347 10 3494 https://omeka.ibu.edu.ba/files/original/4a68968d17edb884b43ce9aafd1d2535.pdf 4e36186019ec5b13487100802b376404 PDF Text Text SMEs, the Backbone of the Albanian Economy Suada Dajçi Epoka University Albania Amela Dalipaj Epoka University Albania Abstract: Small and medium-sized enterprises (SMEs) play a fundamental role in the economic growth of a country. This report’s purpose is to determine and prove the great significance they have in Albanian economy, and what measures are needed to be taken in order to stimulate the establishment of new SMEs and assuring a long term sustainability of the existed ones in the market. In this paper is being analyzed the impact that SMEs have in GDP, employment, innovation, and investment. The data used in this report is gathered from INSTAT; Albanian Ministry of Economic Development, Trade and Entrepreneurship; Eurostat; and European Commission. According to this data, even though Albania has made improvements in the business sector, there is still much to be done related to SME development such as: the improvement of business climate, further simplification of legislation, implementation of favorable financial assistance schemes, and easily providing low interest loans. Keywords: economic growth, GDP, employment, innovation, investment, turnover Introduction Small and medium-sized enterprises (SMEs) have a different definition in various countries around the world because of the number that states decide as a ceiling in staff headcount and either turnover or balance sheet total. The definition made by European Commission defines SMEs as enterprises with less than 250 employees, a turnover less or equal to 50 million euros, and either a balance sheet that does not exceeds 43 million euros3. In order to bring the SME definition closer to EU standards, Albania amended the law no. 8957 in October 17th of 2002. In the article 4 of this law is stated that: Micro, small and medium enterprises (SMEs) include those entities which employ fewer than 80 people and have an annual turnover that does not exceed 80 million ALL1. Later on 29-10-2008 it further changed with the new law no. 10183. Now the definition states that: “Micro, small and medium enterprises (SMEs) includes those entities which employ fewer than 250 people and have an annual turnover that does not exceed 250 million Albanian Lek. Small enterprises are those entities which employ less than 50 persons and have an annual turnover that does not exceed 50 million Albanian Lek. Micro enterprises are entities which employ less than 10 persons and have an annual turnover that does not exceed 10 102 �million Albanian Lek.” (Kruja, 2013) To avoid confusion we need to clarify that this definition is only for individual firms, and these ceilings do not apply to firms that are part of a large group. SMEs have a very important role in the economic growth of their country. The significance they have varies in different economies. This report’s purpose is to determine and prove the great significance they have in Albanian economy, and what measures are needed to be taken in order to stimulate the establishment of new SMEs and assuring a long term sustainability of the existed ones in the market. “The only way to reduce poverty in a sustainable way is to promote economic growth, through wealth and employment creation. In developing countries, SMEs are the major source of income, a breeding ground for entrepreneurs and a provider of employment7” (UNIDO Report, 2003). We can measure the real importance of the SMEs in Albanian economy by analyzing the impact that SMEs have in GDP, employment, innovation, and state budget. Most of the data used in this report are gathered from the Albanian Institute of Statistics (INSTAT), Albanian Ministry of Economic Development, Trade and Entrepreneurship, Eurostat, EBRD BEEPS survey, European Commission, European Investment Bank, and SBA Fact Sheet. The significance that SMEs have in Albania in reducing poverty through employment, the role they have in state budget, the impact in GDP, and the percentage of investments made on SMEs are shown in Table 1, Table 2, and Table 3. The importance of SMEs in reducing poverty As it is shown in Table 1, SMEs are the main engine that can reduce poverty in Albania, because they provide 79.9% of the total employment, while the European Union average is around 67 %. This means that SMEs are the main job providers in Albania, considering the great number of people that get self employed by creating their own businesses, and at the same time creating job vacancies. While the number of unemployed people is reduced, meanwhile the number of people living in poverty line will be reduced. “[We] find that small firms have the largest shares of job creation but large firms have the largest share of job losses4” (M. Ayyagari, A.Demirguc-Kunt, V. Maksimovic, 2011, p. 12).The reason why small and medium sized firms have the greatest share of job creation is because the velocity of the creation of new firms is greater than their speed towards failure, that’s why the number of net job creation by SMEs is high as shown in Figure 1. But the number of net job creation by SMEs can be greater if less of these enterprises failed. Failure mostly comes from the lack of finance, because obtaining external financing requires a long bureaucratic administrative aspect of the lending procedures, and in the case of bank loans it is requested a collateral in a form of property or bank deposit with high interest rates, so for SMEs external financing might be unaffordable, time wasting, and no profit is generated from it. A solution to this problem might be implementation of favorable financial assistance schemes as loan guarantee funds and micro credits. 103 �Table 1 shows that the number of persons employed in SMEs in Albania has been increasing since 2008, while in European Union has been having sustainability with the tendency to decline that can better be noticed in 2012. Figure 2 Business Demography; Birth rates of enterprises %, Source: Knomea (2016) The role of SMEs in state budget SMEs in Albania constitute 99.8% of all enterprises, they provide almost 68 % of the total value added, which has dropped by 3% from 2012, due to the poor performance of small firms which experienced a 13 % drop in value added. SME employment grew by 15 % during 2012-14. Moreover SMEs generate more than 3/4 of the State’s turnover. This is why government must support SMEs with different policies as being the main contributors in the state budget. The fluctuations of the value added of SMEs curves in Albania and in EU are shown in Figure 2. 104 �Table 5 SMEs basic Figures, Source: 2016 SBA Fact Sheet Figure 2: Number of persons employed in SMES (index: 2012=100) Source: European Commission Figure 3: Value added of SMEs (index: 2012=100) Source: European Commission 105 �SMEs impact on GDP Table 2, 3 and 4 on the other hand shows the right number of: enterprises, people employed, turnover, and investments in all industries, in good producers and in service producers respectively. We drag the following statistics from Table 2: Nine from ten enterprises engaged less than 5 employed. Enterprises with 250+ employed, even though constitute only 0.1 % of enterprises, engaged 18.7 % of employed, realized 33.5 % of investment, 22.4 % of turnover and 33.7 % of value added. Most of enterprises in Albania are services producers as it is shown in Figure 3. Further on in Figure 4 and Figure 5 are shown the percentages of enterprises according to the number of employees. According to Albanian Ministry of Economy the contribution of SMEs on GDP since 2008 is 73%. As a result, it can be said that the SMEs play an important role in the economy of the country. GDP is the main indicator to evaluate the economic growth of a country, which means that in order to have economic growth a government needs to stimulate with different policies, reforms, and measures the increase of SMEs production. The best way is by favorizing SMEs exports. If we take a look to Table 2 and Table 3 on investment column we will notice that although SMEs cover most of employment, GDP, value added, still investments are not shared equally. Table 6: Basic indicators and their structure by size class of enterprises Source: INSTAT (2015) 106 �Table 7: Enterprises, employed, turnover, investments of goods producers by size class of enterprise Source: INSTAT (2014) Table 8: Enterprises, employed, turnover, investments of service producers by size class of enterprise Source: INSTAT 2014 Producers of Services groups by their number of employees. Producers of goods 13% Group by the number of employed 5-9 5% Group by the number of employed 1-4 91% Producers of services 87% Figure 4: Companies in Albania according to their activities, Source: INSTAT 2014 Diğer 4% Group by the number of employed 1049 3% Group by the number of employed 50⁺ 1% Figure 5: Producers of Services groups by their number of employees. Source: INSTAT 2014 107 �Figure 6: Producers of Goods groups by their number of employees Producers of Goods groups by the number of their number of employees. Group by the number of employed 5-9 10% Group by the number of employed 1-4 71% Group by the number of employed 10-49 15% Diğer 19% Group by the number of employed 50⁺ 4% Source: INSTAT 2014 Innovation and SMEs “Technological progress is not translated into economic benefits and jobs by governments, countries, or sectors, but by innovative firms. Innovative firms are not superior algorithms to maximize production functions, but efficient learning organizations that seize technological and market opportunities creatively in order to expand production frontiers5” (OECD , 1996). In Albania, in the previous years, used to be organized a business plan competition for innovative start-ups, with the main purpose of attracting young people with entrepreneurial skills. In 2014, the Albanian Investment Development Agency (AIDA) has provided public grants to SMEs through the 'Competitiveness Fund 2013-2015' and the newly established 'Innovation Fund 2015-2017", aiming to improve the quality of exported products as well as to diversify and increase the exports by subsidizing the SMEs2. In 2015, AIDA implemented the ‘Enhancement of institutional capacities for research and innovation’ to further support the development of research and higher education systems. The Albanian government has focused on improving the quality of the Vocational Education and Training (VET), aiming to establish linkages of the VET with the labor market, increasing employment for women, youth and vulnerable groups. Moreover it has adopted and implemented the ‘Effective implementation of Digital Agenda Strategy’, which introduced a range of instruments to support SMEs using ICT and innovative technologies. Within the last years more organizations are coming up which actively support innovative startups and existing SMEs such as ProTIK ICT Resource Center. It was established in 2012 to catalyze the development of the ICT sector in Albania and has developed an accelerator program for startups. ProTIK aims to become the Albanian ICT hub. Albania needs to work more on setting stronger links between technology, science, higher education and businesses because it is essential in improving human capital. Promotion of entrepreneurship at all levels of education, support of start-up businesses, improvement of 108 �investment climate conditions are also some of the measures that need to be taken. SMEs are flexible in market changing conditions, they are very widespread in all economic activities as they represent 99.8% of all enterprises, and furthermore they run in perfect competition. These make SMEs the perfect tool to spread innovation, try new technologies approaches while they compete one another, all characteristics which result in economic growth. Innovation is very important even for firms, because innovation means differentiation that is accompanied with more incomes, employing more workers, demanding for high level skills, paying higher wages, and offering more stable prospects for the workforce and as the economy functions as a chain one thing will follow another and this will bring economic growth to the firm. Conclusion SMEs play a vital role in our economy; they are the generators of employment, main indicators in GDP, and economic growth promoters. SMEs employ 81% of the employed persons, and meanwhile they make up 99.9% of all registered business entities. SMEs in Albania are mostly spread in the service producers’ economic activity this because service producers sector has 87% of enterprises in the market. The contribution of SMEs on GDP since 2008 is 73%. They are very widespread in all economic activities, they have the ability to respond quickly to market changes, and furthermore they run in perfect competition, all these make SMEs the perfect tool to promote economic growth through innovation. But even though Albania has made improvements in the business sector, there is still much to be done related to SME development. The new fiscal package that was pass by the Government cause of growing public debt increased the corporate income tax for large and medium companies but reduced the tax burden for small enterprises, which is positive. Some measures that the Government of Albania should undertake in order to promote SMEs in Albania are as follow: the improvement of business climate, further simplification of legislation to open a SME, implementation of favorable financial assistance schemes as loan guarantee funds and micro credits, easily providing low interest loans, or improving access to finance through developing the venture capital market and alternative sources of finance, and setting stronger links between technology, science, higher education and businesses because is essential in improving human capital. They could also consider the promotion of entrepreneurship at all levels of education; they can put more emphasis on the introduction of incubators, clusters and technological parks, enhanced public support to increase their exports, and creating fast-track and specific bankruptcy procedures for SMEs, especially in view of the issue of the non-performing loans.. If we take care for the development of the SMEs Albania will experience economic prosperity. Bibliography AIDA. (2015, December 02). Aida Funds. Retrieved from Albanian Investment Development Agency: http://aida.gov.al/pages/aidas-funds Business and Financing Consulting. ( August 2016). Assessment of financing needs of SMEs in the Western Balkans countries. European Investment Bank. 109 �On Small and Medium Enterprises, Law no.8957, article 4 (Consitution of the Republic of Albania,Commercial Law October 17, 2002). Commission, E. (n.d.). Entrepreuneurship and SMEs. Retrieved from European Commission. European Commision. (2016). 2016 SBA Fact Sheet Albania. European Commision. European Commission. (2015, December 02). Entrepreuneurship and SMEs. Retrieved January 03, 2016, from European Commission: http://ec.europa.eu/growth/smes/business-friendlyenvironment/sme-definition/index_en.htm Instat. (2015). Statistics on small and medium enterprises, 2015. Tirana: Instat. INSTAT. (2017). RESULTS OF STRUCTURAL SURVEY OF ECONOMIC ENTERPRISES. Tirana: INSTAT. Knomea. (2016, October 11). Candidate countries and potential candidates: business demography. Retrieved October 20, 2016, from Knomea: https://knoema.com/cpc_insbs/candidate-countriesand-potential-candidates-business-demography?regionId=AL Kruja, A. D. (2013). The Contribution of SMEs to the Economic Growth (Case of Albania). Editura Universitara Danubius . M. Ayyagari, A.Demirguc-Kunt, V. Maksimovic. (2011). Small vs. Young Firms across the World Contribution to Employment, Job Creation, and Growth. World Bank. OECD . (1996). Technology, Productivity and Job Creation. Paris.: The Washington Workshop. PBM. (2011). The Importance of SMEs in Albanian Economy and the Role of Government and Financial Institutions in their Development. In Enhancing SMEs Development in Albania: A Study on Macro-Financial Soundness Indicators (pp. 65-67.). Tirana: Klean Publisher. UNIDO. (2003). WSIS Report. 110 �Impact of Agricultural Policies on Rural Development and Increase of Competitiveness of Agriculture of Bosnia and Herzegovina with a Special Emphasis on Achievement of Reform Goals Sanja Kavaz Hukic Bosnia and Herzegovina sanja_kavaz@bih.net.ba Abstarct: For the Balkan countries, the agricultural sector and rural development are of great importance, primarily because they are ensuring food security of the population, and then, also, because they have effects on employment, the creation of total gross value as well as on the foreign trade. Having in mind open processes of joining the European Union in these countries, with a special focus on Bosnia and Herzegovina, the implementation of the EU policies and practices will represent both a challenge and an opportunity for the development of the state and the improvement of its position in the single European market. Bosnia and Herzegovina is a country with a distinct rural character, with over 50% of the rural population, where every third household acquires some kind of income from agriculture, and which is currently facing a number of problems when rural development is concerned (from insufficient investments, uncompetitive production, inefficient administration, abandonment of rural areas, failure to use EU funds, etc.). Nevertheless, with adequate policies and dynamic approach to the agricultural sector, and strategy for increasing competitiveness and attracting investment, the potential of Bosnia and Herzegovina's agriculture could be used and exploited, and the country could go towards progress and success. Therefore, this paper explores and analyzes the European Union's common policies, as well as the ways and means of their implementation in the Balkan region countries, especially in Bosnia and Herzegovina. Then, the paper points the importance and necessity of investing in rural development (infrastructure, mechanization, marketing, agro-environmental measures, etc.), and provides guidelines on how to modernize and reconstruct the agricultural sector, in order to increase the country's competitiveness and reduce the long-standing trade deficit in this area, and, at last, how to effectively approach to the European Union with harmonization of legislation and the use of development plan. The agricultural sector and the overall modernization of rural communities, with a clear vision, and with increasing employment, economic growth and competitiveness, can become the cornerstone of the development of Bosnia and Herzegovina and a key factor of its inclusion in the European and the world trends. Keywords: EU common agricultural policy, agriculture, rural development, competitiveness. JEL Classification: Q17, Q18, O13, 018 Introduction The Common Agricultural Policy (further: CAP) is one of the oldest polices of the European Union (further: EU) and represents set of measures and programs for subsidizing agriculture in the European Union. It was created in 1962, so the application of common agricultural policy 111 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3662 Title A name given to the resource SMEs, the Backbone of the Albanian Economy (doi: 10.14706/icesos1725) Author Author Dajci, Suada Dalipaj, Amela Abstract A summary of the resource. Abstract: Small and medium-sized enterprises (SMEs) play a fundamental role in the economic growth of a country. This report’s purpose is to determine and prove the great significance they have in Albanian economy, and what measures are needed to be taken in order to stimulate the establishment of new SMEs and assuring a long term sustainability of the existed ones in the market. In this paper is being analyzed the impact that SMEs have in GDP, employment, innovation, and investment. The data used in this report is gathered from INSTAT; Albanian Ministry of Economic Development, Trade and Entrepreneurship; Eurostat; and European Commission. According to this data, even though Albania has made improvements in the business sector, there is still much to be done related to SME development such as: the improvement of business climate, further simplification of legislation, implementation of favorable financial assistance schemes, and easily providing low interest loans. Keywords: economic growth, GDP, employment, innovation, investment, turnover Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/2561429c62eaee2dad389f5ace4242e1.pdf d08b42bad88d96a04af80fec5c572584 PDF Text Text The Youth's Perception of Migration in Bosnia and Herzegovina M. Sait Dinc Department of Management International Burch University Bosnia and Herzegovina m.sait.dinc@ibu.edu.ba Kanita Jahic Department of Management International Burch University Bosnia and Herzegovina kanita.jahic@stu.ibu.edu.ba Sejla Kocan Department of Management International Burch University Bosnia and Herzegovina sejla.kocan@stu.ibu.edu.ba Abstract: Migration, in a simple definition, is the movement of people from one country to another. One of the major problems in Bosnia and Herzegovina (BiH) is youth migration. Young people from BiH mostly migrate to European countries. Factors which have an influence on the youth migration and relationship between demographic differences, as well as the tendency of the youth to emigrate have attracted a great curiosity. The purpose of this study is to examine the perceptions of the youth about determinants of migration as well as the relationship between demographic variables and immigration tendency. Using the survey method, 207 responses were collected from the youth in BiH. Descriptive analysis, one-sample, and independent sample t-test were constructed to analyze data. The results have showed that the perceptions of the youth about job opportunities in BiH and approach of officials towards young people are negative. However, study results show that younger group of young people with less education have a greater tendency to emigrate. Keywords: migration, Bosnia and Herzegovina, the youth Introduction Migration can simply be defined as the movement of people from one country to another. Of the two types of migration, emigration represents the departure of people from one country in order to reside in the other. Brain drain is more specific term used in relation to emigration. It is 216 �defined as “a significant emigration of educated or talented individuals.”27 In other words, it is “the migration of highly educated labor force from developing to developed countries” (Stankovic, Angelova, Janeska, & Stankovic, 2013, p. 1). Brain drain usually relates to graduate students, who face problems when they search for employment after completing their studies (Cymanow, Florek-Paszkowska, 2014). In recent years, when transportation has become more available and advancements of certain countries are highly apparent as opposed to others, brain drain has become an agenda. People tend to leave their countries because of pull or push factors. Those factors can be of several sorts, such as social, political, economic, industrial, or cultural factors (Thet, 2014). However, emigration of youth may pose an even bigger problem. Young people are looking for opportunities, and in case that they cannot find them in their home countries, they are usually not willing to sacrifice their own well-being due to patriotism. In Bosnia and Herzegovina (BiH), youth brain drain has become one of the major problems. In 2013, it was reported that around 150.000 young people have left the country since the end of the war in 1995, and about 10.000 decide to leave it every year28. BiH is “the fifth worst country in the world in terms of brain drain,”29 according to the World Economic Forum. Young people are usually unwilling to accept the fact that they have to deal with some basic issues of this country, such as corruption, unemployment, low wages, poor economy, etc., and instead choose to build their lives elsewhere. There are many factors which contribute to emigration of youth. Therefore, this study aims to investigate the perception of young people living in BiH about basic determinants of migration. The purpose of this research is to examine the perceptions of youth about migration in BiH. It specifically focuses on the youth reasoning of the brain drain and its determinants. Moreover, it tries to determine whether there are any differences in youth’s perceptions according to demographic factors. Literature Review In recent years, with a huge increase in technological improvements and its reflection on transportation, migration and related terms have been an agenda of the world. Migration is the movement of people from one country to another. International migration is the movement of people across international boundaries, which has great economic, social, and cultural implications in both origin and destination countries (Docquier et al., 2006). Another term used 27 Obtained from Investopedia: http://www.investopedia.com/terms/b/brain_drain.asp (Aug 13, 2016) Obtained from Balkan Insight: http://www.balkaninsight.com/en/article/young-people-leave-serbia-bosnia-themost (Aug 7, 2016) 29 Obtained from Balkan Insight: http://www.balkaninsight.com/en/article/mass-depopulation-threatensbosnia-s-future (Aug 7, 2016) 28 217 �to refer to the international transfer of resources in the form of human capital and which has the aforementioned implications particularly in origin countries is called brain drain (Stankovic et al., 2013). Group of people which has been influenced by migration is undoubtedly young generation. Migration of youth has long even occurred as a part of a collective family strategy in search of educational and internship opportunities (UNFPA 2006). Although there are many studies conducted with regard to the migration, those which have focused on youth migration are still limited. Nevetheless, Juárez et al. (2013) analyzed youth migration and its consequences for the various other transitions to adulthood, including reproductive outcomes, educational, employment, and marital outcomes, as well as specific strategies underlying migration and its consequences. In another research, Cymanow and Florek-Paszkowska (2014) analyze a potential scale of internal and external migrations, assess the importance of factors determining the selection of migration destination, and the importance of elements affecting the nature of the undertaken jobs, taking into account payroll expectations of potential migrants in Poland. Research Questions According to the literature above, following research questions can be posited: Research question 1: In overall, do the youth perceive youth migration to be positive in BiH? Research question 2: How do the youth evaluate the determinants of the youth migration? Research question 3: Are there any differences in youth’ perceptions according to age, gender, education, marriage, and their parents’ company ownership and income? Research Method Survey Instrument A two-page questionnaire with three parts was used to collect data. The first part of the questionnaire included several questions about general characteristics of the youth and their tendency to migrate. To put it succinctly, this part included demographic questions such as age, gender, education, company ownership of parents, and overall perceptions of young people about migration. In the second part, four questions were asked with regard to the perceptions of the youth participants about migration of young people from BiH. The third part included 16 questions that dealt with the youth's perceptions about the determinants of migration and its destination. The questions in the second and third parts were adapted from Cymanow and Florek-Paszkowska (2014)'s study and were measured using 5-point Likert scale (5 = strongly agree; 1 = strongly disagree). The questionnaire was initially prepared in English and then translated into the Bosnian language. The translation of the questionnaire was done by experts who are fluent in both languages and their respective cultures. A pilot study of the questionnaire was done with 20 young participants studying at a private university. The purpose of pilot testing 218 �was to evaluate the validity of the survey. The questions which were not understood clearly were reevaluated and finalized for data collection. Data Collection The study used online and printed questionnaire survey to collect data. In order to enable a better generalization of research results, the study targeted young people in two large cities in BiH: Sarajevo, the capital city and Tuzla. A total of 200 questionnaires were distributed to students from a public and private high school as well as a public and private university in Sarajevo and Tuzla. A formal research approval was obtained from the administration of each examined schools and universities. The purpose of the study was initially explained to potential participants in order to encourage students’ voluntary participation, and to guarantee the anonymity of participants. The questionnaires were distributed to students who agreed to participate in the research. The overall number of the completed printed version of surveys which could be used was 108. With 99 online completed surveys, 207 questionnaires which could be used for this study were collected in total. Data Analysis Demographic information and overall perceptions of young people about migration were analyzed through frequency and descriptive statistics. Perceptions of the youth participants about migration of young people from BiH and questions about the youth's perceptions with regard to the determinants of migration and its destination were analyzed with one sample t-test. In one sample t-test, means were compared with the mid-point of the scale that is 3. Finally, differences in youth’ perceptions according to sample demographic characteristics such as age, gender, education, marriage, and company ownership of their parents and income were analyzed with an independent sample t-tests. Results Sample Characteristics A summary of the sample characteristics is presented in Table 1. The majority of the sample (60.4 %) were females in 18-21 age group with completed high school education. The majority's family (78.3 %) did not own a company. The predominant amount of the young respondents’ family (62.3 %) were planning to leave the country in the future. 219 �Research Question One In research question one, the study purpose was to measure the youth’s overall perception about migration of young people in BiH. The result of the sample t-test where the scale’s mid-point (3) was taken as the test value, demonstrated that the youth do not agree with the statements that “this country provides enough opportunities for youth employment” (M = 1.83, SD = .94, t = 17.8, p =.001) and “opinions of young people are respected in this country“ (M = 1.88, SD = .79, t = -20.3, p =.001). Nevertheless, they agree with the statement that “if I was more respected and given opportunities for job, I would stay in my country“ (M = 3.91, SD = 1.26, t = 10.3, p =.001). Results are summarized in Table 2. As demonstrated in the table, respondents are not positive about approach of BiH towards the youth which shows a positive attitude towards their migration. Table 1 Sample Characteristics Variable Number Valid Percent Under 18 years 36 17.4 18-21 years 94 45.4 21-23 years 50 24.2 Over 23 years 27 13.0 Male 82 39.6 Female 125 60.4 Yes 12 5.8 No 195 94.2 High school 119 57.5 Bachelor degree 75 36.2 Master 13 6.3 Yes 45 21.7 No 162 78.3 Planning to leave the country Yes 129 62.3 No 78 37.7 Average Income 0-540 USD 47 22.7 540-810 USD 62 30.0 810-1081 USD 34 16.4 Over 1081 USD 64 30.9 Married living together 177 85.5 Age Gender Marital status Education level Company Parents status Demographics 220 �Married living separately 6 2.9 Divorced 6 2.9 Single parent 16 7.7 Other 2 1.0 Research Question Two In the second research question, the purpose was to measure evaluations of young people about the determinants of the youth migration. Consistency of the items was analyzed by using reliability analysis, and Cronbach’s alpha values are indicated in Table 2. All the reliability coefficients are above the accepted level (.70). The results are summarized in Table 3. As presented in the table, “difficulties with finding a job in the home country” (M = 4.23, p = .001) was determinant with the highest rate. Better employment terms in the emigrated country was also rated as the second most highly rated determinant (M = 4.20, p = .001). It was followed by the possibility of earning a higher remuneration in the emigrated country (M = 4.11, p = .001). Regarding determinants of the youth migration destination, respondents rated “earnings” in the emigrated country the highest (M = 4.20, p = .001). It was followed by “getting a job easily” in emigrated country (M = 4.18, p = .001). Table 2 One sample t-test for perceptions of youth about migration of youth (Test value =3) N Mean SD t-value p-value This country provides enough opportunities for youth employment. 207 1.83 0.94 -17.84 .000 Opinions of young people are respected in this country. 207 1.88 0.79 -20.30 .000 Youth employment is more important than elder people employment in this country. 207 2.89 1.31 -1.21 .224 If I was more respected and given opportunities for job, I would stay in my country. 207 3.91 1.26 10.33 .000 NOTE: Cronbach’s alpha value for the four items is .40 Research Question Three In the third research question, the purpose was to compare the youth’s perceptions in terms of their age, gender, education, marriage, and company ownership of their parents and income. Demographic variables are recoded into two groups in order to simplify the analysis. The results 221 �are summarized in Table 4. As demonstrated in the table, no significant differences occur between different demographic groups of participants. Table 3 One sample t-test for determinants of migration (Test value =3) N Mean SD t-value p-value Possibility of earning a higher remuneration than in the home country 207 4.11 0.97 16.54 .000 Difficulties with finding a job in the home country 207 4.23 0.91 19.58 .000 Guaranteed employment abroad 207 3.98 0.97 14.54 .000 Employment terms better than in the home country 207 4.20 0.86 20.18 .000 Acquiring professional experience 207 4.00 1.02 14.08 .000 Improving qualifications 207 3.97 0.97 14.30 .000 Possibility of learning a foreign language 207 3.95 1.11 12.34 .000 Willingness to experience another country 207 3.29 1.31 3.19 .002 Distance of the migration destination from the home country 207 2.63 1.24 -4.26 .000 Earnings 207 4.20 0.91 18.93 .000 Getting a job with ease 207 4.18 0.85 19.85 .000 Family presence 207 3.42 1.11 5.46 .000 Presence of friends 207 3.07 1.15 0.85 .399 Historic events 207 2.23 1.03 -10.75 .000 Attitude toward your citizenship 207 3.02 1.18 0.24 .814 Threat of terrorist attacks 207 2.95 1.32 -0.52 .600 Determinant of migration Determinant of migration destination NOTE: Cronbach’s alpha values for the eight items about determinants of migration and the eight items about determinants of migration destination are .80 and .75 respectively. Discussion This study attempted to examine the perceptions of youth about migration in BiH. More specifically, it focused on the youth perception of the migration, its determinants, and differences in their perceptions according to demographic factors. The study results demonstrate that the perceptions of the youth about job opportunities and approach of officials toward young people in BiH are not positive. Moreover, the results show that difficulties in finding a job in BiH, better employment terms, and earning a higher remuneration possibility in emigrated countries are several important determinants that motivate the youth to go abroad. 222 �Table 4 Independent samples t-test for sample demographics Variable Age Average income Education level Gender Marital status Company Demographics N Mean SD 18-21 years 130 1.35 0.48 21 and older 77 1.42 0.50 0-810 USD 109 1.37 0.49 810 USD or higher 98 1.38 0.49 high school 119 1.35 0.48 higher education 88 1.41 0.49 male 82 1.39 0.49 female 125 1.37 0.48 yes 12 1.42 0.51 no 195 1.37 0.49 yes 45 1.44 0.50 no 162 1.36 0.48 t-value p-value -0.88 0.38 -0.13 0.90 -0.82 0.41 0.32 0.75 0.29 0.77 1.06 0.29 One of the findings which attracts attention in the study is negative perception of the youth about employment opportunities for the youth provided by BiH. The higher mean values on difficulties in finding a job in home country and better employment terms in emigrated countries also support that finding. This result is mostly related to the study context. After the ethnic and political tensions of the 1990s, the Dayton agreement which made BiH a federation including three ethnic communities namely Bosniaks, Croats, and Serbs was signed in 1996. Devastated factories and companies have been repaired, and new private and public institutions have been founded. The majority of large scale businesses in the country are mainly international (Dinc and Duman, 2012). Despite all these improvements, BiH's development is very slow and it is still in a transition period. General perception for the reason of this slow improvement is the central government with a rotating, tripartite presidency and its heavy bureaucracy (Dinc and Huric, 2016). Therefore, people, especially the youth in BiH, has a prejudice and do not see their future in this country. However, high unemployment rate which is 44.86% in BiH30 is another factor that motivate the youth to immigrate to developed countries. 30 Obtained from the website http://www.tradingeconomics.com/bosnia-and-herzegovina/unemployment- rate 223 �Conclusion and Limitations The purpose of this study was to analyze perceptions of youth about migration, in particular, determinants of migration and differences in their perceptions in terms of demographic factors. The results showed that since the youth do not trust in employment opportunities in BiH, they have tendency to pursue finding a job in developed countries. These findings of the study suggest that government of BiH should focus more on the employment facilities for the youth. It can also put some regulations to decrease a heavy bureaucracy for foreign and local investors in order for them to do more investments and offer more job opportunities to the youth. There are several limitations in this study. Firstly, the results found in this research come from a limited sample. Surveys with higher sample size may give some different results. Therefore, future studies should be conducted in other cities of BiH. Secondly, self-reported issue may be another limitation of this study. Finally, the insufficient literature and methodology can be constraints of the study. Future studies should add some other variables and utilize some other statistical methods to find the relationship among variables. References Cymanow, P., & Florek-Paszkowska, A. (2014). Migration potential of college graduates from rural areas. Ekonomia i Prawo. Economics and Law, 13(1), 163-174. Dinc, M. S. and Duman, T. (2012). Employees' Perception of Marketing Ethics in Bosnia and Herzegovina. Research on Ethics and Social Responsibility, Business Research Unit, ISCTEIUL, Lisbon, 33-47. Dinc, M. S., & Huric, A. (2016). The impacts of ethical climate types on nurses’ behaviors in Bosnia and Herzegovina. Nursing ethics, 0969733016638143. Docquier, F., Ozden, C., Adams jr, R. H., Taylor, J. E., Mattoo, A., Martinez, C. A., ... & Mora, J. (2006). International migration, remittances, and the brain drain (No. 33988, p. 1). The World Bank. Juárez, F., LeGrand, T., Lloyd, C. B., Singh, S., & Hertrich, V. (2013). Youth migration and transitions to adulthood in developing countries. Stankovic, M., Angelova, B., Janeska, V., & Stankovic, B. (2013, February). Brain Drain as Brain Gain in Southeast Europe: Challenges Ahead. In ICIE2013-International Conference on Innovation and Entrepreneurship: ICIE 2013 (p. 109). Academic Conferences Limited. Thet, K. K. (2014). Pull and Push Factors of Migration: A Case Study in the Urban Area of Monywa Township, Myanmar. News from the World of Statistics. UNFPA (United Nations Population Fund). 2006. Moving young. Youth supplement to the UNFPA state of world population 2006. New York, NY: UNFPA. 224 �An Analysis of the Factors Determining the Working Capital Requirement for Non-Financial Companies Seyda Kadayifci International Burch University Bosnia and Herzegovina seydakadayifci@gmail.com Ali Coskun International Burch University Bosnia and Herzegovina alicoskun@hotmail.com The main purpose of this study is to investigate the factors determining the working capital requirement of firms. Companies require working capital to improve the capacity, expand the business volume, reduce the risk of failing to meet their financial obligations, and become profitable and efficient. An inadequacy of the working capital causes interruptions in the business operations. This study investigates the determining factors of the working capital requirements of non-financial companies. The research analysis was done on publicly traded firms, and the data was collected from BIST-100 in Turkey for the years between 2011 and 2016. In this study, working capital requirement was used as the dependent variable. Factors such as profitability, leverage, growth, firm size, age and industry were tested as determining factors. PLS-SEM technique is employed in the research. Results reveal that two explanatory variables- company's leverage, and profitability- are significant factors that determine the companies’ working capital requirements for the period under study. Key words: Working Capital Requirement, Profitability, Leverage, Growth, Size, Age, Industry Introduction Managing the financial needs and operations of any business is very important to the management of the company, as it has an effect on both the company's profits and liquid assets. The literature on business finance focuses on three key areas. These are capital budgeting, capital structure, and working capital management. Capital budgeting and capital structure concerns long-term investment and financing decisions. Working capital management can be expressed as the short-term investments of firms and the selection and management of financial strategies in these investment decisions. If there is not enough working capital to fulfill the obligations of a company, it may cause financial insolvency, legal problems, and liquidation of assets (Hawley, 2015). For this reason, it is very important for all enterprises to have sufficient management of their working capital. 225 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3658 Title A name given to the resource The Youth's Perception of Migration in Bosnia and Herzegovina (doi: 10.14706/icesos1721) Author Author DINÇ, Muhammet Sait Jahic, Kanita Kocan, Sejla Abstract A summary of the resource. Abstract: Migration, in a simple definition, is the movement of people from one country to another. One of the major problems in Bosnia and Herzegovina (BiH) is youth migration. Young people from BiH mostly migrate to European countries. Factors which have an influence on the youth migration and relationship between demographic differences, as well as the tendency of the youth to emigrate have attracted a great curiosity. The purpose of this study is to examine the perceptions of the youth about determinants of migration as well as the relationship between demographic variables and immigration tendency. Using the survey method, 207 responses were collected from the youth in BiH. Descriptive analysis, one-sample, and independent sample t-test were constructed to analyze data. The results have showed that the perceptions of the youth about job opportunities in BiH and approach of officials towards young people are negative. However, study results show that younger group of young people with less education have a greater tendency to emigrate. Keywords: migration, Bosnia and Herzegovina, the youth Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/f75cbf00e10c75a04688eb57dbcd9107.pdf 113f3a11f3985e700bfbf4f5da81f738 Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3664 Title A name given to the resource Tourism demand, oil price fluctuation, exchange rate and economic growth: Evidence from ARDL model and Rolling window Granger causality for Tunisia Author Author DHAOUI, Abderrazak Sekrafi, Habib Ghandri, Mohamed Abstract A summary of the resource. Abstract : The paper examines the relationship between tourism demand and its macroeconomic determinants (GDP, oil price, exchange rate) with an aim to test the dynamic interdependence between them in the case of Tunisia. Using yearly data from 1971 to 2014, the output of the ARDL model and the more recent Bootstrap rolling window Granger causality tests show important results with great economic implications for researchers, regulators, investors, … The results substantiate, especially, the following causal relationships, i.e. i) tourism-demand induces substantial increase in both economic growth and oil price, ii) economic growth led tourism demand, iii) increase in oil price affects negatively the tourism demand, iv) tourism demand and exchange rate are not significantly associated. Keywords: Tourism demand, GDP, Oil price, ARDL, Bootstrap Rolling window. JEL classification: O40, L83, P1. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Article PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/31db9f585f972325947970a94669bac0.pdf 6d5a898526ab0d02474ba6f19e2cc772 PDF Text Text Implementation of TQM in Local Government Using Quality Management System in Accordance with ISO 9001 and CAF Self-Assessment Model Mirza Čelik Faculty of Administration University of Sarajevo Bosnia and Herzegovina Dževad Šašić Faculty of Administration University of Sarajevo Bosnia and Herzegovina dzevad.sasic@gmail.com Abstract: Quality of township management is highly related to society, and it reflects the local government situation. The paper presents the idea of improving the quality of service in local government through the application of TQM. This paper presents two approaches that are commonly used in recent years and moved closer to these organizations that the concept of TQM which uses a quality management system based on ISO standards 9000 and model self-assessment CAF. This paper describes the interactions between these approaches and their possible joint application with a view to the implementation of TQM system in local government. Within this approach public sector organizations should be interested in improving the quality of their services through the implementation of TQM. The process is a long-term and complex one, where the client is its key element. Thus, it should be understood by the whole staff (both the management and the inferiors) that a well served citizen is the core of the procedure and he/she should always be assisted and have even his most complicated problems solved in the institution he/she turns to. When implementing the principles of TQM, significant changes regarding the management and administration should occur in organizations. The methods that are helpful in the course of the implementation of TQM rules are the management quality systems based on the ISO 9001 quality standards and the CAF self-assessment model, which aim at perfecting the organization operations in order to meet the clients’ needs and introduce the necessary improvements. The public sector organizations in Bosnia and Herzegovina (e.g. state or self-government offices) have started applying a certified Quality Management System(QMS) in compliance with the ISO 9001 standards already since 2001 (following the reform of the self-government administration). Recently – due to the implementation of the CAF model in the state administration offices (in BiH since October 2006) – a significant increase of interest on the part of the public sector units in the improvement of service quality by means of this model of selfassessment can be noticed. The completion of several programs that implemented this method enabled the application of the model in several hundred offices. Quality management systems and the EFQM model (CAF is the EFQM model adjusted to public sector) are necessary not only to companies but also to public sector organizations. They are based on similar principles and they aim at the improvement of services offered. Despite certain differences, it seems that they can complement one another and be used simultaneously in an organization. Key words: Public administration, quality management system, model self-assessment, ISO standard, TQM 263 �Service quality in public administration versus TQM The concept of Total Quality Management (TQM) consists in the integration of the company’s objectives with the ones of its customers. In this approach it is crucial that the operations involve the whole organization (a system approach), the whole staff is engaged in the quality issues with the leading role of the managing staff, a process approach of management is applied as well as continuous process of improvement, various quality management techniques and other supporting methods that aim at achieving the strategic, long-term success of the company. The success is due to an increasing satisfaction level of customers and results in several benefits to all the members of the organization and society. If their work is to be efficient, the employees must be highly motivated and well behaved, be ready to work in a team and to improve their qualifications. Furthermore, the managing staff should act as leaders, plan relevant tasks and then create the right atmosphere to carry them out. That is in line with the Oakland’s approach, who says that TQM has the following strategic objectives: customer oriented quality strategy, understanding of the fault prevention processes, people treated as subjects, their motivation, team problem solving and quality assurance in compliance with the ISO 9000 standards; they all guarantee the customers’ demands will be met (Oakland, 1992). Thus, TQM is a vision that can be achieved by means of long-term planning, by carrying out and implementing annual quality plans that will gradually result in making the vision come true, that will lead to the situation where the definition of TQM becomes a reality (J. Dahlgaard, K. Kristesen, G. Kanji, 2001). The use of such approach in the public sector organizations results in several benefits for the whole organization members (the achievement of the strategic, long-term success) and the members of the society (the increase of customer satisfaction). It should be stressed that the concept of TQM is also associated with Deming’s 12 principles, and a similar approach was presented by such forerunners of management as Crossby (in his 14 stages of quality improvement) and Juran (in his 10 steps to TQM). For many years public administration has been treated in a completely different way than private sector and it has not been applying the methods of management and ways of increasing the organizational effectiveness and efficiency as well as high standards of customer service that have been used in private business. It seems that particularly public sector organizations should devote a lot of time to introduce suitable management methods that would improve the efficiency of their operations and the level of their services. However, it is the monopolistic character of the services offered by public administration units that they have no incentives (these appear on commercial markets) to improve the quality of the service. Thus, it is not the issue of the public service quality level or its improvement but the problem of creating relevant incentives; in other words it is the problem of creating a situation where public institutions themselves will be interested in improving the quality of their services. 264 �Public administration, when offering services that are in a way monopolistic in nature, has the duty to do it properly and with commitment so that the demands of citizens, who cannot take advantage of a competitive organization, should be met. When considering the issue of improving the service quality in public administration, one should look more closely at the notion of the quality of such type of services. The definition that is in force now and is included in the EN ISO 9001:2009 standard states that “quality determines the degree to which a set of inherent characteristics fulfill the requirements”. If so, the quality of services could be defined as a degree to which a particular service meets the needs and expectations of customers, and the fact if the condition has been fulfilled (or not) is evaluated every time and individually only by a customer. However, if the definition is to answer the question of the quality of a particular service, a broader look will be indispensible that considers such detailed aspects as the customer’s needs and expectations. A need is a feeling of unfulfillment that forces an individual to undertake actions to meet it. Customer’s expectations are simply his/her requirements that may be perceived as the clearly defined ones (e.g. completion of a case, short time of waiting) or the unspecified ones (e.g. polite service). Both requirements are equally important, however, the fulfillment of unspecified requirements, which are difficult to define in a clear way, is much more complicated. Thus, the quality of services rendered by administration can be defined as follows: “quality is the value that contributes to the improvement of the quality of our life and culture, and it is the degree of the fulfillment of common and individual needs”(Lazibat, 2012). The implementation of the TQM concept in public administration involves a complete change in the ways of behavior, set of values and attitudes. The quality of service depends on people, their motivation, culture and readiness to work in a team, etc. The concept takes into consideration not only all the most important factors that decide about the success of a project (leadership, commitment, customer satisfaction, processes, relations with partners, staff motivation, their qualification, resources) but also the objectives of the organization and all the operations related to management. The implementation of the CAF model in public administration The CAF method was created by the IPSG, Innovative Public Services Group. It functions within the EUPAN , an informal European Public Administration Network, whereas CAF RC (CAF Resource Centre) is the body responsible for the implementation of CAF, which was set up within the EIPA (European Institute of Public Administration) in Maastricht. The Institute cooperates with a network of national correspondents and is supported by EFQM European Fundation for Quality Management) and the Speyer University in Germany. 265 �The CAF self-assessment model (EIPA, 2017) is the Excellence Model of EFQM assigned to public institutions, which is a practical tool that makes self-assessment possible, helps understand shortcomings and find solutions. It consists of nine criteria that define the organization’s area of operations, how it approaches the tasks, what results it achieves in its relations with customers/citizens and society, including the key results of the operations. The evaluation of the criteria is based on opinion research and internal indexes. The main objective of the CAF model is to assist the understanding process of quality management and to improve the hitherto condition of management. More precisely, it aims at the introduction and consolidation of the principles of the complex quality management in public administration, the facilitation of self-assessment of public sector organizations in order to make diagnoses and undertake suitable operations, the construction of a bridge that connects various models applied in quality management and at the facilitation of mutual learning between public sector organizations (EIPA, 2012). The CAF method constitutes one of the best tools of collecting the information about an organization and of monitoring it on its way to quality management. The process consists of three phases and ten stages: Phase I – The start of the CAF process (Stage 1. Organizing and planning the process; Stage 2. Communicating the launch of the process in the office), Phase II - Self-assessment process (Stage 3. Setting a self-assessment group; Stage 4. Training of the group; Stage 5. Undertaking the self-assessment; Stage 6. Reporting the results), Phase III – Improvement plan / prioritization (Stage 7. Drafting an improvement plan; Stage 8. Communicating the improvement plan; Stage 9. Implementing the plan; Stage 10. Planning the next self-assessment). The implementation of the quality management system in compliance with the ISO 9001 standard in public administration The ISO 9000 Quality Management Standards are not technical standards and they do not describe in a direct way the parameters that a product or service should meet but they describe certain principles that ensure adequate quality. That is why they can be used in all type of organizations, public administration including. However, one should not forget the specific nature of the institutions where the system will be implemented. The specific features result from the following facts (Baković, T., Lazibat, T, 2004): the lack of competitors, thus the lack of motivation to increase the efficiency and reduce the costs, the effects of operations are immeasurable and do not bring income, it is difficult to determine their effectiveness, however they are socially important and must be carried out, 266 �financial resources depend on the condition of public finance and not on the quality of management and services rendered, the services are ordered by the state and they cannot be commercialized, long-term planning is disturbed by rotation and actions on the part of politicians. At present the group of the ISO 9000 standards consists of four basis standards: ISO 9000:2005 Quality management systems - Fundamentals and vocabulary (in Bosnia and Herzegovina - EN ISO 9000: 2006 ), ISO 9001:2008 Quality management systems - Requirements (in Bosnia and Herzegovina -EN ISO 9001: 2009), ISO 9004:2010 Quality management systems - Guidelines for performance improvements (EN ISO 9004:2010), ISO 19011:2002 Guidelines on Quality and/or Environmental Management Systems Auditing (in Bosnia and Herzegovina -EN ISO 19011:2003) and other standards, technical specifications and reports that support basic standards, which include guidelines concerning specific issues within the framework of the quality management system. These standards – as it has been mentioned before – have become one of the most common documents certifying high standard of services rendered by public administration, the offices of self-government administration in particular. At present many institutions and customers are convinced about several benefits gained as a result of the implementation of the systems. They are based on the eight principles of quality management: customer-orientation, commitment, leadership, process approach, system approach, continuous improvement, factbased decision making, mutually beneficial contacts with partners. The process of implementing QMS in an organization is not divided into stages very recisely, there are several approaches in this case and the literature on the subject is extensive ( Kuhlmann, 2010). However, it is possible to distinguish some characteristic stages of the implementation process: Making decision on implementing QMS. Setting up a timetable/ plan of action. Conducting a review of the organization Training senior management. 267 �Appointing a QMS manager and working groups. Preparing system documents. Appointing internal auditors and training the staff. Internal audits. Final audit and applying for certification. Obtaining the certificate from a certifying unit. Following all the indispensible operations in the implementation stages, in the course of the two last ones that aim at the verification and confirmation whether the organization meets the requirements defined by the standards (a certifying audit), the external auditor examines the whole range of the organization operations from the point of view of their compliance with the standards and issues a certificate confirming correct implementation of the QMS. The implementation of QMS that complies with the ISO 9001 standard in public sector institutions may contribute to the change and improvement of their work organization, and – first of all – it may result in the improvement of the service. It may also constitute an instrument that changes the structure and methods of their functioning and lead to the change of the public administration image. Implementing TQM concept in public sector organizations – a model approach The implementation of the TQM concept in organizations is a long –term process that requires a substantial amount of various resources. There is no precisely determined methodology of implementing the process. However, some recommendations can be found in the literature that should be followed by organizations striving to TQM (as in the Oakland’s model mentioned before). The term “striving” seems to be and adequate one as it is difficult to state explicitly (due to the lack of uniform implementation principles) whether the TQM system has been implemented. First of all, the implementation of TQM in a company starts with the acceptance of the right attitude – that of leadership and involvement – on the part of the Board and the managing staff of particular departments. At this stage, which might be called the initiation stage, it is the duty of the managing staff to coordinate the operations, to define clearly the tasks and, which is perhaps the most vital element, to convince the employees to this concept of management. The staff will only then be committed to the pro-quality operations if they are adequately motivated by their superiors, and this is possible through a wide training programme offered to the managing staff and the employees. 268 �The next step is the review of the existing systems, i.e. the diagnosis of the system, and then the adjustment of processes, which means planning and adjusting them in a way that the TQM objectives can be achieved. Then a plan of the improvement of processes appears and the reorganization of the whole system occurs that aim at meeting the (internal or/and external) customer’s requirements. This can be achieved either by radical changes (reengineering) or by continuous improvement of the organization (kaizen). At this stage it is highly significant to motivate the staff to be active and involved. This is the stage when both of the presented methods (CAF and QMS in compliance with the ISO 9001 standard) may be useful, which is presented in fig.1. It often happens that in the course of the QMS implementation the employees gain new knowledge and increase their qualifications, the processes are formalized and the standard of their quality is specified, which can support a quicker and more efficient evolution of the organization towards QM. An efficient and modern organization structure based on effective communication is the basis of TQM and it is created at the stage of process integration and company restructuring. The CAF and QMS implementation process in the public sector organizations is not an easy one. In the course of implementing either a quality management system based on the ISO 9001 standards or the CAF model, being the elements of TQM, significant changes must occur within the organizations as regards the approach and perception of their objectives, which shows in suitable management and administration. The customer-oriented approach must be supported by adequate culture, communication and commitment because only then the transformation will be permanent and efficient and will aim at meeting the citizens’ needs and expectations. Thus, it must result in a general improvement of the services rendered by these institutions and a measurable increase of the customer satisfaction level (Đorđević, 2007). There are five stages as regards the condition of an organization and they refer to the whole process related to the concepts of continuous improvement and the acceptance of the customer-oriented approach. They form a process of improving service quality and a successful completion of each one will result in the implementation of TQM in the organization. In the course of each stage the organizations will face various problems. Thus, it is crucial to identify them, to find the causes and then to remove them so that the process proceeds smoothly and eventually is beneficial. The stages may refer to the implementation of every method that increases the service quality, no matter whether it is CAF or QMS. The stages are the following: awareness, preparation, carrying out the self-assessment process, 269 �planning (preparation of the improvement plan), implementing the plan of action and continuous improvement. In this model, in the course of the process of service quality improvement, the organizations should consider fundamental questions concerning the awareness of their targets and the will to reach them. It is of vital importance that the public sector organization should have an adequate degree of awareness in order to go through the subsequent stages of the model. The following stages determine the diagnosis of the system and the plan of action. When the organizations ask the question how to meet these targets, the answer may come from the methods of CAF or QMS in compliance with the ISO 9001 standard. The concept of TQM can be put into practice by means of both methods (fig.1) Every organization must adapt the basic principles of quality management, which in a way constitute the basis of their further actions. It is worth noting that they are compatible as they are based on the same assumptions that customer comes first. Since there are no uniform TQM implementation stages, it seems that both methods can be helpful when building the system. The CAF method achieves this through self-assessments and improvements, while QMS through formalization of the management system based on documents, and both these elements are indispensible when implementing TQM. The presented model (fig.1) shows all the possible approach configurations when implementing TQM (with both methods) and proves that it is not necessary to choose between the two. 270 �Figure 1 TQM implementation model with the use of the CAF and QMS in compliance with the ISO 9001 TQM Involvement Customerorientation Leadership C C U S T O M E R U S T O M E R Fact-based decision making Mutually beneficial partnerships Continuous improvement System approach Process approach Source: Author’s research As figure 1 shows, the theses of the methods are complementary. So far the public administration has been using the methods rather separately In this case two implementation options of the methods are possible: in the case when GMS is functioning, the customer’s requirements and relations between processes have been defined and a formalized system exists, the CAF model may serve as a method supporting the improvement of the existing system (see fig.2); in the case when the CAF model has been implemented, the self-assessment has been carried out and the implementation of the improvement projects has started, 271 �the QMS that formalizes the whole system and has a significant impact on the whole organization can be implemented as one of the projects (compare fig.3). Figure 2. QMS with the CAF method implemented as the element facilitating the process of continuous improvement C U S T O M E R C U S T O M E R Source: Author’s research . Figure 3. CAF method with QMS implemented as one of the improvements C ISO 9001 U S T ISO 27001 O M ISO 14001 E R PN-N 18001 ISO 9004 TQM Improvement projects – described and implemented Source: Author’s research 272 �Conclusion The process of the service quality improvement in public organizations is a fact. Although hundreds of such organizations have implemented either the quality management systems in compliance with the ISO 9001 standard or the CAF self-assessment model, they have a long way towards the TQM concept. As it was presented, the TQM concept may be put into practice through both methods (CAF, QMS); it is important that they can co-exist and complement and there is no need to make choices. However, in order to implement both method properly and to reach TQM, it is crucial that the public sector organization has a certain degree of awareness as regards its targets and willingness to meet them. Only then both these methods may be helpful. References Baković, T., Lazibat, T., Model for measuring the quality of services, Proceedings of the 6th Symposium on the quality of the Croatian Society of Quality Managers: "The quality of European integration ", Zadar, 2004., pp. 203-209 Colesca, S., Dobrin, C., Popa, I. (2016). Total Quality Management and Organizational Change in Public Organizations. Administratie si management public. Bucharest. Đorđević D., (2007). Upravljanje kvalitetom, Univerzitetska knjiga, Beograd, pp. 45 Gašparík, M. (2010). “Increasing the effectiveness of organization by implementation of EFQM model.“ Edition STU Bratislava, pp. 45-60 Hakes, C. (2007) “The EFQM Excellence Model to Assess Organizational Performance: A Management Guide. Zaltbommel: Van Haren Publishing. Oakland, J.S. (1989), Total Quality Management. A practical approach, Department of Trade and Industry (DTI), 22-35 Oakland, J.S. (1992). Total Quality Management, Butterworth-Heinemann, Oxford, 75-92. Porter, L. J., Tanner, S. J. (2004). “Assessing Business Excellence: A Guide to Business Excellence and Self-assessment.” Burlington: Butterworth-Heinemann. Tonči L. (2007). Managament quality system, Faculty of Economics Zagreb Vukšić, B., Kovačić, A. (2004). Upravljanje poslovnim procesima, Zagreb: Sinergija. Internet: European Institute of Public Administration, www.caf.eipa.eu, (18.May.2017.) Excellence Model – EFQM 2010, http://www.efqm.org/en/ (5 May 2017) 273 �The Role of Public Relations in the Humanitarian Diplomacy amidst Natural Disasters in Developing Countries: The Case Study of Red Cross of Federation of Bosnia and Herzegovina and 2014 Southeast Europe Floods Haris Magrdžija31 International Burch University Bosnia and Herzegovina haris.magrdzija@gmil.com Nedim Čelebić International Burch University Bosnia and Herzegovina nedim.celebic@ibu.edu.ba Abstract: The concept of humanitarian diplomacy is receiving increasing attention internationally, and this concept is popularized especially by the International Red Cross Movement. International Federation of Red Cross and Red Crescent Societies (IFRC) defined humanitarian diplomacy as a persuasion of decision makers and opinion leaders to act, at all times, in the best interests of vulnerable people, and with full respect for fundamental humanitarian principles. Humanitarian diplomacy, according to IFRC, includes advocacy, negotiation, communication, formal agreements, and other measures. The focus of this paper is on public relations as a promotion tool within marketing communication mix, and its role in accomplishment of humanitarian diplomacy objectives. In particular, this case study is about a response of Red Cross of Federation of Bosnia and Herzegovina to 2014 Southeast Europe Floods that caused many problems and enhanced vulnerabilities in Bosnia and Herzegovina. The purpose of this interdisciplinary study is to conceptualize the role of public relations within humanitarian diplomacy through in-depth qualitative research. Keywords: Public Relations, Promotion, Marketing, Humanitarian Diplomacy, Natural Disaster, Developing Country, Bosnia and Herzegovina, Red Cross Introduction 1 Disclaimer Haris Magrdžija is member of Youth Coordination Committee of the Red Cross Society of Bosnia and Herzegovina, and delegate to Assembly of the Red Cross of Federation of Bosnia and Herzegovina. The opinions expressed and the analysis outlined in this research article do not necessarily reflect the views of the Red Cross of Federation of Bosnia and Herzegovina, but remain solely the interpretations and conclusions of the author. The author also assumes the entire responsibility for the interpretation and eventual misinterpretation of the contributions from senior officers of the Red Cross of Federation of Bosnia and Herzegovina interviewed within the specific framework of this research article. 274 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3654 Title A name given to the resource Implementation of TQM in Local Government Using Quality Management System in Accordance with ISO 9001 and CAF Self-Assessment Model (doi: 10.14706/icesos1717) Author Author Celik, Mirza Sasic, Dzevad Abstract A summary of the resource. Abstract: Quality of township management is highly related to society, and it reflects the local government situation. The paper presents the idea of improving the quality of service in local government through the application of TQM. This paper presents two approaches that are commonly used in recent years and moved closer to these organizations that the concept of TQM which uses a quality management system based on ISO standards 9000 and model self-assessment CAF. This paper describes the interactions between these approaches and their possible joint application with a view to the implementation of TQM system in local government. Within this approach public sector organizations should be interested in improving the quality of their services through the implementation of TQM. The process is a long-term and complex one, where the client is its key element. Thus, it should be understood by the whole staff (both the management and the inferiors) that a well served citizen is the core of the procedure and he/she should always be assisted and have even his most complicated problems solved in the institution he/she turns to. When implementing the principles of TQM, significant changes regarding the management and administration should occur in organizations. The methods that are helpful in the course of the implementation of TQM rules are the management quality systems based on the ISO 9001 quality standards and the CAF self-assessment model, which aim at perfecting the organization operations in order to meet the clients’ needs and introduce the necessary improvements. The public sector organizations in Bosnia and Herzegovina (e.g. state or self-government offices) have started applying a certified Quality Management System(QMS) in compliance with the ISO 9001 standards already since 2001 (following the reform of the self-government administration). Recently – due to the implementation of the CAF model in the state administration offices (in BiH since October 2006) – a significant increase of interest on the part of the public sector units in the improvement of service quality by means of this model of selfassessment can be noticed. The completion of several programs that implemented this method enabled the application of the model in several hundred offices. Quality management systems and the EFQM model (CAF is the EFQM model adjusted to public sector) are necessary not only to companies but also to public sector organizations. They are based on similar principles and they aim at the improvement of services offered. Despite certain differences, it seems that they can complement one another and be used simultaneously in an organization. Key words: Public administration, quality management system, model self-assessment, ISO standard, TQM Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/50afe8ec12ff57a47b9ddd04c3b10e5e.docx c37ac32bd97597da8f7361add83b96ae Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3665 Title A name given to the resource AWARENESS ABOUT DOMESTIC PRODUCT CONSUMPTION IN BOSNIA AN HERZEGOVINA doi: 10.14706/icesos1726 Author Author Bozalija, Berin DUMAN, Teoman Abstract A summary of the resource. Abstract: Aware of the effect on the domestic production is a huge process which includes numbers of different research on various theory which are explaining the terms aware of somethinh in a term of buying somethinh or product. Many researchers help us to understand this problem and to open some other research about this and also to understand the human behavior and their decision, also it is very complex concept and it consider what is difficult to understand human preferences in buying product from outside or it means foreign product or to buy domestic product that is made in you own country,there are relationships on the market and also some other factors which are taking a part in this interaction.Customer loyalty in general is the behavior which customer play main role in my terms named by Bosnian people and there preferences to domestic or foreign brands and also to understand their preferences in the decision making process. In a term of consideration set influences on consumer decision making and choice,issues,suggestion or models. Bosnian people aware about buying the domestic product is the purpose of this study is to define and analysis the relationships between consumers and domestic products. The purpose of this research is to degine consumers and their responsibility to buy domestic product. Emipirical finding reveal that why consumer prefer to buy domestic or foreign products tend to have uniques lifestyle and great shopping orientation that is different from those who prefer domestic. Our study brings previous research about preferences in buying domestic products and foreign products and all aspects that which are connected with his theory and model concept. Result of this study help an organization to recognize what components is missing to satisfied customer satisfaction. After this study it will be useful for an organization or company exactly to decide what to do, when, why, where and how to do or they will find anothery way to satisfied customer needs. Key words : Customer loyalty, purchase decision, brand awareness, post-purchase behavior and social responsibility. Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/37dc12d27d26e7293a9ab3f82ed04619.pdf 930592708d4ef3e7a8791e24f580c900 PDF Text Text Rural Business Development in the Balkan Region: Hospitality and Tourism Management Gejsi Bendo Epoka University – Faculty of Economics and Administrative Sciences Banking and Finance Albania gejsibendo98@gmail.com Abstract: Balkan is part of Europe, but in the past years it has not been known like that and negative effect of it continue also now days with not being part of European Union and not having profit from that. Balkan states have been under stratocracy and this has caused to them to not have the knowledge about management and last methods how to make profit from rural regions and from this we have the effect of immigration. The economy of Balkan has been underestimated from the other parts. Balkan region, especially rural areas do not have the infrastructure to make them frequented from the tourists. Infrastructure is one of the main problems which is related with the electricity, 24h water, Wi-Fi areas etc and this causes problems to the natives, services and goods that they offer and with the domestic production. Tourism should give one of the main revenues in the economies of these states like Albania, European part of Turkey, Serbia, Macedonia etc, together with the agriculture too. Population of the Balkan is known for its hospitality and people speak different languages like English, Italian, Spanish and now days they can speak Turkish too. This characteristic give to them an opportunity that other problems of technology and infrastructure cause to them disadvantages and from this the tourism is not developed as much as it had to be. There are a lot of places which are virgin and not explored from foreigners (for example in Albania or Kosovo and Macedonia too, as well as in other countries which are part of Balkan). The governments of these countries and their policies do not offer opportunities enough to be promoted. Since they have been isolated from other parts of the World, most of the people do not know how to manage with the three levels of the managing (in rural areas) and the only type that exists is just the sole-managing. There are not enough advertisements or not good marketing in the Balkan region to make them known. Still there are countries which do not know where the Balkan is. In continue of this research will be attached what can governments do to solve this problem and how this problem can be solved about the rural areas which are more than underestimated even if they keep precious values. Keywords: underestimated, values, profit, infrastructure, three-level management, domestic production. Intorduction Balkan is located in the southeastern of Europe and it is made up from Bosnia and Herzegovina, Serbia, Albania, Europe part of Turkey, Kosovo,Greece, Montenegro, Croatia, Bulgaria, Romania and Macedonia. All of the 11 countries are in developing stage so their economy is based mostly in the agriculture rather than in services. 70 �The problem of these countries is that their capital cities are the most visited ones, while the rural zones are completely on backstage. This problem is not part of the countries like Switzerland, which has a lot of touristic places to be visited for or Germany or other countries which are developed. There are different factors why this part of Europe is in developing stage starting from history which is related with political factors and wars and so on. All of these factors has brought these problems to the Balkan, which still is in that position taking loans from BE and here is the example of Greece which every year takes loans from BE. There are different types of tourism and here we can include: Culinary tourism, sport tourism, educational tourism, history tourism, and nature tourism, discover tourism. All of these types have their differences and each of these is part of every country. Balkan countries especially rural zones of Balkan do not have developed any of these types, because they are not still discovered from the tourists who visit Balkan. Last 5 years the North part of Albania is being heard from Albanians and i take Theth or Valbona as an example. Except the types of tourism which are listed before we have two other definitions which are: Rural tourism and Tourism Management. Rural tourism It focuses on actively participating in a rural lifestyle. It can be a variant of ecotourism. Many rural villages can facilitate tourism because many villagers are hospitable and eager to welcome (and sometime even host) visitors. Agriculture is becoming highly mechanized and therefore, requires less manual labor. Tourism Management It is the leading international journal for all those concerned with the planning and management of travel and tourism. As it is said up to the definition of the rural tourism, Balkans are known for their hospitality. Hospitality is one characteristic of Balkan that everyone appreciates for. It is main characteristic that tourist are attracted for, despite the nature. Balkans are polyglots so they are able to speak different languages like English, Italian, Turkish, some Spanish and German and this is an advantage for the natives who offer different services for example in restaurants, hotels, hostels and so on. According to the World Economic Forum, The Travel and Tourism Competitiveness Report 2017, Balkan countries had an average of 3.8/7 (without Kosovo which do not have any statistic in the WEF)1. Countries are ranked according to the Business Environment: Safety and Security, Health and Hygiene, Human Resources and Labor Market, Prioritization of Travel & Tourism, Ground and Port Infrastructure, Price Competitiveness, Tourist Service 71 �Infrastructure, Air Transport Infrastructure, Natural Resources ,Cultural Resources and Business Travel. The disadvantages of rural zones are: Infrastructure: Rural zones of Balkan have a lot of problems related with infrastructure. Roads have a bad quality and can not be safe to drive through, there is a missing of electricity most of the time and water too. Another problem related with the infrastructure is Wifi zones or at least to have some internet or just to be able to call or text. Government’s policy and expenditures: Government’s policy and expenditures are related with what governments are doing to rise up profits from the tourism. This is not related just with increasing taxation, but with what they offer to the natives for the development of the tourism in these zones. Investments: Since there is no government’s policy or expenditure, foreign investors or even natives one are going away from these rural zones. Even if last years it has changed still investments are not in that level where they had to be. In these rural zones for example in Albania there exist just few guest houses which offer the role of the hotels. Management: In rural zones the only type of management is the sole management because each of them wants to be independent from the others, even if they offer same service and no one of them changes something to be different and attract more. They think just to increase their incomes and not to work together to do something different. Advertisement: Advertisements are related with management, since each of them is in a sole managing, so the advertisements which are one of the main keys to the business are not well developed. Economy of Balkan still is in developing phase and it needs time to become in the same level as the other countries. But tourism is one part to be more developed in Balkan zones, but not just main/capital cities, but also rural zones which can increase profits and GDP more than the other parts which now have been visited from the tourists and natives too. According to some researches that what can be done which do not have too much cost for the rural zones are listed above: • Improve AIRLINE /RAILWAY /HIGHWAY- which are main factors of these zones to be more developed. • Water and electricity 24h- related with the infrastructure. 72 �• Different courses for managing, since the only way is the sole proprietorship and this means sole managing. • Employee managers to each of the hotels or restaurants paid from government to help increasing management knowledge. • Courses for learning English or other languages in rural zones. • • Credits without interest % to help them improve their managing and services Gather them together to share ideas and take decisions and plan which are their strategic points and what can they offer so they can be unique on their type • Free advertising- • Advertising is needed to make them known; these places should be in Google Map and applications like this so everyone can be able to check them out. A 12 month touring for each: Different cities or countries have different seasons which have more tourists, but this should be changed from the governments are natives. Each city should be visited not only in summer because of the nature, but also in winter because of the culinary tourism etc. • Help to innovate their houses from investors: • Policies from governments should attract the investors in these zones, but also from advertisements they should be affected. Building and biding trust with them (B&B) As the Bed and Breakfast webpage to book a room or a bed in a place to stay, where bed and breakfast are related so strong together with each other, we should build and bind trust with each other and we should believe that Rural zones of Balkan will be developed. Balkan doesn’t mean to come and visit once, it means to come and visit and explore in every detail. Capital cities are not the treasure; rural zones are the real treasure which keeps high values from cultural, historical etc. Let’s make the Balkan Rural Zones be the most frequented and complete their needs, so GDP will increase and countries will pass in another stage, the stage of developed countries! References: http://reports.weforum.org/travel-and-tourism-competitiveness-report-2017/ 73 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3648 Title A name given to the resource Rural Business Development in the Balkan Region: Hospitality and Tourism Management (doi: 10.14706/icesos1711) Author Author Bendo, Gejsi Abstract A summary of the resource. Abstract: Balkan is part of Europe, but in the past years it has not been known like that and negative effect of it continue also now days with not being part of European Union and not having profit from that. Balkan states have been under stratocracy and this has caused to them to not have the knowledge about management and last methods how to make profit from rural regions and from this we have the effect of immigration. The economy of Balkan has been underestimated from the other parts. Balkan region, especially rural areas do not have the infrastructure to make them frequented from the tourists. Infrastructure is one of the main problems which is related with the electricity, 24h water, Wi-Fi areas etc and this causes problems to the natives, services and goods that they offer and with the domestic production. Tourism should give one of the main revenues in the economies of these states like Albania, European part of Turkey, Serbia, Macedonia etc, together with the agriculture too. Population of the Balkan is known for its hospitality and people speak different languages like English, Italian, Spanish and now days they can speak Turkish too. This characteristic give to them an opportunity that other problems of technology and infrastructure cause to them disadvantages and from this the tourism is not developed as much as it had to be. There are a lot of places which are virgin and not explored from foreigners (for example in Albania or Kosovo and Macedonia too, as well as in other countries which are part of Balkan). The governments of these countries and their policies do not offer opportunities enough to be promoted. Since they have been isolated from other parts of the World, most of the people do not know how to manage with the three levels of the managing (in rural areas) and the only type that exists is just the sole-managing. There are not enough advertisements or not good marketing in the Balkan region to make them known. Still there are countries which do not know where the Balkan is. In continue of this research will be attached what can governments do to solve this problem and how this problem can be solved about the rural areas which are more than underestimated even if they keep precious values. Keywords: underestimated, values, profit, infrastructure, three-level management, domestic production. Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/d3c152a7ec4a9279ed51a3ed1cd71e2b.pdf 9f2be475b32f479dd135ff90ded2dd36 PDF Text Text Detection of Financial Statement Fraud Using Beneish Model Elvisa Buljubasic International Burch University Bosnia and Herzegovina elvisa.buljubasic@ibu.edu.ba Sanel Halilbegovic International Burch University Bosnia and Herzegovina sanel.halilbegovic@ibu.edu.ba Abstract: One of the greatest challenges faced by auditors is to detect anomalies in financial statement reporting. Once the anomalies are detected they have to be further investigated by forensic accountants. However, the practice of forensic accounting has not yet become a reality in Bosnia and Herzegovina. So the main purpose of the study is to analyze to which degree BH companies are exposed to the financial statement fraud and with respect to that the need for forensic accountants. The financial statement data will be collected from BH companies and it will be analyzed using Beneish model. The Beneish model is the mathematical model that identifies the manipulation of earnings through financial ratios. These analytical techniques should reveal the unconventional variations in financial statement reporting, indicating that there is possibility of fraudulent transactions. Key words: Beneish model, fraudulent reporting, forensic accounting Introduction One of the greatest challenges in 21st century faced by companies, institutions and organizations is financial statement fraud, which is increasing in number and size, what significantly affected the people’s trust in credibility of financial statements and corporate reports. As stated in the Report to the Nation on Occupational Fraud and Abuse (2016), published by ACFE, compared to the other types of occupational fraud (corruption and asset misappropriation), financial statement fraud is the least frequent (9.6%), however, it is the largest in terms of size of median loss ($975 000). The financial statement fraud become a global concern, affecting not only large, multinational companies and organizations, but also small and medium sized enterprises. However, the wellknown corporate scandal cases such as Enron, WorldCom, Tyco and few others are the most known examples of not only financial statement fraud, but also other types of occupational fraud. After these corporate scandal cases the issue of auditor’s failure to detect fraud signs or 252 �symptoms was brought to the attention and the role of forensic accountant become irreplaceable in fraud investigation. In order to be a forensic accountant one has to possess a broad spectrum of knowledge and skills in different fields such as accounting, auditing, law, psychology, criminology, etc. Also, the forensic accountant needs to possess outstanding moral and ethical principles and values. Technology advancements significantly improved the detection process of frauds and embezzlements, so today auditors have access to many tools, programs and software that save time, produces more relevant findings and point out the critical areas that should be further investigated by forensic accountants. Some of the common tools used in the audit of financial statements are: Benford’s Law, Beneish Model, ratio analysis, data mining. This study will focus on the Beneish Model financial statement fraud detection tool as one cost-effective and efficient tool that should be utilized by auditors. Beneish (Beneish M-Score) Model extracts the necessary data from the balance sheet, income statement and statement of cash flow, and uses eight variables (days sales in receivables, gross margin index, asset quality index, sales growth index, depreciation index, sales, general and administrative expenses index, total accruals to total assets index, and leverage index) as indicators of companies prone to manipulate financial statements. Companies with the higher Beneish score are more probable to manipulate financial statements. Fraud Triangle The first step in fraud investigation is to understand the motives behind the fraud commitment. The forensic accountant has to investigate why fraudster commits the fraud, under which circumstances and what is used as fraud justification or rationalization. These three elements are perfectly depicted in so-called fraud triangle which was developed by Donald Cressey in 1973, what is shown in the figure below. Figure 1: Fraud Triangle Source: Singleton T.W. & Signleton A.J. (2010). Fraud Auditing and Forensic Accounting. Wiley. 253 �The fraud triangle was created after Donald Cressay had interviewed 200 people accused for embezzlement. Cressay had discovered that each fraud had three elements in common: pressure (motivation or need), knowledge or opportunity and rationalization (Singleton and Singleton, 2010). Pressure, incentive or motivation is related to the something that is happening or has happened in the fraudster’s personal life what forces him or her to commit the fraud, for example: financial difficulties, bad habits such as gambling, or incentive such as bonus payments based on the performance (Singleton and Singleton, 2010). Opportunity is related to the knowledge and experience with respect to the fraudster working environment. Fraudster will utilize the weaknesses of internal control, familiarity with the environment and trust given to him to commit the fraud (Singleton and Singleton, 2010). Rationalization is related to the way in which fraudster justifies his or her fraudulent actions. It is interesting that, according to the ACFE Report to the Nation from 2008, 93% of fraudsters did not have criminal record, and it is not rare situation that fraudsters are religious people (Singleton and Singleton, 2010). Types of financial statement fraud According to the ACFE Report to the Nations on Occupational Fraud and Abuse (2016) the financial statement fraud occurs in 9.6% of cases, with the median loss of $ 975,000. The intention of fraudster is to misstate the financial statement entries or disclosures to trick the users of financial statements. The financial statement fraud is classified into two groups: financial and non-financial. Within financial group there is further classification on asset/revenue overstatement and asset/revenue understatement. Since the focus of this research paper is on the financial aspect of the financial statement fraud the following common types of fraud will be further explored: timing differences, fictitious revenues, concealed liabilities and expenses, improper disclosures and improper asset valuations. Association of Certified Fraud Examiners (2017) describes the types of the financial statement fraud in the following way: Timing differences refers to the incorrect treatment of sales where the revenues and expenses are shifted from one period to the another, affecting the earnings in a desired way. For example, the inventory is recorded as a sale, knowing very well that part of it will be returned back or twoyear service contract is treated as the revenue of the current year what leaves the consequences on the future period earnings. 254 �Fictitious revenues are related to the sales that are never realized, which not rarely include fake customers, what leaves the impact on the revenues, profits and assets. The common sign of fictitious revenues are obscure accounts receivable that are overdue for a long period of time. The companies in a financial problems are prone to record fictitious revenues. Concealed liabilities and expenses refer to the incorrect treatment of liabilities what usually happens at the end of the accounting period where liabilities are moved to the first month of the consequent period or when the company is large enough, liabilities are moved to the subsidiary companies, which are either not being audited or they are audited, but by a different audit company. Improper disclosures refer to the obligation of the management to disclose all relevant information in the financial statements. Improper disclosures related to the financial statement fraud usually include the following: omission of liabilities, subsequent event, related-party transactions and management fraud. Improper asset valuation refers to the incorrect statement of asset amounts (accounts receivable, inventory, business combinations, long-lived or fixed assets), capitalization of expenses, or deflating the contra-asset amounts (allowance for doubtful accounts, accumulated depreciation). Through improper statement of the assets, contra-assets and expenses the financial indicators will show a better than a true equity and profit values. Figure 2: Part of Fraud Tree Source: ACFE (2017) 255 �Schilit’s seven shenanigans Schilit and Perler (2010) in their book Financial Shenanigans, have identified seven financial “sins” related to the earnings manipulation, which are:  recording revenue too soon  recording bogus or fictitious revenues  boosting income with one-time gains  shifting current expenses to later period  failing to disclose all liabilities  shifting current income to later period  shifting future expenses to current period. According to the research done by Isakovic-Kaplan and Delalic (2013), the comparison is made regarding the frequency of seven financial shenanigans in the world and in the Bosnia and Herzegovina, what is summarized in the table below: Table 1: Comparison of seven financial shenanigans between the world and Bosnia and Hezegovina WORLD BOSNIA AND HERZEGOVINA Recording revenues too soon Recording revenues too soon Recording bogus revenue Recording bogus revenues Boosting income with one-time gains Shifting future expenses into the current period Shifting current expenses to a later or earlier period Shifting current expenses to a later or earlier period Failing to disclose all liabilities Shifting current income to a later period Shifting current income to a later period Recording bogus expenses Shifting future expenses into the current period Failing to disclose actual revenues Source: Adjusted from Isakovic-Kaplan and Delalic (2013). Creative accounting in companies in B&H By looking at the table above, the first two fraudulent practices are common to the B&H and the world. However, the four out of five remaining financial shenanigans show that companies in B&H are prone to demonstrate lower net income through increase in expenses or by moving future expenses to the current period. The possible reason behind this kind of situation is the fact that BH companies usually do not have established reward system based on the performance, so there is no incentive to increase revenues. So the top management of BH companies is usually motivated to commit the fraud against the government through showing lower net income what implies lower income taxes to be paid to the government. 256 �Red Flags of Financial Statement Fraud Almost every fraud has warning signals detected in its financial statements, which are commonly called red flags. According to the ACFE (2017) the red flags that are usually detected in financial statements are anomalies in profitability, cash flow, assets, liabilities, equity accounts, anomalies in relationships between financial statement items. Warshavsky (2012) argues that accruals are very often used as the basic component in the earnings manipulation. The purpose and size of accruals should serve as one of the important instruments that should assist the forensic accountant in detection of financial statement fraud, or earnings manipulation. Methodology Beneish M-Score Model Beneish M-score is the mathematical model developed by Messod Beneish which uses eight variables derived from the company’s financial statements (balance sheet, income statement and statement of cash flow) with the aim of detecting the companies prone to manipulate its financial reports (Beneish, 1999). The variables that are included in the Beneish model are financial ratios computed from the financial statements for two consecutive years. The formulas for variable computations are shown in the table below: DSRI – days sales in receivables index – increase in receivables that is not proportionate to the sales may be sign of revenue inflation (Beneish, 1999). GMI – gross margin index – if the GMI index is greater than 1, it means that gross margin have declined and Lev and Thiagarajan (1993) argue that it is negative sign regarding company's performance. So there should be a positive relation between increase in GMI and probability of manipulated earnings (Beneish, 1999). AQI – asset quality index – if AQI is greater than 1, it is the indication of company's potential involvement in cost defferal. So, as in the case of GMI index, there is positive relation between increase in AQI and manipulated earnings (Beneish, 1999). SGI – sales growth index – growth does not necessiraly indicate manipulation, but when large companies are exposed to pressure, there is greated probability that their earnings will be manipulated. The positive relation is expected between SGI and manipulated earnings (Beneish, 1999). 257 �DEPI – depreciation index – if DEPI index is greater than 1, it means that the rate at which assets depreciate have slowed down, indicating that the company has examined its estimates of assets useful life. The positive relation between DEPI index and earnings manipulation is expected (Beneish, 1999). SGAI – sales general and administrative expenses index – the increase in SGAI is positively related to the manipulation of earnings (Beneish, 1999). LVGI – leverage index – if LVGI is greater than 1, than it represents an indication of increase in leverage. This variable is included in the model with the aim of analyzing debt agreements incentives for manipulatation of earnings (Beneish, 1999). TATA – total accruals to total assets – the variable is used in the model with the aim of analyzing the extent to which cash corresponds to the reported earnings. It is expected that greater positive accruals are related to the increased likelihood of earnings manipulation (Beneish, 1999). Study hypothesis H1 – The companies in Bosnia and Herzegovina are prone to manipulate financial statements. 258 �Table 2: Variables used in Beneish Model Source: Anh and Lihn (2016) 259 �The study examines 31 randomly selected company from the Tron Systems database for the period 2013-2014. The company’s financial statement data is analyzed using Beneish M-Score model. 5 variables model: M = -6.065+ .823 DSRI + .906 GMI + .593 AQI + .717 SGI + .107 DEPI 8 variables model: M = -4.84 + .920 DSRI + .528 GMI + .404 AQI + .892 SGI + .115 DEPI -.172 SGAI + 4.679 Accrual to TA - .327 Leverage If the M-score is greater than -2.22, there is an indication that company is a potential manipulator of financial statements data. Otherwise, the M-score lower than -2.22 indicates that the company is not prone to manipulate its financial statements. Out of 31 companies, 21 had the M-score lower then -2.22, indicating that there is no potential manipulation of financial statements data. Six companies had the M-score greater then -2.22, what points out that they have manipulated their financial statements. Four companies were classified as non-manipulators according to the 5-variable model, however, after adding three more variables to the model (accruals to total assets, sales general and administrative expenses, and leverage index), they were classified as manipulators. Table 3: Descriptive statistics of sample (n=31 company) Variable Mean Median Stan.dev. Min Max DSRI 0,98 0,95 0,57 0,16 3,05 GMI 0,87 0,99 1,11 -4,31 3,00 AQI 0,93 0,80 1,55 -0,14 8,61 SGI 1,47 1,03 1,71 0,32 7,69 DEPI 1,04 0,97 0,28 0,59 2,12 SGAI 1,20 0,90 1,28 0,17 7,50 TATA 0,04 0,02 0,10 -0,05 0,57 LVGI 5-variable model 8-variable model 1,28 1,05 0,89 0,60 4,32 -2,75 -3,11 1,81 -7,02 2,08 -2,10 -2,37 1,50 -4,11 1,96 260 �The analysis showed that the common variables that were manipulated are gross margin, days sales in receivable, sales growth, and asset quality. When gross margin decreases from year to year, there is greater possibility that the company will manipulate the sales and cost of goods sold. The increase in day sales in receivable signals that the company’s policy regarding accounts receivable has weakened, so when DSRI is greater than 1, there is greater likelihood that the receivables will be manipulated, leading to the conclusion that revenues will be inflated. Also, the increase in asset quality index could be related to the cost deferral or capitalization of expenses. The findings indicate, that consistent with the Schilit’s seven shenanigans, Bosnian companies prone to commit financial statement fraud, are manipulating usually with the sales revenue and expense capitalization in order to improve the financial statements performance. Furthermore, the R square for the GMI, AQI and SGI was 45.8%, 21.0% and 26.8%, respectively, with the level of significance lower than 0.05, what leads to the conclusion that there is a significant relationship between GMI, AQI, SGI and financial statement fraud. Conclusion The purpose of the study was to analyze the current situation in Bosnia and Herzegovina related to the degree to which companies are exposed to the financial statement fraud. For that purpose, the financial statements data was obtained from the Tron Systems for 31 company. The obtained data was analyzed using Beneish M-score model, which is eight variables model that was developed by professor Messod Beneish in 1999. Findings revealed that 16% of the analyzed companies are prone to manipulate their financial statements data, where sales revenues and capitalization of expenses were two main areas where manipulations were done. The regression analysis showed that gross margin index, asset quality index and sales growth index significantly influence the Beneish M-score. This research is a first step in the more detailed investigation of financial statement fraud among BH companies, since the audit and forensic accounting profession is not yet fully developed in the country. Also, the Beneish M-score model could be utilized by the auditors in BiH as a time and cost efficient tool in the financial statement audit. In that way the attention would be drawn to the areas, accounts or items that should be further explored by forensic accountants, providing in that way space for development of forensic accounting profession. 261 �References Anh, N.H., & Lihn, N.H. (2016). Using the M-score model in detecting earnings management: evidence from non-financial Vietnamese listed companies. Journal of Science: Economics and Business, Vol. 32. Association of Certified Fraud Examiners (2016). Report to the Nations on Occupational Fraud and Abuse. Association of Certified Fraud Examiners (2008). Report to the Nations on Occupational Fraud and Abuse. Association of Certified Fraud Examiners (ACFE) (May 2017). Financial Transactions and Fraud Schemes. Retrieved from ACFE website: http://www.acfe.com/uploadedFiles/ACFE_Website/Content/review/examreview/12accoutning-concepts.pdf Beneish, M. (1999). The detection of earnings manipulation. Financial Analyst Journal. Isaković-Kaplan, Š., & Delalić, A. (2014). Kreativno računovodstvo u privrednim društvima u BiH, Međunarodna naučno stručna konferencija: Borba protiv prevara i korupcije 2014, Forenzika i prevencija Beograd. Schilit, M.H., & Perler, J. (2010). Financial Shenanigans: How to detect accounting gimmicks & fraud in financial reports. McGraw Hill. Singleton, T.W. & Signleton, A.J. (2010). Fraud Auditing and Forensic Accounting. Wiley. Warshavsky, M. (2012). Analyzing earnings quality as a financial forensic tool. Financial Valuation and Litigation Expert, issue 39. 262 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3645 Title A name given to the resource Detection of Financial Statement Fraud Using Beneish Model (doi: 10.14706/icesos178) Author Author BULJUBASIC, Elvisa Halilbegovic, Sanel Abstract A summary of the resource. Abstract: One of the greatest challenges faced by auditors is to detect anomalies in financial statement reporting. Once the anomalies are detected they have to be further investigated by forensic accountants. However, the practice of forensic accounting has not yet become a reality in Bosnia and Herzegovina. So the main purpose of the study is to analyze to which degree BH companies are exposed to the financial statement fraud and with respect to that the need for forensic accountants. The financial statement data will be collected from BH companies and it will be analyzed using Beneish model. The Beneish model is the mathematical model that identifies the manipulation of earnings through financial ratios. These analytical techniques should reveal the unconventional variations in financial statement reporting, indicating that there is possibility of fraudulent transactions. Key words: Beneish model, fraudulent reporting, forensic accounting Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/2655aceaeacff6a92b5e2a2a887acd80.pdf 7fbfbc48be611c8ffd8b5a25ab80f691 PDF Text Text Quality of Education and Intellectual Capital: Analysis of the Competitive Position of Universities Dino Arnaut Faculty of Economics, University of Zenica Bosnia and Herzegovina arnaut.dino@gmail.com Abstract: Intellectual capital opened the way for research into this area, which forms the basis of the new knowledge economy. The development of intellectual capital has a growing impact on the economic and social processes. Intellectual capital is now even more important than tangible assets. If a country wants to develop and become economically strong and enlightened it needs to build a modern and flexible and well suited and efficient education system that is ready and able to responses to all the global technological and social changes, as well as the local current social needs. To achieve this there is a need to establish institutional cooperation between universities, governments, research institutions. Education has a double meaning that is economic and social. It represents a means to improve economic standards as well to spread spiritual perspective and improvement of own intellectual and emotional life. Sociologically it is established that education is beneficial both for the individual and for society. Therefore, it not only contributes to higher profits for the individual, but also its better social status and reputation of the company, financial and social security, development of identity and self-confidence, self-esteem development and personal satisfaction, better understanding of the political situation and greater social engagement and cohesion, respect for social norms, reducing stereotypes and prejudice, improving gender relations and better education of children, development of tolerance and ethical behaviour, aspirations towards healthy living, and better physical and mental health. Investments in education are an important factor for competitiveness, growth and development of a country. Education has a key role in improving the human capital and the development of a knowledge based society. It contributes to the unification of life chances, personality development in the spirit of liberty, intellectual development and spiritual and cultural richness. The aim of this paper is to investigate connection between service quality and competitive position of Universities in Bosnia and Herzegovina to help developing new and improved academic programs that will contribute development of future strategies based on intellectual capital. Keywords: Intellectual Capital, Quality of Education, Education System, Service Quality, Bosnia and Herzegovina JEL Classification: O34, I2, M3 Introduction Over the last few decades, the quality of service has been gained and takes tremendous attention from both managers and academics due to their significant impact on business results, cost reduction, customer satisfaction and loyalty, as well as profitability. Therefore, quality is increasingly seen as an investment for a company or institution, where efforts to improve and improve it result in an increase in the number of customers (consumers), as well as increase the volume of purchases from existing customers, which also leads to growth of company profit. 84 �To gain competitive advantage among other higher education institutions, universities require greater focus on service quality. Therefore, universities want and try to examine their current strategic positions by evaluating existing services and adapting to consumer perceptions to improve or gain their leadership position. Intellectual capital (IC) opened the way for research into this area, which forms the basis of the new knowledge economy. The development of intellectual capital has a growing impact on the economic and social processes and now it is even more important than tangible assets. If a country wants to develop and become economically strong and enlightened it needs to build a modern and flexible and well suited and efficient education system that is ready and able to responses to all the global technological and social changes, as well as the local current social needs. To achieve this there is a need to establish institutional cooperation between universities, governments, research institutions. Therefore, just defining and measuring service quality at universities can serve as an initial step towards more orientated and friendly education services for students, as well as improving the overall provision of services in educational institutions. This provides room for the establishment of clear consumer-oriented standards and the establishment of benchmarks for quality service comparison both in public and private universities. Education has a double meaning that is economic and social. It represents a means to improve economic standards as well to spread spiritual perspective and improvement of own intellectual and emotional life. Literature review European higher education and research organizations have undergone a deep transformation process over the past decades. This process can be analysed by considering two parallel processes. The first process is the theoretical insight that provides two perspectives of evolutionary significance. These are the so-called two knowledge production methods (Gibbons et al., 1994) and the triple Helix model (Etzkowitz and Leydesdorff, 1996). Both perspectives emphasize the emergence of a new paradigm of knowledge production that is defined by transdisciplinary and research-oriented solutions. In this scenario, the relationship between university, industry and government becomes more dynamic and mutually dependable and conditioned, thus contributing to the creation of hybrid organizations, the creation of alliances between universities and firms, and the creation of a trilateral network and other forms of cooperation that enhance the quality of education. Therefore, universities themselves are interacting with various alternative knowledge producers (Gibbons, 1998, p.1). This framework is most commonly accepted in professional literature and has become crucial for understanding the role of universities and their connection with other actors in the current economy (Mowery and Sampat, 2004). 85 �The second process is an ever-growing interest in higher education institutions and intensive discussions about the role they play in the paradigm shift. This process is primarily represented by the European Commission's (2006) policy actions and the resulting collective process in some institutions such as the European Association of Universities (EUAs), the European Association of Managers and Research Administrators (EARMA), as well as individual groups of experts, such as the group responsible for reporting on intellectual capital to increase research, development and innovation in small and medium-sized enterprises (RICARDIS report). Adaptation of management and reporting of IC in companies to other types of organizations developed in two different ways. First, it primarily deals with the assessment of intangible assets aggregated into the mezo (communities, industry, etc.) and at the macro level (cities, regions and nations). Thus, the World Bank has organized various conferences on this issue in the period 2005-2007. (Chatzkel, 2006). Since 1999, efforts have been made to measure the state-level IC, starting with Sweden (Rembe, 1999), Israel (Pasher, 1999) and the Arab region (Bontis, 2004), and so on. Another way suggests the use of IC framework at the micro level for public institutions. Some papers involved in this group are based on the principles of new public management. These principles have been used by governments since the 1980s to improve the efficiency of the public sector and the quality of their services, through the decentralization process and the application of competition, by treating consumers of public services as consumers. In this way, governments give a certain institution more autonomy to fulfil its goals and reward the effect (Borins, 1995), which requires measurement and reporting mechanisms, in accordance with appropriate revision rules. This phenomenon was initially seen as a problem for developed countries, particularly Anglo-Saxon, with best case studies in Great Britain, Australia and New Zealand (Barzelay 2001, Guthrie et al., 2004). USA, Canada and, to a lesser extent, some European countries have caught their attention (Borins 2002, Guthrie et al., 2004), and the principles are provisionally applied in some African developing countries (Larbi, 1999). This paper shares the same opinion and agrees with the views of Mouritsen et al. (2005) and Leitner et al. (2005) in the sense that the IC framework is a valid attempt to meet the new demands of public institutions and that the IC report is useful tool for internal and external purposes. The IC report can help identify structural and personal strengths and weaknesses. It discovers the current state of the various university missions and can be used as a control and monitoring instrument (Altenburger and Schaffhauser-Linzatti, 2006). The purpose of the ICU report, which is also an integral part of the OEU project, is to make recommendations for publishing university research information. In accordance with the recommendations of the European Commission (2006), the report presents a logical shift from management and internal strategy, based on the design of the vision and objectives of the institution, to the publication of indicators considering the previous guidelines valid for companies (Meritum Protect, 2002), and for the universities (Leitner and Warden, 2004). 86 �The indicators have classified the next well-known taxonomy into three categories of capital, namely human, organizational and relational capital. Within each of these categories, each title monitors the strategic issues defined in the OEU guide. The guide itself suggests that indicators are expressed both in absolute and relative terms to make easy comparisons easier. University rankings Over the last ten years there has been an increasing interest in ranking the university. The annual ranking of world universities is published by many, starting with QS for the Times Higher Education Supplement, the Shanghai Jiao Tong University, the Higher Education and Accreditation Council of Taiwan, and Cybermetrics Lab in CSIC. The Academic Ranking of World Universities (ARWU) is being published each year by the Shanghai Jiao Tong University of Higher Education Institute. This is the first level of ranking with the intent of worldwide coverage based on the academic or research effectiveness of the university. Its indicators include alumni and staff that received Nobel or similar prestigious awards, highly quoted researchers in popular research fields, articles published in selected top magazines, indexed index articles by Thomson-ISI, and performance by academics. The Web Ranking of World Universities or Webometrics List is being conducted since 2004 (Aguillo et al, 2008) by Cybermetrics Lab, a research group of the Spanish National Research Council (CSIC). They use web data downloaded from commercial search engines, including web pages, rich format documents (pdf, doc, ppt and ps), works indexed by Google Scholar (this indicator was added in 2006) and many external links as a measure Link visibility or impact. Table 1: Different emphasis of different university rankings Orientation to students US News & Orientation to Research Webometrics Shanghai Taiwan Leiden WR ARWU HEEACT CWTS THE-QS WR McLeans Costs Opinions Services Impact Scientific contribution Web visibility Prestige Web presence Awards Impact Excellence Source: Authors’ own work The specifics of university rankings are shown in Table 1. As can be seen, certain rankings are strictly based on research data. Webometrics, on the other hand, has one weakness, and many universities do not have a strict web policy. This is not such a big deal with the universities in this research, so this weakness may be neglected. 87 �Compared to the indicators of intellectual capital of higher education institutions and ranking of universities, we conclude that there are common indicators. Therefore, as part of this research, the Webometrics list will be used as the rank of success of the tested universities and their competitiveness on the market of Bosnia and Herzegovina. Their position will be tested and compared with their perceived quality of service. Service Quality There is a lot about service quality in the literature itself. We have many quality definitions as well as its concept and its different dimensions. Thus, according to Juran (1988), quality is a convenience for use, that is, to what extent the product successfully serves the purpose of the user when used. Crosby (1982) argues that quality is in line with requirements. Gronroos (1984) is one of the first academics to focus on quality of service. According to him, the quality of service consists of two dimensions, technical quality and functional quality. Technical quality refers to the outcome, that is to what the customer has received from the service itself and can be measured in a similar way as the quality assessment of the product. On the other hand, functional quality refers to the process of evaluating the way of providing services. Image is an important factor affecting the service quality, and serves as a filter in perceiving quality of service as favourable, neutral or unfavourable (Gronroos 1984, 2000). In a sophisticated 1988 study, Parasuraman et al. have reduced the original number of service quality dimensions from ten to five, claiming that these five dimensions fully cover the domain of service quality. Thus, the five finals of quality of service, according to Parasuraman et al. (1985) are: • Tangibles - the physical dimension of a service, such as state of the building, equipment, staff appearance, and the like. • Reliability - the ability to deliver the promised service, reliably, accurately and on time. • Responsiveness - willingness and willingness to help customers and provide fast service. • Assurance - knowledge and kindness of employees and their ability to inspire and stimulate trust and confidence. • Empathy - attitude, individualized relationship, and attention paid by the company towards its customers (customers). Parasuraman et al. (1988) have also developed a service quality assessment tool called SERVQUAL, which is a multifaceted scale with good reliability and validity. The scale consists of two parts evaluating the quality of the service. The first part is a section of expectation that contains 22 statements to measure the expectation of quality of service by the consumer (customer). The second section is a perception section that contains the appropriate set of 22 statements to measure how users perceive (experience) the quality of the service. In these sections, for expectations and perceptions, use the same phrases with the difference that one asks about what the respondent expects from an excellent service provider, and the other asks about the actual, perceived, service provided. Consumers give their grades on the expectations and 88 �perceptions of the quality of services on a seven-point Likert scale, which range from completely disagree (1) to completely agree (7). The quality of services is calculated by the difference between estimated expectations and perceptions, that is, the gap between them. Parasuraman et al. (1994) found that the SERVQUAL scale is a very useful starting point for measuring the quality of services. Three contrastive approaches to quality measurement can be classified within the education. The first approach adjusts the SERVQUAL instrument (Rigotti and Pitt, 1992, Cuthbert, 1996a, 1996b, Owlia and Aspinall, 1996, Oldfield and Baron, 2000, O'Neill and Palmer, 2001). The other uses methods for evaluating the quality of teaching and learning (Entwistle and Tait, 1990; Ramsden, 1991; Marsh and Roche, 1993), while the third uses methods for assessing the quality of overall student experience (Harvey et al., 1992, Roberts and Higgins, 1992; Hill, 1995; Aldridge and Rowley, 1998; Gaell, 2000; Watson et al., 2002; Wiers-Jenssen et al., 2002). In the studies in which SERVQUAL is applied, it is necessary to modify the questionnaire, and there is no consensus on the dimensions of service quality and the importance of each dimension in the context of higher education. However, studies support the importance and reliability of this methodology within the measurement of the quality of higher education. Tan (1986) conducted a review of the methods used to assess the quality of teaching in higher education in the USA area back in 1986, in which three types of studies are differentiated, namely reputations involving the evaluation of subjects by experts, objective indicators and quantitative studies. Methodology Four universities have been chosen for this study to conduct a study on the quality of services in higher education. Of these four universities, two are public and two are private. They all offer programs at bachelor and master level, and three of them also offer doctoral studies (PhD). The survey sample consists of 388 undergraduate and master students. Data collection was carried out during 2013. Since it was difficult to include students from all universities in the territory of Bosnia and Herzegovina, we selected to include four university students, two public and two private, based on their ranking according to Webometrics. Universities were selected according to the criteria of the two best public and private universities in the territory of Bosnia and Herzegovina according to Webometrics ranking. These were the following universities: • University of Sarajevo (UNSA). • University of Zenica (UNZE). • International Burc University (IBU). • International University of Sarajevo (IUS). 89 �Using the Sample Size Calculator9, we calculated the desired sample size. This calculator is presented as a public service survey software by Creative Systems Research. Our target population is 128.119 students in the territory of Bosnia and Herzegovina. Therefore, with confidence level of 95% and confidence interval of 5 our calculated needed sample size was 383 students. Also, the number of distributed polls was equally represented by universities. The research tool was a structured survey consisting of 54 questions. This instrument is chosen because it gives researchers the ability to collect data on a variety of factors and thus achieve a larger sample. We collected 388 fully completed surveys via electronic and printed channels, which allowed us to reach the planned sample size based on the level of reliability and confidence intervals. Results As we have already said, in comparison with the indicators of the intellectual capital of higher education institutions and ranking of universities we can see that there are common indicators. Therefore, as part of our research, the Webometrics list will be used as the rank-list of successful universities tested and their competitiveness on the market of Bosnia and Herzegovina. The university's position is compared to their overall perceived quality of service in all dimensions (Table 2). As can be seen in Table 3, ranking according to the Webometrics ranking of the University at the level of Bosnia and Herzegovina corresponds to the rankings obtained according to the overall perceived quality of service of the mentioned universities. Table 2: Total mean value of perceived service Mean UNSA UNZE IBU IUS Total Tangibles 4.05 3.86 3.83 3.83 3.89 Reliability 3.62 3.51 3.48 3.47 3.52 Responsiveness 4.43 4.25 4.25 4.19 4.28 Assurance 4.02 3.90 3.82 3.74 3.87 Empathy 3.84 3.72 3.60 3.56 3.68 Service quality 4.21 3.85 3.85 3.81 3.93 Total mean 4.03 3.85 3.81 3.77 Source: Authors’ own work 9 The Sample Size calculator can be used and found at http://www.surveysystem.com/sscalc.htm#one 90 �We can conclude that the competitive position (ranking of the university) is directly dependent on the overall quality provided by the given institution. Therefore, we confirm our claim that the quality of education services directly affects the competitive position of the educational institution. Univerzitet World ranking Ranking in Bosnia and Herzegovina Mean of total perceived quality of universities University of Sarajevo (UNSA) 1859 1 4.03 University of Zenica (UNZE) 3531 2 3.85 International Burch University (IBU) 7400 8 3.81 International University of Sarajevo (IUS) 7912 9 3.77 It is also noteworthy that the greatest difference in the mean values of total perceived quality is precisely between the University of Sarajevo, while remaining at approximately the same average values. It also contributes to the high position of the University of Sarajevo at the Webometrics rankings. Conclusions The research results obtained support the previous quality service studies conducted by various researchers, and concluded that these five dimensions represent high quality services. This research serves as an addition to other published research to demonstrate that this model is applicable to a wide range of services, including the higher education sector. Ranking according to the Webometrics ranking of the Universities at the level of Bosnia and Herzegovina corresponds to the rankings obtained according to the overall perceived quality of service of the mentioned universities. And we see that the competitive position (ranking of the university) is directly dependent on the overall quality provided by the given institution. This study also has several limitations. First, not all universities are involved in this study so that for future studies it would be good to include all private and public universities in the territory of Bosnia and Herzegovina and to include research institutes. In this way, the sample would be even more representative and would increase the validity and validity of the research results. Secondly, this research is necessary to be replicated by other researchers to further determine and confirm that the modified SERVQUAL scale used in higher education services has its relevance and validity. 91 �The basic feature of today's market is the vast number of competitors that are constantly struggling for a limited number of users. Therefore, service companies are increasingly adopting customer relationship management concepts, especially due to constant user-specific, individualuser-specific access. Higher education institutions, as well as service providers, have the potential to create an advantage and maintain and develop a long-term relationship between them, as providers of services, their service users, students, solving their problems and making them loyal to institution. In this way, in the long run, the clients themselves promote the institution and in some ways become the walking image of the higher education institution. There is a need to establish institutional cooperation between universities, governments and research institutions to achieve those goals. Education represents a means to improve economic standards as well as a means to spread spiritual perspective and improvement of own intellectual and emotional life. Sociologically it is established that education is beneficial both for the individual and for society as a whole. References Aguillo, I. F., Ortega, J. L., & Ferna´ndez, M. (2008). Webometric ranking of world universities: Introduction, methodology, and future developments. Higher Education in Europe, 33(2/3), 234–244. Aldridge, S. i Rowley, J., 1998, ‘Measuring customer satisfaction in higher education’, Quality Assurance in Education, 6(4), pp. 197–204. Altenburger, O.A. and Schaffhauser-Linzatti, M.M. 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Tan, D., 1986, ‘The assessment of quality in higher education: a critical review of the literature and research’, Research in Higher Education, 24(3), pp. 223–265. Watson, S., Saldanaa. & Harvey, L., 2002, The 2002 Report on the Student Experience at UCE (Birmingham, Centre for Research into Quality, UCE). Wiers-Jenssen, J., Stensaker, B. & Grogaard, J. (2002), ‘Student satisfaction: towards an empirical deconstruction of the concept’, Quality in Higher Education, 8(2), pp. 183– 195. 94 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3644 Title A name given to the resource Quality of Education and Intellectual Capital: Analysis of the Competitive Position of Universities (doi: 10.14706/icesos177) Author Author Arnaut, Dino Abstract A summary of the resource. Abstract: Intellectual capital opened the way for research into this area, which forms the basis of the new knowledge economy. The development of intellectual capital has a growing impact on the economic and social processes. Intellectual capital is now even more important than tangible assets. If a country wants to develop and become economically strong and enlightened it needs to build a modern and flexible and well suited and efficient education system that is ready and able to responses to all the global technological and social changes, as well as the local current social needs. To achieve this there is a need to establish institutional cooperation between universities, governments, research institutions. Education has a double meaning that is economic and social. It represents a means to improve economic standards as well to spread spiritual perspective and improvement of own intellectual and emotional life. Sociologically it is established that education is beneficial both for the individual and for society. Therefore, it not only contributes to higher profits for the individual, but also its better social status and reputation of the company, financial and social security, development of identity and self-confidence, self-esteem development and personal satisfaction, better understanding of the political situation and greater social engagement and cohesion, respect for social norms, reducing stereotypes and prejudice, improving gender relations and better education of children, development of tolerance and ethical behaviour, aspirations towards healthy living, and better physical and mental health. Investments in education are an important factor for competitiveness, growth and development of a country. Education has a key role in improving the human capital and the development of a knowledge based society. It contributes to the unification of life chances, personality development in the spirit of liberty, intellectual development and spiritual and cultural richness. The aim of this paper is to investigate connection between service quality and competitive position of Universities in Bosnia and Herzegovina to help developing new and improved academic programs that will contribute development of future strategies based on intellectual capital. Keywords: Intellectual Capital, Quality of Education, Education System, Service Quality, Bosnia and Herzegovina Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/6ef5166bea52ae8586cb08a476d1442b.pdf fd0f7305d7f65f50d87c3190febb79d4 PDF Text Text Tourist Potential as a Factor of Rural Territories Development: Experience of the Russian Federation Regions Polina Ananchenkova Academy of labour and social relations Russia ananchenkova@yandex.ru Abstract: World experience shows that in Russia and other countries, the development of rural tourism can be a very effective activity aimed at environmental, economic, and social development. Today, about 20000 villages in Russia are on the verge of extinction. Consequently, rural tourism can and should become the very “locomotive” that will really pull out and revive the rural areas of Russia. The development of rural tourism is named among the priority area provided for in the “Concept of Sustainable Development of Rural Territories of the Russian Federation for the period up to 2020”, approved by Order of the Government of Russia in 2010. Expert assessments based on studies conducted in the regions of the Russian Federation show that the approximate level of income from rural tourism activity per administrative region of the constituent entity of Russia may be about 30 million rubles (500 thousand US dollars) per year. In the case of the implementation of an integrated approach involving the joint development of agricultural activities and rural tourism, the effect can double – up to 50-60 billion rubles per year. Rural tourism in Russia is a new socio-economic phenomenon oriented to the use of natural, cultural, historical resources of rural areas to create and supply a tourist product to a wide range of people. In this regard, it should be thought that the strategic priorities of the national policy aimed at stimulating tourism in rural areas should be the concentration of tourist resources and creation of destinations that include backbone tourist centers with high potential for the formation of rural tours, and territories adjacent to the borders. At the same time, the activation of rural tourism will allow developing territories that do not have promising industrial and agricultural organizations, and thereby improve the socioeconomic situation of the country as a whole. Keywords: rural territories, development, tourism, Russian Federation JEL Classification: Z320, R190, Q010 Introduction World experience shows that in Russia and other countries, the development of rural tourism can be a very effective activity aimed at environmental, economic, and social development. At the end of XX and beginning of XXI century in the world a great interest to rural tourism has arisen, and different countries have excellent examples of organization and promotion of this type of tourism. At this, each country thanks to natural landscapes, traditions of agriculture and cattle breeding, specifics of cuisine, rural culture, architectural appearance and vernacular legacy of villages create own national model of rural tourism development. Rural tourism is slowly 56 �becoming popular, fashionable and recreation in countryside already takes second place after seaside vacation. Russia does not remain aside from modern trends in this area. Today, about 20,000 villages in Russia are on the verge of extinction. Consequently, rural tourism can and should become the very “locomotive” that will really pull out and revive the rural areas of Russia. Subjects of rural tourism services provision According to data of monitoring of rural tourism development in regions of the Russian Federation, subjects of rural tourism services provision, in general, are: - small businesses providing accommodation, catering, and excursion services; - Peasant Farm Enterprises, Household Farms, farmers; - food processing enterprises; - administration of Specially Protected Natural Reservations (SPNR); - institutions of culture and sports in rural areas, in some cases, schools; - religious sites; - rural residents and summer visitors. Subjects of services provision have one thing in common, i.e. all of them are located at rural area, but due to organizational-legal stats and different departmental affiliation there is a certain discrepancy in interests. List of services provided to tourists nowadays in almost each region is rather diverse, and depends on demand as well as on initiative and wishes of subjects providing services. Approximate range of services is as follows: - services of temporary accommodation in guest rooms, rural guest houses, houses, inns, etc.; - catering and tasting services; - agro-tourist services (participation in agricultural operations: haymaking, shearing, milking, etc.); - agro-tourist services (gathering of mushrooms, berries, vegetables, wild plants, etc.); - sale of agricultural products, meat, dairy products, wild plants, crafts, etc.; - riding horses, deer, camels, dogs, agricultural machinery; - services of fishing, hunting; - rental services, baths, bakeries, smokehouses, parking lots, etc. - cultural and educational facilities (rural Museum, Club, library); - training and teaching handicrafts and trades; - participation in event activities and religious holidays; - other. Despite wide range of services to be provided within rural tourism subjects’ activities are focused on three directions: 57 �At first, services of temporary accommodation in guest rooms, rural guest houses, houses, inns, etc. One of the first regions of Russia to have achieved positive results in reception of tourists in private (rural) houses with “bed & breakfast” services as well as in teaching local residents the basics of tourism organization is the Republic of Karelia (http://www.ticrk.ru). Rural estates’ owners in Karelia were supported within frames of implementation of international project, Tacis, “Development of rural tourism on basis of rational use of natural and cultural resources” main result of which according to experts was establishment of Association of Rural Estates’ Owners “Estate” for coordination and support of activities of rural houses’ owners. Second, tourist and tour services on basis of agricultural enterprises, farms, fishing facilities, facilities of food processing industry, and etc. It should be noted that National Standard of the Russian Federation GOST R 50681-2010 “Tourist Services. Design of Tourist Services” determines co-providers of tourist services: Organizations and enterprises of tourist industry as well as private entrepreneurs rendering certain services (accommodation, catering, transport entities, exhibition complexes, museums, and etc.) under contracts concluded with tour operators at formation of tourist product. Obviously, objects of agricultural sector providing tourist and tour services refer to this list to the similar ones. In many Russian regions tours to special agricultural farms/agricultural production facilities become rather popular, during which the visitor can get acquainted not only with production process but also can try and purchase ready products, can learn some recipes, etc. (cheese makers, wine makers, smokehouses, dairies, mushroom farms, etc.). Level of agriculture development in regions attracts attention of both farmers and manufacturers of agricultural products, and people interested in agriculture of the region. Third, tourist and tour services rendered by rural cultural institutions (libraries, museums, cultural and recreational institutions), whereby we are talking not only about tours, acquaintance with life and traditions, visiting religious sites, eves, but also about teaching handicrafts and trades, singing and dancing skills, and etc. In 2014, for the first, in federal budget there was allocated over three billion Rubles for renovation of material base of culture in villages and small towns. Mobile multi-functional cultural centers have been provided for rural area. Since 2016 till 2020 Federal Target Program “Sustainable Development of Rural Territories” where Ministry of Culture of the Russian Federation is a state customer, for reconstruction of operating rural institutions of culture provides for 2.8 billion Rubles from Federal Budget. Today, outside culture it is impossible to ensure better quality and variety of services of cultural, -educational, ethnographic, rural, event, and social tourism. These are exactly the types of tourism that significantly contribute to education and moral improvement of society, civil patriotism and harmonization of inter-ethnic relations, development of tolerance and respect for cultures of different peoples. 58 �State support of rural tourism in the Russian Federation Nowadays, a great attention in the Russian Federation is drawn to state support of tourism development in general and rural tourism in particular. Strategy of Tourism Development in the Russian Federation until 2020 under Federal Target Program “Development of Domestic and Inbound Tourism in the Russian Federation (20112018)” defines rural and ecological tourism as most promising for majority of regions of Russia. This involves a range of issues, i.e. creation of tourist product, rational use of natural and cultural heritage of the region, interests of local economy on basis of interaction and mutual benefits, full support of driving force of rural tourism, entrepreneurship, involvement of community in tourism development, linking interests of businesses and residents on basis of mutually beneficial cooperation. Today, in many Russian regions priority of rural tourism development has been confirmed by real actions and quite tangible results. And, and in light of modern realities in terms of imposition of sanctions, stimulation of interest in products and services of domestic tourism will increase business and investment activity in field of rural tourism. In 2014, the Ministry of Culture of the Russian Federation and the Federal Agency for Tourism hosted a number of major events in field of rural tourism. These are international forum “Agrotourism in Russia” held at the Republic of Buryatia, Russian Conference on Conservation of Village Culture and Rural Tourism Development in Lipetsk, tourist forum “Rural Tourism in Russia” in the Orenburg region. Within each event there were discussed current trends and experiences of development of rural tourism in regions of the Russian Federation, especially organization of tourist activity in rural areas and problems of legislative, infrastructure, financial, personnel, informational support of development of rural tourism. Special attention was given to measures of state support for rural tourism development at federal, regional and municipal levels. Of vast interest there was experience of self-organization and coordination of agro-tourist activities within such projects as the “Association of Most Beautiful Villages of Russia”, and “Peasant Hospitality”. At presentation venues of Forums considerable part of space has been showcasing best regional projects in chosen areas of rural tourism development included in collection of materials reflecting best practices of subjects of the Russian Federation on development of rural tourism. Concept of sustainable development of rural areas of the Russian Federation for a period until 2020, and Federal Target Program “Sustainable Development of Rural Territories of the Russian Federation for a Period till 2020” define objectives of stimulating increase in jobs in nonagricultural fields of activity in all possible organizational forms, especially, in field of recreational and environment protection activities, agro- and environmental tourism, rural hotel business. To improve cultural services for rural population, preservation and development of cultural heritage, and enhance creative capacity of rural inhabitants there was determined an objective of rebuilding, having cultural and historical significance farmsteads and other 59 �architectural and natural monuments, creation of museums, manor-ethnographic complexes and other infrastructure of rural tourism as well as other activities. By Decree of the Government of the Russian Federation as of February 2, 2015 No. 151-r there was adopted a strategy for sustainable development of rural territories for a period till 2030 aimed at creation of conditions for sustained improvements in quality and standard of living of rural population through benefits of rural lifestyle. Strategy states that rural tourism is one of major directions of non-agricultural types of activity as well as has important socio-economical functions of creation of attractive jobs including for rural youth and women; on development of rural territories; on complex use of natural and cultural potentials of rural areas. Most important for subjects of agricultural activities providing tourist services, for tourist companies organizing tours to rural areas, for regional and local governments is a need to implement measures aimed at formation of agro-tourist clusters; at holding educational events (advanced qualification courses, educational workshops, master-classes, and trainings) for owner of rural guest houses, representative of farms, private entrepreneurs, rural residents engaged in organization and provision of tourist services in rural areas; media coverage of best practice and most successful projects on development of rural tourism. Analysis of measures of state support for rural tourism in regions has shown that more used measures are provision of subsidies and grants (for repair and reconstruction of rural guest houses, landscaping; participation in exhibitions; promotion; contests; training). Recipients of subsidies and grants are small enterprises (owners of guest houses, manors, ethnicity complexes, and farms in rare cases). In majority of regions state support of rural tourism is provided within frames of state programs on development of culture and tourism, development of agriculture, support for small businesses. Exception is Belgorod Region, where program of “Development of rural tourism in the Belgorod Region for 2011-2015” is being implemented. The main problems of rural tourism development in the Russian Federation Analysis of materials of conferences, forums, round tables on rural tourism determined key problems of rural tourism development in regions of the Russian Federation which hinder effective and dynamic development of this direction of rural population occupancy. 1) Existing federal regulatory-legal acts governing activities in field of tourism lack the concept of rural tourism. Regional practice for identification of discussed type of tourist activity widely apply following concepts: “agro-tourism”, “green tourism”, “farm tourism”, “village tourism”, and etc. However, nowadays, all those regulating this field of activity and those engaged in this type of activity, as well as supervisory authorities and consumers have to use single legal definition. 2) Currently in regions main means for accommodation in rural areas are "guest houses" whereas paragraph 3.3 of the national standard of the Russian Federation GOST R 51185-2008 “Tourist services. Accommodation. General requirements” approved by the 60 �3) 4) 5) 6) 7) Decree of Rostechregulirovanie as of 18.12.2008 No. 518-st specifies only “guest rooms, chalets, bungalows, caravans”. Significant problem for development of rural tourism is underdeveloped and in some municipalities missing transport and engineering infrastructure (roads, electricity, water networks, sewage treatment plants, bank protections, etc.), which is an obstacle to private investments in tourism industry. Lack of telephone communication, Internet is often an insurmountable obstacle for both, tourists and service providers. But above all, absence of roads to rural tourism sites which include guest houses, and farms. In most regions, one of the most important motivations for recreation at countryside is visiting sites of cultural and historical heritage, religious sites, ethnographic and museum complexes, old houses, castles, estates, etc. Tourism allows for drawing attention to unique historical and cultural values, discoveries of earlier unknown or unfairly forgotten historical settlements, sites and names. Experts note inadequate involvement of values of the territory in tour programs. In many Russian regions growing demand for rural tourism services enhanced investment activities in reconstruction and construction of guest houses, small hotels, manors, ethnicity complexes, catering, rural markets, trading pavilions, etc. Today it is quite difficult to obtain available loans for implementation of these projects in rural areas. According to experts, it is necessary to provide for small businesses in field of rural tourism concessional borrowings, as well as development of methodical recommendations and providing special advice for preparation and implementation of business project. Significant problem is misunderstanding and sometimes ignorance by rural entrepreneurs of need to use market-based instruments for promotion of rural tourism services. In many regions there are formed information databases of rural tourism sites, and first of all, of accommodation facilities. According to experts, there is a need in consolidated actions of rural tourism businesses and greater cooperation on part of authorities on organization of study tours, participation in exhibitions, advertising, website creation, etc. Experts recommend to regularly fill the portal www.naselo.ru, the first Russian social network designed to increase tourist flow to the countryside. Serious and long-term challenge is staffing of rural tourism which shall be addressed comprehensively. To avoid mistakes and disappointments, it is necessary to know organization of tourist services, hotel and restaurant business, marketing rules, calculation of costs, cost recovery and funding strategy. In some regions of the Russian Federation (Altai Region, the Republic of Buryatia, the Republic of Karelia, Pskov, Ryazan, Sverdlovsk regions, etc.) there is ongoing large and coherent work on organization of training courses, development of methodological recommendations for development of rural tourism. With purpose of informational, legal and financial support it is proposed to establish informational-methodological centers for owners of rural houses and providers of accompanying services for rural tourism. 61 �8) Insufficient level of coordination of activities in field of rural tourism, despite increased attention to creation of associations of rural tourism. At the federal level, there are such associations as the “Association for promotion of rural tourism”, “National association of rural tourism entities” which pay especial attention to issues of development of regulatory base for rural tourism; classification of objects of rural (agro) tourism, first of all, rural guest houses; development of mechanisms for address support of rural tourism subjects; informational and consultancy support of business entities; increase of role of local governments in development of rural tourism. Experts of Associations are confident that success of rural tourism development largely depends on local governments, their ability to coordinate planning and management of tourism development, encourage participation of local people in arrangement of tourist services, advise and help those people who want to establish business, to support development of rural culture. Conclusion At the end of XX and beginning of XXI century in the world a great interest to rural tourism has arisen, and different countries have excellent examples of organization and promotion of this type of tourism. At this, each country thanks to natural landscapes, traditions of agriculture and cattle breeding, specifics of cuisine, rural culture, architectural appearance and vernacular legacy of villages create own national model of rural tourism development. Russia does not remain aside from modern trends in this area. Rural tourism is slowly becoming popular, fashionable and recreation in countryside already takes second place after seaside vacation. References Kamilov M., Kamilova P., Kamilova, Z. (2016). Rural tourism as a factor of sustainable development of territories. Russian Agriculture Economy, 12, 39-54. Novichkov N., Novikov V., Novichkova N. (2014). Development of tourism at rural territories of Russia in context of number of social-economic trends. Russian Agriculture Economy, 3, 7-14. Shimova O.S. (2012). Basics of sustainable tourism. - Moscow: INFRA-M. Russia in figures. 2012: Brief statistical collection/Rosstat. - M., 2012 Russia in figures. Annual Report for 2015 (2016). Moscow: Federal state statistics service. Main indicators of agriculture in Russia. Annual Report for 2015 (2016). Moscow: Federal state statistics service. Leontiev J., Timoshenkova O. (2013). Regional tourist destination and its social-economic development. Retrieved from: http://business-inform.net/pdf/2013/6_0/165_170.pdf 62 � Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3655 Title A name given to the resource Tourist Potential as a Factor of Rural Territories Development: Experience of the Russian Federation Regions (doi: 10.14706/icesos1718) Author Author Ananchenkova, Polina Abstract A summary of the resource. Abstract: World experience shows that in Russia and other countries, the development of rural tourism can be a very effective activity aimed at environmental, economic, and social development. Today, about 20000 villages in Russia are on the verge of extinction. Consequently, rural tourism can and should become the very “locomotive” that will really pull out and revive the rural areas of Russia. The development of rural tourism is named among the priority area provided for in the “Concept of Sustainable Development of Rural Territories of the Russian Federation for the period up to 2020”, approved by Order of the Government of Russia in 2010. Expert assessments based on studies conducted in the regions of the Russian Federation show that the approximate level of income from rural tourism activity per administrative region of the constituent entity of Russia may be about 30 million rubles (500 thousand US dollars) per year. In the case of the implementation of an integrated approach involving the joint development of agricultural activities and rural tourism, the effect can double – up to 50-60 billion rubles per year. Rural tourism in Russia is a new socio-economic phenomenon oriented to the use of natural, cultural, historical resources of rural areas to create and supply a tourist product to a wide range of people. In this regard, it should be thought that the strategic priorities of the national policy aimed at stimulating tourism in rural areas should be the concentration of tourist resources and creation of destinations that include backbone tourist centers with high potential for the formation of rural tours, and territories adjacent to the borders. At the same time, the activation of rural tourism will allow developing territories that do not have promising industrial and agricultural organizations, and thereby improve the socioeconomic situation of the country as a whole. Keywords: rural territories, development, tourism, Russian Federation Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/e9c3c290395cf9c8f18735fa5dd201e1.pdf 0e608a1c682d644f67ea09ceb908ed27 Dublin Core The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/. Extent The size or duration of the resource. 3718 Title A name given to the resource Hiring a High-quality Auditor and debt maturity structure: Evidence from Iranian firms Author Author Ahmadi, Mobina Gerayli, Mehdi Safari Abstract A summary of the resource. Abstract: The current research is an attempt to offer new insights into the association between hiring high-quality audit firms and corporate debt maturity structure. To this end, 94 firms listed on the Tehran Stock Exchange were scrutinized for the period 2011-2015. To test the research hypotheses, multiple regression and data panel were employed. The findings confirm that a high-quality audit firm can enhance the debt maturity. The results of testing the research hypothesis point to a significant correlation between the hiring of a high-quality audit firm and corporate debt maturity structure, in that short-term debt and quality audit are two alternative mechanisms used to mitigate information asymmetry and monitor managerial behavior. Therefore, in firms audited by high-quality audit firms, due to the effective monitoring imposed by auditors on debt convent, creditors experience information asymmetry and less agency costs, thereby desiring to extend the debt maturity. The findings of current study not only fill existing gaps in the field, but also contribute to decision-making practices in stock exchange. Publisher An entity responsible for making the resource available International Burch University Date A point or period of time associated with an event in the lifecycle of the resource 2017 Keywords Keywords. Article PeerReviewed Identifier An unambiguous reference to the resource within a given context ISSN 1986-8499 (In Press) H Social Sciences (General)