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This chapter considers finance in the world of artificial intelligence and digitalization with a special focus on the role and physical forms of money throughout history, modes of executing financial transactions, development of banking and investment industry, and its overall importance for financial management. Innovative and alternative business solutions in the financial industry result from the development of modern technologies, information and communication networks, smart devices, and various applications. Digital money and cryptocurrencies are extremely interesting current phenomena producing a broad range of speculations and mystery about their role in the future. Electronic payments bring many benefits and opportunities for corporate finance, capital markets, and investment and banking activities. Digitalization of business operations and use of artificial intelligence applications increases competitiveness and efficiency of all controlling processes and improves corporate risk management and at the same time decreases information asymmetry in the market.

This paper investigates the linkages among equity market returns before and after the 2007- 08 crisis using exchange traded funds (ETFs) in Germany, France, Italy, UK and the USA. Daily data used from January 2005- September 2007 and July 2009- July 2010 and apply to a Multivariate Autoregressive Moving Average model (MARMA). The data are diveded into two separate periods: before the 2007-08 financial crisis and after the crisis. The results show the existence of significant co-movement of returns in all selected periods although some important differences before and after the financial crisis are noted such as marked increases in the integration of the markets and hence diminishing diversification opportunities for investors over time. Implications for the critical importance of understanding the transmission process between markets for risk management and economic policy are indicated.

This paper investigates the linkages among equity markets of four European countries (Germany, France, Italy, UK) and the USA in terms of market returns and transmission of volatilities. We use daily exchange traded funds (ETF) data from January 2002 to March 2016 and utilize both a Multivariate Autoregressive Moving Average model (MARMA) and a Generalized Autoregressive Conditional Heteroskedasticity model (GARCH). We divided the data into three separate periods: before the 2007-08 financial crisis, during the crisis and after the crisis. The results show the existence of significant co-movement of returns in all three selected periods although some important differences before and after the financial crisis are noted. Findings also include marked increases in integration of the markets and thus diminishing diversification opportunities for investors. Volatilities appear to react strongly to market movements and their shocks fade away slowly in all five countries during the crisis period. There is also strong evidence of volatility spillovers particularly during and after the crisis periods.

Preliminary Assessment of the Planning Approach and Planning Technologies in Croatian Companies

Capital Budgeting Practices: A Survey of Croatian FirmsThis paper reports the results of a mail survey of capital budgeting practices among Croatian firms and compares the results with those from similar studies in the USA, UK, Sweden, and other European countries. It is based on a questionnaire sent to 200 firms selected from 400 of the best Croatian firms (special edition of Privredni vjesnik) and to 34 banks from a ranking of Croatian banks (special edition of Privredni vjesnik). The response rate was 25,21%. The goal of the empirical survey was to determine the present application of quantitative capital budgeting methods, cost of capital and cash flow estimation, risk analysis and application of a real options approach in capital budgeting practices in Croatian firms. This is the first empirical survey of Croatian capital budgeting practices that has been undertaken.