Issue 6, 2017

The article presents specific forms of metamorphosis of authority with the purpose of self-preservation or a service for political and corporate interests. They are called masks, because they reveal some qualities of the persons in power, but in fact they conceal others. Thus trough external representation the unprofitable sides of the use of power are kept silent. Therefore ten masks are defined, being just a part of the strive of the authorities to win supporters or to provide a policy in someone's favor trough external display. In the article there is an overview of the consequences of the masks of authority. They are classified in two groups – economic and social. For each of them there is a characteristic manifestation. Suggestions are made for preventive actions to overcome the specific consequences of the actions of the authority behind the mask.
JEL: D03; D21

This article is an introduction to a specific and important aspect of the financial management of companies nowadays. This is the value creation process. The investment and financing decisions, as well as the corporate policies and strategies, should be assessed within this context. The focus of this research is on the extent of value creation by companies on international capital markets, mainly during the years after the global financial crisis. The study includes analysis of the dynamics of the main indicators of return on capital, as well as the dynamics of the cost of capital. The process of creation of Economic Value Added (EVA) in companies, in the conditions of stagnation on most capital markets, is studied on this basis.
JEL: G11; G15; G31

Setting up an effective risk culture is one of the most important post-crisis tasks of banking management. In order to solve it, the bank management bodies should take a number of measures – setting the „tone at the top“, establishing risk-competent and coordinated organizational-structural units, developing mechanisms for "implanting" the desired risk consciousness among all staff. A survey conducted among banks in Bulgaria shows how much they are already taking steps in this direction. On the basis of the most significant problems identified in the study, there is a need to undertake measures in three aspects: performing structural and process optimization of risk management; increasing the effectiveness of the work of risk instances; encouraging commitment and integrity of banking staff to risk issues.
JEL: G21

An empirical study of the strategies of grain producers and beekeepers from the Rousse region has been carried out. Both sectors are estimated with a relatively low degree of strategic orientation towards their markets (clients), allies and competitors, the main aim being absorption of subsidies. Their tactical tools are based on products with low value added (inputs). There is a limited use of legally protected intellectual products and the degree of differentiation achieved; subsidized purchase of funds and technologies to reduce production costs. There is an insignificant application of marketing innovations; sales through intermediaries (wholesalers and retailers) and unarranged markets. The opportunities of online markets and organized markets for hedging and risk mitigation are not utilized. Their focus is on cost pricing approaches and passive pricing on unstable input markets. It was established that grain producers from the Rousse region are better off compared to beekeeping farms not only because they are more subsidized but because they have a better market orientation and a greater degree of integration and diversification, respectively a better strategic orientation.
JEL: Q18; Q19