Issue 1, 2017

The paper evaluates the development of employment and unemployment in Bulgaria in 2008-2015 from point of the strategic goals, set for the development in middle-term perspective till 2020. Based on an analysis of the tendencies in the dynamics and structure of main segments of employment and unemployment, conclusions about the opportunities for achieving the set goals are drawn. The focus is placed on the necessity of directing the policy of employment and unemployment towards the quantity changes in the labour force and its potential as a factor of economic growth. The paper states possible risks to the development of the labour market in short-term perspective, coming from the demographic problems of the country, the increasing inequality, flexibility of the education system to ensure a timely balancing of the labour demand and supply. The paper gives recommendations for necessary changes in the carried out employment and unemployment policy.
JEL: J11; J18; J21; J24

The results presented here from an empirical study of the internal audit in the public sector of Bulgaria show that, 10 years after its legislative introduction it has received significant recognition by organisation leaders. However, there are some reserves whose dedicated use would enhance the benefit of internal audit. Still about 15% of organisation leaders have serious doubts in the efficiency of internal audits. There is a relatively low level of approval of the internal audit contribution to resolving the tasks of internal control systems in ensuring the reliability of financial and management information and achieving economies, efficacy and efficiency of operations.
Similarly low is the level of appreciation of internal audit contribution to the completeness of the internal control system elements of control environment as well as of information and communication. Organisation leaders are seriously reserved about the completeness of information acquired through internal audits which indicates problems with the strategic and annual planning of operations. The timeliness of information from reports on particular audit commitments is also accounted as a problem.
Approximately every one out of ten managers of organisations thinks that the findings and recommendations of the internal audit do not bear sufficient benefit to the organisation and its capability of providing competent advice is limited or absent. Some 15% of managers share the opinion that the internal audit is not unbiased or impartial and that its priorities do not correspond to the organisation’s goals.
This material presents the results from a study on a variety of relations and correlations of assessments of various aspects of the activities involved in internal audit, which can serve as a basis for development and implementation of an effective strategy for its elaboration and improvement.
JEL: H83

The development of the Balkan research and higher education area is one of the conditions for improvement of the socio-economic development of the region including increase of its competitiveness and innovative potential. This supposes the necessity of their study with a view to the possibilities for improvement of the poor presentation of the Balkan states through unification of the efforts and the deepening of the regional cooperation in higher education, researches and innovations. In the paper, on basis of analysis of the political and economic prerequisites and of comparative analysis, the positions of the Balkan states in the world and Europe on the development of the competitiveness, innovative processes, human capital, ICT and other selected indicators are investigated. The advantages of regional cooperation are defined as well. The study is focused on the higher education and research spheres as the main but not the only elements for the formation of the innovative capacity, resources and awareness needed for the building of the Balkan research and higher education area and its adequate walling in the ERA.
JEL: O11; O3; O31; O57

The recent years the financial services sector is developing rapidly together with the marketing of banking services and products. The study of efficient spending of advertising budgets on a monthly basis allows the quick adjustment of planned advertising campaigns to competitors in the market. In literature, such studies are scarce, especially for banks in Bulgaria. This article presents a monthly survey of television advertising budgets of the banks in Bulgaria. Results are considered in product groups- deposits, card products, consumer and mortgage loans. The reported period in the study is from 2009 to 2012 and the methodology, applied in this article is applicable for periods with another length. The study presents and proves the thesis statement that good management of monthly television advertising budgets planning can achieve the same results with a smaller advertising budget.
JEL: M31, M37, G21

The paper examined an important aspect of corporate governance – companies with concentrated ownership. The study uses a modification of model „principal-agent” – “principal-principal”. The paper analyses ownership in the banking system in the case of Bulgaria, incl. the emergence of concentrated ownership. The results show that the transformation of ownership from the state to private capital remains high concentrated, making inapplicable the model „principal-agent”. The practice in Bulgaria can be used only the model „principal-principal”. The conclusion is that for emerging and developing economies to reduce conflicts of the „principal-principal” the external and internal mechanisms should be seen as complementary, in which priority should be given to the institutional environment, i.e. to the external mechanisms.
JEL: G34

The aim of this study is to provide an understanding of the authors in the following range of issues: the changing role and functions of the accounting profession as a major factor for urgent change in accounting education; discussion of views and approaches to change in accounting education from the leading universities in the world; approaches to change in the professional training of accountants by leading international and national professional organizations; analysis of the problem of accounting education and professional training of accountants in Bulgaria. The object are content knowledge, skills and competencies that should receive and develop in the course of their education and vocational training accountants to implement the various reporting, financial control, analytical and management functions in all spheres of the economy and public life. The subject of the study is the adaptation and change in accounting education in Bulgaria according objectively changing realities and needs of the practice. The main author's thesis is focused on an approach of integrated interaction between fundamental and professional (specialized) knowledge and skills as well as flexible cooperation between university – professional organizations – practice – business. Opinions expressed herein are mainly in terms of higher education in accounting and are consistent with the possibility graduates to realize not only short, but also in a long term in high and responsible professional and managerial positions. The empirical part of the study aims to study the needs of the practice in Bulgaria in the following two areas: what requirements put employers in Bulgaria announced when working position requiring an accounting background; what requirements placed largest accounting and auditing companies in announcing job function requiring an accounting background.
JEL: M41

This study offers new insights into fiscal policy management by providing an alternative to the traditional way of estimating guarantee It therefore takes away the need for guesswork amongst policy makers in estimating contingent liability. The findings confirm the long held belief that fundamental risk consideration should influence the choice of method in calculating value at risk which will be guaranteed by government. The study confirms that political consideration influences the governance risk indicator which is used to calculate the governance risk factor and that a default by government on guarantees for public private partnership transactions will have a negative impact on the debt while also providing a valuable path in the choice of “fundamental risk” indices in determining the value at risk.
JEL: E62; H81; H68