Economy and Business Yearbook

Introduction

Editorial Board — 2023-12-30

The eight edition of the Economics and Business Yearbook of Department “Economics” at New Bulgarian University focuses on contemporary issues of the economy, business, finance, accounting and marketing. The published articles present the research activity of full-time faculty members and students from New Bulgarian University and colleagues from other universities.

The main purpose of the publication is to make the research of tutors and students visible and accessible so that it could be used both as teaching materials in the Bachelors’ and Masters’ programs of the Department and the academia in general, as well as as reference books for business.

The scientific materials included are the results of thorough scientific and practical research conducted during the academic year 2022/2023. The articles in this year’s edition of the Economics and Business Yearbook present numerous theoretical and practical contributions in the fields of finance, marketing, management, accounting, EU policies, sustainable development, international trade, affecting current issues of the global, European and national economy. Their aim is to increase the efficiency and quality of training, to update the teaching material with the latest developments in the fields of economics and business, and together with this they bring to the attention of the academic community and business original and new views, analysis and solutions to important and topical issues of the global, the European and the Bulgarian economy.

Participation of the Bulgarian National Bank in the Single Restructuring Mechanism – a Prerequisite for Successful Management of the Banking System

Reneta Dimitrova — 2023-12-30

This article examines the participation of the Bulgarian National Bank in the Single Resolution Mechanism. After our central bank established close cooperation with the European Central Bank on October 1, 2020, it began to perform new functions as a supervisory and restructuring authority for credit institutions within the framework of the Single Supervisory Mechanism and the Single Resolution Mechanism. This necessitated changes in the Law on Credit Institutions and the Law on the Recovery and Restructuring of Credit Institutions and Investment Intermediaries, which was followed by a reorganization of the structure of the Bulgarian National Bank, to new practices regarding information services, administrative management and financing of these new activities.

Financial Technology (Fintech) in International Finance: Opportunities and Threats for Development

Irena Nikolova — 2023-12-30

Finance technology has developed in recent years with an upward trend. That has an impact on all the scientific fields and practice, including international finance. The purpose of the paper is to present the main elements of international finance and fintech, and to review the impact of financial technology on some of the elements of international finance.

The Evolving International Landscape for Foreign Direct Investments and the New EU’s Screening Procedure

Elena Spasova — 2023-12-30

The paper explores current trends in FDI screening processes, which are being widely adopted by many countries, especially developed ones. It analyzes why these screening procedures are being adopted and looks at how global FDI flows are changing. The paper specifically focuses on the EU’s FDI screening procedure introduced in 2019 and how it has been used recently. It outlines the procedure’s key features and discusses potential implications and impacts.

Role of ESG Criteria for Merger and Acquisition Transactions: Opportunities and Risks

Ralitsa Dimitrova — 2023-12-30

The article looks at the growing importance of environmental, social and governance criteria on the activity of transactions in mergers and acquisitions, for both strategic participants, professional investors, and for a wide range of stakeholders. The connection between the ESG criteria and the value of the company has been clarified, under the stakeholder activism to maximize the financial performance of the business. In the light of sustainable investment, the importance of compliance with ESG criteria and the presence of ESG premium on the value of the company in transactions in mergers and acquisitions is highlighted. The opportunities and challenges to companies in connection with the necessary changes to the due diligence of the M&A transactions are discussed.

Current and Future Prudential Requirements Regarding Environmental Risks

Boryana Borisova-Rossi — 2023-12-30

The article is devoted to environmental risks, as part of the broader concept of the environmental, social and governance risks and reviews their future integration into the prudential framework. These risks have been identified by the European commission as the three dimensions of sustainable finance, therefore introducing and/or improving its assessment and management in banks is essential for the future of the green transition. The proposed amendments to the legislative package for the capital requirements envisages changes in risk management, internal management and supervisory assessments. This affects the processes and analysis in banks, therefore it is important for them to be informed and prepared in a timely manner.

Methodological Aspects of a Simulation-based Model in the Determination of the Cost of Capital

Stefani Andreeva — 2023-12-30

Various groups of methods are applied in the field of scientific research concerning the determination of the cost of capital. Among them are simulation-based models, which are gaining popularity in modern economy and are recommended by numerous researchers. This paper examines a simulation- based model developed by Gleißner and Ernst (2019), focusing on its potential methodological application. The study explores its advantages, shortcomings, and potential issues that may arise during its implementation.

Role and Influence of Emotions in Construction of Consumer Loyalty in a Digital Environment

Nadezhda Dimova — 2023-12-30

The study of consumer behavior is a complex and specific task. The results of this task are completely rooted in the construction of a successful marketing strategy that can be implemented successfully in a digital environment as well. Different generations of consumers have different views, expectations and requirements regarding the construction and implementation of various marketing activities, but the basis remains consumer emotions, experiences and commitment, which to a large extent predetermine the desire and realization of a purchase or its refusal. The article consistently portrays the role and importance of loyalty, the influence of modern technology in sync with emotions to achieve loyalty on the part of consumers, presents the individual dimensions of the online experience of consumers.

Origin and Development of the Packaging of Fast-turning Goods

Rositsa Nakova — 2023-12-30

The purpose of this article is to provide a historical overview of how packaging came about and its initial role in the life of primitive man. The brief historical overview begins with the emergence of humanity and the initial role of packaging. Tracing the chronology of the historical development of the packaging industry shows the development of human life and culture over the centuries. In the earliest period, natural materials such as plant leaves, gourds and fabrics were used for packaging. Coming to our time, the variety of packaging is so great that it would be difficult to describe. As the variety of packaging types increases, so does the packaging’s functions. Nowadays, it fulfills five very important roles: protective, transport, ecological, informational and advertising-aesthetic. Historically speaking, for many years packaging had only two functions and they were protective and transport.

CRM Strategies. Role and Significance of the Cooperative as a form of Social Entrepreneurship

Plamen Ruskov — 2023-12-30

This article is devoted to the theoretical investigation of the dynamic interplay between customer relationship management (CRM) strategies, cooperatives, and social entrepreneurship. Although CRM has long been recognized as a key element in modern business practices, its relevance and application in the unique context of cooperatives and social entrepreneurship are areas of interest for further research. This study delves into the role and importance of CRM strategies in these individual business models, shedding light on their potential impact and opportunities for effective implementation.

Classification of Cooperatives, Presenting It as a Complex Phenomenon and a Cooperative Social and Corporate Entrepreneur

Ivan Boevsky — 2023-12-30

The present study reviews the classification and typology of cooperatives. The main goal is to prove that there are different tools, approaches and criteria for systematizing the types of cooperatives. Different classifications of cooperatives by type provide a lot of information related to the illumination, more precise understanding and explanation of the behavior, structure, specialization or broad diversification of the cooperative. The types of cooperatives were also examined, as a more complex set/system of characterizing criteria, give additional, even more complete, comprehensive and in-depth information about the cooperative.

The European experience in the inclusion of vulnerable groups in the economy

Emil Kalchev — 2023-12-30

With the entrance of the modern world into economic and political difficulties, the question of the financial support to population and business by the state is much more acute. A major financial source for states, taxes in turn have a strong influence on the behavior of citizens and companies, which are generally opposed to their increase. What is the historical attempt to resolve this contradiction? The history of taxes in Ancient Rome, the progenitor of modern European and Western civilization, shows us that taxes are not just a source of financing, but also a basic structural element of the state and society. Their significant growth led in antiquity not only to riots, riots and bloodshed, but also to serious changes in the construction of the Roman economy and society. At the same time, the observance of the principles of fairness of taxes and the control of their collection prove to be key for their functioning within the economy and society. The ultimate rise in taxes led to a state-regulated economy in Rome, i.e. to the prototype of real socialism, and the end of the Roman Empire. This is the end of the road for state support. Will the modern world catch up with it again?

Sectoral and Gender Structure of Employment in Bulgaria and South-East Region

Ivanka Stoycheva — 2023-12-30

The present study aims at analyzing the level and structure of Bulgaria’s and the South- East Region’s employees by sector and gender. On this basis, to assess changes in the structure of employment and establish the extent to which regional changes follow national trends. The results of the study show that the relative share of employees in the South-East region follows the sectoral structure of employment in the country, with the service sector prevailing over the primary and secondary sectors. A conclusion is drawn that the gender structure of employees is characterized by relative stability, with greater variation in relative gender shares in individual districts.

Opportunities for Optimizing the Education System in the Republic of Bulgaria by Increasing the Efficiency and Sustainability of the Higher Education-science-business Relationship

Stanislava Pancheva — 2023-12-30

The scientific development characterizes the nature and features of higher education in the Republic of Bulgaria and formulates conclusions about its condition in the conditions of a digital environment. Its positive and negative sides are brought out and the directions for its development in the foreseeable future are determined. A set of measures to increase its quality is proposed, and the expected results of their implementation are determined. The thesis that there are unused opportunities to increase the efficiency and competitiveness of higher education in the Republic of Bulgaria by improving the efficiency and sustainability of the interrelationship “higher education - science - business” is proven.

The Evolution of the Concept of Sustainable Development. Key International Meetings and Agreements

Mina Karpuzova — 2023-12-30

The concept of sustainable development is deeply integrated into contemporary strategies and policies, with the focus being on achieving a balance between social, economic and environmental well-being in the present without jeopardizing the abilityof future generations to meet their needs. The purpose of this paper is to explore the development of the concept of sustainable development and to systematize the key meetings and agreements related to it. This summary provides information useful to businesses in solving problems and tasks, as well as sharing knowledge with the public. The article consistently examines the origins of the concept of sustainability and deeply examines the effects and relationships arising from the interaction between the social, environmental and economic aspects of sustainability. The main conclusion is that the transition to sustainable development is a long and complex process that has evolved over the years and today is perceived as a norm for development and necessity.

Bulgaria and Romania Trade With Sub-Saharan Africa: a Comparative Analysis

Eduard Marinov — 2023-12-30

The diversification of international markets and the direction towards regions which were neglected and evaded as risky could be a powerful factor in the search for growth acceleration and overcoming recession. The paper aims at summarizing the potential of trade with one such region – Sub-Saharan Africa, by providing an EU comparison of Bulgarian and Romanian trade relations with it. The studies the dynamics of both countries trade with the region for the 2003-2020 period, the place of Sub-Saharan Africa in Bulgarian and Romanian extra-EU trade, the commodity structure and the direction of trade.