Skip to main content

Über dieses Buch

This book presents selected papers from the 31st Eurasia Business and Economics Society (EBES) Conference, which took place as a virtual conference due to the global COVID-19 health crisis. The theoretical and empirical papers gathered here cover diverse areas of business, economics and finance in various geographic regions, including not only topics from HR, management, finance, marketing but also contributions on public economics, political economy and regional studies.



Eurasian Economic Perspectives: Finance


Equity Market Segmentation in Risk-Based Portfolio Construction Techniques

Risk-based portfolio construction models—i.e., strategic asset allocation approaches that do not make use of expected returns as inputs, such as optimal risk parity, most diversified portfolio, global minimum variance, and equal weighting—have reached a widespread use in the asset management industry. The aim of this research is to verify how these techniques reach different results depending on whether the global equity market is subdivided on the basis of a sector breakdown, carried out according to the industry sectors of each company, or in function of a geographical breakdown, carried out according to the listing market of each company. An empirical analysis, applied on a representative sample of global equity market indexes calculated by MSCI, is implemented by making use of the typical and most advanced statistical and financial evaluation measures. This comparative analysis reaches consistent results, showing a significant preference for the sector breakdown compared to the geographical one. In conclusion, this outcome can be ascribed to the segmentation of the equity market into sector indexes characterized by better external differentiation and stronger internal coherence. Moreover, sector indexes are characterized by a lower degree of concentration in comparison to the geographical ones.
Guido Abate

Forecasting the Dividend Policy Using Machine Learning Approach: Decision Tree Regression Models

Dividend policy is still one of the most discussed issues in corporate finance. Many papers are determined to find which are the most relevant factors influencing dividend payments. The list of possible determining factors of dividend policy is very large, being difficult to integrate all of them in the decision-making process. In our paper, we propose an approach based on machine learning methods, using decision tree regression models. Using a database of 11,248 companies from 70 countries, for the period 2008–2014, we found the most relevant input factors which determine the level of the dividend payout ratio. On this shortlist of factors, both companies’ financial indicators (size, return on equity, beta, leverage, market-to-book ratio, foreign holdings) and sociocultural factors at the country level (legal origin, GDP/capita, pluralism index, social progress index, democracy index, Hofstede’s harmony hierarchy and egalitarianism indexes) are present. The best prediction models are similar for both developed and developing countries.
Hanaan Yaseen, Victor Dragotă

The Volatility Case of European REITS and Non-REITs

Real estate investment trusts have had a difficult time penetrating the European real estate market while non-real estate investment trusts were a widely accepted investment vehicle in all EU member states. This study aims to examine the lack of popularity of real estate investment trust in the European market through the lens of European property research association index performance, comparing real estate investment trust with non-investment trusts head to head in terms of return, co-movement, liquidity and volatility modelling using the GJR-GARCH model. The results showed that, that European real estate investment trusts indexes were not a good diversification strategy. They exhibited high volatility, did not return to the previous stock index level, gave a poorer return to their competitive counterpart, had a higher shock persistency and strong correlation with the stock market index. Although some advantages of real estate investment trusts were identified, such as higher liquidity and stronger resilience to bad news asymmetry, overall, the European real estate market was very fragile. Possible study nuances could be attributed to the fact that investment trusts in the European market were still very young, and their index initial starting point came right at the peak of the real estate price bubble.
Andrius Grybauskas, Vaida Pilinkienė

Eurasian Economic Perspectives: Game Theory


Investigating Role of Social Value Orientation in Individual’s Decision-Making Evidence from the Ultimatum Game

In the conventional literature of economics, human preferences are defined based on self-interest and independence from social contexts and norms. In practice, however, human behaviors and actions are seriously influenced by social norms (such as fairness and beliefs) individual’s and the mutual behavior of others. Given that people’s social values influence the decision-making process, this study aims to investigate individual’s social value orientations in hypothetical and real conditions. Therefore, the triple-dominance measure and the ultimatum game were used to determine the social orientation of individuals in hypothetical and real conditions, respectively. In total, 64 students were randomly selected from the faculty of Economics, University of Tabriz, and the required data were collected within two weeks in January 2019. Since the data were not normally distributed, the non-parametric techniques of Chi-square and Wilcoxon were employed to explain the correlation between the research variables. The results showed that the assumptions were very simplistic and misleading in the neoclassical economic paradigm. Individual’s personality traits and social value orientations affected their decisions, so that about 75% of people chose the equality strategy, instead of maximizing their self-interest. The results also indicated a significant difference in the strategies and decisions of the proposers in both hypothetical and real conditions. In other words, in addition to self-interest, the behavior and action of the dividers in the ultimatum game were a function of personality and environmental factors.
Mostafa Hosseini Deldoost, Mohammad Taghi Saeedi

Cooperation in Three-Players Sequential Games: A Pilot Experiment

Cooperation has been the focus of many experimental articles in economics, due to its importance in evolutionary and social issues. The existing studies mostly focus on sequential games with two players, or on simultaneous games with more than two players. Little attention has been devoted to the study of sequential games with more than two players. The pilot experiment presented here aims at exploring this untouched area, focusing on a simple cooperation game with three players in a sequential setting. The results show that, contrary to theoretical predictions, players are willing to cooperate in a substantial way, even without individual incentives to do so. Moreover, indirect reciprocity assumes some significance, even if its effects cannot be fully determined from the gathered data. Though these results do not allow to draw any clear-cut conclusion by themselves, they could represent a good starting point for future research on this topic.
Stefano Pagliarani

Eurasian Economic Perspectives: Public Economics


Manifestations of Subnational Fiscal Federalism in Lithuanian Local Self-governments

The manifestations of fiscal federalism are analyzed at the subnational level in order to enhance the fiscal capability of municipalities. However, the municipalities usually lack the incentive to compete when providing packages of public services to the public as the revenue of municipalities is restricted by national level laws and remains highly dependent on government grants. The aim of this article is to determine the manifestations of the theory of fiscal federalism when assessing the fiscal capability of municipalities. The analysis of Lithuanian municipalities’ data for the five-year period reveals the municipal level situation. Research methods include the analysis of legislation and statistical data, content analysis, and cluster analysis. It has been found that there is no clear agreement at the interinstitutional level (from the highest to municipal level). Fiscal competition among the municipalities leads to a more efficient distribution of funds which can also have a positive impact on regional economic growth in the long term. Insufficient data at self-government level is a precondition for further separation among municipalities as rich municipalities keep getting richer while economically weak municipalities keep getting poorer.
Dalia Rudytė, Solveiga Skunčikienė, Inga Maksvytienė

Economic Policy Response to the COVID-19 Crisis: The Case of Poland

The aim of this paper is to examine the economic policy response to the COVID-19 crisis in Poland. The paper investigates the rationale for the economic policy tools implemented, their costs, and potential consequences for the Polish economy. The analysis concentrates on the initial phase of the crisis (March–April 2020). The study proves that the scope of economic policy adjustments in Poland might be viewed as relatively wide. Monetary policy tools and fiscal packages implemented induce profound consequences for the Polish economy. The total new financing needed by the government for anti-crisis measures results in a significant increase in the public debt ratio, from 44% in 2019 to 51.5% in 2020, and in a state budget deficit of 7.6% of GDP in 2020. Although the projected debt ratio is still below the 55% alert threshold prescribed by the Polish legislation, policy makers should consider risk factors. First, under an extended lockdown scenario financing needs might be larger than initially estimated. Second, if the Polish zloty depreciates due to external pressures, the debt ratio increases even more as 30% of the Polish public debt is denominated in foreign currencies. Financing the fiscal packages is not possible without the support of the central bank (NBP). The scope of the quantitative easing policy required is comparable in relative terms to programmes implemented in the United States after 2009. Therefore, economic agents should expect an unprecedented increase in the NBP balance sheet and money in circulation. This should have an impact on price levels in Poland, at least in the long term. The worst-case scenario is stagflation, characterised by sluggish economic growth and rising inflation.
Konrad Sobanski

Eurasian Economic Perspectives: Regional Studies


Malaysia–Japan Defense Industry Collaboration Prospects: Rejuvenation of the Look East Policy (LEP)

Due to the increasing tension in global politics and economy and the consequent need for a strong base of defense, there is a requirement to reduce the technological gap in defense manufacturing between developed and developing countries through steady remedial collaboration strategies that are viable in geopolitical terms. This paper intends to shed light on this matter by synthesizing several defense sector collaborative activities that have taken place lately between Japan and Malaysia and can be well understood as an outcome of the “Look East Policy” (LEP) of Malaysia. As a conceptual study, it examines the essential motives of defense cooperation amongst Japan and Malaysia to work jointly in order to achieve stability and respectful co-existence in the Indo-Pacific zone while abiding by the principles of law. The paper also highlights the possibilities and current developments of the said collaboration by recognizing the shifting dynamics that have brought a qualitative change in the strategic partnership between Malaysia and Japan in the defense industry. This study is significant not only due to its reflection on the longstanding security relationship between Japan and Malaysia but also because these two nations share similar concerns on the defense matter for ensuring the greater welfare of citizens.
Chinnasamy Nambi Agamudai Malarvizhi, Shamima Raihan Manzoor, Sreenivasan Jayashree

The Relationship Between R&D Expenditures and Youth Unemployment in the European Union Countries: A Comparison of the Old and New Member States

The purpose of this study is to analyze the relationship between Research and Development (R&D) expenditures and youth unemployment. The analysis covers the European Union (EU) member states. Unemployment is one of the major problems of the EU. The study attempts to reveal the effect of ever-increasing R&D expenditures today, when the fourth Industrial Revolution is happening, on the unemployment problem especially faced by young people in these countries. The member countries of the EU were compared after being divided into two groups as the old and new member states. The countries that established the European Union in the years before the collapse of the Soviet Union and the countries that became members over time were classified as “old member states,” and the countries that declared their independence after the collapse of the Soviet Union and later became members of the EU were classified as “new member states.” The reason for this was the presence of various structural differences between these two groups. Panel cointegration analysis was implemented as the research methodology. The analysis covers the period 2000–2018. The annual data obtained from Eurostat were utilized in the study. As a result of the analysis, it was determined that R&D expenditures reduced youth unemployment by 5.6% for older members and had a 4.1% decreasing effect for new member states.
Betül Gür

Autonomous Vehicles Adoption as a Facilitator of Driving and Usage Patterns’ Change

Autonomous vehicles (AV) will shift from a mere means of transport towards becoming a diverse environment where different activities could be carried out. This would lead to a change in driving and usage patterns. Since these patterns are a novel field that is scarcely covered in the current literature, the purpose of this paper is to explore the changes in a generation of millennials, as their interaction with smart technologies is incomparable to any previous generation, suggesting them as early AV adopters. The paper focuses on the perceptions of millennials regarding in-vehicle time usage and situations when AV could be sent somewhere to conduct something instead of an individual. The data is collected with a survey questionnaire and analyzed with descriptive statistics. Furthermore, millennials are divided into groups according to technology enthusiasm, and t-test is performed to observe the differences between technologically more and technologically less enthusiastic individuals. Millennials are shown to have a more positive perceptions of activities that could already be carried out in conventional vehicles, while opinions on those specific to AV are more neutral. In addition, no significant differences are observed between technologically more and technologically less enthusiastic individuals were observed, indicating that technology enthusiasm has little effect on AV-specific activities. This could be due to the fact that individuals still have vague perceptions of them; however, additional research would be needed for a deeper understanding.
Klara Ljubi, Aleš Groznik

The Social Construction of Identities in Migrant–Refugee Generation: The Role of the Tutor as a Leader in Multicultural Leadership

The trends that have been witnessed over the last 15 years with regard to immigration to Greece are particularly strong and definitely without any historical evidence. These advancements have obviously changed Greece’s position on the geopolitical map, providing it a place in the host countries of immigrants, while it has historically been a country of expatriates. Interestingly, the intensification of migration flows, especially when combined with the expansion of the role of migration for the temporal changes of the population as a whole, name for an increase in the importance of migration as a demographic and social component as a whole. The Greek policies concerning the role of the tutor as a leader in multicultural environments are gathered, studied, and analyzed. Fragmentation of policies, which falls in line with the attempts to solve the problems of refugees, are key components. The most relevant effect of this circumstance is not limited to the economic and political implications of the lives of the first immigrants, but primarily to the negative prospects of a stable social integration and prosperity for their descendants, i.e., the second- and third-generation “immigrants,” who are invited—and often in the literal sense indigenous—to cope with this situation.
Maria Vlachadi, Georgia Koufioti, Athanasios Kounios

How Can Evolve Support System of Innovation? Changes in the Influence of Business Support Organizations on Innovation Cooperation Based on the Example of Polish Region

Innovation cooperation allows the spreading of risks, especially financial risks, associated with innovative projects. This is more important for small and medium-sized enterprises that have less financial resources than large entities. At the same time, it is necessary to encourage entrepreneurs to cooperate in countries with a low level of trust. Therefore, the purpose of the study is to determine the impact of business support organizations on establishing innovative cooperation and to compare their impact in a dynamic approach. The study was conducted in small and medium-sized enterprises in the Łódź Voivodeship in Poland in two periods: 2010–2012 and 2014–2016. Two hundred and eighty-six entities participated in the study in the first period and 453 in the second. The research method used was logit modeling. The study showed that in the second research period support organizations more often contributed to establishing innovative cooperation. What was noted in particular was the activity of technology incubators and academic entrepreneurship incubators. This shows that young innovative enterprises in the early stages of development need support in building networks, and moreover that networks are important for their development. In addition, in both periods, support organizations more often initiated cooperation with other enterprises than with entities from the sphere of science. This shows that there is a huge gap between the areas of science and business in the surveyed entities.
Jadwiga Gorączkowska

Eurasian Business Perspectives: Management


Facility Services: An Underestimated Sector?

Facility Services (FS) as defined as “support provision to the primary activities of an organization, delivered by an internal or external provider” by the European norm 15221-1 are not presented as a whole industry sector in the Statistical Classification of Economic Activities in the European Community (NACE) or other international statistics. This chapter analyzes the economic indicators “value added at factor cost” and its correlation with “employment and employment types” of the FS industry in detail after the recession of 2008/2009 until 2016 in different European countries. The research is based on EU statistics and European norms. Results show that 10% of employees in the nonfinancial business economy in the EU work in the FS sector. The FS sector is very steady during and after recession, because services, such as janitorial work, maintenance, waste management, specialized cleaning, water and steam and air conditioning supply have to be kept running, even during a crisis. And employees in FS will keep their job, which is important for the purchasing power in a country.
Alexander Redlein, Eva Stopajnik

What Really Matters—Employer Attractiveness in Healthcare

Although the area of employer branding an employer attractiveness is a well-researched field, there is only little information on the healthcare industry in particular. Since this is a professional branch that becomes more and more important with demographic change and, on the other hand, suffers from a lack of skilled labor, answering this question is of high importance to the whole industry. With the present study, we want to contribute to expanding the empirical knowledge on employer attractiveness in healthcare. In particular, we focus on the internal perspective of the employer branding process and posit that it is crucial to examine which attributes and image dimensions organization insiders (employees already working for a healthcare organization) associate with attractive employers. We apply the instrumental–symbolic framework to investigate attributes relating to organizational attractiveness using a sample of 226 employees working for different healthcare SMEs in Germany. Results show that both instrumental and symbolic attributes predict employees’ attraction to healthcare organizations. Conversely, attributes within the symbolic dimension are perceived as important by employees. However, the results of the multivariate analysis show that those attributes are not the ones that best predict an employer’s attractiveness. Rather, attributes that address esteem needs and the need for self-actualization become significantly important in this context. Eventually, implications on the political and managerial level are discussed.
Manuela Koch-Rogge, Georg Westermann

The Central European Perspective on Managerial Staff Development Practices in Local Subsidiaries of MNCs Operating in Eastern and Western Europe

The main goal of the chapter is to identify the differences in the scope of internal relationships among the elements composing managerial staff development (MSD) in local subsidiaries of multinational companies (MNCs) headquartered in Central Europe and operating in Eastern and Western Europe. The research sample was composed of 200 headquarters (HQs) of nonfinancial MNCs and their local subsidiaries. In the research process, some statistically significant differences between MNCs operating in Eastern and Western Europe have been identified. The correlation between the financial performance results of local subsidiaries and the advancement level of MSD appears to be higher in Eastern Europe, although the advancement level of MSD itself is higher in Western Europe. In Eastern Europe, the internal relationships among the elements composing MSD are numerous and with stronger ties than in Western Europe. MSD is of more complex and systems approach in Eastern Europe. Furthermore, here the higher the appraisal level of managerial staff’s competencies as a competitive factor, the more systems approach to MSD is practiced. In Western Europe, the higher the advancement level of individual components of MSD the less systems approach to MSD is preferred. Our study, therefore, contributes some original findings to the discipline of management science.
Marzena Stor, Łukasz Haromszeki

Which Motivational Theories Are Suitable to Motivate Employees Belonging to Generation Y?

The aim of the chapter is to justify which theories have the motivation potential applicable to employees of Generation Y. The research was based on a selection of Lithuanian employees, whose socioeconomic situation is particularly deeply known by the authors of this chapter. Replies were submitted by 107 respondents. Ninety-nine were identified as respondents, who fully met the characteristics of the Y generation. Maslow’s Hierarchy of Needs theory helps to draw attention to the fact that an organization has to focus on the higher needs of esteem and self-actualization in order to motivate its employees. Herzberg’s theory is also not easily applicable to the motivation of the Generation Y employees, because it is hard to apply it in different social contexts. Vroom’s Expectancy theory and its development, performed by Porter and Lawler is highly important for the motivation of Generation Y. Goal setting Theory of Motivation may be used. It is important to ensure that the goal given to employees is understandable, clear, and can be implemented. An organization that can ensure all these factors can expect to motivate employees of Generation Y.
Povilas Foktas, Palmira Jucevičienė

Understanding Born Global Firms in Turkey: A Literature Review

The main purposes of the study are to present knowledge stock about the profile and barriers of the born global firms in Turkey and provide research agenda. Data are obtained through a systematic literature review comprised of the studies regarding the born global firms in Turkey. The studies chosen for this review are based on primary data. They have been published in both Turkish and English languages and printed in 2010–2020. Also, “Born global,” “marketing,” and “Turkey” are used as keywords for filtering these studies. The major findings indicate that the born global firms have encountered many obstacles such as marketing and procedural barrier. They have also some common features related to entrepreneurship orientation, network connection, proactive approaches, and technological abilities. This study integrates the major findings of previous studies on the subject of the born global firms in Turkey. This integration may be useful for expanding and advancing the knowledge in this field. Therefore, it is expected that it provides a knowledge reserve, starting points, basics and insights for further studies and business applications. In this context, major findings are discussed on the conditions of Turkey and strategic recommendations are presented.
Ceyda Tanrikulu

Eurasian Business Perspectives: Marketing


The Effective Management of Social Campaigns: Planning and Assessing the Media Message

Social campaign is a complex undertaking, and as such, it needs to be planned and managed well to achieve its goals. One of the first planning decisions is to choose activities that would be included in the campaign. Among the most popular activities within the social campaigns’ framework is promotion through different media types. They can reach many potential recipients and initiate many constructive changes. However, media messages could accomplish their goal only if they are adequately prepared. In their planning process, it is vital to assure the effectiveness of the message during pre-testing. Therefore, the chapter aims to present a framework for assessing media messages’ effectiveness in social campaigns using cognitive neuroscience and diagnostic survey methods triangulation. A literature review was conducted to determine the methods and techniques used in advertising research to obtain this goal. The proposed framework is based on experiments described in the literature and personal research experience. It can be used as a primer for designing various studies focused on media message assessment.
Anna Borawska

Theoretical Approach of Subliminal Advertising

Subliminal advertising is one of the most controversial topics in marketing for several decades and sparks interest among the general public and marketers. This is an interesting phenomenon that needs to be studied, explained, and understood in order to destroy the myth among consumers. This paper aims to explore most of the definitions and concepts associated with subliminal priming and subliminal techniques in order to test and develop a theoretical approach to subliminal marketing and its effects. This chapter, through a case study based on secondary sources, reviews how subliminal advertising influences consumer behavior. Studying subliminal priming represent interest among marketers, as a notoriety topic, not enough studied. Since its beginning, subliminal effects was investigated in marketing applications, of the question of effects on behavior. We evaluate subliminal techniques and establish the existence, or nonexistence, of the subliminal priming and persuasion. The implications and findings of this research suggest that the subliminal stimuli field needs continued research and also, this chapter helps to place this subject, in a proper perspective and clarifies much of its confusion.
Angela Madan, Mihai Ioan Rosca, Mirela Bucovicean

Values of Companies Operating in the Pharmaceutical Market: Orientation Directions

In this study, the authors seek an answer to the following problematic question: what are the values of the companies operating in the pharmaceutical market and how are they oriented: inward, that is, economic indicators of the company, or outward, where are the benefits of the social context highlighted? Therefore, the purpose of this study is the identification of values of companies operating in the pharmaceutical market, establishing the most frequently published/congruent values, and grouping them according to the chosen classification, to distinguish directions of value orientation. For the purposes of this study, 50 largest pharmaceutical companies operating in the Lithuanian market, generating 80% of all money circulating in the Lithuanian pharmaceutical sector, were selected. After analyzing the websites of the 50 largest companies, 30 of them were selected for further analysis. This study proposes a different approach when after highlighting value groups of pharmaceutical companies, attention is drawn to the directions of declared values. This helps to answer questions about which values are oriented to internal processes of companies and benefits they bring to the organization and which ones, to external entities. Such separation can serve, seeking to more precisely highlight value preferences of organizations in the information flow on their web pages.
Jolita Vveinhardt, Povilas Foktas
Weitere Informationen

Premium Partner