ЗБОРНИК РАДОВА ЕКОНОМСКОГ ФАКУЛТЕТА У ИСТОЧНОМ САРАЈЕВУ

THE EFFECTS OF DISCLOSING KEY AUDIT MATTERS IN THE AUDITOR’S REPORT

Amira Pobrić — Thu, 06 Feb 2025 00:00:00 +0100

The aim of this paper is to determine whether the disclosure of key audit matters in the auditor’s report increased the communication and informational value of the auditor’s report, the quality of financial statements and the quality of the audit through the analysis of the results of a large number of empirical studies. Most experimental studies show that key audit matters have the potential to effectively direct the attention of users of financial statements to relevant areas, influence the decisions of users of financial statements and reduce the tendency of managers to perform aggressive financial reporting. However, a larger number of studies have found that there is a lack of a broader capital market reaction to the disclosure of key audit matters and that the disclosure of key audit matters does not lead to a reduction in earnings management. Furthermore, most research show that the introduction of the obligation to disclose key audit matters does not lead to an increase in the audit fee and the auditor’s report lag, but that there are possible negative effects of the introduction of the obligation to disclose this information in terms of managers' reluctance to share information about their accounting choices with auditors and the reduction of scepticism assessment and sceptical actions of auditors.

THE PERCEPTION OF SUSTAINABILITY COMPETENCES IN LOGISTICS AND SUPPLY CHAINS

Mateja Čuček, Matevž Obrecht, Sonja Mlaker Kač, Lazar Pavić — Thu, 06 Feb 2025 00:00:00 +0100

The European Union (EU) has adopted a huge number of guidelines and policies to promote sustainability in different sectors. The study focuses on the twin green and digital transformation, which is particularly highlighted in the context of the European Green Deal, a comprehensive strategy to tackle climate change and environmental degradation while embracing digital innovation for economic growth and societal progress. These guidelines and policies show the EU's commitment to promoting sustainability in different sectors and to achieving the objectives of climate change, environmental protection and sustainable development. One of the areas that plays an important role for the individuals as well as for the economy is logistics and supply chain management. The main research question of this study is to investigate the relationship between the basic sociodemographic characteristics and their perception of the importance of sustainability competences in logistics and supply chains in the future. The study was carried using survey questionnaire on employees in the field of logistics and supply chains in Slovenia. The results show the main statistically significant differences in these perceptions are primary based on differences in employees demographic characteristics, such as gender, age and level of education of the employees.

ANALYZING THE RELATIONSHIP BETWEEN TRADE OPENNESS AND ECONOMIC GROWTH IN NORTH MACEDONIA: A SVAR APPROACH

Katerina Shapkova Kocevska, Elena Makrevska Disoska, Jasna Tonovska — Tue, 11 Feb 2025 00:00:00 +0100

The relationship between trade openness and economic growth is complex. We employ a structural vector auto-regression (SVAR) model using quarterly data for the period from 2005 to 2022 to estimate the impact of trade openness on the economic growth in North Macedonia. The study's findings indicate a negative and significant relationship between trade openness and economic development in the short and long run. The complexity of this relationship highlights an adverse impact on countries specialising in low-quality production or those with low levels of human capital accumulation, such as North Macedonia. The dynamic effects of shocks to trade openness on interest rates, consumer price index, interest rates, labour force, and exchange rate are investigated using impulse response functions. The paper suggests that North Macedonia's trade strategy requires reorientation towards trade diversification, attracting export-oriented FDIs, and fostering regional trade integration to achieve sustainable economic growth and development.

STREAMLINING CONSTRUCTION: MAXIMIZING EFFICIENCY THROUGH EFFECTIVE WASTE MANAGEMENT: THEORETICAL REVIEW

Erjola Barbullushi, Denisa Domni — Thu, 06 Feb 2025 00:00:00 +0100

The construction boom in Albania after the '90s had a significant impact on the country's economy. It brought about rapid urbanization, job creation, and increased investment opportunities. The construction sector became a major contributor to GDP growth, attracting both domestic and foreign investments. It also stimulated demand for various industries, such as manufacturing and services, leading to overall economic development. With increased construction activities, there was a rise in construction waste generation. This highlighted the need for effective waste management practices to minimize environmental impact.Waste management is a crucial aspect of construction projects, yet it hasn't received as much emphasis as in other industries. This paper aims to highlight the importance of waste management in construction and the need for effective strategies to minimize waste.In the construction industry, waste refers to any material, energy, or time that is not utilized efficiently and adds no value to the project. Construction waste can include excess materials, unused resources, inefficient processes, and environmental damage. The presence of waste in construction not only leads to financial losses but also has negative environmental and social impacts. This paper presents a review on studies that have systematically investigated the occurrence of waste in the construction industry, including concepts adopted, metrics, and type of feedback provided relating to efficiency improvement

IMPACT OF DIGITAL TRANSFORMATION ON ECONOMIC GROWTH

Aleksandra Ćirić — Tue, 11 Feb 2025 00:00:00 +0100

We are living in a time of exciting, dynamic and fundamental technological changes. The expansion and development of new digital technologies leads to changes in all aspects of business, from strategic to operational. Digital transformation is the integration of digital technologies into the economy, public administration and society as a whole. Digital transformation is one of the main priorities of the European Union, which is already visible from the Lisbon Strategy and the adoption of the Digital Agendas. In this paper, our goal is to determine whether the progress of the European Union countries in the area of digital transformation, shown through the DESI index (digital economy and society index), has a positive impact on the economic growth of member states, measured by gross domestic product per capital.

HANDLING HETEROSCEDASTICITY IN LINEAR MODELS: HUBER-WHITE STANDARD ERRORS VS BOOTSTRAP CONFIDENCE INTERVALS

Zarrukh Rakhimov — Tue, 11 Feb 2025 00:00:00 +0100

Heteroscedasticity are one of the several violations of the assumptions of OLS. If no remedy applied, residuals with non-constant variance can lead to inaccurate and biased results. Academia has suggested a wide range of remedies to tackle with heteroscedastic residuals. In this study, we suggest another approach, bootstrapping of dataset to construct our confidence intervals. In order to compare the outcome, we look at Huber-White method and look at its performance against bootstrap intervals. Results indicate that bootstrap intervals perform equally well as Huber-White based confidence intervals. This indicates that bootstrap method, similar to Huber-White approach, can be a good remedy for heteroscedasticity.