Template-Type: ReDIF-Article 1.0 Author-Name: HAZAR ALTINBAS Author-Name-First: HAZAR Author-Name-Last: ALTINBAS Author-Email: altinbashazar@gmail.com Author-Workplace-Name: Beykent University Title: EXAMINING TIME-VARYING INTEGRITY AND INTERRELATIONSHIPS AMONG GLOBAL STOCK MARKETS Abstract: This paper examines co-movements and interrelationships among 6 emerging and 5 developed stock market returns between period 2001- 2017. First, principal components are extracted from returns. Results show that, for the period analyzed, there is no strong global stock market integration and there isn't any change in patterns of correlations of returns except short-term disturbances in global financial crisis time. Second, partial least squares regression models are used for predicting each stock market returns with other stock markets' current and all markets' up to three month lagged returns. Results identify divergence between developed and emerging markets and greater number of latent transmission channels among former ones. Findings indicate a strong integrity among global stock markets is not yet appeared and considered together with previous studies, today's international market structure can be attributed to last two decades of 20th century. International investors still may benefit from international portfolio diversification opportunities. Classification-JEL: F36, G11, G15 Keywords: Stock market integration, principal components analysis, partial least squares regression, international portfolio diversification Journal: International Journal of Economic Sciences Pages: 1-24 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-22082 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-22082?download=1 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:1-24 Template-Type: ReDIF-Article 1.0 Author-Name: Mihovil An?elinovi? Author-Name-First: Mihovil Author-Name-Last: An?elinovi? Author-Email: mandelinovic@efzg.hr Author-Workplace-Name: Faculty of Economics and Business, University of Zagreb Author-Name: Livija Valenti? Author-Name-First: Livija Author-Name-Last: Valenti? Author-Email: valenticlivija@gmail.com Author-Workplace-Name: Faculty of Economics and Business, University of Zagreb Author-Name: Ana Pavkovi? Author-Name-First: Ana Author-Name-Last: Pavkovi? Author-Email: ana.pavkovic@efzg.hr Author-Workplace-Name: Faculty of Economics and Business, University of Zagreb Title: Equity Fund Performance and Sector Diversification Abstract: This paper examines the performance of equity funds relative to the diversification of their portfolios. The main objective of the research is to determine how the allocation of investment in individual sectors affects the yield of equity funds in the Republic of Croatia. Six equity funds which were selected, invested more than 50% of their assets in sectors in the Republic of Croatia. An unbalanced dynamic panel model is estimated for the period from January 2012 to August 2017. Investing in tourism and industry has proved to be the most significant investment, and it has a positive effect on the fund yields, whereas significant negative impact has been discovered in consumer goods, funds and conglomerates, and the state sector. The macroeconomic environment was studied to put the conclusions of econometric analysis into the actual context. The conducted empirical analysis suggests that portfolio managers should pay more attention to macroeconomic conditions and trends in economic sectors if they want to achieve higher returns. Classification-JEL: C33, G11, G23 Keywords: asset liability management, equity funds, sector diversification, panel data model, Croatia Journal: International Journal of Economic Sciences Pages: 25-43 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21916 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21916?download=2 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:25-43 Template-Type: ReDIF-Article 1.0 Author-Name: Antonios Avgeris Author-Name-First: Antonios Author-Name-Last: Avgeris Author-Email: antoavge@agro.auth.gr Author-Workplace-Name: Aristotle University of Thessaloniki Author-Name: Panagiota Sergaki Author-Name-First: Panagiota Author-Name-Last: Sergaki Author-Email: gsergaki@auth.gr Author-Workplace-Name: Aristotle University of Thessaloniki Author-Name: Achilleas Kontogeorgos Author-Name-First: Achilleas Author-Name-Last: Kontogeorgos Author-Email: akontoge@upatras.gr Author-Workplace-Name: University of Patras Author-Name: Antonios Tiganis Author-Name-First: Antonios Author-Name-Last: Tiganis Author-Email: atiganis@agro.auth.gr Author-Workplace-Name: Aristotle University of Thessaloniki Title: Reciprocity in Student Groups: Experimental Evidence from Greece Abstract: Every correlated theory on the decision-making process takes for granted that individuals have a self-seeking behaviour in a self-regulating economic system. That means that under emergency and risk situations subjects make decisions following the above theories, among fixed-various alternatives. Nevertheless, the results have emerged from many investigations of recent years indicate a completely different approach on people's everyday decision making. Elements of human character such as justice, altruism and reciprocity seem to overlap the overall aspects of them. So, in this paper we aim to investigate the existence of reciprocity, or not, in student communities. In order to achieve this, two games of Game Theory list were adopted and applied in two different Greek Universities while Experimental Economics methods were used. These non-cooperative games (Ultimatum & Dictator game) interacted as one in an uncertain environment. The results of the experimental process showed a reciprocal behaviour (positive or negative) among students with small differences between the two universities. Classification-JEL: C72, C78, D64 Keywords: Decision-making, Dictator Game, Economic Behaviour, Experimental Economics, Greek Universities, Reciprocity, Ultimatum Game Journal: International Journal of Economic Sciences Pages: 44-67 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-25669 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-25669?download=3 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:44-67 Template-Type: ReDIF-Article 1.0 Author-Name: Andrea ?e?rdlová Author-Name-First: Andrea Author-Name-Last: ?e?rdlová Author-Email: a.cecrdlova@gmail.com Author-Workplace-Name: University of Economics, Prague Title: Symmetric Behaviour to Fulfil the Main Objective as the Basis for the Credibility of Central Banks Behaviour on the Example of CNB Abstract: The aim of the paper is to verify whether the CNB behaved symmetrically in the period of 1998-2016 while fulfilling its basic mandate - price stability - and whether the decision to use the exchange rate commitment influenced the assessment of its symmetrical approach. The paper provides a comprehensive view of the CNB's symmetry, which is considered as the basis for the credibility of central bank behaviour in achieving the main objective ? price stability. Based on analyses of deviations of inflation from the target in both directions and assess the implemented exceptions, it was shown that the CNB was stricter than was necessary from the point of view of resulting inflation over the period under review. In most of the years, it was below the inflation target which can be judged as an asymmetric approach in monetary policy decisions. The decision to apply the exchange rate commitment has had an impact on the CNB's symmetric approach. From the point of view of mere symmetry, the introduction of the exchange rate commitment was a positive step. Classification-JEL: E31, E52, E58 Keywords: CNB, central bank, monetary policy, inflation target, inflation, symmetry, credibility Journal: International Journal of Economic Sciences Pages: 68-82 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21998 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21998?download=4 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:68-82 Template-Type: ReDIF-Article 1.0 Author-Name: Varinder Gill Author-Name-First: Varinder Author-Name-Last: Gill Author-Email: varinder.gill@senecacollege.ca Author-Workplace-Name: Seneca College of Applied Arts and Technology Author-Name: Charles Matovu Author-Name-First: Charles Author-Name-Last: Matovu Author-Email: varinder.gill@senecacollege.ca Author-Workplace-Name: Royal Bank of Canada Author-Name: Fuk Chang Li Author-Name-First: Fuk Chang Author-Name-Last: Li Author-Email: varinder.gill@senecacollege.ca Author-Workplace-Name: Seneca College of Applied Arts and Technology Title: Analysis of Factors that Influence Financial Literacy of Millennials in Canada Abstract: Financial literacy has been recognized as a key skill that equips us with knowledge to manage our financial resources effectively, especially in an increasingly complex financial scenario. Despite its significance, studies around the world indicate that much of the world's population still suffers from financial illiteracy and that measures to remedy the problem are urgently needed. This research focuses on millennials that are the biggest component of the labor force in Canada and as of 2012, households in Canada of the age group under 35 held over 824 billion in assets. Millennials are vulnerable to higher than average levels of disappointment due to their unrealistic financial goals. Despite of their decent earnings, they lack money management skills. The way they behave towards financial literacy may severely affect the economies and societies in which they choose to settle. This study finds out the factors motivating millennials to become financially educated and the best way to spread financial education among motivated people. Moreover, the focus of this research is to find out the sources that millennials get their financial information from. Also, the factors influencing the perception of financial literacy among low-income millennials in comparison to middle income group are studied. Based on our data analysis, we conclude that the overall perception of millennials that they are fairly knowledgeable seems to be a hindrance to their financial literacy. Financially empowered Canadians will reduce the burden on the social safety net and enable them to better plan for their own future. Though there are several programs launched by governments and other organizations in Canada, financial literacy is still a large scale problem. This research proposes future studies on financial literacy among youngsters and millennials so that timely action could be taken to prepare them for their future goals. Classification-JEL: G21 Keywords: Financial Literacy, Financial Goals, Financial Resources, Financial Advice, Financial Products, Financial Commitments, Alternative Financial Services, Millennials Journal: International Journal of Economic Sciences Pages: 83-101 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21989 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21989?download=5 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:83-101 Template-Type: ReDIF-Article 1.0 Author-Name: Alicja Grze?kowiak Author-Name-First: Alicja Author-Name-Last: Grze?kowiak Author-Email: alicja.grzeskowiak@ue.wroc.pl Author-Workplace-Name: Wroc?aw University of Economics and Business Title: Soft skills and earnings: evidence from a nationwide survey in Poland Abstract: The purpose of this paper is to examine differences in earnings in Poland with respect to the level of soft skills. The study is based on data from a nationwide survey on human capital carried out in 2014. Eight types of soft skills are taken into consideration: entrepreneurship and showing initiative, resistance to stress, cooperation in a group, communicativeness, ability to resolve conflicts, coordination of the work of other employees, creativity and continuous learning of new things. Distributions of earnings corresponding to groups of individuals declaring low, medium and high soft skills are compared by statistical methods, namely by kernel estimation, one-way ANOVA on ranks and relative distributions. The analysis leads to the conclusion that earnings distributions vary substantially with regard to the level of soft skills. The biggest differences concern such skills as entrepreneurship and showing initiative, coordination of the work of other employees and creativity. This paper contributes to the knowledge about the associations between soft skills level and earnings. Classification-JEL: J24, J31 Keywords: soft skills, earnings, non-parametric methods, kernel estimation, relative distributions Journal: International Journal of Economic Sciences Pages: 102-120 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-22048 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-22048?download=6 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:102-120 Template-Type: ReDIF-Article 1.0 Author-Name: Pavlína Hejduková Author-Name-First: Pavlína Author-Name-Last: Hejduková Author-Email: pahejdu@kfu.zcu.cz Author-Workplace-Name: University of West Bohemia, Faculty of Economics, Department of Finance and Accounting Author-Name: Michaela Krechovská Author-Name-First: Michaela Author-Name-Last: Krechovská Author-Email: mhorova@fek.zcu.cz Author-Workplace-Name: University of West Bohemia, Faculty of Economics, Department of Finance and Accounting Author-Name: Lucie Kureková Author-Name-First: Lucie Author-Name-Last: Kureková Author-Email: lucie.kurekova@seznam.cz Author-Workplace-Name: University of West Bohemia, Faculty of Economics, Department of Finance and Accounting Title: The Measurement of Industry 4.0: An Empirical Cluster Analysis for EU Countries Abstract: Based on findings regarding existing indicators for the measurement of Industry 4.0, the goal of the presented article is to create our own composite indicator and carry out a cluster analysis for EU countries. There is a relatively large amount of academic studies in the area of the measurement of Industry 4.0 that focus on the composite indicators that attempt to capture this phenomenon statistically. At the moment, however, there are no available timelines of these composite indicators. In the empirical section, we have created our own indicator ? the ?Industry 4.0 relative performance index?. This Index was computed using the methodology of the World Economic Forum. Computation of our own composite indicator has made it possible to record the development of Industry 4.0 performance in time and thus evaluate the relative positions of member states. Cluster analysis was carried out for the years 2011 and 2019, and data was extracted from Eurostat and Worldbank statistics. Results of this paper may serve as guidance for future targeting of cohesive EU policy in the field of Industry 4.0 support, which in the future may contribute to strengthening the position of the EU economy as a whole. Classification-JEL: O30, C38, O43 Keywords: Industry 4.0, Fourth Industrial Revolution, measurement, indicators, cluster analysis Journal: International Journal of Economic Sciences Pages: 121-134 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-116724 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-116724?download=7 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:121-134 Template-Type: ReDIF-Article 1.0 Author-Name: Aynur Pala Author-Name-First: Aynur Author-Name-Last: Pala Author-Email: aynur.pala@okan.edu.tr Author-Workplace-Name: Okan Üniversitesi Title: The Relation between Climate Change and Economic Growth: The In-vestigation The Regional Differences with RCM Model in EU-28 Countries Abstract: This study investigates the effect of climate change on economic growth. In the study, it has been used over the period from 1996 to 2014 for EU-28 countries. We applied endogeneity, cross-sectional dependence and slope homogeneity tests. Then, we used panel unit-root and panel cointegration tests. Estimated random coefficient panel regression results show that increasing carbon emission contributes to economic growth in North and East Europe regions countries, relatively cold side. In South-West Europe countries, coefficient of CO2 is insignificant. Increasing carbon emission positively effect on economic growth through especially agricultural and tourism sector outputs in North and East Europe regions. Classification-JEL: Q50, O40, C33 Keywords: Carbon emission, Economic Growth, Random Coefficient Model Journal: International Journal of Economic Sciences Pages: 135-155 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21978 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-21978?download=8 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:135-155 Template-Type: ReDIF-Article 1.0 Author-Name: Tanja ?estanj-Peri? Author-Name-First: Tanja Author-Name-Last: ?estanj-Peri? Author-Email: tanja.peric@foi.hr Author-Workplace-Name: University of Zagreb, Faculty of Organization and Informatics Author-Name: Suzana Keglevi? Kozjak Author-Name-First: Suzana Author-Name-Last: Keglevi? Kozjak Author-Email: suzana.kozjak@foi.hr Author-Workplace-Name: University of Zagreb, Faculty of Organization and Informatics Title: The Concept of Prudence in Theory and Practice Abstract: This paper studies the concept of prudence in view of the recent changes related to this accounting concept in The Conceptual Framework for Financial Reporting (CF) prepared by International Accounting Standards Board (IASB). Accounting standards should be based on clear concepts that enable the understanding why individual standards are stipulated the way they are and allow establishment of new recognition and measurement practices not yet covered by standards. This paper contributes to the cognition of how important it is to clarify the concepts underlying the preparation of mandatory financial statements. The conclusions of the paper could be useful for regulators.The revised CF emphasizes ?cautious prudence? supposedly supporting neutrality and neglects conservatism or ?asymmetric prudence?. Firstly, this paper examines the stance of researchers towards the concept of prudence and reviews the results of some influential theoretical and empirical papers related to accounting conservatism, which is a term used in academic literature instead of the term prudence. Secondly, the effects of more or less conservative treatment on financial reports and usefulness of such information are analyzed based on hypothetical examples. Finally, the examples of how real companies treat development costs are used for the conclusions. The results of analyzed papers show that the most useful information is often information produced by conservative accounting system. Hypothetical examples illustrate how conservatism influences financial reports and real examples confirm the use of conservatism in practice. Therefore, CF as a foundation for development of individual standards should accept conservatism or ?asymmetric prudence? as important as neutrality. Classification-JEL: M41, M48 Keywords: Accounting standards, Conservatism, Financial reporting, IFRS Conceptual Framework, Prudence Journal: International Journal of Economic Sciences Pages: 156-178 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-7094 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-7094?download=9 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:156-178 Template-Type: ReDIF-Article 1.0 Author-Name: Chong-Hwan Son Author-Name-First: Chong-Hwan Author-Name-Last: Son Author-Email: c.son@hvcc.edu Author-Workplace-Name: Hudson Valley Community College Title: The Effects of Retirement on Health-Related Quality of Life of Retirement-Aged Adults for Four Marital Status Subgroups Abstract: AbstractThis study identifies the differences in the effects of retirement on physical/mental health as health-related quality of life (HRQOL) across marital status subgroups for the retirement-aged population from 2005 to 2016. This study conducts a Two-Stage least squares (2SLS) regression analysis using cross-sectional and time series data drawn from the Behavioral Risk Factor Surveillance System (BRFSS). The empirical results suggest that retirement is negatively associated with physical health outcomes, whereas retirement is positively associated with mental health outcomes. Divorced men who are retired are likely to have 2.028 more physically unhealthy days per month than divorced men who are employed. Widowed or never married women who are retired are likely to have 2.208 and 2.203 respectively more physically unhealthy days than widowed or never married women who are employed. These retired females in the marital status subgroups have the worst negative retirement effect on physical health. Divorced respondents who are retired are likely to have 1.478 and 1.129 more mentally unhealthy days per month for males and females respectively than the counterparts of those who are employed. In conclusion, this study finds the existence of disparities in the effects of retirement on HRQOL, such as physical/mental health outcomes by marital status. Classification-JEL: I14, I18, I31 Keywords: Health-Related Quality of Life, Early Retirement Age, Full Retirement Age, BRFSS, Mental Health, Physical Health, Instrument Variables. Journal: International Journal of Economic Sciences Pages: 179-201 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-22077 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-22077?download=10 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:179-201 Template-Type: ReDIF-Article 1.0 Author-Name: Agnieszka Stanimir Author-Name-First: Agnieszka Author-Name-Last: Stanimir Author-Email: agnieszka.stanimir@ue.wroc.pl Author-Workplace-Name: Wroclaw University of Economics and Business Title: Generation Y on labour market ? perception of work values and quality of job Abstract: The purposes of the study were: to characterize the Generation Y as participants in the labour market; to recognize economic conditions of labour markets; to describe social and individual factors of job values/conditions that concern Generation Y. The article presents the results of the carried out research and its main conclusions. Following hypothesis were constructed: the countries that met the conditions for joining the European Union at the same time differ in their respective ways of developing the labour market and differ on these issues from the countries which joined the Union in other periods. Some hypotheses regarding the perception of the workplace were also tested. For this purpose, subjective variables were determined for the assessment of working and private life conditions. The Eurostat data (due to the homogeneity of variables on the labour market) as well as the data from the European Social Survey (due to the representativeness of the data and the subjective nature of respondents' assessments) were used to conduct the study. As to the analysis techniques, ordering methods were selected: Hellwig's and TOPSIS and also twostep cluster analysis. The indicated set of data and selected analysis methods fully enabled the characterization of the phenomenon. In addition, it was possible to compare the results obtained from both ordering methods. As a result, it was found that a higher level of GDP per Capita does not always affect rising the employment rate and lowering the Generation's Y unemployment rate. The methods of ordering made it possible to indicate the countries that in the period from 2005 to 2017 obtained the best characteristics of the labour market. The twostep cluster for Generation Y indicated that it is not important to divide this age cohort into older and younger group because their assessments of quality and working conditions didn?t differ. The analysis carried out over three years showed how the attitudes of the inhabitants of the selected countries towards the balance between private life and work, working conditions and the possibilities of influencing organizational issues at work have changed.The obtained results cannot be compared, in direct way, with the findings of other researches. There are no studies in which analogous methods would be used for a similar population, time range and age cohort. Classification-JEL: J00, C38, A14 Keywords: Generation Y, labour market, working conditions, quality of work, TOPSIS, Hellwig's ordering, two-step cluster Journal: International Journal of Economic Sciences Pages: 202-223 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-22051 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-22051?download=11 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:202-223 Template-Type: ReDIF-Article 1.0 Author-Name: Ji?í Valecký Author-Name-First: Ji?í Author-Name-Last: Valecký Author-Email: jiri.valecky@vsb.cz Author-Workplace-Name: V?B-TUO, Faculty of Economics Title: Note on mismodelling of policyholder?s age in claim frequency model: a matter of gender in vehicle insurance Abstract: Using the motor hull insurance data of Czech insurer, the paper deals with how mismodelling of policyholder?s age can induce misleading conclusions about the gender differences in claim frequency within vehicle insurance. This study is based on individual data with unit policy duration and puts the emphasis on correct modelling of functional form of the age to show that mismodelling as well as categorization yields misleading conclusions and, finally, we demonstrate how the inferences depend on categorization itself. Thus, we showed that linear form as well as the categorization increases the type I error to detect the obvious interaction between gender and age. By involving fractional polynomials, the results partially support the judgement of European Court of Justice to ban using gender as a rating factor, in particular for young policyholders. We concluded that, if another relevant data are not available, the gender as well as interaction with the age should be considered in the claim frequency model although such model cannot be used for setting premium. Classification-JEL: C31, C51, G22 Keywords: age, claim frequency, effect modifier, fractional polynomials, gender, interaction, vehicle insurance Journal: International Journal of Economic Sciences Pages: 224-240 Volume: 9 Issue: 1 Year: 2020 Month: June File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-7110 File-URL: https://iises.net/international-journal-of-economic-sciences/publication-detail-7110?download=12 Handle: RePEc:sek:jijoes:v:9:y:2020:i:1:p:224-240