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Galya Taseva
Innovation and Financial Performance of SMEs in Bulgaria
Summary:
: The relationship between innovation activity and the financial performance of SMEs in Bulgaria is examined. The survey results show that there is no statistically significant relationship between the innovation activity of enterprises and their financial results, net sales, profit margins, return on assets (ROA), return on equity (ROE) and asset turnover. However, a significant dependence of the innovative activity of SMEs in the country and indicators of their liquidity, indebtedness and bankruptcy risk are revealed. SMEs that have innovation costs or have introduced in their market a new or significantly improved product, or have introduced new or significantly improved production methods in the last three years, are less liquid, more indebted and more likely to go bankrupt.
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V.i. Lyashenko, Y.i. Tulku
Quasi-Tangible Assets of Modern Neo-Industrialism
Summary:
In this article the authors insist on imperfection of existent financial instruments, which caused the financial-economic crisis and suppose that there is another possibility for companies to get extra financial resources. One of those possibilities is using a new format of assets for companies’ capitalization. The financial mechanism of their trading is also suggested.
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Galya Taseva
Bankruptcy Risk in Small and Medium-Sized Enterprises in Bulgaria
Summary:
The bankruptcy risk study for SMEs in Bulgaria is based on data from the financial statements of 100 non-financial firms with different main activities for the period 2014 - 2016, provided by the National Statistical Institute. The results of the study show that the implementation of well-established models of bankruptcy prediction, such as those of Altman, Springate, Taffler and Biever, may serve as an indicator for financial distress, but it is not sufficient to assess the risk of bankruptcy in Bulgarian economic conditions.
The survey results suggest that the coefficient Cash flow from operating activities / Current Liabilities has the potential to serve as an indicator of the differentiation of companies that are threatened with bankruptcy in the short term and even has some advantages over the models of Altman, Springate, Taffler and Biever in Bulgarian economic conditions. Given the high levels of the gray economy in the country and the widespread practice of manipulating the financial statements, it is reasonable in the analysis of bankruptcy risk to use in addition to the balance sheet and income statement indicators and such indicators incorporating information on the cash flow from operating activities of SMEs that is more difficult to manipulate. The large share of overdue and uncollectible receivables from clients in the country also presupposes using cash flow information to analyze bankruptcy risk. The Altman, Springate, Taffler and Biever models contain only in-company balance sheet and corporate income statement information and are not tailored to capture the systemic risk that creates high inter-firms indebtedness in the country, and in particular the high proportion of overdue trade receivables.
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Violeta Kasarova, Marcellin Yovogan, Ralitsa Dimitrova, Krasimir Kostenarov
Value Added Creation by Intellectual Capital in Bulgarian Public Companies
Summary:
In this paper we apply the measurements of intellectual capital focusing on the human capital efficiency (HCE), the structural capital efficiency (SCE), the intellectual capital efficiency (ICE) and the value added intellectual coefficient (VAICTM ) developed by Pulic (2000; 2004) for non financial companies listed at Bulgarian Stock Exchange (BSE) using accounting data published with their financial statements for the period 2005-2009. The research is focused on companies in the manufacturing and tourism industry in order to derive any particularities in the measurements. The financial industry is excluded from the study as being specific. At this moment and at our knowledge, there’s no significant research on the value added of intellectual capital of Bulgarian non – financial industry. We extended the formula of intellectual capital valuation and arrived at the conclusion, that intellectual capital is playing an important role in the value creation process in companies listed at BSE. The relationship between the components of VAIC TM and the Tobin’s Q indicator characterizing the market performance of public companies.
