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Adequate enterprise financial risk management (EFRM) represents a leading competitive advantage of enterprises that determines market survival and business success in an uncertain global environment. Over time, EFRM has become a constituent part of integral business dealings of enterprises and one of the strategic functions of enterprise management. The main purpose of the paper is to explore the effects of the EFRM function/system on the financial performance of enterprises in Bosnia and Herzegovina (BiH). The basic source of data in the research was collected by means of a structured questionnaire. The target population in the research consists of large enterprises that have continuously operated in the territory of BiH (2013-2017). The selection of enterprises was made applying a random sampling method and contains 72 enterprises. Appropriate descriptive and inferential statistical methods were used in the data analysis and panel data analysis was used to assess effects of EFRM function on financial performance. The scientific contribution of the paper is reflected in the fact that the research is pioneering for Bosnia and Herzegovina with the analysis of effects of the EFRM function on enterprise financial performance (EFP). The results show that there are no systematic, statistically significant differences between large enterprises that engage in risk management (‘hedgers’) and enterprises that do not engage in risk management (‘non-hedgers’) in BiH.

This article aims to examine the potential relationship between Brent crude oil futures prices and the index of the European renewable energy companies. After the overview of the European legislation and the most recent literature review on the topic, the article deploys a method of the Vector Autoregressive Model (VAR). The analysis includes weekly data over eight years (2015-2022). Our results indicate a positive correlation between Brent crude oil futures prices and the value of the European Renewable Energy Total Return (ERIX) index. The estimated bivariate VAR model indicates a statistically significant relationship, meaning that past values of the ERIX Index may be used to predict future Brent crude oil prices in the long run. Considering the most recent systemic disturbance in the world’s commodity market, future research should consider longer time series and possible relationships of other macroeconomic factors.

In the most developed countries the first estimations of Gross Domestic Product (GDP) are available 30 days after the end of the reference quarter. In this paper, possibilities of creating an econometric model for making short-term forecasts of GDP in B&H have been explored. The database consists of more than 100 daily, monthly and quarterly time series for the period 2006q1-2016q4. The aim of this study was to estimate and validate different factor models. Due to the length limit of the series, the factor analysis included 12 time series which had a correlation coefficient with a quarterly GDP at the absolute value greater than 0.8. The principal component analysis (PCA) and the orthogonal varimax rotation of the initial solution were applied. Three principal components are extracted from the set of the series, thus together accounting for 73.34% of the total variability of the given set of series. The final choice of the model for forecasting quarterly B&H GDP was selected based on a comparative analysis of the predictive efficiency of the analysed models for the in-sample period and for the out-of-sample period. The unbiasedness and efficiency of individual forecasts were tested using the Mincer-Zarnowitz regression, while a comparison of the accuracy of forecast of two models was tested by the Diebold-Mariano test. We have examined the justification of a combination of two forecasts using the Granger-Ramanathan regression. A factor model involving three factors has shown to be the most efficient factor model for forecasting quarterly B&H GDP.

This paper analyses the inefficiency of social services targeting in the Federation of Bosnia and Herzegovina (FB&H). Using official statistics microdata of the Household Budget Survey 2015, three models of social minimum in FB&H were constructed: extreme and general poverty, and the model with multidimensional poverty aspects. The analysis of features of poor household categories showed that the most vulnerable residents of FB&H are not beneficiaries of permanent financial assistance. The reason for such an inefficient targeting was recognized in the Federal Law on Principles of Social Care, Care for the War-Disabled Civilians and Care for Families with Children that stipulates that only persons and families that (cumulatively): are incapable for work, have insufficient income, and there are no family members who are legally obligated to support them. The results indicated a high inconsistency in the legal criteria for qualification, and also in the amounts of permanent social assistance among cantons. The Proxy Means Test (PMT) Model is offered as one of the possible solutions for the improvement of social services targeting in FB&H. Given the importance of efficiency of targeting in social services, the research results could be useful, for both, vulnerable segments of the society and federal and cantonal ministries of labour and social affairs, in the process of targeting the households qualified for social support programmes.

National Statistical Institutes (NSIs) strive to produce short-term business statistics (STS) indicators with the high quality estimates in a timely manner. NSIs are usually faced with the challenges, such as differences in definitions, incompleteness of administrative data, periodicity and timeliness, coverage issues, etc. Administrative Value Added Tax (VAT) turnover data can be used to partially or completely replace survey data for the estimation of short-term business turnover indicators. In this paper, main characteristics of administrative VAT turnover data in Bosnia and Herzegovina will be examined through cleaning of VAT turnover data and matching them with survey data. Hence, the main objective of this study is to investigate the relationship between VAT turnover data and survey data in in Bosnia and Herzegovina. The Monthly Retail Trade Turnover Indices (RTI) for in Bosnia and Herzegovina will be estimated by using administrative VAT turnover data. Spearman’s correlation coefficients are used to examine the presence of a linear relationship between VAT turnover data and survey data. Results gained by using survey and administrative VAT turnover data will be compared. Based on the results of the analysis, future challenges and perspectives for expansion of using administrative VAT turnover data will be identified.

Adequate enterprise financial risk management (EFRM) represents a leading competitive advantage of enterprises that determines market survival and business success in an uncertain global environment. Over time, EFRM has become a constituent part of integral business dealings of enterprises and one of the strategic functions of enterprise management. The main purpose of the paper is to explore the effects of the EFRM function/system on the financial performance of enterprises in Bosnia and Herzegovina (BiH). The basic source of data in the research was collected by means of a structured questionnaire. The target population in the research consists of large enterprises that have continuously operated in the territory of BiH (2013-2017). The selection of enterprises was made applying a random sampling method and contains 72 enterprises. Appropriate descriptive and inferential statistical methods were used in the data analysis and panel data analysis was used to assess effects of EFRM function on financial performance. The scientific contribution of the paper is reflected in the fact that the research is pioneering for Bosnia and Herzegovina with the analysis of effects of the EFRM function on enterprise financial performance (EFP). The results show that there are no systematic, statistically significant differences between large enterprises that engage in risk management ('hedgers') and enterprises that do not engage in risk management ('non-hedgers') in BiH. [ABSTRACT FROM AUTHOR]

Academic research indicates that total or current expenditures have been most commonly used in sub-central or local government's efficiency analysis as dependent variables, and a proxy for the cost of service provision. Our research applied in the case of Polish districts for 2019 and 2020 indicates two important results: firstly, regardless of whether total or current expenditures have been used, the determinants indicate the same direction of impact, and, secondly, the COVID-19 pandemic did not change the direction of the impact. The regression results confirm the positive direction that the administrative, educational, protection, and safety variables have on dependent variables. [ABSTRACT FROM AUTHOR]

The purpose of the paper is to analyse and examine legal changes and requirements that affect retirement conditions and retirement rights for women in BH. After a discussion of the theoretical background of the gender gap in pensions internationally and in BH, an opinion survey related to pension system reforms was conducted in FBH. The results show that almost 50% of respondents disagree with the statement that women and men should retire at the same age. The results of the binomial logit regression conducted indicate that pensioners and those who are close to the retirement age are less likely, and men are more likely to respond positively to this statement. We conclude that there is a discrepancy between the desire to eliminate gender disparities in pensions and the willingness to conduct necessary reforms since they come as a bitter pill to swallow. [ABSTRACT FROM AUTHOR]

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