Empirical Analysis of the Severance Pay
Non-Performance in Slovenia
Milan Vodopivec, Lilijana Madjar, and Primož Dolenc
Combining information from the Firm Survey of Labor Costs with the
information about claims filed with the Guarantee Fund by workers
whose employers defaulted on their severance pay obligations, the paper
analyzes the so-called non-performance problem of severance pay
– the fact that coverage, and thus legal entitlement, does not guarantee
the actual receipt of the benefit – as experienced in Slovenia in 2000.
The findings are threefold: (i) one-third of total obligations incurred by
firms failed to be honored and only a small portion of defaulted severance
pay claims was reimbursed by the Guarantee Fund; (ii) while both
men and women seem to be equally affected, workers older than 40
were disproportionally represented among those whose severance pay
claims failed to be honored; and, (iii) among firms that incurred severance
pay liabilities, larger and more productive firms were more likely
to observe their fiduciary obligations and pay them out. These findings
corroborate the weaknesses of severance pay as an income protection
program, pointing to the large scale of the non-performance problem
and the inequities created by it.
Key Words: severance pay, severance pay non-performance,
Guarantee Fund, Slovenia JEL Classification: J65, J32
Full Text
Diagnostic Process of Company Productivity
Maria Durisova and Emese Tokarcikova
This paper deals with an actual topic of how key factors of enterprise diagnostics
can help to increase company productivity. Recognition and
use of relevant internal and external information in this field determines
the success of the enterprise. Application of the general diagnostic
model of company productivity to the net income has been a
frequent problem of company practice. This problem is of profit showing,
which is an inevitable precondition for long-term company development
and growth. Diagnostic access of company productivity allows
recognition of specific problems in greater detail, which results from
the activity of each company. This article also presents an introduction
to the researched area of enterprise diagnostics, which opens opportunities
for other publishing activities and can lead to information
exchange.
Key Words: enterprise diagnostics, company productivity, diagnostic model JEL Classification: D21, D24
Full Text
Does Dividend Policy Follow the Capital Structure Theory?
Justyna Franc-Dabrowska
Decisions concerning the most optimal choice of financing sources and
dividend policy are some of the most difficult financial decisions. This
article presents the results of research concerning relationships between
two capital structure theories (hierarchy theory and substitution theory)
and dividend payment policies in Polish stock companies of the
agricultural and foodstuff sector (2001–2006). The research hypothesis
was verified positively; company management limits dividend payment
according to the hierarchy theory and prefers internal sources of financing
economic activities. In order to verify the hypothesis, the methods
of descriptive analysis, financial analysis and descriptive statistics were
applied, together with a fixed effects model.
Key Words: dividend policy, hierarchy theory, substitution theory,
stock companies, model fixed effects JEL Classification: G32, G35, G38
Full Text
Association of Management Tools with the Financial Performance of Companies: The Example of the Slovenian Construction Sector
Peter Friedl and Roberto Biloslavo
The research problem dealt with in this article addresses the association
of management tools with the financial performance of companies in
the Slovenian construction sector. The aim of the quantitative empirical
survey is to collect data on five of the most relevant accounting
scores and indicators in the construction sector for the studied period
2001–2005, and to analyse their correlation with the management tools
of Slovenian construction companies. The analysis of the relationship
between quantitative indicators and scores with the dimensions of the
factors in choosing management tools proved no strong correlation.
The resultsof the analysis showthat the dimensions of undesirable consequences
of transformation and the financial performance of the companies
are essentially unrelated. A comparative study of the arithmetic
mean of the indicators and scores with the disadvantages in introducing
the management tools, however, indicated that there is a certain
relationship between them.
Key Words:indicators, scores, financial performance, construction
industry, Slovenia JEL Classification: L20, M20
Full Text
Justifying Environmental Cost Allocation in a Multiple Product Firm: A Case Study
Collins C. Ngwakwe
This case study examines the effect of environmental cost allocation
on production cost and the outcome for environmental management
decisions. Using a revised cost allocation – referred to in this paper as
environmental cost allocation – the paper contrasts overhead allocation
between traditional cost allocation and environmental cost allocation.
In addition, production cost derived from the traditional allocation of
waste cost is compared with the revised environmental cost allocation.
Findings indicate that a revised environmental cost allocation discloses
more accurate overhead cost and hence production cost; and that management
is motivated to make informed environmental management
decisions if a product related environmental cost is made to reflect in
the production cost of the polluting product. The paper highlights the
practical significance of objective environmental cost allocation on corporate
waste management, which thus creates a valuable awareness on
the part of the management and accountants of firms in developing
countries for the need to fine-tune the dominant traditional costing
system. It also suggests avenues for further research to examine the impact
of costing systems on environmental investments.
Key Words: management decision, environmental management,
environmental cost allocation, waste cost allocation JEL Classification: M11, M41
Full Text
