Issue 4, 2024

The COVID-19 pandemic changed substantially economic and social life globally, causing both a health crisis and a deep recession. It had a significant negative impact on the formation of human capital in both quantitative and qualitative terms and highlighted a number of problems in this area. The purpose of the present study is to highlight and systematise more important effects of the pandemic on the formation of human capital in Bulgaria and to direct attention to problem areas that are a starting point for the development of policies and measures to improve the formation, preservation and development of human capital in the country.
Keywords: human capital; COVID-19
JEL: I20; J11; O15

Digital technologies change common and routine processes and open new opportunities for their optimization. Our research aim was to test the hypothesis about the efficiency of information technology tools in public institutions' management; is the e-government system dependent on the level of information technology development or on the level of institutional development? An empirical analysis of the effects of institutional and technical factors on e-government systems in a sample of 193 countries was provided. Were studied data about the e-government system quality and development; of the institutions, Internet, and telecommunication development as well as statistical information about e-government service websites using. The intensity and efficiency of using e-government systems depend on the mentioned factors. The level of institutional development affects the intensity and effectiveness of the use of e-government systems both directly and indirectly, through a variable characterizing the quality of e-government systems. Advanced information technology factors only indirectly affect the intensity and effectiveness of the use of e-government systems. There is no statistically significant inverse relationship between efficiently and effectively operating e-government systems and variables which characterize the institutions and information technologies development. New rules and procedures in the electronic environment can generally affect the development of state institutions. However, such effects were not detected in our research.
Keywords: government; information technology; digitalization; structural equation models; models with mediation; structural reforms
JEL: D80; G14; O32; O33

The article is focused on understanding the features of digitalization in the economy of the Middle East countries. Since digitalization has become a global trend, in which countries are being drawn at various speeds and degrees, it is important to understand and systematize the evolution of this process in different regions. In the Middle Eastern digitalization has been embodied in a number of sectors, industries, productions and activities of the region. This process is unfolding based on existing prerequisites – both regional and global. It is becoming increasingly important for the countries of the region, as it can significantly enhance the resilience of their economies to external challenges. The authors concluded that digitalization in the Middle East lags behind developed countries, but at the same time, is going on the same path as at the global level.
Keywords: Middle East; GCC; Digitalization; Digital Economy; Digital State
JEL: O31; O33; O38

The relevance of the study is due to the need to determine a business model that meets the modern realities of doing business at the initial stage of building a business. The purpose of the paper is to study approaches to building business models of innovative enterprises and companies in Kazakhstan, taking into account the impact of the global pandemic and digital technologies. The transformation of business models is analyzed on the example of the sphere of innovative entrepreneurship using theoretical methods (analysis; synthesis; concretization; generalization; method of analogies; modelling). As a result, the key criterion that distinguishes innovative entrepreneurship from its classical understanding is formulated and a typical business model of an innovative enterprise was formed.
Keywords: digital economy; transformation; business model; technology; innovative entrepreneurship
JEL: C51; C55; C59

The paper aims to identify the factors affecting the sustainable growth rate of companies over eleven years from 2011 to 2021. The research used panel regression analysis and examined a sample of 92 manufacturing companies operating in the market of Kosovo. This study used a pooled OLS regression model to investigate the variables affecting sustainable growth rate (SGR). According to the research, SGR has a negative significant impact on profitability (ROA), liquidity (LIQ), and equity ratio (TETA). However, there was a positively statistically significant relationship between SGR, asset efficiency (STA), capital structure (TDTE), and sales growth (SG). These findings provide insight into the important factors influencing the study environment's sustainable growth rate. The findings, according to the study, can be used by management to build and implement long-term growth strategies. Businesses can improve their operations, and align them with the objective of sustainable growth by considering the impact of the identified variables. It also provides for a more accurate evaluation of the company's financial success and long-term performance. The study's findings have practical implications for a wide range of stakeholders, including corporate executives, investors, financial institutions, and researchers. All of these groups can use the knowledge provided to make better decisions and support sustainable development rates.
Keywords: Manufacturing Companies; Sustainable Growth Rate; Financial Performance; Kosovo
JEL: N60; O47

The goal of this study is to use the triangle theory to investigate the characteristics that support fraudulent financial reporting. In this study, the dependent variable is false financial reporting, and the independent variables are pressure, which is a proxy for personal financial need and opportunity, which is a proxy for industrial nature, rationalization, and institutional ownership. Because they include numerous units and time periods, the data used fall under the time series and cross sections category. 17 businesses that are included in the 2017-2021 Sri Kehati stock index serve as the sample.  The findings demonstrated that Personal Financial Need (OSHIP) had a negative and significant impact on fraudulent financial reporting, whereas the Nature of Industry (REV) had no impact.
Keywords: fraudulent financial report; fraud triangle; institutional ownership
JEL: G32; G02; M1; G34; Z1

The study examines fiscal consolidation and growth effects of the EU funding for the program period 2021-2027 in Bulgaria and other EU Member States from Central and Eastern Europe (CEE). It illustrates that gradual fiscal consolidation is implemented, but might be a challenge for some CEE countries, while the growth effects of the EU funding for 2012-2027 will depend on the level of substitution between EU and domestic funding of the EU-related projects. As a result, under the partnership agreements for 2021-2027 and the national recovery and resilience plans the CEE countries are expected to reduce gradually fiscal deficit and debt towards Maastricht criteria, and to increase their annual GDP growth above the baseline scenario between 1% and 4% of GDP, reaching cumulative growth from 9 to 24% of GDP by 2027.
Keywords: Fiscal policy; Fiscal consolidation; European integration; Government policy
JEL: H68; F15; Q57

Purpose – Previous research has examined political skills and transactional leadership in examining predictors and determinants of employee performance. This study was made necessary by the lack of research on organizational work culture and mediation in the holding industry. This study examines differences in employee performance due to political skills and transactional leadership and examines organizational work culture as a mediating factor. Design/methodology/approach – This study used census sampling techniques. Collect data using questionnaires and analyze research model hypotheses using Confirmatory Factor Analysis and Structural Equation Modeling with SmartPLS. Findings – The data analysis results show that political skills and transactional leadership are not positively related to employee performance and organizational work culture. Organizational work culture also fails to be a mediator, and only the impact of organizational work culture on employee performance is positive and significant. Practical implications – Organizations must do everything possible to ensure an improved adaptable, collaborative, flexible, and team-oriented work culture within the organization, as this is essential to improving performance by providing motivation, embracing innovative ideas, responding to employee complaints, and enabling the organization to survive and thrive. Originality/value – The study provides insights into how and to what extent political skills and transactional leadership variables affect employee performance. This study complements the existing literature and explores the mediating role of organizational work culture. Executives and policymakers can use the study's findings to improve organizational work culture in the corporate holding industry. The study opens up possibilities for future research.
Keywords: Political Skill; Transactional Leadership; Employee Performance; Organizational Work Culture
JEL: D23; D63; M21; O15; A13

The study presents a systematic literature review on earnings management and ethical leadership using the content analysis method. Secondary sources of data from academic journals were utilized to address the issue of earnings management. A total of 112 articles, spanning the period from 1977 to 2022, were examined. The study explores the theoretical aspects of earnings management and the conceptualization and operationalization of ethical leadership. The selected articles underwent a systematic review process, and a content analysis was conducted to provide a structured overview of the existing scholarship in this field. Effective ethical leadership plays a crucial role in overseeing and minimizing manipulated earnings. Therefore, this study contributes to the literature by suggesting ethical leadership as a means to mitigate earnings manipulation. This article is distinguished as one of the pioneering works that provides a thorough analysis of the literature on ethical leadership and earnings management. The findings of this study will be valuable to organizations aiming to reduce earnings management practices and improve the quality of financial reporting.
Keywords: Content analysis; discretionary accruals; earnings management; ethical leadership; ethical perspective
JEL: M12; M41; A13

The development of the transport and logistics system in the direction of Russian-Chinese cross-border cooperation is an important direction not only from the point of view of economic prospects, but also from the point of view of political cooperation. The article is devoted to the development and substantiation of proposals for deepening the integration processes of the transport and logistics market of Russia and China. The trends in the development of the world market of transport and logistics services are analyzed with an emphasis on the border regions of Russia and China; identified its key problems and possible directions for their solution to deepen the subsequent integration between the border regions; an assessment of the effectiveness of the development of the transport infrastructure of the border regions of Russia, as well as the prospects for integrating Russia into the system of world economic relations in the Asia-Pacific region (APR) is given.
Keywords: Transport and logistics market; Transport; Logistics; cross-border cooperation; Integration processes; Sanctions; Russian-Chinese relations; The modern economy of Russia; Development of the Asia-Pacific market; Asian cooperation vector; China
JEL: R12; R41; L92; L98; O18; N75

The conscious need of transition to an environmentally friendly way of society life on a global scale in recent years outlines a new direction in the development and activity of humanity. A number of documents at the global and European levels are a clear sign of countries' determination t change significantly their attitude to the natural resources use in order to limit climate change and global warming of the planet, to ensure an environmentally friendly way of life and activity and the long-term preservation and well-being of human civilization. Small and medium-sized businesses in Bulgaria are a huge potential resource that can be a powerful engine for realizing the ecological transformation of the country's economy.
Current progress, financial ability and access to financial resources as well as the outlooks of small and medium companies in Bulgaria in the green transition are analyzed in this study. SMEs are classified in 3 clusters in terms of their progress in the transition process using TwoStep Cluster analysis with a set of indicators identified by authors. It has been established that despite the existing difficulties and the great inertia in the process of transition to an ecological economy of small and medium-sized companies in particular, more or less sustainable steps leading to the reduction of carbon emissions are observed, in the production of cleaner energy as well as elements of circularity in production processes and consumption. The transition appears to be taking place more quickly in medium-sized companies operating in manufacturing, logistics and transport, while small, mostly family-owned, companies with businesses in retail or service are progressing more slowly in this process. All the companies need of more serious and adequate support in the way of ecologization both by state regulations that to be applied clearly and transparently and by adequate financing.
Keywords: green transition; ecologization; small and medium-sized companies funding
JEL: O13; O14; O16; Q01; Q42; Q50; Q56

The paper looks into natural gas as a factor influencing the dynamics of the energy market in Eastern Europe. The energy market as such is in fact the correlation between various interrelated markets which have different effects on the final consumers’ prices and on the inflation. The Eastern European energy market is currently one of the fastest-growing energy markets. It consists of resource-rich and transit countries (Belarus, Bulgaria, Czech Republic, Hungary, Poland, Moldova, Romania, Russia, Slovakia and Ukraine) with a population of roughly 291 million people, that contributes significantly to the world’s energy consumption and security. The dynamics of this market depend on the new infrastructure for transiting and storing natural gas as well as the big undergoing investments in renewable energy infrastructure.
Keywords: energy market; natural gas; inflation; de-carbonization; Eastern Europe
JEL: Q4; R1; V1