in this study was to evaluate the real economic impact, measured by real gross domestic product, in response to change of selected monetary policy parameters. The study used vector error correction model (VECM) and impulse response function (IRF) to simulate economic activity change in the euro area in response to monetary policy shock defined as large scale asset purchase program carried out by the European Central Bank. In order to develop VECM model, the study considered variables illustrating dynamics in economic activity, inflation, polity rates, term spread, exchange rate, and monetary policy measures. The results provided evidence that unconventional monetary policy conducted by the European Central Bank had a positive influence on economic activity in the euro area. The course of the impulse response function described that the impact was rising quarter by quarter and reached the top in the fifth quarter after the shock had taken place. In the following period the impact declined but remained positive through entire simulated period.

   4. Is the Real Exchange Rate a Transmission Channel of the Japanese Monetary Policy? A Statistical-Mathematical Analysis

      Rosa Ferrentino, Luca Vota

      Abstract

      The recent events in Japan have brought back the debate on the effectiveness of economic policy measures taken by the authorities of that country to tackle the crisis of the Lost Decade. In this manuscript, we deal with Japanese monetary policy and, more specifically, our aim is to assess whether the real exchange rate represents a transmission channel of the monetary stimuli of the Bank of Japan. This possibility has been previously discussed by other researchers without being empirically checked. To accomplish this task, we employ a proper statistical-mathematical approach consisting of a Structural Vector Error Correction (SVEC) analysis. We write down and identify our model relying on the Monetary Approach to the Balance of Payments, and then we estimate it through quarterly time series data in the sample period Q1 1994 – Q1 2022. Our results indicate that, contrary to what has been suggested by the established literature, the real exchange rate is a relevant transmission channel of Japanese monetary policy only in the short-run. We discuss the policy implications arising from this outcome.

   5. Financial Shocks: What Are They and How to Prevent Their Emergence

      Agnieszka Wójcik-Czerniawska, Jacek Nowak

      Abstract

      The effects of economic shocks can be felt by economies, financial markets, businesses, and individuals. In the event that the financial system of the country is suddenly and severely disrupted, serious economic crises may occur, causing high levels of market volatility and spreading an underlying state of insecurity. Throughout this paper, we examine the phenomenon of financial shocks and offer a range of strategies for preventing their occurrence in the future. Using case studies of financial shocks as well as existing literature and research, this study contributes to the body of knowledge on the management of financial shocks. Secondary research methodologies were used in this study, along with information collected from books, newspapers, articles, etc. As part of these mechanisms, social and political sustainability or progressive development is ensured, a bank culture is integrated with improved governance, business growth is stabilized, fiscal and monetary regulations are established, and dividends are limited by assisting governments with capital and dilution of shareholders. Sustainability in the financial sector is one of the most significant aspects that are currently being discussed globally, along with social issues, politics, the environment, and business.