Year 2016, Issue 2

Date published

29.6.2016

Table of content

  • D. Radilov, G. Chervenski
    VAR - Models of Shocks in the Business Cycles of Final Consumption Expenditure of Households
    JEL: D12, E32
    Summary: Abstract: The article has experimented with a methodology for using vector autoregressive models (VAR) to study the impact of shocks in the business climate and economic activity on the business cycles of final con-sumption... Abstract: The article has experimented with a methodology for using vector autoregressive models (VAR) to study the impact of shocks in the business climate and economic activity on the business cycles of final con-sumption expenditure of households. It refers to six countries in Central and Eastern Europe (Bulgaria, Czech Republic, Hungary, Poland, Romania and Slovakia) for the period 2000 to 2015. The results show that the expectations for the financial situation of households over the next 12 months and the level of employment have a stimulating effect on the business cycle of final consumption expenditure of households. The expectations for unemployment, inflation and savings over the next 12 months have a negative impact on the business cycles.
  • S. Danylina
    Virtuality of Fictitious Capital in Modern Conditions
    Summary: The article discusses "financialization" the process of transformation of financial capital into fictitious and virtual capital and its separation from the real manufacturing sector. It shows a tremendous growth in the financial... The article discusses "financialization" the process of transformation of financial capital into fictitious and virtual capital and its separation from the real manufacturing sector. It shows a tremendous growth in the financial sector in the last decades of the 20th century and the beginning of the new century and growing segmentation of financial instruments due to financial innovations, aimed, among other things, at evading government regulations, which increase their influence on the trends in the real and financial sector, leading to the creation of conditions for the emergence of financial crises and financial "bubbles". We study the market of derivative securities, its dynamics and impact on the economy of Ukraine.
  • Valentin Milinov, Tsetan Pavlov
    Opportunities to Improve the Portfolio Performance Based on Dividend Strategies and Equity Home Bias
    Summary: The article examines the equity home bias puzzle and the "Dogs of the Dow" dividend strategy under conditions of the Bulgarian capital market. It was found out that local investors hold 74.1% of their portfolios in domestic stocks,... The article examines the equity home bias puzzle and the "Dogs of the Dow" dividend strategy under conditions of the Bulgarian capital market. It was found out that local investors hold 74.1% of their portfolios in domestic stocks, although ICAPM suggests weight of 0.007%, and the "Dogs of the Dow" strategy generates annual risk-adjusted hyper-profitability of 11.18%. Following the dividend strategy, combined with good international diversification provides good opportunities to improve portfolio performance.
  • Lyudmil Krystev
    Guidelines for Analysing the Financial Statements of Bulgarian Publicly Traded Insurance Companies
    JEL: G21, G22
    Summary: Financial statements provide information necessary to analyse and assess the financial position of publicly traded companies. Information users include a wide range of entities, such as creditors, suppliers, customers, investors,... Financial statements provide information necessary to analyse and assess the financial position of publicly traded companies. Information users include a wide range of entities, such as creditors, suppliers, customers, investors, external control bodies, etc. This paper promotes the thesis that the information disclosed in financial statements helps investors in their decision to invest in the shares of publicly traded companies. A precise analysis of financial statements may result in a decision to purchase, not to purchase, or to sell some of the stocks of the companies which are subject to analysis. The article focuses on publicly traded companies in the insurance sector.
  • Dimitar Kostov
    A New Yuan or a New Monetary System
    JEL: F31, O24
    Summary: The research area of the present study is the Chinese yuan (renminbi). The research subject is the evolution of the Chinese yuan from a national to a global reserve currency. The paper tests the proposition that the rise of the... The research area of the present study is the Chinese yuan (renminbi). The research subject is the evolution of the Chinese yuan from a national to a global reserve currency. The paper tests the proposition that the rise of the Chinese currency is a sign of deep and qualitative changes in the international monetary system. The aim of the study is to analyse and track the evolution in the current situation in the international monetary system, in order to highlight the factors and the reasons for the rise of the Chinese yuan and to find indications of the direction of the future development of the system as a whole.