Ekonomski vjesnik/Econviews - Review of Contemporary Business, Entrepreneurship and Economic Issues
Ekonomski Vjesnik/Econviews – Review of Contemporary Entrepreneurship, Business, and Economic Issues is intended for researchers and practitioners, and devoted to the publication of papers that contribute to the theoretical, methodological and empirical insights in the complex field of economics. Articles can be based on quantitative as well as qualitative analyses; they can be a synthesis of previous research and discuss open issues in specific areas of social and economic practice. The journal welcomes papers focused on different levels of analysis (from individual cases to small or large samples) and contexts (SMEs and large companies, industrial sectors, local, regional and national economies, international economics, branches of economy, healthcare and education, labour and demographics, natural resources and other socio-economic frameworks). The journal is focused on research in economics, business economics and entrepreneurship, however, as these are closely intertwined with other disciplines – information and technical sciences, law, sociology, psychology and other fields – multidisciplinary submissions are also welcome.
Josip Juraj Strossmayer University of Osijek, Faculty of Economics and Business
Upon acceptance of an article for publication in Ekonomski Vjesnik / Econviews – Review of Contemporary Entrepreneurship, Business, and Economic Issues, contributing authors automatically waive their copyright in favour of the journal. The journal reserves copyright of all papers published in it.
FINANCIAL NIHILISM AND THE PHENOMENON OF MEMECOINS
Purpose: To introduce a conceptual framework of financial nihilism and demonstrate how memecoins embody it, while proposing measurable macro- and micro-level proxies that can track its emergence. Methodology: Conceptual synthesis and desk research are paired with an empirical illustration: daily data for the 20 largest memecoins active ≥1 year (Dec/2013 – Oct/2025) against Bitcoin. We report distribution diagnostics and correlations, and assemble a proxy basket from FRED (money supply, housing prices/affordability, consumer credit, real wages, consumer sentiment, a real 1-year rate, and a personal saving rate; 2020–2025). Results: Memecoin returns exhibit extreme volatility, positive skew and fat tails, with medians near zero and infrequent, outsized upside bursts. Major memecoins co-move tightly with Bitcoin, while smaller tokens decouple idiosyncratically. Dogecoin dominates capitalization, yet issuance velocity and failure rates point to pervasive turnover. The macro backdrop (elevated liquidity, housing inflation, rising household debt, stagnant real compensation, depressed sentiment, and a shift from near-zero to positive real short rates alongside subdued saving) creates conditions favoring short-horizon, attention-driven speculation. Conclusion: Memecoins operate less as value-based investments and more as cultural-financial performances, making them useful proxies of a broader turn toward financial nihilism. Tracking the proposed proxy basket alongside memecoin activity can help policymakers and regulators anticipate retail risk-on/off waves and calibrate macroprudential, literacy, and consumer-protection responses.
Copyright (c) 2026 Ekonomski vjesnik/Econviews - Review of Contemporary Business, Entrepreneurship and Economic Issues https://creativecommons.org/licenses/by-nc-nd/4.0
ECONOMIC CRISIS AND PRODUCTION–EXPORT DYNAMICS IN THE AUTOMOTIVE INDUSTRY: A COMPARATIVE PANEL ANALYSIS OF TÜRKIYE AND SELECTED EU COUNTRIES
Purpose: Economic crises introduce structural disturbances that disrupt established economic balances within industrial systems, generating diverse responses across countries and sectors. This study examines how crisis conditions affect production–export dynamics in the automotive industry by comparing Türkiye and selected European Union countries over the 2014–2023 period. Methodology: Using balanced panel data, the empirical relationship between production volume and export turnover is analyzed using fixed- and random-effects models. The Hausman test indicates that the fixed-effects specification is most appropriate, suggesting that country specific characteristics play a significant role in shaping production dynamics. Results: The findings reveal that, while production–export linkages remain statistically signifi cant across countries, the magnitude and persistence of crisis impact vary depending on national production scale, institutional capacity, and structural conditions. The results further indicate that countries with higher production and export volumes experience stronger fluctuations during crisis periods, whereas countries with smaller production bases tend to display more moderate adjustments. Conclusion: The study provides comparative empirical evidence on how national automotive systems respond to systemic economic disruptions and highlights the importance of structural differences in shaping crisis outcomes across countries.
CONSUMER ANIMOSITY AND CROSS-BORDERMARKET DYNAMICS: EVIDENCE FROM BOSNIA AND HERZEGOVINA
Purpose: This paper aims to investigate the influence of perceived threat/injustice against Croatia and media exposure to negative content on consumer animosity in Bosnia and Herzegovina, which in turn impacts the intention to boycott/purchase products from Croatia in the context of cross-border markets. Methodology: Primary data are collected using a cross-sectional survey, and an integrated model incorporating perceived threat/injustice and media exposure to negative content, consumer animosity, and boycott and purchase intentions is validated. CFA is used to test the measurement model, whereas covariance based SEM is employed to test the relationships. Moderation by pragmatic cross-border mechanisms is tested using factor score regression with robust standard errors. Results: Perceived threat/injustice and media exposure to negative content are antecedents of consumer animosity. Consumer animosity has a significant positive impact on boycott intention and a negative impact on purchase intention. Cross-border market availability, and travel frequency and stay intensity positively affect purchase intention. Cross-border market availability acts as a moderator that amplifies the negative impact of consumer animosity on purchase intention. The moderating effect of travel frequency and stay intensity, and perceived reciprocal crossborder consumption is not significant. Conclusion: Structural market exposure has positive effects on purchase intentions, and at the same time, it can have negative consequences for affective resistance in the form of animosity. Therefore, there is a need to develop more nuanced theories of consumer behavior in politically sensitive cross-border settings.
INTERDISCIPLINARY MANAGEMENT RESEARCH CONFERENCE – IMR 2025
The Interdisciplinary Management Research (IMR) 2025 – 21st International Conference
Copyright (c) 2025 Ekonomski vjesnik/Econviews - Review of Contemporary Business, Entrepreneurship and Economic Issues https://creativecommons.org/licenses/by-nc-nd/4.0
URBAN–RURAL DIFFERENCES IN RETIREMENT PREPAREDNESS: UNPACKING THE PLANNING–RESOURCES PARADOX IN VIETNAM
Purpose: Vietnam’s rapid population aging raises pressing questions about household readiness for retirement. This study investigates the extent and sources of rural–urban differences in retirement preparedness, focusing on both behavioral and resource-based dimensions. Methodology: Using nationally representative data, we analyze two indicators of preparedness: a retirement-planning dedication index and the logarithm of financial assets. Sequential regression models and Blinder–Oaxaca decompositions are employed to separate rural–urban gaps into endowment and coefficient components. Robustness checks include ordered-logit models for planning and an inverse hyperbolic sine wealth-to-income measure for assets. Results: Urban households hold more financial assets in unconditional comparisons, but this advantage is fully explained by endowment differences and disappears once controls are included. In contrast, rural households exhibit higher planning dedication after accounting for covariates. Decomposition results attribute this rural planning premium primarily to coeffi cient and interaction effects, suggesting stronger behavioral returns to similar traits in rural settings. Conclusion: Asset disparities largely reflect compositional differences, while planning gaps stem from behavioral factors. These findings highlight the need for complementary policies that enhance both endowments and behavioral capacities to strengthen retirement preparedness across regions.
THE IMPACT OF ECONOMIC DEVELOPMENT AND INNOVATION POTENTIAL ON ENTREPRENEURIAL ECOSYSTEMS IN THE WESTERN BALKAN AND SCANDINAVIAN COUNTRIES
Purpose: Entrepreneurship is a key driver of economic growth and development. This paper examines the interdependence between economic development, innovation, and the growth of entrepreneurial ecosystems in Scandinavian and Western Balkan countries for the year 2024. Methodology: The study employs standard statistical methods, including correlation analysis, simple and multiple linear regression, followed by a panel data analysis (Fixed and Random Effects models) with a Hausman specification test to validate the robustness of the findings. Results: Results show that both economic development and innovation positively influence entrepreneurial ecosystems in the cross-sectional analysis. However, panel data analysis indicates that innovation (GII) remains a statistically significant predictor over time, while the effect of GDP per capita becomes less pronounced when innovation is accounted for, suggesting that the relative influence of economic development may be captured through innovation channels in this specific sample. The Random Effects model was validated as the appropriate specification by the Hausman test. Conclusion: The findings suggest that while economic growth and innovation are jointly linked to ecosystem development, innovation potential shows a more robust statistical association in the observed period. When countries are observed over time, these results should be treated as exploratory, given the specific regional focus and sample size. Policies that strengthen innovation capacity and economic development can effectively foster entrepreneurship, particularly in emerging economies.
EFFECTIVENESS OF THE INTEREST RATE TRANSMISSION CHANNEL UNDER DIFFERENT EXCHANGE RATE REGIMES: EMPIRICAL FINDINGS FROM THE TURKISH ECONOMY
Purpose: The primary aim of this paper is to investigate the effectiveness of the interest rate transmission channel in the Turkish economy for different exchange rate regimes. Methodology: In this study, the TVAR model is estimated covering the period from 2002:1 to 2023:12. Furthermore, impulse response functions obtained from the linear VAR model are also included for comparison. The endogenous variables vector consists of the short-term interest rate, the nominal exchange rate, industrial production, and consumer prices, whereas the annual percentage change in the nominal exchange rate is used as the threshold factor. Results: Based on empirical findings, 12.21% is calculated as the optimal threshold value. Thus, periods of higher exchange rates are defined as periods in which the nominal exchange rate increases at or above this value. The empirical results from the threshold VAR model, the interest rate transmission channel is only effective for the Turkish economy in the lower exchange rate regime. Conclusion: The study concludes that, to increase the efficiency of the interest rate channel, the central bank should also consider the exchange rate markets.
CLUSTERING REGIONAL COMPETITIVENESS IN CENTRAL AND EASTERN EUROPE: INSIGHTS FROM THE K-MEANS METHOD
Purpose: This paper investigates regional competitiveness of NUTS 2 regions in eleven post-transition EU Member States in Central and Eastern Europe (CEE) from 2011 to 2021. It applies Martin’s (2004) “Regional Competitiveness Hat” model to identify whether distinct regional profiles, knowledge hubs, production locations, and regions with growing yields, can be empirically validated using clustering techniques. Methodology: The study utilises the k-means clustering method to classify 61 NUTS 2 regions based on three key indicators: GDP per capita, population density, and gross domestic expenditure on R&D. Data were standardised and tested for outliers using Mahalanobis distance. ANOVA and post-hoc Games-Howell tests were conducted to verify statistical significance and interpret the stability and movement of regions between clusters over time. Results: The analysis produced three statistically robust and theoretically consistent clusters: knowledge hubs (e.g., Zagreb and Bucharest), production locations (regions with low GDP per capita and population density), and regions with growing yields (moderate GDP per capita and lower density). The results affirm the utility of Martin’s model in the CEE context and reveal stability among clusters, with notable mobility only between production locations and growing yield regions. Conclusion: This study confirms the applicability of Martin’s framework to post-transition CEE regions and offers a dynamic, data-driven classification tool for regional development policy. It highlights GDP per capita, population density, and R&D investment as critical competitiveness indicators. The findings support targeted EU policy-making and suggest future inclusion of digitalisation and sustainability metrics.
WOMEN IN LOCAL POLITICS AND BUDGET CREDIBILITY IN CROATIA AND SLOVENIA
Purpose: The position of women and their participation in political life are among the key issues in global gender equality debates. This paper examines the relationship between female representation in local politics and budget credibility in Slovenia and Croatia, addressing whether greater female involvement enhances budget transparency and accountability at the local level. Methodology: The share of female council members is expressed as the percentage of all councillors, while the presence of a female mayor is represented by a dummy variable equal to one if the mayor is female, and zero otherwise. Budget credibility is assessed by budget deviations, calculated as the absolute difference between planned and actual total expenditures divided by planned total expenditures. Cluster analysis was conducted for all 212 Slovenian urban municipalities and municipalities and 556 Croatian cities and municipalities for the year 2023. Results: The analysis reveals a negative relationship between the share of female councillors and total expenditure deviations. Local governments with a greater proportion of women in representative bodies tend to have higher budget credibility, indicating improved budget credibility associated with greater female representation. Conclusion: Enhancing female representation in local councils promotes higher budget credibility, offering important policy implications for gender equality and fiscal governance in Slovenia and Croatia. These findings underscore the value of women’s political participation in strengthening local financial management.
GOVERNANCE MODELS AND PANDEMIC OUTCOMES: ANALYSING THE IMPACT OF STRINGENCY, ECONOMIC STRENGTH AND HEALTH SYSTEM CAPACITY ON EXCESS MORTALITY
Purpose: This paper explores the anti-epidemic policies of Italy, Germany, and Sweden in response to the COVID-19 pandemic in the period 2020–2022. The degree of decentralization, the stringency index, and the universal health coverage (UHC), expressed as the percentage of the gross domestic product (GDP), present distinguishing characteristics of the three crisis management models, making them essential for exploring their correlation with excess mortality. Methodology: The mixed-method approach is used in this research. The study uses a qualitative cross case design, incorporating countries with various combinations of key factors, allowing for the analysis of the causes of outcome variation. Given the temporal heterogeneity of independent variables, the quantitative analysis relies on the Mixed Data Sampling (MIDAS) regression model. Results: The MIDAS regression analysis of excess mortality shows a statistically significant positive correlation with both average population age and healthcare expenditure, where the latter is contrary to expectations. GDP per capita and the proportion of women in total population are negatively correlated with excess mortality. In this sample, UHC and daily stringency indices are not statistically significant, indicating no detected association with excess mortality. Conclusion: The presented analysis of Italy, Germany, and Sweden affirms that the demographics and the economic capacity, as opposed to the stringency index, shape excess mortality. The null effect for UHC and the surprising direction of the health-spending estimate suggest that the governance and productivity of resources matter more for pandemic performance than the magnitude of the budget.
SECTORAL LENDING AND VALUE ADDED: THE CROATIAN CASE
Purpose: The paper deals with the impact of bank loans to corporations and households on gross value added (GVA) in Croatia. The research covers the period from the second quarter of 2016 to the fourth quarter of 2024. The aim of the research is to determine the significance, direction, and strength of the relationship between lending to various economic sectors and households and the development of GVA. Methodology: This research uses the ARIMAX (Autoregressive Integrated Moving Average with Exogenous Variables) model, which enables quantitative analysis of time series with the simultaneous inclusion of exogenous variables that can affect the dependent variable. Results: The results show that loans to the manufacturing sector and the accommodation and food sector have the strongest positive impact on GVA, while the trade sector has the largest negative impact. Loans to households have a weaker impact, with housing loans having a positive impact and cash loans having a negative impact on GVA. Conclusion: The results support the idea that the structural orientation of bank lending policies can have an important impact on economic growth, not only through the volume but also through the allocation. This research provides a basis for the implementation of policies aimed at lending to sectors with high growth potential, while controlling consumer debt. This can support long-term sustainable and structurally sound economic growth. Further research can focus on the components of sectoral GVA to see the financial effects on real values of sectoral productivity growth and eliminate the effects of net prices on GVA growth.
IS BIGGER BETTER? NONLINEAR EFFECTS OF GOVERNMENT SPENDING ON GROWTH
Purpose: This study analyses the impact of public expenditures on economic growth within the framework of the Armey curve. The Armey curve posits an inverted U-shaped relationship between government size and growth, implying that public spending promotes economic activity up to an optimal point, beyond which its marginal contribution becomes negative. The study empirically examines this nonlinear relationship using data from 47 emerging economies for the period 1991–2019. Methodology: In the study, the Method of Moments Quantile Regression (MMQREG) technique, which can capture marginal effects that differ according to income levels, was applied. The robustness of the findings is tested with Dynamic OLS (DOLS) and Driscoll-Kraay methods. Results: The results obtained show that public expenditures increase growth up to a certain threshold, and if this threshold is exceeded, it has negative effects on growth. While the optimal level of public expenditure for low-income countries is approximately 15 per cent of GDP, this ratio increases to 19 per cent in high-income countries. This shows that the impact of public expenditures on growth varies according to country conditions. Conclusion: The study reveals that the effect of public expenditures on economic growth cannot be explained by a universal policy ratio and that each country should develop differentiated fiscal policies in line with its income level and institutional structure.
WERE WINDFALL PROFITS AND THEIR TAX REGULATION IN 2022 A TRIGGER FOR EARNINGS MANAGEMENT? ANALYSIS OF CROATIAN MANUFACTURING COMPANIES
Purpose: This research, conducted on a sample of Croatian manufacturing companies, investigates whether windfall profits and their tax regulation in 2022 triggered earnings management. Methodology: This research uses a company-level difference-in-differences design within the FE panel model for the period 2021 - 2023. Two interaction variables are designed to capture broader and direct effects of expected political costs. The research model also includes controls for company-level variables to capture the other motives of earnings management. Results: The occurrence of windfall profits in 2022 did not cause systematic downward earnings management. However, windfall profits in 2022 intensified negative earnings management in the segment of companies that had only negative discretionary accruals. The interaction variable that captures only those companies that were subject to windfall tax regulation in Croatia is negative and statistically significant. This finding confirms that actual exposure to windfall profit regulation is a more pronounced motive for downward earnings management than the mere existence of windfall profits. The control variables exhibit signs that are consistent with theoretical assumptions and previous research. Conclusion: Research on a sample of Croatian manufacturing companies conditionally confirmed the political cost hypothesis, i.e., only for the companies facing clear and pronounced political costs. However, the observed earnings management practices were not caused only by windfall profits tax regulation but can be linked to the company’s indebtedness, profitability, and general level of taxation.
ANALYZING USER-GENERATED REVIEWS TO IDENTIFY EXPERIENCE DIMENSIONS AND THEIR IMPACT ON SATISFACTION WITH MOBILE BANKING APPLICATIONS
Purpose: This study aims to identify key experience dimensions derived from user-generated reviews and examine their influence on satisfaction with mobile banking applications. By analyzing unsolicited user feedback, the study aims to provide a data-driven understanding of what drives satisfaction and dissatisfaction in m-banking services across Southeast Europe. Methodology: A total of 56,074 reviews of mobile banking apps from Bosnia and Herzegovina, Croatia, and Serbia were analyzed. The study employed BERT-based sentiment analysis and BERTopic modeling to extract thematic experience dimensions from reviews categorized by sentiment polarity. Multiple linear regression was used to assess the predictive power of these dimensions and sentiment polarity on userassigned satisfaction ratings. Results: Eleven distinct experience dimensions were identified and confirmed as significant predictors of satisfaction. These dimensions, derived through topic modeling and sentiment analysis, were quantitatively modeled and qualitatively interpreted based on review content, offering rich contextual insights into user perceptions. The regression model explained 58% of the variance in rating behavior. Additionally, sentiment polarity emerged as a strong predictor, further enhancing the model’s explanatory power and underscoring the emotional weight embedded in user reviews. Conclusion: This study shows that user satisfaction in mobile banking is shaped by a combination of functional and emotional factors, which can be effectively identified through text mining. Including sentiment polarity alongside experience dimensions offers a more robust framework for evaluating digital service quality. These insights can support academic model development and practical efforts to optimize m-banking app design and communication
KEY FACTORS THAT INFLUENCE THE DIASPORIC WILLINGNESS TO (RE)VISITTHE ANCESTRAL HOMELAND: THE CASE OF THE CROATIAN DIASPORA IN CANADA
Purpose: The purpose of this study is to research the key factors that influence diasporic future travel intentions to (re)visit the motherland. The paper deals with the Croatian diaspora residing in Canada, as a case study. Methodology: The data were collected through an online survey. The chi-squared test (with Fisher’s exact test) was used for data analysis. Results: The findings indicate that the characteristics of the Croatian Canadian diaspora do not significantly influence future travel intentions. The motives that play significant roles in determining future travel plans share an emotional dimension and are strongly linked to identity and family. An increased intention to visit the homeland is associated with a more positive perception of most social and tourism attributes. The findings indicate that there is a significant relation between satisfaction with social security and safety, intangible cultural heritage, and the plan to visit Croatia. Conclusion: The study contributes to the literature on diasporic travel behavior and enables tourism policymakers to improve their marketing efforts and attract this market niche, which travels throughout the year.
TRUST-EFFECTIVENESS BRIDGE: HOW TEAM COHESION AND SATISFACTION MATTER?
Purpose: The primary purpose of this study is to explore the role of team trust in shaping team effectiveness among undergraduate students engaged in collaborative academic projects. Specifically, the study examines how trust within student teams affects their overall satisfaction with the group experience, their sense of cohesion, and ultimately, the quality and success of their group outcomes. Methodology: The study was conducted within the Organization and Management course, a core subject in the Economics of Entrepreneurship study program. A total of 89 students were divided into 26 teams, each tasked with analyzing a real-world organization and proposing an improved organizational structure. Results: The analysis revealed a significant positive relationship between team trust and both team satisfaction and team cohesion. In other words, students who reported higher levels of trust in their team mates were also more likely to feel satisfied with the group experience and perceive their teams as cohesive and well-functioning. Furthermore, both team satisfaction and team cohesion were found to be positively linked to team effectiveness, defined as the quality and success of the group’s final output. Conclusion: The study highlights the central importance of trust in building effective student teams and reinforces findings from organizational behavior literature within a real academic setting. When trust is present, team members are more likely to feel engaged, supported, and motivated, which leads to greater collaboration, smoother communication, and ultimately better performance. These insights have practical implications for both educators and managers.
INCOME DISPARITIES AND CONVERGENCE ACROSS GLOBAL REGIONS
Purpose: This paper explores global income distribution and inequality from 1990 to 2023, analyzing 183 countries across 10 regions. Methodology: Using PPP-adjusted GDP per capita data for 183 countries, the study assesses income dynamics across ten world regions through β-convergence (linear regression), σ-convergence (standard deviation), and the catch-up index (relative dynamics of income). Results: The results reveal a complex picture: while overall income disparities between countries have decreased (β-convergence), regional comparisons with the U.S. as a benchmark show diverse trends. Of the nine analyzed regions (excluding the U.S.), five exhibit convergence, while four show divergence, based on σ-convergence and the catch-up index. Eastern Europe and South Asia have made the most progress in narrowing the income gap, where as the Middle East & North Africa and Sub-Saharan Africa have fallen further behind. Despite maintaining minimal disparities with the U.S., Western Europe and the Western Off shoots have exhibited signs of mild divergence. These results highlight the heterogeneity of income dynamics across regions. Conclusion: This study provides a nuanced perspective on convergence dynamics, emphasizing that the process of economic catch-up is neither uniform nor guaranteed. The results highlight that regions characterized by political stability, strong institutional capacity, and sustained investment in education and technology, such as Eastern Europe, are advancing more effectively. In contrast, regions facing persistent political instability, weak institutional frameworks, and limited investment—particularly Sub-Saharan Africa and the Middle East & North Africa—continue to fall behind. These findings point to the importance of targeted policy interventions aimed at fostering inclusive and balanced global economic development.
DETERMINANTS OF DIGITAL EURO ACCEPTANCE AMONG STUDENTS: THE ROLE OF PRIVACY CONCERNS AND THE LIMITATIONS OF SECURITY MEASURES
Purpose: The research examines the factors influencing university students’ intention to use the digital euro, problematising the role of privacy concerns and the effectiveness of security measures Methodology: The research is based on survey data from 150 students at the Faculty of Economics, Business and Tourism, University of Split, Croatia. Binary logistic regression, ROC curve analysis and chi-square independence tests were used. Results: The results show that privacy concerns compared to other payment methods, preference for cash payments, belief in lower transaction cost, and familiarity with the digital euro significantly influence students’ intention to adopt this digital currency. In particular, it was found that a high concern about privacy and a strong preference for cash had a negative impact on the intention to adopt the digital euro. On the other hand, a higher level of belief in lower transaction costs and better familiarity with the digital euro had a positive effect on their willingness to adopt. Additionally, the analysis showed that technical security measures, such as a digital signature, biometrics, encryption and pseudonymisation, did not significantly mitigate students’ privacy concerns. Conclusion: The research highlights the need to tackle privacy issues and strengthen trust in institutions and the legal framework, indicating that technical solutions alone are not enough to encourage adoption of the digital euro. Implementation of the digital euro as a means of payment requires broad strategies that pair technological progress with strong institutional protection, thereby reducing privacy risks and increasing trust of the digital euro as a payment instrument.
A SIMULATION-BASED APPROACH TO CALIBRATING TARGET FUND LEVELS FOR INVESTOR COMPENSATION SCHEMES
Purpose: Investor compensation schemes (ICSs) provide a safety net for retail investors when investment firms fail. However, the optimal level of ex-ante funding remains largely undefined. This paper proposes a quantitative framework to calibrate target fund size, based on operational risk logic. Methodology: The study applies a Monte Carlo model incorporating firm-level exposure data, supervisory risk classifications (SREP), and stochastic loss distribution (Beta-distributed loss given default). The simulation estimates expected ICS liabilities across 100,000 simulations, capturing low-frequency, high-severity loss patterns. Results: The model confirms a highly skewed distribution of losses. Based on data from the Croatian market, while most simulations result in no payout, the 99th percentile loss reaches EUR 18.7 million, with a maximum payout exceeding EUR 96 million. The results validate the use of risk-sensitive approaches over fixed-percentage benchmarks and highlight the importance of confidence intervals in reserve planning. Conclusion: This paper contributes a novel, adaptable methodology to size ICS funds based on probabilistic modelling. It supports regulators in transitioning from static to evidence-based reserve targets. Future refinements could involve dynamic monitoring, enhanced estimation of loss given default, and integration of SREP scores into contribution mechanisms.
investor compensation scheme, target fund level, SREP
OWNERS’ PERSPECTIVES ON KEY INTERNAL FACTORS FOR A FAMILY BUSINESS GENERATIONAL TRANSITION: THE CROATIAN CONTEXT
Purpose: Generational transition presents a significant challenge for family businesses in Croatia, where most entrepreneurs are encountering succession for the first time. This study explores internal factors that influence the transition process from the perspective of family business owners. Methodology: This research uses a mixed-methods approach, combining a questionnaire completed by 35 family business entrepreneurs with a focus group involving 6 entrepreneurs at various stages of generational transition. Results: Most entrepreneurs recognize the importance of succession but tend to treat it as a one-time event rather than as a structured, long-term process. A significant number of them lack formal succession plans and rely on informal decision-making, shaped more by family dynamics than by strategic considerations. Furthermore, generational transition is often postponed until a “right moment”, reflecting a reactive rather than proactive approach driven by emotional ambivalence, fear of identity loss, and uncertainty about successors’ motivation and readiness. Conclusion: Successful succession requires more than structural planning; it demands recognition of the deeply personal, emotional and cultural dimensions of a family business environment, along with more responsive and human-centered support systems. The findings show that the older generation’s delay in initiating succession is not primarily due to a lack of knowledge, but instead arises from emotional ambivalence, fear of identity loss, and uncertainty about the younger generation’s motivation. This emotional reluctance highlights a significant gap in existing support structures, which often focus on legal, financial, or educational aspects, while neglecting the psychological and relational support essential for a successful transition.
THE PATH TO SELF-EMPLOYMENT: ANALYSIS OF THE MOTIVATION AND SPECIFIC CHARACTERISTICS OF WOMEN ENTREPRENEURS
Purpose: The article analyses the motivation and main characteristics of self-employed women, focusing on the situation in the Republic of Croatia. The aim is to identify the specificities of female entrepreneurship, understand the motivational factors that encourage women to become self-employed and examine the challenges they face in order to create support for their further development and strengthen the entrepreneurial ecosystem. Methodology: A qualitative methodology was used, starting with data collection through semi-structured interviews with three self-employed women entrepreneurs in Croatia. The interviews focused on the motivational factors for starting an entrepreneurial activity and the personal characteristics of the interviewees. The collected data were analysed using descriptive analysis and the responses were interpreted using thematic analysis to gain insight into the experiences and attitudes of interviewees. Results: The results show that women in Croatia are motivated by the desire for independence, autonomy, creativity, and the desire to create new value, rather than the direct need for income. Respondents emphasise the importance of family and community support, but also challenges such as social and cultural norms and the need to balance work and family responsibilities. Conclusion: The study confirms that the motivational factors and characteristics of female entrepreneurs are more complex than the common stereotypes and that they are the key to success in entrepreneurship. Understanding the specificities of female entrepreneurship is crucial for developing the entrepreneurial environment and promoting greater equality and economic growth.
RELATIONSHIP BETWEEN REGIONAL DISPARITIES AND NATIONAL GROWTH IN CROATIA
Purpose: This paper analyzes the applicability of Williamson’s inverted U-curve hypothesis to Croatian regional development from 2000 to 2021. According to the theories of Kuznets (1955) and Williamson (1965), regional disparities tend to increase initially and then decline as economic development progresses. This phenomenon, known as the Kuznets-Williamson hypothesis, serves as the foundation for this study, which aims to test its validity in the context of the development of the Croatian counties from 2000 to 2021. Methodology: This paper employs Pearson’s correlation coefficient to examine the relationship between regional disparities, measured by the coefficient of variation, and economic growth, measured by the annual growth rate of national GDP per capita. Results: The results of the analysis confirm the validity of the Kuznets-Williamson hypothesis in the case of Croatia. During the first phase of economic growth (until 2010), regional disparities increased, while in the second phase (from 2010 onwards), they decreased. Evidence of β-convergence (2015-2021) suggests that poorer regions grew faster, reducing the development gap. Conclusion: Regional disparities in Croatia from 2000 to 2021 follow the Kuznets-Williamson hypothesis, i.e. disparities increased until 2010 and declined thereafter. Additionally, Zagreb’s economic dominance played a key role in regional disparities, particularly between 2000 and 2014. However, after 2014, regional disparities decreased despite a slight increase in Zagreb’s dominance, an outcome that is somewhat unexpected. The stronger integration of Croatia into the European Union may have played a crucial role in accelerating the growth of poorer counties and reducing regional disparities.
SOCIO-ECONOMIC DETERMINANTS OF CO₂ EMISSIONS: EVIDENCE FROM ARDL PANEL DATA ANALYSIS IN BRICS-T COUNTRIES
Purpose: This study examines the relationship between carbon dioxide (CO2) emissions and socioeconomic drivers, including human development (HD), education, financial development (FD), and household consumption for the BRICS-T countries from 2001 to 2022. Methodology: The study discusses both short- and long-run dynamics while accounting for cross-sectional dependency and heterogeneity across countries by using the panel autoregressive distributed lag (ARDL) model. Data sources include the United Nations and the World Bank hosted databases. Expected years of schooling (EYS) are used as a proxy for educational attainment. Results: The results indicate significant heterogeneity across the BRICS-T countries. The longrun findings also point to the fact that higher HDI and education levels reduce CO2 emissions, which shows that sustainable governance and environmental awareness are highly essential for carbon reduction. However, FD has a dual effect, promoting growth as well as carbon-intensive activities. The hypothesis of the environmental Kuznets curve is supported by the findings which indicate that as household consumption structures evolve toward less carbon-intensive activities (reflecting development), there is an associated adjustment toward the long-run equilibrium. Conclusion: The findings reveal that correction mechanisms are significant for Brazil, India, South Africa, and Türkiye. The study makes a significant contribution to the literature by offering a sophisticated understanding of the socioeconomic factors influencing CO2 emissions, emphasizing policy directions geared toward sustainable development. The conclusions of this study would be embedded in strategies for striking an appropriate balance between economic growth and environmental sustainability in emerging economies.
SELF-DISCLOSURE, SELF-ESTEEM, AND BODY POSITIVITY AMONG INSTAGRAM INFLUENCERS AND USERS
Purpose: This paper explores the relationship between self-disclosure, self-esteem, and exposure to bodypositive content among Instagram users following influencers. It aims to examine evolving beauty standards and emphasises the impact of social perception on individual self-esteem and identity formation. It considers the emergence of the #bodypositivity movement as a reaction to unrealistic beauty ideals propagated on social media and stresses its role in promoting inclusivity. Methodology: A structured questionnaire was used to collect data from 218 Instagram users. The study used Partial Least Squares Structural Equation Modelling (PLS-SEM) to analyse the data and assess the relationships between the variables. Results: The results show that the constructs Polarity and Intent have a significant and positive impact on Self-esteem. Self-esteem has a significant and positive relationship with Body-positive content. Conclusion: This research underscores the importance of body-positive content on social media in challenging traditional beauty standards and promoting inclusivity. Positive self-disclosure emerges as a critical factor in boosting self-esteem and advocating body-positive narratives. The findings suggest that self-esteem is positively influenced when individuals disclose in a positive, intentional, and authentic manner, but too much disclosure or overly personal sharing may harm self-esteem. The study offers valuable insights for influencers, marketers, and researchers into fostering healthier self-perception through social media. Limitations are acknowledged, and recommendations for future research are provided.
BOOK REVIEW: “Banke i bankarstvo – izazovi i trendovi”
BOOK REVIEW: “Banke i bankarstvo – izazovi i trendovi” Editor-in-chief: Pavković A. Authors: Pavković A., Hlupić Radić D., Olgić Draženović B., Gržeta I., Žiković S., Cesarec A., Rojko J., Keserović A., Ercegovac R., Sajter D., Smojver S., Drvar M., Hladika M., Tušek B., Halar P. Publisher: Narodne novine d.d. Zagreb Year of publication: 2024 Number of pages: 333 ISBN: 978-953-234-320-5
Banks and Banking – Challenges and Trends
MARINA AND LOCAL COMMUNITY IN SOCIAL RESPONSIBILITY: A CASE STUDY OF PUNAT
Purpose: Croatian islands have many small communities where marinas are located and play the role of local leaders. The paper analyses socially responsible behaviour of a small local community to gain insight into the level of understanding of social responsibility as well as the forms of operational activity. Research was conducted in the municipality of Punat on the island of Krk and in Marina Punat. Methodology: Structured in-depth interviews were used to identify the factors of socially responsible behaviour in the community. Results: The research confirms the gradual shift from spontaneous to conscious socially responsible management and behaviour. Focusing on small Adriatic towns, particularly Punat, this study explores the relationship between the marina as a local leader and the local community. Findings show a developing unity based on shared socially responsible practices. However, legal regulations currently prevent joint investment in their mutual development. This paper proposes legal reform to enable coordinated socially responsible actions between marinas and municipalities, supporting sustainable local development. Conclusion: Socially responsible business in Croatia is emerging as key to sustainable tourism. The Punat case shows how cooperation between local government and marina leadership fosters economic development, community well-being, and destination quality, despite legal barriers hindering joint investment initiatives.
THE ROLE OF PERCEIVED CELEBRITY FAME ORIGININ SHAPING PURCHASE INTENTIONS AMONG YOUNG CONSUMERS
Purpose: The study investigates how the perceived origin of a celebrity’s fame–classified as ascribed, achieved, or attributed/celetoid (celetoid fame refers to celebrities known primarily for short-term media exposure, scandals, and public appearances)–influences consumer purchasing behaviour, particularly among younger audiences. While celebrity endorsements remain a prevalent marketing strategy, limited research has examined how media representation and the perceived legitimacy of such fame affect consumer purchase intentions. Methodology: The research is grounded in Rojek’s (2001) classification of celebrity fame and employs a survey conducted on a convenience sample of 902 respondents in Croatia. ANOVA and regression analyses were used to examine whether fame origin and demographic variables predict consumers’ likelihood of purchasing endorsed products. Results: Findings indicate that age (F = 20.633, p < .001) and achieved fame (F = 15.613, p < .001) are statistically significant predictors of purchase intention. Consumers aged 18–25 were more influenced by celebrity endorsements, and those who perceived celebrities as having achieved fame through talent and accomplishment were more likely to respond positively to endorsements. In contrast, ascribed and attributed/celetoid fame had no significant impact on purchasing behaviour, suggesting that the credibility and authenticity conveyed through media narratives play a key role in shaping endorsement effectiveness. Conclusion: The results highlight that merit-based fame enhances the effectiveness of celebrity endorsements, particularly among younger audiences. These insights suggest that brands should strategically align with celebrities perceived as accomplished, not only from a marketing standpoint but also considering how these figures are communicated and perceived in the public sphere.
Rojek’s typology of celebrities’ fame origin
SALARY INCREASE AS A DRIVER OF PRODUCTIVITY
Purpose: The paper analyzes the relationship between wages and labor productivity across Croatian sectors (2019–2023), focusing on sectoral and temporal specificities. The main goal is to confirm the positive relationship between wage growth and productivity and highlight sectoral differences. The study is based on theories of efficiency wages, human capital investment, and sectoral heterogeneity. A review of previous research emphasizes the importance of technological innovation and sector specific characteristics in productivity. Methodology: Data from the FINA database were used for descriptive statistics, correlation analysis, and a fixed-effects panel regression model, allowing for control of sectoral and temporal influences. Results: A 1% wage increase is associated with a 0.738% productivity growth. The highest effects were observed in sectors C (Manufacturing) and J (Information and Communication), while sectors I (Accommodation and Food Services) and R (Arts and Entertainment) showed weaker impacts. Significant productivity growth was recorded in 2022 and 2023. The results confirm the theoretically expected positive relationship between wages and productivity and emphasize the need for sector-tailored policie—technological modernization for more productive sectors and human capital investments for less productive ones. Conclusion: The positive relationship between wages and productivity calls for targeted policies addressing sector-specific needs. Study limitations include potential data constraints, while future research should focus on cross-country comparisons and additional productivity factors.
ENRICHING KNOWLEDGE FOR RAISING AWARENESS OF SUSTAINABLE TOURISM: A GEN Z PERSPECTIVE
Purpose: This study aims to identify students’ understanding and awareness of sustainable tourism depending on sustainability knowledge integration into the study program and examine its influence on students’ awareness of sustainable tourism. Methodology: The research was conducted using a survey method on a convenience sample of undergraduate students enrolled in Management of Sustainable Development (MSD) and Business Economics in Tourism and Hospitality (BETH) study programs at the Croatian Faculty of Tourism and Hospitality Management. Exploratory factor analysis (EFA) was implemented on the Stakeholder Understanding of Sustainable Tourism Development Index (SUSTDI) to investigate students’ understanding of sustainable tourism. An independent samples t-test highlights the significance of differences in the understanding and awareness of sustainable tourism among students in different undergraduate study programs. Results: The results reveal the three-factor structure of the SUSTDI as a highly reliable tool for determining the overall level of sustainable tourism understanding and knowledge by Generation Z as a stakeholder. It enables the identification of areas in which knowledge about sustainable tourism should be improved. Significant differences in students’ understanding and awareness were identified among different study programs, with higher levels observed in the MSD study program, which incorporates various aspects of sustainability topics through courses. Conclusion: The research results indicate a greater level of knowledge and understanding of students in a study program that integrated sustainability issues into the study program curricula and a significant positive impact of understanding on students’ awareness of sustainable tourism.
Stakeholder Understanding of Sustainable Tourism Development Index (SUSTDI)
THE USE OF THE DELPHI METHOD IN THE CREATION OF THE SERVQUAL MODEL FOR MEASURING THE QUALITY OF SERVICES IN FITNESS CLUBS
Purpose: This study aims to explore the applicability of the Delphi method in developing a SERVQUAL model for evaluating service quality in the Serbian fitness clubs, while also providing a practical tool for this emerging fitness market. Methodology: Building upon established SERVQUAL frameworks, a three-round Delphi process was conducted with 14 experienced fitness professionals from Serbia. Participants assessed and refined an initial 33-item questionnaire structured around the five SERVQUAL dimensions. The study applied strict consensus criteria and used statistical measures including the Shapiro-Wilk test, interquartile range (IQR), and boxplot analysis to validate the reliability and internal consistency of the instrument across iterations. Results: The final model consists of 25 statements and demonstrates a high level of adaptability of the SERVQUAL framework to specific needs of the Serbian fitness market, while maintaining theoretical consistency. Conclusion: The study confirms the Delphi method as an efficient tool for constructing reliable service quality measurement instruments in fragmented and under-researched markets. The resulting SERVQUAL model holds both methodological and practical value. As the Serbian fitness industry continues to grow, this validated instrument offers stakeholders a valuable basis for quality enhancement