336 10 3494 https://omeka.ibu.edu.ba/files/original/cced2548fdbbcb7c0db8ff18d6522e72.pdf 55fc6d26a7a9744ee75c37a9679eb99f PDF Text Text THE CHARACTERISTICS AND DYNAMICS OF MANAGEMENT CONTROLS IN SMALL AND MEDIUM ENTERPRISES: MEASURING PERFORMANCE ACCORDING TO EMPLOYEE STIMULATION Lejla Huseinbašić International Burch University Bosnia and Herzegovina lejla.huseinbasic@hotmail.com Abstract: This paper begins with explanation of importance of the control management in organisations and how controlling aspect of organisations plays an important role in achieving organisational’s best interests and goals that are strategically planned. Set of controls need to be implemented in order to decrease undesirable behavior and to encourage desirable actions. Individuals don’t generally comprehend what is anticipated from them nor how they can best perform their employments, as they might do not have some essential capacity, preparing, or data. Also, individuals have various inalienable perceptual and psychological predispositions, for example, a failure to prepare new data ideally or to settle on reliable choices, and these inclinations can decrease hierarchical viability. This paper suggests that the proper stimulation of employees in terms of different types of rewarding can result in higher achievements, both for the employee and the organisation. Keywords: Management, Control, SME, Performance, Employee Introduction Individuals at work actually have a tendency to receive instinctual methods of conduct that are self-defensive as opposed to open and synergistic. This clarifies why feeling is a solid power in the work environment and why administration frequently responds fiercely to reactions and as a rule looks to control as opposed to go out on a limb. Along these lines, keeping in mind the end goal to dispense with this sort of viewpoint and to build representative inspiration, it is best that you impact conduct as opposed to change identities. The world of business administration is not all about income, spreadsheets, and advertising, there is the precarious business of human conduct that must be gone to. Most business supervisors who examined administration in school invested significantly more energy in bookkeeping and financial aspects class than they did in psychology class and in some cases human conduct can be a significant riddle. In an organization not just authority, the workforce is likewise an imperative segment. We ought to treat individuals similarly, no preference. Motivation is a worker’s inborn eagerness about and drive to perform exercises identified with work. Motivation is that inner drive that causes a person to choose to make a move. An individual’s motivation is impacted by natural, scholarly, social and passionate components. In that capacity, motivation is a complex, not effectively characterized, inborn main impetus that can likewise be impacted by outer components. Each representative has exercises, occasions, individuals, and objectives in his or her life that he or she discovers rousing. In this way, motivation about some part of life exists in every individual’s cognizance and activities. ICESoS 2016 - Proceedings Book 181 �International Conference on Economic and Social Studies (ICESoS’16) The trap for businesses is to make sense of how to move representative motivation at work. To make a workplace in which a worker is roused about work, includes both inherently fulfilling and extraneously promising components. Worker motivation is the blend of satisfying the representative’s needs and desires from work and the work environment considers that empower worker motivation - or not. These variables make inspiring representatives testing. Businesses comprehend that they have to give a workplace that makes motivation in individuals. Be that as it may, numerous businesses neglect to comprehend the essentialness of motivation in achieving their central goal and vision. Notwithstanding when they comprehend the significance of motivation, they do not have the ability and learning to give a workplace that encourages representative motivation. Choices to hold, advance, or fire individuals must be made in each association. What is the most exact approach to settle on these choices? Traditionally, these choices were made through support and nepotism, where individual connections inside the association largy affected advancement and terminating choices. While individual connections are still vital today, numerous commercial enterprises attempt to deliberately survey specialist execution, so as to build efficiency (and at last, benefits). Productive employees are the soul of each enrolling business, however what method can be used to survey their execution levels? Do they comprehend objectives and desires of the organisation? Is it accurate to say that they are meeting their own destinations? Each organization ought to ceaselessly screen and assess their workers. Assessing worker execution ought to be completed on an on-going premise and incorporate all zones of their hard working attitude and individual accomplishments. Keeping in mind as well, that poor execution or negative practices can likewise be symptomatic of a basic issue with organisation’s way of life, so have an arrangement set up to address any issues that can be find. Motivation methods There are the same number of various techniques for spurring workers today as there are organizations working in the worldwide business environment. Still, a few procedures are common over all associations endeavoring to enhance representative motivation. The best worker motivation endeavors will concentrate on what the representatives regard to be critical. It might be that representatives inside the same division of the same association will have distinctive motivation. Numerous associations today find that adaptability in occupation plan and compensate frameworks has brought about representatives’ expanded life span with the organization, enhanced efficiency, and better spirit. Empowerment Giving workers more obligation and basic leadership power builds their domain of control over the assignments for which they are considered mindful and better prepares them to complete those errands. Subsequently, sentiments of disappointment emerging from being considered responsible for something one doesn’t have the assets to do are reduced. Vitality is occupied from self-protection to enhanced assignment achievement. 182 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Creativity and Innovation At numerous organizations, representatives with imaginative thoughts don’t express them to administration for trepidation that their info will be overlooked or criticized. Organization endorsement and toeing the organization line have turned out to be so instilled in some workplaces that both the worker and the association endure. At the point when the ability to make in the association is pushed down from the top to line work force, representatives who know a vocation, item, or administration best are given the chance to utilize their thoughts to enhance it. The ability to make rouses representatives and advantages the association in having a more adaptable work power, utilizing all the more admirably the experience of its workers, and expanding the trading of thoughts and data among representatives and divisions. These upgrades additionally make an openness to change that can give an organization the capacity to react rapidly to market changes and support a first mover advantage in the commercial center. Learning On the off chance that representatives are given the apparatuses and the chances to achieve all the more, most will tackle the test. Organizations can propel representatives to accomplish more by focusing on never-ending upgrade of worker aptitudes. Accreditation and authorizing programs for representatives are an undeniably prominent and powerful approach to realize development in worker learning and inspiration. Regularly, these projects enhance representatives’ states of mind toward the customer and the organization, while reinforcing self-assurance. Supporting this statement, an examination of components which impact inspiration to-learn found that it is specifically identified with the degree to which preparing members trust that such interest will influence their employment or profession utility. At the end of the day, if the group of information picked up can be connected to the work to be refined, then the procurement of that learning will be a beneficial occasion for the worker and the employer. Quality of Life The quantity of hours worked every week is on the ascent, and numerous families have two grown-ups working those expanded hours. Under these circumstances, numerous specialists are left thinking about how to meet the requests of their lives past the work environment. Frequently, this worry happens while at work and may decrease a worker’s efficiency and confidence. Organizations that have established adaptable worker game plans have increased spurred representatives whose profitability has expanded. Programs consolidating strategic scheduling, dense work filled weeks, or occupation sharing, for instance, have been fruitful in centering overpowered representatives toward the work to be done and far from the requests of their private lives. Monetary Incentive For all the championing of option inspirations, cash still possesses a noteworthy spot in the blend of helpers. The sharing of an organization’s benefits offers motivating force to representatives to create a quality item, perform a quality administration, or enhance the nature of a procedure inside the organization. What advantages the organization straightforwardly advantages the representative. Financial and different prizes are being given to representatives for creating cost-investment funds or processICESoS 2016 - Proceedings Book 183 �International Conference on Economic and Social Studies (ICESoS’16) enhancing thoughts, to support profitability and lessen truancy. Cash is successful when it is specifically fixing to a representative’s thoughts or achievements. All things considered, if not combined with other, non-money related inspirations, its spurring impacts are fleeting. Further, fiscal motivations can demonstrate counterproductive if not made accessible to all individuals from the association. Other Incentives Study after study has found that the best inspirations of laborers are non-money related. Fiscal frameworks are lacking helpers, to a limited extent since desires frequently surpass results and in light of the fact that uniqueness between salaried people may separate instead of join workers. Demonstrated non-money related positive inspirations foster cooperation and incorporate acknowledgment, obligation, and headway. Administrators who perceive the “little wins” of representatives, advance participatory situations, and treat workers with decency and admiration will observe their representatives to be all the more exceptionally energetic. One organization’s administrators conceptualized to think of 30 effective prizes that cost little or nothing to actualize. The best compensates, for example, letters of recognition and time off from work, improved individual satisfaction and sense of pride. Over the more drawn out term, true acclaim and individual signals are much more powerful and more sparing than recompenses of cash alone. At last, a project that consolidates money related prize frameworks and fulfills inherent, self-realizing needs might be the most strong worker spark. Ilustration 1: Employee motivation principles 184 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Entirely separated from the advantage and good estimation of an unselfish way to deal with regarding associates and representatives as individuals and regarding human poise in all its structures , looks into and perception demonstrate that well motivated workers are more gainful and innovative. What is the stimulation of the employees? Numerous managers still hold the old feeling that an employee will complete his occupation constrainted by good and cash. Obviously, both are viable for pulling the occupation off. Else they could complete it without productivity. It is set to trust that capable work genuinely influence the venture’s proficiency. Despite what might be expected, with a higher work excited, individuals can effectively perform work, in order to upgrade the organization in this appreciation advantage. What we ought to do is simply given each representative a chance to be keen on his work and stir his excitement to make the organization’s advantages the entire upgrade. The purported faculty consolation implies the enterprise invigorates from outside to actuate the staff’s needs, longings and inspirations. Structure a particular objectives and protect when the representative achieve his objective he remains a high spirits, supportable positive state and discharges the boundless mechanical potential. The mental studies demonstrate that individuals are spurred while they encounter some unsatisfied needs or uncompleted objectives. In this way, the necessities or objectives, can be either physical and material, or mental and otherworldly. As a general rule, individuals’ interest is not single. Workers are “trainable”- at one level, people are just creatures and the practices can be comprehended as a progression of boost and reaction designs. At an extremely fundamental level, we rehash practices that have worked for us in the past and neglect to rehash practices that have not worked for us. This idea is called behaviorism and it says that when representatives are compensated for good conduct, they will rehash the conduct. In an awful occupation, the main compensate a representative gets is a paycheck and he or she will do as meager as could reasonably be expected to continue getting that remunerate. In a great job, there are steady remunerates; even acclaim can be viewed as a spurring compensate that supports great conduct. An intriguing thing to note about behaviorism is that discipline is just used to decrease conduct. In the event that you need any kind of conduct to expand, you have to compensate the conduct, not rebuff a man for absence of it. For instance, on the off chance that you need a worker to tidy up their range toward the end of the movement, discipline for not cleaning won’t ingrain the conduct (despite the fact that it may work for some time). On the off chance that you really need to change conduct, you have to give a prize for cleaning the region. This doesn’t mean you have to chase after your representative’s tossing treats throughout the day. The prize can be, “when your zone is cleaned, you can go home”. In the event that going home is remunerating, that will soon get to be connected with cleaning the region. You would prefer not to get in the propensity for treating representatives like pets, however it regards comprehend the essential way of human conduct and how support functions. ICESoS 2016 - Proceedings Book 185 �International Conference on Economic and Social Studies (ICESoS’16) Employees need to feel engaged enormous conduct issues can come about because of workers feeling weak in their parts. Feeling weak can show itself in various courses with various workers; some will take a uninvolved forceful position, picking up force by what they don’t do as opposed to what they do. Different workers may react to sentiments of frailty by more forceful means, such as tattling and abusing the organization. Still others may take out the sentiments on subordinates or even on their clients. 5 ways to encourage employee behaviour through motivation 1. Adjusting individual financial interests to organization execution It takes more doing at the most elevated administration levels than the rest. In any case, impetus pay programs that give workers at all levels of an association an opportunity to advantage when an organization succeeds can actually support inspiration (accepting strong individual execution with the goal one should partake in money related prizes). 2. Taking a real enthusiasm for the future way of a employee’s vocation It does ponders for a worker’s state of mind to trust that a supervisor truly thinks about where his or her profession is going. Tutoring, instructing, proposing extra preparing or coursework - these can be useful to workers, and very esteemed. 3. Taking a sincere enthusiasm for their work-life equalization To the degree that administrators can offer some adaptability in timetables and to be understanding about family duties, medical checkups et cetera – such affectability can be enormously refreshing. Little motions regularly have a major effect. 4. Giving a purpose Managers need to be ready to motivate its workers by giving them a reason. When achieving that, they comprehend the vision better and can execute all the more emphatically. What’s more, by comprehension their motivation and the reason for the business, a worker is better ready to see how they fit into the 10,000 foot view. 5. Being Transparent Trying to be exceptionally open with workers about what’s going on at the most abnormal amount so there are no curve balls and everybody has an opportunity to make inquiries and give input. The representatives need to feel incorporated into major choices and focused on the bearing our organization takes. This has managed inspiration and expanded organization faithfulness and pride. Data When it comes to demographic data, I found out that the percentage of males and females are almost the same (51,06% of males). From the age point of view, the majority was between 18 and 40 years old (57, 45%). Further on, i found out that the majority have finished high school (34, 04%) and graduated from faculty (34, 75%). Looking at income, the majority have an income between 801 and 1600 KM. (50, 35%). The most 186 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation respondents in my research were married (54,61%). At the end, the biggest number of respondents have working experience 10 or more years (35,71%). See Table 1. Table 1: Demographic profile of respondents Demographic profile of respondents Categories Gender Age Level of education Status Monthly income Martial status Working experience Number (#) Percentage (%) Male 72 51,06 Female 69 48,96 18-40 81 57,45 41-60 57 40,34 61 or more 3 2,13 Elementary school or lower 2 1,42 1 - 3 grades of high school 9 6,38 Finished high school 48 34,04 1 - 3 years of faculty 19 13,48 Graduated 49 34,75 Master studies 10 7,09 Phd 4 2,84 Less than 800 KM 43 30,50 801 - 1600 KM 71 50,35 1601 – 2400 KM 20 14,18 2400 KM or more 2 1,42 Single 25 17,73 In relationship 30 21,28 Married 77 54,61 Divorced 6 4,26 Widowed 3 2,13 Less than 1 year 13 9,29 1 – 3 years 34 24,29 3- 5 years 20 14,29 5 – 10 years 23 16,43 10 or more years 50 35,71 ICESoS 2016 - Proceedings Book 187 �International Conference on Economic and Social Studies (ICESoS’16) Average satisfaction among respondents is aroud 3,87 on scale from 1 to 5 and the most frequent grade for satisfaction is 4 (mode). The lower standard deviation is the more data points are centerd around the mean, in this case the standard deviation is 1,1 which means that the numbers in the range are clustered near mean. See Table 2. Table 2: Average job satisfaction I am satisfied with status in firm where I work. Valid 141 Missing 0 Mean 3.87 Median 4.00 Mode 4 Std. Deviation 1.101 Minimum 0 Maximum 5 N Average response in survey which respondents choose when it comes to equal behaviour toward manager and employees processes is 3,82 on scale from 1 to 5 and the most frequent grade for satisfaction is 5 (mode). The standard deviation is 1,29 which means that the numbers in the range are clustered near mean, but less than in previous example. For more details, see Table 3. Table 3: Fair treatment between manager and employees The company where I work treats fairly when it comes to equal behaviour toward manager and employees processes. Valid N Missing 141 0 Mean 3.82 Median 4.00 Mode 5 Std. Deviation 1.291 Minimum 1 Maximum 5 188 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation From Table 4 it can be seen that 31, 9% agree and 23, 4% of respondents strongly agree that their company is constantly improving in employee motivation in order to gain organisational benefit. Table 4: Effects of motivation on organisation The company where I work is constantly improving in employee motivation in order to gain organisational benefit. Cumulative Frequency Percent 4 2.8 2.8 2.8 Disagree 23 16.3 16.3 19.1 I don’t know 36 25.5 25.5 44.7 45 31.9 31.9 76.6 33 23.4 23.4 100.0 141 100.0 100.0 Strongly disagree Valid Agree Strongly agree Total Valid Percent Percent From the Table 5. we can see that 35, 5% agree and 17% of respondents strongly agree that their companies are doing the right thing while controlling the environment in which employees operate on a daily basis. Table 5: Control of the environment The company where I work is doing the right thing while controlling the environment in which employees operate on a daily basis. Valid Cumulative Frequency Percent Percent Percent 6 4.3 4.3 4.3 Disagree 19 13.5 13.5 17.7 I don’t know 42 29.8 29.8 47.5 50 35.5 35.5 83.0 24 17.0 17.0 100.0 141 100.0 100.0 Strongly disagree Agree Valid Strongly agree Total In Table 6. we can see that 37, 6% agree and 27% of respondents strongly agree that their company rationally stimulate and motivate their employees in order to create more productive business environment. ICESoS 2016 - Proceedings Book 189 �International Conference on Economic and Social Studies (ICESoS’16) Table 6: Stimulation and motivation of employees The company where I work rationally stimulates and motivates their employees in order to create more productive business environment. Cumulative Frequency Percent 5 3.5 3.5 3.5 Disagree 17 12.1 12.1 15.6 I don’t know 28 19.9 19.9 35.5 53 37.6 37.6 73.0 38 27.0 27.0 100.0 141 100.0 100.0 Strongly disagree Agree Valid Strongly agree Total Valid Percent Percent Conclusion Employee engagement is drawing in a lot of enthusiasm from businesses over various areas. In some regards it is an exceptionally old yearning – the craving by businesses to discover approaches to expand representative inspiration and to win more duty to the occupation and the association. In some ways it is “new” in that the connection inside which engagement is being looked for is changed. One part of this distinction is the more prominent punishment to be paid if specialists are less connected with than the representatives of contenders, given the condition of worldwide rivalry and the raising of the bar on productivity measures. A second perspective is that the entire way of the significance of work and the guidelines for vocation relations have moved and there is an open space concerning the character of the relationship to work and to association which managers sense can be loaded with more advanced methodologies. In any case, there is motivation to stress over the absence of thoroughness that has, to date, frequently portrayed much work in worker engagement. On the off chance that we keep on referring to “engagement” without comprehension the potential antagonistic results, the centre prerequisites of achievement, and the procedures through which it must be executed, and on the off chance that we can’t concur even to a reasonable meaning of what individuals should be occupied with doing any other way at work (the drew ‘in what’ question), then engagement may simply be one more ‘HR thing’ that is here for a brief span. On a positive note, there is presently a more extensive cluster of estimation methods with which to evaluate patterns in engagement and a related exhibit of ways to deal with impact some change. In this manner, goal can all the more plausibly be deciphered enthusiastically. Making a work environment with brilliant resolve and persuaded representatives is a long haul venture, and should be installed inside the fabric of an organisation’s every day operations. Profoundly energetic and connected with faculty are a colossal advantage for any organisation. Growing all around spurred employees prompts more fulfilled clients and higher deals; this thus prompts more prominent employee inspiration and makes an idealistic circle. Exceptionally energetic employees are liable to be locked in workers, willing to run the additional mile with clients, and to remunerate their managers with dedication, abnormal amounts of profitability, and more prominent development. 190 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Many economic theories recommend that independent from anyone else proprietorship is unrealistic to enormously influence specialist exertion and execution. Proprietorship must be consolidated with employee association and different approaches that give labourers the ability to follow up on possession motivations and the attitude to oppose the propensity to free ride. My examination of labourer reported exertion crosswise over firms and of specialists inside two firms underpins these contentions. I find critical contrasts in specialist evaluation of work exertion crosswise over ESOP firms, demonstrating that even in firms with significant representative possession, different components impact results. Relating specialist reported results to their feeling of proprietorship and a file of HR arrangements demonstrates that possession and HR approaches are both emphatically connected to worker reports of working environment execution, which is itself identified with organization execution. My analysis of employee’s reaction to colleagues who perform inadequately demonstrates that specialists on employee contribution boards of trustees or who generally report being included in setting objectives for their work gathering will probably talk specifically with non-performing labourers and are less inclined to do nothing. Thoughtfully, a comprehension of how representative proprietorship functions requires a three-pronged examination of: (1) the motivators that possession gives; (2) the participative instruments accessible to specialists to follow up on those impetuses; and (3) motivators/corporate society that balances inclinations to free ride. All organizations, whether representative possessed or not, need to consolidate these three components to inspire labourers to execute admirably well. Representative proprietorship gives an unmistakable answer for the impetus issue, however should at present manage the investment and free-riding issues. References • Abadi, F. E., Jalilvand, M. R., Sharif, M., Salimi, G. A., & Khanzadeh, S. A. (2011). A Study of Influential Factors on Employees’ Motivation for Participating in the In-Service Training Courses Based on Modified Expectancy Theory. International Business and Management, 2 (1), 157-169. • Ali, R., & Ahmad, M. S., (2009). The Impact of Reward and Recognition Programs on Employee’s Motivation and Satisfaction: An Empirical Study. International Review of Business Research Papers, 5 (4), 270-279. • Battisti, Pete. Reward to Motivate. Walls & Ceilings. December 2005. • Hohman, Kevin M. A Passion for Success: Employee buy in is the key. Do-It-Yourself • Retailing. February 2006. • Houran, J., & Kefgen, K., Money and Employee Motivation. Retrieved May 10, 2016 from www.2020skills.com • Jun, M., Cai, S., & Shin, H. (2006). TQM practice in maquiladora: antecedents of employee satisfaction and loyalty. Journal of Operations Management, 24, 791812. • Rynes, S. L., Gerhart, B., & Minette, K. A., (2004). The Importance of Pay in employee Motivation: Discrepancies between What People say and what they do. Human Resource Management, 43 (4), 381-394. • Viorel, L., Aurel, M., Virgil, M. C., & Stefania, P. R., Employees Motivation Theories Developed at an International Level. Labor Management, JEL article code:M54: Labor Management, 324-328. • White, Carol-Ann. Expert’s View on Managing Demotivated Employees. Personnel Today. 15, November 2005. ICESoS 2016 - Proceedings Book 191 �� 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. 3327 Title A name given to the resource THE CHARACTERISTICS AND DYNAMICS OF MANAGEMENT CONTROLS IN SMALL AND MEDIUM ENTERPRISES: MEASURING PERFORMANCE ACCORDING TO EMPLOYEE STIMULATION Author Author Huseinbasic, Lejla Abstract A summary of the resource. Abstract: This paper begins with explanation of importance of the control management in organisations and how controlling aspect of organisations plays an important role in achieving organisational’s best interests and goals that are strategically planned. Set of controls need to be implemented in order to decrease undesirable behavior and to encourage desirable actions. Individuals don’t generally comprehend what is anticipated from them nor how they can best perform their employments, as they might do not have some essential capacity, preparing, or data. Also, individuals have various inalienable perceptual and psychological predispositions, for example, a failure to prepare new data ideally or to settle on reliable choices, and these inclinations can decrease hierarchical viability. This paper suggests that the proper stimulation of employees in terms of different types of rewarding can result in higher achievements, both for the employee and the organisation. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/49c638afaab4f7884c5f976f85b9cc75.pdf aa2806ee70d36f9ce713776c1ae3f233 PDF Text Text COMPARISON OF MACHINE LEARNING TECHNIQUES IN PHISHING WEBSITE CLASSIFICATION Adnan Hodžić International Burch University Bosnia and Herzegovina adnan.hodzic@ibu.edu.ba Jasmin Kevrić International Burch University Bosnia and Herzegovina jasmin.kevric@ibu.edu.ba Adem Karadag Turkey nuhadem@gmail.com Abstract: Phishing is one among the luring strategies utilized by phishing artist in the aim of abusing the personal details of unsuspected clients. Phishing website is a counterfeit website with similar appearance, but changed destination. The unsuspected client post their information thinking that these websites originate from trusted financial institutions. New antiphishing techniques rise continuously, yet phishers come with new strategy by breaking all the antiphishing mechanisms. Hence there is a need for productive mechanism for the prediction of phishing website. This paper described comparison in classification of phishing websites using different Machine­learning algorithms. Random Forest (RF), C4.5, REP Tree, Decision Stump, Hoeffding Tree, Rotation Forest and MLP were used to determine which method provides the best results in phishing websites classification. All instances are categorized as 1 for “Legitimate”, 0 for “Suspicious” and ­1 for “Phishy”. Results show that RF with REP Tree show the best performance on this dataset for classification of phishing websites. Keywords: Machine Learning, Phishing Websites Introduction Internet is not only significant for individual users but also for online business organizations. These organizations usually offer online trading(Liu & Ye, 2003). Nevertheless, Internet­ users can be prone to different types of web­threats that can make financial damages, identity theft, loss of private information, brand reputation damage and loss of client’s trust in e­commerce and online banking. Therefore, Internet appropriateness for commercial sales becomes doubtful. Phishing websites is a semantic intrusion which targets the user instead of computer. It is a fairly new Internet crime when compared to other forms, such as virus and hacking. The phishing problem is a tough problem due to the fact that it is extremely easy for an attacker to make a replica of a good website, which looks very authentic to users. ICESoS 2016 - Proceedings Book 249 �International Conference on Economic and Social Studies (ICESoS’16) Phishing attacks usually aim to acquire confidential information like usernames, passwords and financial IDs by tricking users. Phishing attacks typically start by sending an email that appears to come from authentic company to victims requesting them to update or validate their information by visiting a link within the email. The idea is that bait is dropped out hoping that a user will take it and bite into it just like the fish. Usually, bait is an instant messaging website or an e­mail, which will take the user to hostile phishing websites(James, 2005). The motivation behind this study is to make a strong and effective technique which uses Data Mining algorithms and mechanisms to detect phishing websites. Associative and classification algorithms can be very helpful in identifying Phishing websites. It can give us answers about what the most important phishing website features and indicators are and how they link to each other. Comparing between various Data Mining classification and association systems and techniques is also a goal of this study since there are only few investigations that compares different data mining methods in predicting phishing websites. Literature Review Numerous methodologies are being implemented at present to classify phishing websites.(Aburrous, Alamgir, Keshav, & Fadi, 2009) suggests a method for intelligent phishing detection using fuzzy data mining. In this study, e­banking phishing website detection degree is achieved based on six attributes: URL & Domain Identity, Security and Encryption, Source Code and Java script, Page Style and Contents, Web Address Bar, and Social Human Factor. Fuzzy logic and data mining algorithms are applied to classify e­banking phishing websites. (Basnet, Ram, Srinivas, & Sung, 2008) adopts machine learning way for identifying phishing attacks. Support vector machine, biased support vector machine and neural network are used for the effective prediction of phishing e­mails. The objective of this study is to classify phishing emails by combining basic features in phishing emails and utilizing several machine learning algorithms for the classification process. (Mohammad, Fadi, & Lee, 2013) suggested an intelligent prototype for predicting phishing attacks based on Artificial Neural Network. Same authors shed light on the key features that classify phishing websites from real ones and evaluate how good rule­based data mining classification methods are in detecting phishing websites and which classification approach is proven to be more reliable (Mohammad, Lee, & Fadi, 2014). Methodology ● Dataset Dataset used for the research is “Phishing Websites Data Set” (“UCI Machine Learning Repository: Phishing Websites Data Set,” 2016). This dataset was gathered mainly from: PhishTank archive, MillerSmiles archive, Google’s searching operators. 250 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation The authors shed light on the key features that have been proven to be solid and efficient in predicting phishing websites while proposing some new features, experimentally assigning new rules to some well­known features and updating some other features. The dataset is divided into 3 parts, training set and 2 test sets. The training set has 11055 and test sets have 2456 and 2670 instances. All instances are categorized as 1 for “Legitimate”, 0 for “Suspicious” and 1 ­ for “Phishy”. Dataset phishing criteria is divided into 4 sections (Address Bar based Features, Abnormal Based Features, HTML and JavaScript based Features and Domain based Features) and it has 30 attributes. Table 1: Phishing features Features group Features Factor Indicator Using the IP Address Long URL to Hide the Suspicious Part Using URL Shortening Services “TinyURL” URL’s having “@” Symbol Redirecting using “//” Adding Prefix or Suffix Separated by (­) to the Domain Address Bar based Features Sub Domain and Multi Sub Domains HTTPS (Hyper Text Transfer Protocol with Secure Sockets Layer) Domain Registration Length F avicon Using Non­Standard Port The Existence of “HTTPS” Token in the Domain Part of the URL Request URL URL of Anchor Links in <Meta>, <Script> and <Link> tags Abnormal Based Features Server Form Handler (SFH) Submitting Information to Email Abnormal URL Website Forwarding HTML and JavaScript based Features Status Bar Customization Disabling Right Click Using Pop­up Window IFrame Redirection Age of Domain DNS Record Website Traffic Domain based Features PageRank Google Index Number of Links Pointing to Page Statistical­Reports Based Feature ICESoS 2016 - Proceedings Book 251 �International Conference on Economic and Social Studies (ICESoS’16) ● Algorithms Several different machine learning algorithms were used for experiments. 1. Multilayer Perceptron (MLP) Multilayer Perceptron is the most frequently used neural network classifier. MLP is a neural network and a neural network can be described as an artificial neural network which consists of a huge number of interconnected processing components known as neurons that act as a microprocessor. It is a mathematical model for classification of non­linear data into distinct classes. Multilayer Perceptron is the most popular and frequently used neural network design (Bishop, 1995). The MLP is feed­forward network architecture which involves two layers with one or more than one hidden layers; the layers are named as the input layer, hidden layer, the output layer. 2. Random Forest Random forests are a mixture of tree predictors where each tree depends on the values of an arbitrary vector sampled individually and with the same allocation for all trees in the forest. The generalization error for forests converges a.s. to a limit as the amount of trees in the forest becomes great. The generalization error of a forest of tree classifiers hangs on the strength of the individual trees in the forest and the relationship between them (Breiman, 2001). 3. Decision Trees Decision Tree Classification produces the output as a binary tree like construction called a decision tree. A Decision Tree model includes rules to predict the target variable. This algorithm scales well, even where there are changing numbers of training examples and significant numbers of attributes in big databases. a) J48 J48 algorithm is an implementation of the C4.5 decision tree algorithm. J48 uses the greedy technique to induce decision trees for classification (Chen, Zheng, Lloyd, Jordan, & Brewer, 2004). A decision­tree model is built by examining training data and the model is used to classify hidden data b) Reduced­Error Pruning (REPTree) REPTree is a quick decision tree learner. Constructs a decision/regression tree utilizing data gain/variance and prunes it adopting reduced­error pruning (with backfitting). REPTree only sorts values for numeric features once. Missing values are dealt with by splitting the related instances into pieces (i.e. as in C4.5). c) Decision Stump Decision stump is an algorithm for building and using a decision stump. It is typically used in combination with a boosting algorithm. Decision stump algorithm does regression (mean­squared error) or classification (entropy). Missing is handled as a separate value (“DecisionStump”, 2016). 252 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation d) Hoeffding Tree A Hoeffding tree (VFDT) is an incremental, anytime decision tree induction algorithm that can learn from great data streams, supposing that the distribution generating examples does not vary over time. Hoeffding trees uses the fact that a small sample can often be adequate to choose a best splitting attribute. This idea is supported by the Hoeffding bound, which quantifies the number of observations (Hulten, Geoff, Laurie, & Pedro, 2001). 4. Rotation Forest Rotation Forest is an ensemble technique which trains L decision trees separately, using a different set of obtained features for each tree. Rotation Forest (Rodriguez, Kuncheva, & Alonso, 2006) draws upon the Random Forest idea. The base classifiers are also separately built decision trees, but in Rotation Forest every tree is trained on the whole data set in a rotated feature space. While the tree learning algorithm constructs the classification regions using hyperplanes parallel to the feature axes, a small rotation of the axes may guide to a very different tree. ● Feature Ranking Feature ranking was applied through WEKA software using Correlation Attribute Evaluation(“CorrelationAttributeEval,” 2016). It evaluates the value of an attribute by measuring the correlation (Pearson’s) between it and the class. Nominal attributes are measured on a value by value basis by regarding each value as an indicator. A general correlation for a nominal attribute is reached at via a weighted average. We selected all attributes whose weight is above 0.1. Those are: ❏ ❏ ❏ ❏ ❏ ❏ ❏ ❏ ❏ ❏ ❏ ❏ HTTPS URL of Anchor Adding Prefix or Suffix Separated by (­) to the Domain DNS Record Sub Domain and Multi Sub Domains Request URL Domain Registration Length Server Form Handler (SFH) Links in <Meta>, <Script> and <Link> tags Google Index Age of Domain PageRank ICESoS 2016 - Proceedings Book 253 �International Conference on Economic and Social Studies (ICESoS’16) Experiments and Results All experiments were conducted in WEKA tool (“Weka 3 ­Data Mining with Open Source Machine Learning Software in Java,” 2016) which is an open source data mining application created in JAVA at Waikato University. Table 2: Full training set results Classifier Test 1 Test 2 MLP 85.5% 85% Random Forest 85.7% 84.5% C4.5 74.6% 73% REPTree 88.4% 88% Decision Stump 86.1% 87% Hoeffding Tree 87.3% 88.4% Rotation Forest (REP Tree) 89.1% 88.5% Rotation Forest (Hoeffding Tree) 88% 84.6% The results show that Rotation Forest algorithm with REP Tree as a classifier give the best results for both test sets with 89.1% and 88.5% accuracy respectively. Other classifiers were not far behind, except C4.5 with 74.6% and 73% for two test sets. After doing the ranking features with Correlation Attribute Evaluation, we applied the same classifiers. The results are very close to the ones with full training set. Surprisingly, MLP results improved for both test sets to 89% and 86.4%. MLP is also the best classifier for first test set with just 0.1% drop in comparison to Rotation Forest with REP Tree results with the full training set. REP Tree was the best classifier for test set 2 with 87.6% correct classification. The drop in correct classification after feature reduction is applied is 1.17%. 254 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Table 3: Reduced training set results Classifier Test 1 Test 2 MLP 89% 86.4% Random Forest 81.8% 80.2% C4.5 73.9% 73% REPTree 87.1% 87.6% Decision Stump 86.1% 87% Hoeffding Tree 82.1% 83.4% Rotation Forest (REP Tree) 88.9% 87% Rotation Forest (Hoeffding Tree) 87.5% 84% If we compare two result tables, we can see that Rotation Forest with REP Tree as a classifier gives the overall best results with 88.37% correct classification, while MLP outshines all other classifiers when feature reduction is applied. Discussion (Mohammad et al., 2014) conducted the similar feature selection where they selected nine features (Request URL, Age of Domain, HTTPS and SSL, Website Traffic, Long URL, Sub Domain and Multi Sub Domain, Adding prefix or Suffix Separated by (−) to Domain, URL of Anchor and Using the IP Address). If we compare their selected attributes with ours, we can see that we share 6 same features: Request URL, Age of Domain, HTTPS and SSL, Sub Domain and Multi Sub Domain, Adding prefix or Suffix Separated by (−) to Domain and URL of Anchor). Moreover, all of the 30 features fall within 4 different feature groups: Address Bar based Features, Abnormal Based Features, HTML and JavaScript based Features, and Domain based Features. However, none of the 12 selected feature falls within “HTML and JavaScript” based Features. This raises the question whether this group of features is relevant in classification of phishing websites. Conclusion Phishing websites detection has gotten a colossal consideration by greater part of the individuals as it serves to recognize the undesirable data and dangers. Hence, the greater part of the analysts focuses in discovering the best classifier for recognizing phishing websites. This work models the phishing website prediction as a classification task and presents the machine learning approach for predicting whether the given website is legitimate website or phishing. Multilayer perceptron, Decision tree classifiers, and Rotation Forest have been applied for training the prediction model. Training set of 11055 and two test sets of 2456 and 2670 instances with 30 attributes have been ICESoS 2016 - Proceedings Book 255 �International Conference on Economic and Social Studies (ICESoS’16) prepared in order to facilitate training and implementation. From the results it has been found that the Rotation Forest algorithm with REP Tree as a classifier and MLP performs the best on a full training and on reduced set, respectively. When training set was reduced from 30 attributes to 12, the overall results for all classifiers dropped for 1.17%. In the meantime, MLP’s overall results increased from 85.5% to 87.7%. It is hoped that more interesting results will follow on further exploration of data. References • Liu, Jiming, and Yiming Ye. E­commerce Agents: Marketplace Solutions, Security Issues, and Supply and Demand. Berlin: Springer, 2001. Print. • Aburrous, M. R., Alamgir, H., Keshav, D., & Fadi, T. (2009). Modelling Intelligent Phishing Detection System for E­ banking Using Fuzzy Data Mining. In 2009 International Conference on CyberWorlds. http://doi.org/10.1109/cw.2009.43 • Basnet, R., Ram, B., Srinivas, M., & Sung, A. H. (n.d.). Detection of Phishing Attacks: A Machine Learning Approach. In Studies in Fuzziness and Soft Computing (pp. 373–383). • Bishop, C. M. (1995). Neural Networks for Pattern Recognition. Oxford University Press. Breiman, L. (2001). Random Forests. Machine Learning, 45(1), 5–32. • Chen, M., Zheng, A. X., Lloyd, J., Jordan, M. I., & Brewer, E. (n.d.). Failure diagnosis usingdecision trees. In International Conference on Autonomic Computing, 2004. Proceedings. http://doi.org/10.1109/icac.2004.1301345 • CorrelationAttributeEval. (n.d.). Retrieved May 9, 2016, from http://weka. sourceforge.net/doc.dev/weka/attributeSelection/CorrelationAttributeEval. html • DecisionStump. (n.d.). Retrieved May 9, 2016, from http://weka.sourceforge.net/ doc.dev/weka/classifiers/trees/DecisionStump.html • Hulten, G., Geoff, H., Laurie, S., & Pedro, D. (2001). Mining time­ changing data streams. In Proceedings of the seventh ACM SIGKDD international conference on Knowledge discovery and data mining ­KDD ’01. http://doi. org/10.1145/502512.502529 • James, L. (2005). Phishing Exposed. Syngress. • Liu, J., & Ye, Y. (2003). E­Commerce Agents: Marketplace Solutions, Security Issues, and Supply and Demand. Springer. • Mohammad, R. M., Fadi, T., & Lee, M. (2013). Predicting phishing websites based on self­structuring neural network. Neural Computing & Applications, 25(2), 443– 458. • Mohammad, R. M., Lee, M., & Fadi, T. (2014). Intelligent rule­ based phishing websites classification. IET Information Security, 8(3), 153–160. • Rodriguez, J. J., Kuncheva, L. I., & Alonso, C. J. (2006). Rotation Forest: A New Classifier • Ensemble Method. IEEE Transactions on Pattern Analysis and Machine Intelligence, 28(10), 1619–1630. • UCI Machine Learning Repository: Phishing Websites Data Set. (n.d.). Retrieved May 9, 2016, from https://archive.ics.uci.edu/ml/datasets/Phishing+Websites • Weka 3 ­Data Mining with Open Source Machine Learning Software in Java. (n.d.). Retrieved: May 9, 2016, from http://www.cs.waikato.ac.nz/ml/weka/ 256 ICESoS 2016 - Proceedings Book � 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. 3308 Title A name given to the resource COMPARISON OF MACHINE LEARNING TECHNIQUES IN PHISHING WEBSITE CLASSIFICATION Author Author Hodzic, Adnan Kevric, Jasmin Karadag, Adem Abstract A summary of the resource. Abstract: Phishing is one among the luring strategies utilized by phishing artist in the aim of abusing the personal details of unsuspected clients. Phishing website is a counterfeit website with similar appearance, but changed destination. The unsuspected client post their information thinking that these websites originate from trusted financial institutions. New antiphishing techniques rise continuously, yet phishers come with new strategy by breaking all the antiphishing mechanisms. Hence there is a need for productive mechanism for the prediction of phishing website. This paper described comparison in classification of phishing websites using different Machinelearning algorithms. Random Forest (RF), C4.5, REP Tree, Decision Stump, Hoeffding Tree, Rotation Forest and MLP were used to determine which method provides the best results in phishing websites classification. All instances are categorized as 1 for “Legitimate”, 0 for “Suspicious” and 1 for “Phishy”. Results show that RF with REP Tree show the best performance on this dataset for classification of phishing websites. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/37e978cf4ff09117c1045deec0a58515.pdf f756b0d603e556316fcddca5d288d4cd PDF Text Text USING DATABASE AUDIT FOR ANALYZING ON HISTORICAL DATA Adnan Hodžić International Burch University Bosnia and Herzegovina adnan.hodzic@ibu.edu.ba Adem Karadag Turkey nuhadem@gmail.com Abstract: Database auditing is one of the biggest issues in data security. Absence of information auditing drives the business applications to the lost trail of business procedures. To cope with auditing and in order to track operations and the actors of those operations in time, we need historical data or temporary database. Legitimate and exchange times are two important time-stamps in temporary database. In this paper, we show the methods to handle database auditing in business exchange operations, accurate times, and performers of the operations. These strategies are separated in two sets; utilizing relational databases, and utilizing semi-structured information. Keywords: Database Audit, Historical Data Introduction It is very crucial that a company no matter how big is it maintains the security of its information. Since there are many stealing of valuable data such as customers’ credit card data, designs and maybe source codes, the data should be protected all the time. Keeping safe your data is protecting its confidentiality, integrity, and availability. To ensure the data security, there should be a security plan. Authentication and administration can facilitate the security at a point (Mullins & Craig, 2002). However, there is a need to keep log files and check them separately from the database. Thus database audit was introduced to inspect the trail maintenance. Data servers help to create a database audit policy to protect the database safe. In this way, user entries can be controlled. There will be some techniques showing how to make database auditing depend on historical data. This paper divided into 4 parts. In part 2 and 3, there is literature review of historical data and auditing. The outline of auditing of database was described in some ways. We used a relational database (Grad, 2013) to represent the row, column based and log-file auditing strategies. Database Auditing Database auditing includes inspecting a database to control and view the actions of database users. In this way, auditor can see the manipulations, corruptions or glitches on the data. Database audit also refers to a professional database auditing resolutiongiving chance to track and inspect of any database activity involving accessing, login, protection breaches, user activities, insert-delete-change the data. Recently, to supply accurate data auditing a framework has been introduced in respect to data retention strategies. (Lu & Miklau, 2009) Under retention restriction a formula applied to audit data in the protected history. In this way database audit would be more accurate. ICESoS 2016 - Proceedings Book 283 �International Conference on Economic and Social Studies (ICESoS’16) It is important to detect changes that are deviates from standard. To differentiate the normal behaviors on the data and have better results in audit, data mining techniques are generally applied. This method can only detect the static actions of the user. This disadvantage can be affected by tracking all activities of user in an data audit system. As a result, anomaly detection method was introduced to model the normal behavior of the user. (Park & Lee, 2008) In this way normal behaviors can be easily differentiated from suspicious ones. To teach database security and auditing and make the students have better understanding about it, hands –on lab studies are set (Luebbers, Grimmer, & Jarke, 2003) In these studies various database scenario are set to integrate theories of database protection into practices. Historical Data Historical data is the information outlining activity, conditions and trends in a company’s past database. Historical data is often archived, and may be held in non-volatile, secondary storage. Historical data can be useful in helping to predict the future of a company and a market, as when conducting predictive analyses. Table 1: Operational Student Table Referenced By Student-History Table For RowBased Auditing Student Number Name Birth Adress Registration Date Fee 445 Zeynep 10.10.1988 Ankara 15.01.2008 2400 822 Mahmut 12.09.1990 Istanbul 01.09.2010 2600 544 Ayşe 15.05.1991 Istanbul 01.09.2011 2600 It is very significant to detect who made the changes like insertion of a new data, data manipulation or deletion on the database. In this way, a good data audit can be retrieved. The time and the user is important issue to analyze the modification of data. When was the action happened can be answered by valid and transaction times. In a study it is mentioned that valid and transaction times should assure no data loss. (Bhargava & Gadia, 1993) Arranging Historical Data For Auditing On Relational Database There are some ways to design historical data in a relational database (Margaret Rouse, 2015) like separated tables for recording past data and transaction log files. The idea of arranging separated tables for each relational database table is easy way to track to changes for each item. With both strategies there is no change on the original data tables. There are 3 ways that we represent here to supply historical data for auditing database. They are auditing on a row level, column level and logtable. Database Audit on a Row Level Our original relational tables stay same but we create a separate table for each table to apply data audit. Operational “Student” table as shown in Table 1 supplies the current data of each student for operations. There are 2 kinds of data type in this table; 284 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation static and operational data. Static data stays same or rarely change like Student Number, Registration date or Name. Historical or operational data continuously can be updated like address of the student. Static query, which is always used, already stays same to call the data from “Student”. Table 2 is an auditing table that includes all students’ data in the operational table. Two time intervenes needed for valid times. We need to know the beginning and ending time to sustain the life cycle of the data. Besides the valid time, we acquire to have operation type to diminish the complexity of comparison among histories of the same data and the user to make him responsible from the action. History of “Student” table is shown in Table 2. It can be seen from history table that Ali Oz has been a student since 01.09.2005. The user Mustafa updated his fee 2 times by increasing by $100 each and updated address by changing it from Istanbul to Adana. Ali has finished the school and his record deleted from the Student table by Semih. Ahmet moved from Hatay to Ankara on 23.09.2008 and his record terminated on January 2009 by Mustafa. Zeynep’s fee was increased by $100 by Mustafa. Finally, Semih added two new students Mahmut and Ayşe to the Student table. Table 2: Operational Student Table Referenced By Student-History Table For Row-Based Auditing Student Number Name Birth Address 966 Ali 21.04.1986 Istanbul 966 Ali 21.04.1987 966 Ali 855 Regist. Date Fee Begin End O p User 01.09.2005 2300 01.09.2005 01.09.2007 I Mustafa Adana 01.09.2005 2300 01.09.2007 U Mustafa 21.04.1988 Adana 01.09.2005 2450 01.09.2007 23.06.2008 D Semih Ahmet 11.05.1986 Hatay 01.09.2006 2350 21.09.2007 01.09.2008 I Semih 855 Ahmet 11.05.1986 Ankara 01.09.2006 2350 23.09.2008 15.01.2009 D Mustafa 445 Zeynep 10.10.1988 Ankara 15.01.2008 2300 15.01.2008 15.06.2010 I Mustafa 445 Zeynep 10.10.1988 Ankara 15.01.2008 2400 15.01.2008 U Mustafa 822 Mahmut 12.09.1990 Istanbul 01.09.2010 2600 01.09.2010 I Semih 544 Ayşe 15.05.1991 Istanbul 01.09.2011 2600 01.09.2011 I Semih Operational table and audit table records are identical. Data is repeated in different rows but this is kept for the sake of historical query. Database audit on a row level has some advantages and drawbacks. It is easier to apply auditing. When the user wants to insert, update or delete something from the operation table, the program can simply copy the all value in the record into the historical table. Besides, the end column should be updated with the operation. This operation can be achieved by the database as used in (Yang, 2009) article. Drawbacks can be mentioned that redundancy makes the system complicated. Also, calling historical data is needed to the comparison between operational table and auditing table by using recursive query. ICESoS 2016 - Proceedings Book 285 �International Conference on Economic and Social Studies (ICESoS’16) SELECT S1.fee, MINS, MAXS, S1.USER, OPERATION FROM Student_HISTORY_R S1, ( SELECT S2.fee, MIN(S2.begin) MINS, MAX(S2.end) MAXS FROM Student_HISTORY_R S2 WHERE Student Number = 966 GROUP BY fee) S3 WHERE S1.fee = S3.fee Database Audit on Column Level Column level audit is not including redundant data as seen in the row level audit. This historical table does not contain static data like birth date and registration date. The auditing table just sustains the changed data except primary key like student number. This is required to save the data in the operational table. Student history in Table 3 keeps just the changed data and it is less redundant than the Table 2. The student number 966 Ali moved from Istanbul to Adana on 01.09.2007 got raised fee from 2300 to 2450 on 01.09.2007. Selecting not-null value on a particular auditing column in SELECT statement would display only the actual change. For example, SELECT fee, begin, end, USER, OPERATION FROM Student_HISTORY_C WHERE Student Number = 966 AND fee IS NOT NULL The query displays the auditing of Ali’s fee. Comparing with row-based auditing on the same query, the SELECT statement is much less complex. Each record in column-based auditing table cannot contain more than one value of historical data because of the uncertainty of end time of each auditing data. Table 3: Student_History_C Table Using Column-Based Auditing Student Number Address 966 966 Begin End Operation User Istanbul 01.09.2005 01.09.2007 I Mustafa Adana 01.09.2007 U Mustafa 966 Fee 2450 01.09.2007 23.06.2008 D Semih 855 Hatay 21.09.2007 01.09.2008 I Semih 855 Ankara 23.09.2008 15.01.2009 D Mustafa 445 Ankara 2300 15.01.2008 15.06.2010 I Mustafa 2400 15.01.2008 U Mustafa 445 822 Istanbul 2600 01.09.2010 I Semih 544 Istanbul 2600 01.09.2011 I Semih 286 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Since it is less complicated column level audit is faster. Less disk space is used also. However, many NULL values would cause other issues when writing queries Auditing on Log Table A log table that tracks changes to a system are also referred audit as it gives a bunch of information like user, data, time of execution that can be used to audit a system. Relational Database Management Systems (RDBMS)’s like audit option like in DB2 (IBM Knowledge Center, 2015), SQL (Stankovic, 2016) and ORACLE Servers (Stackowiak, Bales, & Greenwald, 2004) and facilitate database administrators to sustain an audit trail (Logging, Auditing, and Monitoring the Directory) and saved it in a log file. However, log tables are not keeping the finished time to program. To prevent this, there may be two ways. Column Based Log Audit Tables for Operation Logs We need to isolate auditing log data from the operational data. To do this, we make additional table for each auditing column. For instance, if ADDRESS and FEE columns in the STUDENT table are auditing columns, we make ADDRESS and FEE tables for auditing purposes as appeared in Table 4 and Table 5. There are some advantages about this way. First, it decreases the amount of auditing data and it makes it easier to analyze the tables. However, the number of independent tables may increase. Table 4: Audit Log Table For Address PK Student Number Adress Begin End 1 966 Istanbul 01.09.2005 01.09.2007 2 966 Adana 01.09.2007 3 855 Hatay 21.09.2007 4 855 23.09.2008 5 822 Istanbul 6 544 Istanbul OP User I Mustafa U Mustafa 01.09.2008 I Semih 15.01.2009 D Mustafa 01.09.2010 I Semih 01.09.2011 I Semih ICESoS 2016 - Proceedings Book 287 �International Conference on Economic and Social Studies (ICESoS’16) Table 5: Audit Log Table For Fee PK Student Number Fee Begin 1 966 2300 01.09.2007 2 966 2450 01.09.2007 3 445 2300 15.01.2008 4 445 2400 5 822 6 544 End Op User U Mustafa 23.06.2008 D Semih 15.06.2010 I Mustafa 15.01.2008 U Mustafa 2600 01.09.2010 I Semih 2600 01.09.2011 I Semih One Log Audit Table for Operation Logs To join audit data into one spot, we coordinate each auditing column from all operational tables into one single auditing log table. The audit log table makes out of name of table and column, Student ID of the record in the operational table, changed value, begin time, operation that causes the change and name of user who controls this data. Case of single audit log table of the database containing Student and Faculty tables is appeared in the Table 6. All changes made on the tables is built into the single audit log table. A solitary insertion of Student number 966 into Student table makes the insertion into audit log table two times; one log record for ADDRESS and another for Fee if Student table has two auditing columns. Upgrading on an auditing trait will embed an auditing record into the log table. You can see same action like in insertion; deletion of a record will be logged twice into audit log table if there should be an occurrence of two auditing columns, for example, deletion of Student 966 in Table 6. Table 6: One Audit Log Table For Every Table; Student And Faculty In Database PK Student Number Table Column Value Begin 1 966 Student Address Adana 01.09.2007 2 966 Student Fee 2450 4 855 Student Address Hatay 5 855 Student Fee 6 445 Student 7 445 8 9 Op User I Mustafa 23.06.2008 D Mustafa 21.09.2007 01.09.2008 I Semih 2350 23.09.2008 15.01.2009 D Semih Address Ankara 15.01.2008 15.06.2010 I Mustafa Student Fee 2300 15.01.2008 I Mustafa 445 Student Fee 2400 01.09.2010 U Semih 822 Student Address Istanbul 01.09.2010 I Semih 288 ICESoS 2016 - Proceedings Book End 13.04.2011 �Regional Economic Development: Entrepreneurship and Innovation 10 822 Student Fee 2600 01.09.2010 I Mustafa 11 544 Student Address Istanbul 01.09.2011 I Mustafa 12 544 Student Fee 2600 01.09.2011 I Semih 13 221 Faculty Manager 108 01.01.2012 I Semih 14 103 Faculty Manager 120 21.06.2013 U Mustafa Audit log table is expansive if there are numerous auditing columns from various tables. Separating the data in columns and having a solitary audit log table for every subsystem are suggested. Both methodologies require additional handling for each operation at the databases, particularly, the auditing data. Of course, database motors have as of now controlled log tables. With this additional handling, the general framework will be slowed down. Conclusion Operation tables and auditing tables should be apart from each other. In this way database engine could be much faster in running the auditing query when we compare a table includes both operational and auditing data. Overhead of checking which partition will be used against the query is added to execution time. Also, database administrator would manage the database management system easier. There are many options for auditing database. Some solutions are appropriate for relational databases. On the other hand, marketing databases are mostly using semistructured databases. Database auditing is one of the crucial issue for a company to maintain its’ not only security-related concerns but also performance and reliability. Monitoring and recording of selected user database actions determine the future of the company’s business. Overall, security and reliability of the data can be sustained by a good database auditing method References • Bhargava, G., & Gadia, S. K. (1993). Relational Database Systems with Zero Information Loss. 5 (1), 76- 87. • Grad, B. (2013). Relational Database Management Systems: The Business Explosion. IEEE Annals of the History of Computing archive , 35 (2), 8-9. • IBM Knowledge Center. (2015, January 15). Retrieved April 30, 2016, from ibm. com: http://www.ibm.com/support/knowledgecenter/#!/SSEPGG_8.2.0/ welcome.html • Lu, W., & Miklau, G. (2009). Auditing a Database Under Retention Restrictions. IEEE Inter. Conf. on Data Eng. (pp. 42-53). ICDE. • Luebbers, D., Grimmer, U., & Jarke, M. (2003). ystematic Development of Data Mining- Based Data Quality Tools. proc. of the 29th VLDB Conference, (pp. 548 - 559). Berlin. • Margaret Rouse. (2015). Relational database management systems (RDBMS). Retrieved April 5, 2016, from TechTaregt: http://searchsqlserver.techtarget.com/ definition/relational-database-management-system ICESoS 2016 - Proceedings Book 289 �International Conference on Economic and Social Studies (ICESoS’16) • Mullins, & Craig. (2002). Database administration: the complete guide to practices and procedures. Addison-Wesley. • Park, N. H., & Lee, W. S. (2008). Anomaly Detection over Clustering Multidimensional Transactional Audit Streams. IEEE International Workshop on Semantic Computing and Applications (pp. 78-80). IWSCE. • Stackowiak, R., Bales, D., & Greenwald, R. (2004, August 26). Oracle Docs. Retrieved April 30, 2016, from docs.oracle.com: http://download.oracle.com/ docs/cd/B14099_19/idmanage.1012/b14082/logging.htm#i126963 • Stankovic, I. (2016, April 5). SQL Server Audit (Database Engine). Retrieved April 30, 2016, from msdn.microsoft.com: https://msdn.microsoft.com/en- us/en%20 us/library/cc280386.aspx • Yang, L. (2009). Teaching Database Security and Auditing. SIGCSE, (pp. 241-245). 290 ICESoS 2016 - Proceedings Book � 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. 3307 Title A name given to the resource USING DATABASE AUDIT FOR ANALYZING ON HISTORICAL DATA Author Author Hodzic, Adnan Karadag, Adem Abstract A summary of the resource. Abstract: Database auditing is one of the biggest issues in data security. Absence of information auditing drives the business applications to the lost trail of business procedures. To cope with auditing and in order to track operations and the actors of those operations in time, we need historical data or temporary database. Legitimate and exchange times are two important time-stamps in temporary database. In this paper, we show the methods to handle database auditing in business exchange operations, accurate times, and performers of the operations. These strategies are separated in two sets; utilizing relational databases, and utilizing semi-structured information. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/43ac604140166a423d1f160b7537e33f.pdf 809c0c05604f7e21080d7fab4ea13105 PDF Text Text THE EFFECTS OF FAMILY AND NURSERY COOPERATION IN THE NORTH SANDZAK REGION Zehra Hasanović International University of Novi Pazar Serbia zehra.hasanovic@live.com Summary: For normal growth and development of a child, particular, is cooperation of preschool institution (nursery, infant nursery) and family (parents). Better cooperation of these two institutions, the way of harmonization educational influence with individual and group contacts are opened. Objectives of this cooperation is better informing to stay of children in family and preschool institution was more substantial. Results of this research will be support to better solving of these problems, and it will open possibilities for getting acquainted all protagonists of this process with possibilities and perspectives for building strong connections and relations between family (parents) and preschool institutions (preschool teachers). The research on theme “The effects of family and nursery cooperation in the North Sandzak region” ,was realized in preschool institutions on the North Sandzak region (Novi Pazar, Sjenica, Tutin, Prijepolje). In the research participated 140 examinees, 80 parents of the children attending preschool institution and 60 preschool teachers who are employees of preschool institutions. Key words: cooperation, family, nursery, child, partnership Introduction In order to achieve a direct cooperation, special responsibility is on teachers, (but also on preschool teachers, psychologists, social workers and medical personnel). The same responsibility in the process of establishing good cooperation between families and preschools is on parents who are obliged, among other things, to make preschool teachers familiar about the status and activities of the child in the family, about the conditions of child’s life and work, the abilities and possibilities of its development in the family. Good and bad opportunities in the family are often the cause of the child’s special features in behavior which is a clear sign that the child needs the support and assistance. Parents will provide the necessary information to the preschool teachers in order to avoid the possibility of insincere or imagined children’s stories about the real situation in the family. Thus, parents and teachers together are obliged to exchange opinions about the child and his behavior, in order to overcome inappropriate behavior of a child. Parents and teachers will communicate during individual parentteacher meetings, visits to the parental home, and through adequate educational seminars and forums. The most common form of cooperation of the family (parents) and preschools (nursery schools) is individual informing that takes place during the meetings of preschool teachers and parents when they meet each other in person and exchange the necessary information and agree on methods and contents of the joint work of each of these institutions. ICESoS 2016 - Proceedings Book 193 �International Conference on Economic and Social Studies (ICESoS’16) With the cooperation, both sides are getting close to each other, they talk, they learn and create a joint strategy with the aim of better growth and development of the child. The teacher and parents on both sides gain experience based on the experiences of the other. Preschools should work on a constant conversations with the family of a child who goes to preschool, which will mean a lot for a child. The teacher will look for reasons and initiate a visit to the child’s home, during occassions such as illness or family member, the enlargement of the family and so on. When visiting the home of the child, teacher will have the opportunity to get to know the conditions in which the child resides and develops, and finally meet the child’s family. In the overall life and work (content) of the preschools, the relationship (cooperation) between the preschools and schools is significant in order for a child to have less painful transition from preschool to school environment. The continuous monitoring of the child’s vertical development is developing and strengthening cooperation between preschool teachers and teachers of the class teaching school the child will attend after their stay in preschool. It can be direct or indirect. First, a direct cooperation between preschools and schools needs to be realized, and then the level of cooperation reduces down to preschool teachers and school teachers who will take over the child out of preschool in the next year. The cooperation is achieved in a way that school teachers organize joint visits to old school educational groups and share their experiences about the problems that are common. On the other hand, school teachers can organize visits to preschools (nursery schools) with the aim of exchanging experiences on issues of common interest for children who are students of the school, and previously stayed in the preschool. With such cooperation, preschool teachers acquire the necessary experience to contribute to their quality of work, and on the other hand, teachers in schools get to know children better, as well as the forms and methods of work in preschools. Society, community, and especially parents expect from educational institutions for children of preschool age to be open to the educational environment, including in its scope of work of all the factors of society who show interest, and family as well. Therefore, we believe that cooperation (partnership) of the preschools and family is very important in order to achieve, above all, unified educational influence in the way of the planned program content. In the large part of their daily activities, child remains within the family that leaves a strong influence on its development. The influence of the family does not stop regardless of the absence of the family, and its presence remains in the preschool upbringing and educational institutions. The importance of cooperation between the family and preschool institutions Society, community, and especially parents, expect from educational institutions for education of children of preschool age to be open to the educational environment, including in its scope of work of all the factors of society who show interest, and family as well. Therefore, we believe that cooperation (partnership) of the preschools and family is very important in order to achieve, above all, unified educational influence in the way of the planned program content. In the large part of their daily activities, child remains within the family that leaves a strong influence on its development. The influence of the family does not stop regardless of the absence of the family, and its 194 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation presence remains in the preschool upbringing and educational institutions. How much success we will have in the upbringing of the child largely depends on the compliance of corrective actions of the families and preschool institutions. Noncompliance and non-cooperation of the two institutions (family and preschools) can result in a lack of proper development of the child and the inability to set the society goals. Only joint action, working together of families and preschools can result in a positive outcome recognized in the substantial achievements of preschool education. Upbringing activity in preschools must not be a substitute for family, but should stand for continuity in the upbringing of the child. Educational work in the family should provide support to the family and the two environments should have unique requirements that will be put in front of a child. In order to prevent the upbringing imbalance, the two institutions must cooperate directly. Preschool institution is more organized than family, more comprehensive and more professional. Programming work and expertise of educational staff is a characteristic of education of children in preschool institutions. But the family certainly achieves a particular impact on preschool institution. It is therefore important to introduce the family (parents) with the program content, content, goals and objectives and the overall possibilities of educational work in preschool, so that parents can be able to define their goals. Family (parents) in different ways can provide help and support to preschool in the realization of the planned program content. For Stevanovic (2001), this help can be identified in familiarizing teachers with the “basic terms of temperament and habits of the child, interpreting its cultural, civilizational and value judgments that they want to convey to the child, suggest program content, assist in the development of appropriate teaching materials and directly participate in the implementation of certain program content. “ (Stevanovic, 2001, p. 137) The ability of teachers to ensure cooperation with parents of the children who go to preschool and to earn the trust of parents as a way of mutual understanding is of a particular importance. Kamenov (1999) considers that “parents have more benefits from cooperation with the preschool institution if they are not prone to get involved in its life and work, and even if they get involved, their presence can create the problem to the preschool teacher, because he\she has to share the attention between the children he\she is primarily responsible for, and parents who need help in order to successfully manage within the terms of preschool institutions “(Woodhead, 1979. According to E. Kamenovo 1999) According to Omerovic, successful cooperation of parents and teachers is “contributed by the human qualities which every preschool teacher should possess, ability to grasp the deeper meaning, empathy and tolerance. Since preschool institution is the first one with which parents establish cooperation to ensure proper upbringing of their child, it is one more reason for its successful functioning“. Research methodology The base of the realization of the object in this study is the attitudes of parents and preschool teachers regarding the parental cooperation with the preschool in the North Sandzak. Thus, the subject of this study is to research, analyze and to present the following views: a) The views of parents about the communication of parents and preschool teachers, about the need to exchange information about the child with respect ICESoS 2016 - Proceedings Book 195 �International Conference on Economic and Social Studies (ICESoS’16) to gender, age and place of residence, on the participation of parents at parent-teacher conferences, their participation in deciding important issues of preschool, all in regards of their gender, age and place of residence. b) The views of preschool teachers regarding the communication of parents and preschool teachers, about the need to exchange information about the child, on the participation of parents at parent-teacher conferences, their participation in deciding important issues of preschool, all in regards of their gender, age and place of residence. The main hypothesis: There is no statistically significant difference in the perception of parents and preschool teachers to parental cooperation with the preschools within the area of the North Sandzak. Research Techniques The techniques used in this research are: - Analysis of the pedagogical documentation Interviewing Scaling Statistical analysis of the data. The software package SPSS 16.0 (Statiscical Package of Social Sciences-for Windows). Research Instruments During this study a questionnaire and Likert five-point scale assessment were used. The questionnaire contains closed questions with multiple choice, from which we see gender, age, educational background and work experience, and with the scale of assessment we got answers that led us to the factors of cooperation of the family and preschool (nursery schools), communication of parents and preschool teachers, ability to provide good information for parents, participation in parent-teacher conferences, parental participation in the activities of the preschool, as well as issues that are involved because of the insufficient cooperation of teachers and parents. The sample The sample comprised 60 teachers from preschools (nursery schools) from the municipalities of Novi Pazar, Sjenica, Tutin, Prijepolje, and 80 parents of children in preschools (nursery schools) from the territory of the same municipalities. Analyis and interpretation of the research results Checking the reliability of the scale according to the assessment of parents, from the 7 indicators of communication of the parents with preschool Table 1 Cronbach’s coeffici ALPHA = 0.751, indicates a good reliability and internal approval of the scale for this sample of respondents, regardless of measuring gauge having less than 10 items. The average value of the correlation between pairs ofthe value of the scale is 0.39 (optimum between 0.20 and 0.40). 196 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Table 1: Measures of central tendency, variability and distribution of the frequency features of communication of parents with preschool teacher. 1 2 3 4 5 Indicator N M SD )%( )%( )%( )%( )%( KRSU1 80 4,59 74, 2,60 0,00 0,00 31,20 66,20 KRSU2 80 4,46 75, 0,00 3,80 3,80 35,00 57,40 KRSU3 80 4,64 51, 0,00 0,00 1,20 33,80 65,00 KRSU4 80 4,64 53, 0,00 0,00 2,60 31,20 66,20 KRSU5 80 4,58 50, 0,00 0,00 0,00 42,50 57,50 KRSU6 80 3,79 1,36 8,80 13,80 10,00 25,00 42,40 KRSU7 80 4,02 1,07 5,00 5,00 10,00 42,50 37,50 A calculated arithmetic mean (M) of all indicators of 4.39 indicates that the communication of parents with preschool teachers, as assessed by parents, is very important. The value of the standard deviation (SD) of 0.78 indicates that the scattering around the arithmetic mean is very little, as confirmed by the coefficient of variation (CV) of 17.77 and thus confirms a very good homogeneity of the results for this sample of respondents. With the analysis of the results in Table 1 we can see that parents respond mainly with 4 and 5 (agree and strongly agree), while two parents (2.60%) did not agree with this assertion. Therefore, we conclude that the respondents (parents) in the vast majority believe that the teacher is always ready to listen to parents and that parents can talk openly with a preschool teacher about the child. The analysis of the results in Table 1 shows that parents mostly responded with the answer given under number 5 (strongly agree -57.40%), therefore most of them are satisfied with informing on the progress of the child by teachers, 35.00% agree, while 3.80 % of parents had no opinion (neutral), and 3.80% of parents do not agree with this assertion. Therefore, we conclude that respondents (parents) mostly believe that parents are kept continually informed of the progress of their child. The analysis of the results in Table 1 shows that parents mostly gave an answer under number 5 (strongly agree) (65.00%), 33.80% of parents agree with this assertion, a small number of parents (1.20%) is neutral (no opinion) on topics related to their child. Therefore, we conclude that parents respect the opinion of teachers on topics related to their child. The analysis of the results in Table 1 shows that most of the parents answered with number 5 (66.20%), 31.20% of them agree, 2.60% is neutral. Therefore, we conclude that parents mostly believe that the teacher is ready to listen to parents and to talk to them openly. ICESoS 2016 - Proceedings Book 197 �International Conference on Economic and Social Studies (ICESoS’16) The analysis of the results in Table 1 shows that most parents answered with number 5 (57.50%), 42.50% of them agree with this assertion. Therefore, we conclude that parents mostly believe that the teacher respects the opinion of the parents of the child. The analysis of the results in Table 1 shows that the majority of parents (42.40%) totally agree that they preschool teacher calls them only when a problem arises, 25.00% of them agree, 10.00% is neutral, 13.80% disagree and 8.80% of them do not at all agree that the preschool teacher contacts them only when a problem occurs. Therefore, we conclude that the majority of respondents believe that the preschool teacher contacts them only when a problem occurs. The analysis of the results in Table 1 shows that the majority of parents (42.50%) agree that preschool teacher sees them as partners, 37.50% fully agree, 10.00% of the parents is neutral (no opinion), 5.00% disagrees and 5.00% do not at all agree that the preschool teacher sees them as partners. Therefore, we conclude that the majority of respondents believe that the preschool teacher sees parents as partners. T-test Table 2: Communication of the parents with the preschool teacher Parameters KRSUZ gender N M SD M 23 4,31 50, Ž 57 4,42 54, Razl. M -,11 F .Sig .t-value .Sig ,156 ,694 -,826 ,411 The value of t = -, 826 and its significance Sig. = 411 show that there is no statistically significant difference between the attitudes of parents in regards to their gender in the perceptions of communication of the parents and preschool teachers. So, based on the results we conclude that the sub-hypotheses confirmes that there is no statistically significant difference, as estimated by the parents, regarding the communication of parents and teachers in regards to gender, age and education level. ANOVA Table 3: The views of parents about the communication with the preschool teacher –F-test Parameter N df F .Sig Communication 80 3 2,646 ,055 The value of F-test and its significance (Sig.) show that there is no statistically significant difference between the parents in terms of age. 198 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Table 4: The views of parents on communicating with the preschool teacher comparing significance AGE MD SE .SIG -,756* ,370 ,045 -,958* ,376 ,013 -,905* ,418 ,034 ,756* ,370 ,045 36-45 -,202 ,125 ,109 46-55 -,149 ,223 ,505 ,958* ,376 ,013 ,202 ,125 ,109 26-35 18-25 36-45 46-55 18-25 18-25 26-35 36-45 35 2646-55 ,053 ,231 ,820 ,905* ,418 ,034 26-35 ,149 ,223 ,505 36-45 -,053 ,231 ,820 18-25 46-55 Note: The level of significance from 0,05 * - there is a statistically significant difference at the level of p < 0,05 Based on the results from the Table 4 we can see that there are significant differences between the age groups of 18-25 years and 26-35 years, between 18-25 and 3645 years, and between 18-25 and 46-55 years when it comes to communication of parents with the preschool teacher. The difference between the other age groups was not statistically significant. Thus, we can conclude that sub-hypotheses is partially confirmed, saying that there is no statistically significant difference, as estimated by the parents, in the communication of parents and teachers with respect to gender, age and education level Table 5: F-test in regards to the level of education Parameter N Df F .Sig Communication 80 4 ,704 ,592 With the analysis of Table 5 we can see that there is no statistically significant difference between respondents according to education level when it comes to the first subhypotheses. ICESoS 2016 - Proceedings Book 199 �International Conference on Economic and Social Studies (ICESoS’16) Table 6: Comparing the significance in regards to the level of education LEVEL OF EDUCATION MD SE .SIG ,146 ,176 ,410 Higher ,007 ,283 ,980 Faculty -,023 ,191 ,906 MA and PHD ,464 ,407 ,257 -,146 ,176 ,410 Higher -,138 ,253 ,586 Faculty -,168 ,142 ,239 MA and PHD ,319 ,386 ,412 -,007 ,283 ,980 Secondary ,138 ,253 ,586 Higher -,030 ,264 ,910 MA and PHD ,457 ,445 ,308 ,023 ,191 ,906 Secondary ,168 ,142 ,239 Higher ,030 ,264 ,910 MA and PHD ,487 ,393 ,219 -,464 ,407 ,257 Secondary -,319 ,386 ,412 Higher -,457 ,445 ,308 Faculty -,487 ,393 ,219 Primary Secondary Higher Faculty MA and PHD Secondary Primary Primary Primary Primary Note: The level of significance from 0,05 On the basis of the results obtained, we can conclude that there is no statistically significant difference between the examinees in regards to the level of education when it comes to communication of parents with the preschool teachers and thus confirmed the third part of the first sub-hypotheses that there is no statistically significant difference, as estimated by the parents, about the communication between parents and teachers with regard to gender, age and place of residence. Based on the results of research, we can conclude that the sub-hypotheses is confirmed that there is no statistically significant difference, as estimated by the parents, about the communication of parents and teachers with respect to gender, age and education level. 200 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Conclusion Cooperation and communication of the family (parents) and preschool institutions is very important. This opens the way of harmonizing the educational impact of individual and group contacts. Preschool teachers have a big responsibility in performing a direct cooperation with parents. There are, of course, preschool teachers, psychologists, social workers and doctors. Preschool teachers and school departments inform parents (family) on special preferences (and talents) of their children, as well as about the unexpected change of behavior because of the known or unknown causes. Events in the family are often the cause of the child’s special features in behavior which is a clear sign that the child needs the support and assistance. Parents will provide the necessary information to preschool teachers in order to avoid the possibility of insincere or imagined children’s stories about the real situation in the family. So on the basis of the results we can conclude that the main hypothesis of this research is partly confirmed and it says: There is no statistically significant difference in the perception of parents and preschool teachers to parental cooperation with the preschools in the North Sandzak. Bibliography • Bašić, J., Hudina, B., Koler-Trbović, N., Žižak, A. (2005): Integralna metoda, Aliea, Zagreb. • Brajša, P. (2003.), Roditelji i djeca, Glas Koncila, Zagreb • Einon, D. (1999). Učenje rano. Oznaku Knjige. ISBN: 0816040141 • Gudjon, H. (1994) Pedagogija temeljena znanja (93-107; 143-160). Educa. Zagreb • Lew, A.& Bettner, B. (1996) A roditelja vodič za razumijevanje i motiviranje djece. Sheffield, Velika Britanija: Connexions Press. (ISBN: 0962484180). • Holt. J.(1974). Kako deca uče. Predškolsko dete. Beograd: 1974/4.341-343. • Ivic, I.(1969). Razvoj saznajnih funkcija u predškolskom periodu, Pedagogija, Beograd. • Kamenov, E.(2006): Vaspitno-obrazovni rad u pripremnoj grupi dečjeg vrtića, Dragon, Novi Sad. Sally • Kamenov, E.(1987). Predškolska pedagogija, Knjiga I. Beograd: Zavod za uđbenike i nastavna sredstva • Milanović, M. (1997) Pomozimo im rasti. MOZS. Zagreb • Mitrović, D. (1981). Predškolska pedagogija. Sarajevo: Svjetlost. • Omerović, M. i drugi. (2009). Predškolska pedagogija, Ofset, Tuzla. • Selimović, H., Rodić, N. i Selimović, N. (2013). Metodologija istraživanja, Edukacijski fakultet, Travnik • Seligman, M.(2005) Optimistično dijete. Zagreb. IEP • Stevanović, M. (2001). Predškolska pedagogija, knjiga I. Tuzla: Denfas. • Stojaković, P. (1999). Taksonomija vaspitno-obrazovnih ciljeva u kognitivnom području i njen značaj za efikasniju individualizaciju učenja i nastave. U knjizi: Interaktivno učenje I. Banja Luka:Ministarstvo prosvjete I UNICEF. 119. • Suzić, N. (2005). Pedagogija za XXI vijek. Banja Luka: TT-Centar.129. • Suzić, N. (2006). Uvod u predškolsku padagogiju i metodiku, Banja Luka: XBS.202140. • Prodanović, T., Ničković, R. (1980): Didaktika, Beograd, Zavod za izdavanje udžbenika. ICESoS 2016 - Proceedings Book 201 �� 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. 3338 Title A name given to the resource THE EFFECTS OF FAMILY AND NURSERY COOPERATION IN THE NORTH SANDZAK REGION Author Author Hasanovic, Zehra Abstract A summary of the resource. Summary: For normal growth and development of a child, particular, is cooperation of preschool institution (nursery, infant nursery) and family (parents). Better cooperation of these two institutions, the way of harmonization educational influence with individual and group contacts are opened. Objectives of this cooperation is better informing to stay of children in family and preschool institution was more substantial. Results of this research will be support to better solving of these problems, and it will open possibilities for getting acquainted all protagonists of this process with possibilities and perspectives for building strong connections and relations between family (parents) and preschool institutions (preschool teachers). The research on theme “The effects of family and nursery cooperation in the North Sandzak region” ,was realized in preschool institutions on the North Sandzak region (Novi Pazar, Sjenica, Tutin, Prijepolje). In the research participated 140 examinees, 80 parents of the children attending preschool institution and 60 preschool teachers who are employees of preschool institutions. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) 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. 3518 Title A name given to the resource SOCIAL CRITICISM IN FAHRENHEIT 451 by RAY BRADBURY Author Author Harmaoğlu, Özhan Abstract A summary of the resource. Fahrenheit 451 is a dystopian novel by Ray Bradbury published in 1953. It is regarded as one of his best work. When examining Fahrenheit 451 as a piece of dystopian fiction, a definition for the term “dystopia” is required. In Merriam Webster dictionary, the term “dystopia” is defined as “an imaginary place where people lead dehumanized and often fearful lives. Dystopia is often used as an antonym of “utopia”, a perfect world often imagined existing in the future. A Dystopia, therefore, is a terrible place. Accordingly, one of the major themes of the novel is “censorship”. Owing and reading books are forbidden and thought to be unnecessary. Members of society focus only on entertainment, mostly watching T.V, immediate gratification and speeding through life. Compared to the situation of our society today, the similarities can easily be seen. Perhaps reading books aren’t still forbidden but the importance of reading is fading away gradually and thought to be unnecessary and boring especially by most young generations whose only concern is social networks. The principal objective of this paper is to explain some ideas that work as social criticism in the novel. It will further explain how Bradbury criticizes society, what messages the characters give and then unfold what is being criticized in the future is actually very similar to what exists in our world today. The entire paper will give an effective explanation of social criticism of the novel by comparing the social criticism of the novel to other dystopian novels such as George Orwell’s “1984”. Keywords: Social criticism, Fahrenheit 451, censorship, dystopia Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/d0156ca76a02c2a01953d2be5e1011b9.pdf f49fc39084ad285405df3958b86c4672 PDF Text Text BENEFIT ANALYSIS OF A DEVELOPING MARKETS STOCK EXCHANGE MERGERS: CASE OF A BORSA ISTANBUL AND SARAJEVO STOCK EXCHANGE Sanel Halilbegovic International Burch University Bosnia and Herzegovina sanel.halilbegovic@ibu.edu.ba Abstract: Whether due to mentality or the lack of investment ‘culture’, but people in the Balkans have certain repulsion towards investing in financial instruments offered by the local exchanges. Based on the public opinion one can conclude that most of the people are reluctant to invest in the financial instruments because they can’t rely on the trustworthiness and credibility of the local exchanges, due to corruption scandals, misconduct and wrongdoings that happened in the recent history. Since its inception, Sarajevo Stock Exchange has been suffering from extremely low volume and poor investment liquidity that in the end resulted with choppiness and overall instability in the market. Turkey’s main stock exchange, Borsa Istanbul, which is 80 times larger than SASE, has openly expressed interest in direct cooperation with Sarajevo Stock Exchange and that strategic move can certainly reduce or even eliminate problems local investors face. This study examines the effect of benefits and costs of the cooperation between Borsa Istanbul and Sarajevo Stock Exchange (SASE). Multiple facets of the benefits and costs are examined and their effect on the macro and micro scale. Macro effects of the raising stake of Borsa Istanbul in SASE include effects on government, municipality and overall economic level, while micro effect is the direct effect to the ‘end-consumer’, a small investor. The secondary data will be used in analysis of benefits to costs with the side by side comparison and eventual derivation of the Benefit/Cost ratio (BCR) that will test the hypothesis that benefits highly outweigh the costs in this cooperation. The research shows that raising the stake of Borsa Istanbul in SASE will bring a new level of professionalism and trust in a corruption and unprofessionalism ridden SASE. In addition Borsa Istanbul will open new market horizons to investors from Bosnia and as an outcome we should see and increase in market liquidity, trading volume and even the BDP of both countries. Keywords: Emerging stock markets, cross listing, stock market merger JEL Classification: F15, F62, G15, G24 Introduction At its inception in late 90’s, Sarajevo Stock Exchange (SASE) has been showing signs of prosperity and acceptance in the investors’ circles. However, due to ample irregularities, corruption scandals and an overall lethargy in trading volume, SASE has been slowing down since early 2000’s. In the recent years stock exchange unions became the trend in an emerging markets, which is a result of globalization and deregulation on the world level. This process started in late 1990’s following the process ICESoS 2016 - Proceedings Book 301 �International Conference on Economic and Social Studies (ICESoS’16) of converting the stock exchanges from nonprofit, usually member owned organizations into for profit organizations that are owned by the state and corporations. In late 1990’s European stock exchanges experienced significant changes such as several mergers and acquisitions, changes in trading systems and ownership structures, and the most significant increased number of quoted companies. One of the most famous mergers happened in 2000 when Belgian, French, Dutch and Portuguese exchanges have merged. From these four stock exchanges Euronext was created. In this way these four exchanges have increased their market share and became competitive to the European largest stock exchange, London Stock Exchange. Stock exchange mergers have various effects among which is market efficiency as the most important one. Studies have shown that the merger outcomes depend on the size of the stock exchange. This implies that the degree of market efficiency is higher for the merger between small stock exchanges because the smaller the stock exchange, higher the growth potential. However, there are certain issues that should be considered such as regulatory issue. Regulations can be internal, that require compliance with rules of stock exchange, or external that require compliance with the rules of regulatory body on state or international level. Following or better yet lagging on these global trends, Borsa Istanbul Stock Exchange (BIST), which is Turkey’s only exchange, in 2011 has acquired 5% of Sarajevo Stock Exchange (SASE) which is owned by Bosnian brokerage houses. In January 2015 it bought additional shares and increased its stake to more than 30%. The purpose of this paper is to explain the possible benefits of the Borsa Istanbul stake in Sarajevo Stock exchange. Literature Review According to the research of Prof. Dr. Ulf Nielsen (University of California), the main benefit of stock exchange merger is the stock liquidity that follows the merger. Simply said, there are more market participants and more potential investors. There is also a smaller gap or a spread between bid and ask which is again the result of the liquidity and more participants competing on the exchange. There are always investors willing to buy the security for a given price and issuer or dealer willing to sell the security for that price. Market is also becoming more efficient due to lower information and other non-monetary transactions cost. Liquidity of the security is measured by turnover. Turnover represents number of shares that are traded relative to the number of shares outstanding. If the merger is international, meaning that the stock exchanges are located in two different countries, it increases the investor’s base. Stocks are accessible to the investors in both countries. Companies benefit from listing on both, domestic and foreign market. Following the increased trading volume, exchanges should increase their investment in new technologies that have the ability to satisfy the demands of sophisticated investors (Philips, Faseruk, Glew, 2014). Thanks to the increased volume the stock exchanges will experience the economies of scale, and the cost of the investment will spread over the larger volume of financial products. Furthermore internationally diversified market is likely to introduce new financial and trading instruments to the stock exchanges. Besides the liquidity and capital flow, market efficiency is the most important outcome of the stock exchange merger. Degree of market efficiency depends of the country’s level of development, size, geographical diversification and industrial diversification (Charles, Darne, Kim, Redor, 2014). As a result of the increased efficiency the average trading fees decreases, the bid-ask spread also decreases, trading volume increases and the volatility of large cap securities decreases. However, the merger does not 302 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation affect all stock markets in the same way as it was mentioned before. Efficient market hypothesis (Samuelson, 1965), states that price fully reflects all available all relevant information. In the inefficient market further prices are highly unpredictable. Market efficiency is especially an issue in the developing markets. So, the fact that exchange merger contributes to the market efficiency lead us to the conclusion that the merger has higher impact on the developing market than on the already developed and efficient market. Stock market mergers and acquisitions contribute to the decreasing costs of a transaction through the economies of scale that will attract new investors to participate in new stock exchange markets or platforms with higher trading volume and much better liquidity (McAndrews and Stefanadis, 2002). Stock exchange mergers will also improve liquidity with increasing trading volume but decreasing transaction costs (Neilsson, 2009). Many companies may benefit from alliances because of better price efficiency when new information becomes more available (Werner and Kleidon, 1996). The are many factors that affect the stock exchange success. Some of them include financial regulation quality, corporate structure for stock exchange demutualization and cross-membership agreement (Dorodnykh, 2013). A trading amount influences much the success of a stock market acquisition or merger, a greater stock exchange or some with a larger number of domestic firms could indicate maybe less success (Dorodnykh, 2013; 2014). On the other side, lower stock exchange participation could improve performance, and also, provide some credibility as well as reliability for higher stock exchange partners (Maciulis et al., 2007; Hasan et al., 2012). The trading with less volume may also experience lower integration - it’s happened because of complex financial regulations as well as restrictions on foreign investors. Also, geo distances or levels of merger do not necessarily translate into a raising in stock exchange interdependence that maybe will improve stock exchange performance (Nielsson, 2007). Some bigger companies may obtain higher liquidity or trading volume from the stock exchange mergers, and can reduce costs of the transaction to improve market efficiency (Nielsson, 2009). Hypothesis and Methodology Given the introduction an organically derived hypothesis emerges: “The cooperation and a partial merger of SASE and Borsa Istanbul is highly beneficial to all stakeholders in each market – from investors, over companies in the market and both countries’ governments” Since the full scope of the merger and its benefits hasn’t happen as of yet, this research with this hypothesis will basically serve as a base starting point of the future researches, once the entire program materializes and once the measurable data becomes available. The methodology used in this research is of a hybrid qualitative nature. This paper will have a descriptive research design with prediction based narratology. Since there is a very small amount of primary and secondary data on this topic, the research will mainly focus on the possible outcomes of the cooperation between two exchanges and the best case scenario analysis that could definitely be a starting point for the future researches on this particular topic. ICESoS 2016 - Proceedings Book 303 �International Conference on Economic and Social Studies (ICESoS’16) Data Analysis and Discussion As previously said, Sarajevo stock exchange suffers from a chronic condition of a very low trading volume, high instability and a persistent choppiness in the market. At its inception SASE has established the first market index called SASX10 which is comprised of 10 largest companies by the market capitalization (table 1). Table 1: List of companies in SASX-10 Source: www.sase.ba Combined, those 10 companies have an average share price of 22.46BAM and a 14,386,000 shares for a grand total of BAM 323million. (table 2). Table 2: SASX-10 companies and respective prices and shares outstanding Source: Author’s analysis For the purposes of this research the focus will be on the above listed companies and the benefits of the stock market mergers will be pertaining to those 10 companies. The benefits of the mergers between stock markets and especially when the emerging 304 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation markets are in question are numerous. In this research the benefits will be split into two major groups - Benefits to investors Benefits to companies and governments Benefits to investors In today’s world of expanding globalization and loosening of borders, investors from all countries generally have it much easier to trade and invest into foreign markets. Benefits to investors are probably the largest portion of benefits among the 3 types of benefits and since the market doesn’t exist without investors these benefits are definitely the most important ones. Investors will have a wider variety of investments to choose from and have a better chance to create a customized portfolio that suits a specific investor. For example an investor on SASE can mainly choose between companies in real sector such as banks, power and gas producing companies, pharmaceutical companies, telecom etc, but by having Turkish companies cross listed to SASE, investors in BiH could have an access to companies in other niches such as service, IT, automotive and many others. Investors would benefit from an improvement in quality and availability of information. Every company that is a subject to cross listing into other exchanges will have to adapt and adhere to new corporate governances as well as state/government regulations. That new set of rules will benefit the investor as it would be almost impossible for a company to fabricate and window-dress the accounting and other legal information across markets. Improvement in the information flow and quality will even attract more investors who were previously reluctant to investing due to corruption in the companies and markets. Another side benefit to the investors would be a fact that investors would enjoy better protection from companies’ malpractice due to more stringent and strict rules that would be enforced to cross listed firms. One of the most important benefits to investors in the case of cross listing is the liquidity of the market. As previously noted SASE has been suffering the chronic low trading volume that hurts investors since low volume adds to the negatively affected beta (β) and overall instability in the market prices. Table 3 and Table 4 shows the rapid fall in share turnover which is the total number of shares during a period divided by the average number of shares outstanding for the period. Obviously this ratio needs to be as high as possible which is quite opposite in case of SASE. Table 3: Share turnover of SASX-10 companies in % Source: www.sase.ba ICESoS 2016 - Proceedings Book 305 �International Conference on Economic and Social Studies (ICESoS’16) Table 4: Share turnover of SASX-10 companies in BAM Source: www.sase.ba With firms from both exchanges having IPO in the cooperating market there will be an additional shares available for investors in foreign markets and with more investors in the play, the supply and demand will stabilize without having abrupt shifts to either side, hence lowering the choppiness in the market, hence lowering the firm’s β. Also due to development of more efficient marketplace investors on both ends can expect narrowing of the price spreads and better efficiency in the stock pricing and therefore having lower chance for arbitrage and abuse of the market itself. Benefits to companies and governments While benefits for investors are ample and many, the companies and governments of both countries will also benefit from the cooperation, cross listing and merger of the two exchanges. One of the biggest benefits to the companies in both markets is that the companies will be able to do the second initial public offering (IPO) in the cross listed country, hence issuing new shares, resulting in a radical increase in firm’s market capitalization. With an increase in market capitalization the overall volume of traded stocks will also increase fatherly increasing the traded shares turnover. Using only a modest and conservative increase in number of shares by 20% the results in the turnover are very apparent as shown in Table 5. 306 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Table 5: SASX-10 companies new turnover after merger of exchanges Source: author’s analysis Of course by issuing new shares of stock the companies would have to adhere by the local rules and regulations and other stipulations by security and exchange commission that would in the end benefit the investor but also have a secondary benefit to the company because the company will have a better or more realistic view into its own situation. The above concept of turnover didn’t take in effect another huge benefit to the cross listed company and that is the effect on the price of the stock. Companies will experience some sort of a price discovery where the pricing of stocks become much more efficient than in an isolated or stand-alone markets. Chances are that if the volume and efficiency of the pricing increases, the companies will show up on the professional analysts radar as well as the mutual fund managers which will even more increase the recognition of the company, resulting in the probable increase in stock price. With the existing historic ties between Bosnia and Herzegovina and Turkey and the recent interest in other trades and trade agreements between Turkey and BiH, the companies will benefit from an increase in brand recognition in a new market. Increase of a brand recognition may not be easily quantifiable but we can be certain that it will have an effect on the stock prices as investors, especially small investors are most likely to invest into firms that they have the previous knowledge of. In this entire benefit scheme the governments of both countries are included too. Each country’s government will surely benefit on multiple factors but the main factor is the economic stability and flow of capital. With an increase in companies’ price stability comes stability in the entire sector(s) as well as the stability in the macroeconomic aspects. This resulting stability in the economy may result in an improved credit rating not only for the companies but for governments as well, therefore decreasing a cost of capital to the benefit of all. As these firms attract additional investors the flow of capital will also improve that will in effect improve the situation for all the participants in the economic chain, while at the same time improving the general living and economic conditions in the country. ICESoS 2016 - Proceedings Book 307 �International Conference on Economic and Social Studies (ICESoS’16) The government will also surely benefit by an increase of taxable income both on an individual and corporate level and another potential benefit would be that the cooperation between Borsa Istanbul and SASE can serve as an example and as a basis for all the future cooperation between Balkan exchanges. In recent economic conferences one can see that the common denominator of economic growth in Balkan countries is cooperation and unity, with more local exchanges cooperating the benefits for all stakeholders would multiply even more. Findings From this research it becomes clearly apparent that benefits of the cooperation of the emerging stock market such as SASE with an already developed market such as Borsa Istanbul, are many. The research has shown that all of involved parties and stakeholders are benefiting from this merger. Hence, the hypothesis “The cooperation and a partial merger of SASE and Borsa Istanbul is highly beneficial to all stakeholders in each market – from investors, over companies in the market and both countries’ governments” is confirmed. The natural question arises from this research and that is, what are the costs and what does the cost benefit analysis says about the merger of exchanges but in all reality the benefits are so abundant that not only do they cover the costs but they far exceed them. Although the benefits are plentiful there are some important costs and those are mostly pertaining to the companies and not to investors or governments. The companies, in order to reap all the benefits listed in this research, would need to invest certain capital into investment bank(s) that would organize an additional IPO, also the companies would have to pay the cross-listing fee to the exchanges, although this fee could be reciprocally removed with the prior agreement between exchanges. Another important cost to companies would be an additional time and funds spent in order to conform to the local laws and rules as well as an additional costs for another layer of auditing, but all in all the benefits on the macro as well as micro scale are apparently very much abundant, so it can be concluded that the benefit cost ratio, although not mathematically calculable, tilts benefits scale by far. Conclusion In conclusion, this research has clearly showed that the main obstacle of this merger is that of a will of directors of exchanges and sooner they start the procedure, sooner the Turkish and Bosnian companies, investors and governments can start gaining from the benefits listed. Also this merger can definitely serve as a breeding ground for future co-ops among other ex-Yugoslav or Balkan exchanges that suffer from the same problems as SASE. In all reality the sky is really the limit of the benefits that come out of this merger as it will not only generate value added benefits but also sizeable capital gains for all stakeholders involved. As with any research, especially since this merger is still in the inception phase, this research can serve as a starting point for any future researches on any topic pertaining to the merger of SASE and Borsa Istanbul. Hopefully generations to come will realize that the power is in unity on all levels, especially the economic one. References • Chan, K.C., Gup, B.E., Pan, M.S., 1997. International stock market efficiency and integration: A study of eighteen nations. J. Bus. Financ. Account. 24 (6), 803-813. 308 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation • Charles, A., Darne, O., Kim, J. H., & Redor, E. (2014). Stock Exchange Mergers and Market Efficiency. HAL. • Dorodnykh, E., 2013. What drives stock exchange integration? Int. J. Econ. Sci. Appl. Res. 6 (2), 47-79. • Dorodnykh, E., 2014. Determinants of stock exchange integration: evidence in worldwide perspective. J. Econ. Stud. 41 (2), 292-316. • Exchange, S. S. (2016, March 11). SASE. Retrieved from http://www.sase.ba/v1/ en-us/ • Fama, E.F., 1965. The behavior of stock-market prices. J. Bus., 34-105. • Fama, E.F., 1970. Efficient capital markets: a review of theory and empirical work. J. Financ. 25 (2), 383-417. • Fama, E.F., French, K.R., 1988. Permanent and temporary components of stock prices. J. Polit. Econ. 96 (2), 246-273. • Griffin, J.M., Kelly, P.J., Nardari, F., 2010. Do market efficiency measures yield correct inferences? A comparison of developed and emerging markets. Rev. Financ. Stud. 23 (8), 3225-3277. • Halilbegovic, S., Dzanic, E., & Alijagic, M. (2015). Berzansko Poslovanje. Cazin: Grafis d.o.o. • Hasanhodzic, J., Lo, A.W., Viola, E., 2011. A computational view of market efficiency. Quant. Financ. 11 (7), 1043-1050. • Kim, J.H., Shamsuddin, A., 2008. Are Asian stock markets efficient? Evidence from new multiple variance ratio tests. J. Empir. Financ. 15 (3), 518-532. • Kim, J., Yoo, S.S., 2009. Market liberalization and foreign equity portfolio selection in Korea. J. of Multi. Fin. Manag. 19(3), 206-220. • Mačiulis N., Lazauskaitė, V., Bengtsson, E., 2007. Evaluating performance of Nordic and Baltic stock exchange. Balt. J. Mgmt. 2 (2), 140-153. • Nielsson, U. (2007). Stock Exchange Merger and Liquidity. Columbia University. Columbia University. • Nielsson, U., 2007. Interdependence of Nordic and Baltic stock markets. Balt. J. Econ. 6 (2), 9-27. • Nielsson, U., 2009. Stock exchange merger and liquidity: The case of Euronext. J. Financ. Markets 12 (2), 229-267. • Werner, I.M., Kleidon, A.W., 1996. UK and US trading of British cross-listed stocks: an intraday analysis of market integration. Rev. Financ. Stud. 9 (2), 619-664. • Zhao, T., 2012. Firm size, information acquisition and price efficiency. Quant. Financ. 12, 1599-1614. Online references • ‘Bosnian stocks offered on Borsa Istanbul’, Retrieved from: http://www. worldbulletin.net/haber/151404/bosnian-stocks-offered-on-borsa-istanbul, March 10, 2016 • ‘Turkish Borsa Istanbul raises its stake in Bosnian peer’, Retrieved from: http:// www.reuters.com/article/bosnia-exchange-turkey-idUSL6N0US27M20150113 March 10, 2016 • ‘Početak godine potopio berzanske indekse u BiH’, Retrieved from: http://www. frontal.ba/novost/82314/-pocetak-godine-potopio-berzanske-indekse-u-bih, March 10, 2016 • ‘Share Turnover’, Retrieved from: http://www.investopedia.com/terms/s/ shareturnover.asp#ixzz42Xm44pU4 , March 10, 2016 • http://www.sase.ba/v1 • http://www.borsaistanbul.com/ ICESoS 2016 - Proceedings Book 309 �� 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. 3334 Title A name given to the resource BENEFIT ANALYSIS OF A DEVELOPING MARKETS STOCK EXCHANGE MERGERS: CASE OF A BORSA ISTANBUL AND SARAJEVO STOCK EXCHANGE Author Author Halilbegovic, Sanel Abstract A summary of the resource. Abstract: Whether due to mentality or the lack of investment ‘culture’, but people in the Balkans have certain repulsion towards investing in financial instruments offered by the local exchanges. Based on the public opinion one can conclude that most of the people are reluctant to invest in the financial instruments because they can’t rely on the trustworthiness and credibility of the local exchanges, due to corruption scandals, misconduct and wrongdoings that happened in the recent history. Since its inception, Sarajevo Stock Exchange has been suffering from extremely low volume and poor investment liquidity that in the end resulted with choppiness and overall instability in the market. Turkey’s main stock exchange, Borsa Istanbul, which is 80 times larger than SASE, has openly expressed interest in direct cooperation with Sarajevo Stock Exchange and that strategic move can certainly reduce or even eliminate problems local investors face. This study examines the effect of benefits and costs of the cooperation between Borsa Istanbul and Sarajevo Stock Exchange (SASE). Multiple facets of the benefits and costs are examined and their effect on the macro and micro scale. Macro effects of the raising stake of Borsa Istanbul in SASE include effects on government, municipality and overall economic level, while micro effect is the direct effect to the ‘end-consumer’, a small investor. The secondary data will be used in analysis of benefits to costs with the side by side comparison and eventual derivation of the Benefit/Cost ratio (BCR) that will test the hypothesis that benefits highly outweigh the costs in this cooperation. The research shows that raising the stake of Borsa Istanbul in SASE will bring a new level of professionalism and trust in a corruption and unprofessionalism ridden SASE. In addition Borsa Istanbul will open new market horizons to investors from Bosnia and as an outcome we should see and increase in market liquidity, trading volume and even the BDP of both countries. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) https://omeka.ibu.edu.ba/files/original/b267651da3fec79bb3999b4d95362e7e.pdf ab144b3ae76018f22c1791214ed4be75 PDF Text Text BEHAVIORAL FINANCE PERSPECTIVE ON MANAGERIAL DECISION MAKING UNDER RISK IN COMMERCIAL BANKS Amra Halaba International Burch University Bosnia and Herzegovina amrahalaba@yahoo.com Ali Coşkun International Burch University Bosnia and Herzegovina ali.coskun@ibu.edu.ba Abstract: Decision making is the most important and the most difficult task that managers perform. On the other side they are most of the time confronted with risk and uncertainty, especially in banking industry. Objective of this study is to examine how managers of commercial banks performs this task, by putting it in the perspective of the newest findings from Behavioral finance field. Behavioral finance is based on premise that decision makers behave less than fully rational. Due to their deeply rooted human nature managers are prone to make decisions based on subjective evaluation of available options, relative to certain reference point and to current state of wealth, and also according to their personal interests which may contradict banks`, industry`s and social welfare`s. Specifically, this study explores role of heuristics, biases and intuition in decision making, through concise review of existing literature. Importance of the study is in a fact that commercial banks are simultaneously the most important industry for country`s economic development and stability and the most submissive industry to the risk. Owing to systematic nature of risk generally in financial markets, any irregularity in one country`s banking industry will eventually reflect on other countries and is able to make ground for crisis. Study will contribute to better understanding of managerial perception of risk and their behavior under risk, which is primarily useful for architects of banks` corporate governance and banks` regulative. As we will see, setting identical option in two different frames leads to different decisions, this opens up possibilities to construct an environment in such a manner that decision makers are naturally led to make decisions that are in the best interest of all stakeholders involved. Keywords: Behavioral Finance, Decision Making, Risk in Banking, Commercial Banking 1. Introduction While literature is overwhelmed with analysis of risk taking behavior by managers in commercial banking, which mainly look at relationship between risk and some other significant variables such as size or ownership structure (García-Marco & RoblesFernández, 2008) there lacks analysis that takes into consideration factors of managers` behavior – acting individually and in groups. Mainstream economists argue that economic agents are rational utility maximizers who hold constant preferences and all together create efficient markets. However, such postulate is invalid, since irrationality of economic agents was recognized a long time ago, even by Adam Smith. (Santos & Chen, 2009) ICESoS 2016 - Proceedings Book 167 �International Conference on Economic and Social Studies (ICESoS’16) Not only that this postulate is incorrect in theory, but is troublesome for practitioners, specifically banks` owners and stakeholders, banking regulative bodies, and public in general. So, basic purpose of this research is to expand the view on managerial behavior in commercial banks, especially under risk environment. Hillson (2014) notes that risk management process which does not cover findings from human behavior sciences, in its foundation is condemned to produce less than optimal outcomes. For banking industry it is a must to include soft behavioral factors in risk management processes, which are at least as relevant as statistics. Markets and therefore decision making settings are characterized with complexity, uncertainty and risk (Krohling & Souza, 2012), which is especially relevant when it comes to banking industry. Banks act as society`s integrator, since these are institutions that come in relationship with almost all citizens and all businesses (Marous, 2015). Banks hold highest ratios in market capitalizations of any country, are subject to illiquidity risks, and most importantly the risk they impose is of systematic nature. Turbulences in one bank spread to whole banking industry in the country, therefore weakening its whole financial system. (Shen & Chih, 2005) Shen and Chih (2005) note also that one of sources of risk in banks is its asset structure, which is difficult to recognize and therefore to prevent. This risk is, author suggest, imposed by managers, since they are the ones who make final decisions on bank`s asset structure. Therefore, specific field covered by this research is behavioral corporate finance, which aims to provide insights into what drives managers in their decision making processes. Authors of the research suggest that introduction of behavioral factors in risk management process can seriously improve its efficiency and therefore contribute not only to business success of banks individually, but to increase of the overall social welfare. Research will provide insights into ways that managers make decisions, which is especially important under overwhelming risky settings. It is authors` suggestion that only by better understanding of the true nature and true behavior of managers in real situations, academicians and practitioners can better form bank`s internal structure and hierarchical relationships, as well as banking industry`s regulations. Following this assumption, study contributes to better understanding of bank`s executives, which is beneficial mainly to regulators of bank`s internal organization and regulators of banking industry. Research provides literature review of previous research on the given topic. Firstly, authors give introduction into field of behavioral corporate finance, which is followed with discussion on decision making processes and risk in banking industry. Third part is dedicated to implications of behavioral finance in decision making processes. Finally, at the very end authors give concluding remarks. 2. Literature Review 1.1 Behavioral Finance Behavioral finance is a branch of behavioral economics which is based on notion that financial market movements should be studied starting from the assumption of managers` incomplete rationality (Glaser, Noth, & Weber, 2003). 168 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation It is a field of research which combines standard finance theory with sciences on human nature - namely psychology, neuroscience, and sociology (Halaba & Ilgun, 2014). Therefore, behavioral economics in general is un upgrade to mainstream economics, which enables academicians and practitioners to gain better understanding of economic agents` behavior (Rabin, 1998), which is the main purpose of this research. It is important to draw attention to „upgrading“ role of behavioral finance. Aim of behavioral finance studies is not to contradict mainstream studies, rather to enrich them, expand the views and enable more efficient management as well as policy making. Since the scope of the study is managerial behavior, specifically the study is under the umbrella of corporate behavioral finance. 1.1.1 Behavioral Corporate Finance Corporate finance examines decision making (where we can consider financing decision, i.e. asset structure) in terms of cooperation and relationship between managers and owners (Baker & Wurgler, 2011). Under the agency theory, corporate finance is explained in terms of influence of capital owners on managers, with purpose of directing managers to behave in the most beneficial manner (Caprio & Levine, 2002). Caprio and Levine (2002) emphasize the importance of effective corporate governance in banks, since these have influence on “shaping capital allocation at the firm level and at the country level“ (p. 2) and Schmidt and Tyrell not that even back in 1997 there was notable increasing interest and recognition of financial markets` (banking industry included) role in resource allocation. Corporate governance is of systemic nature, meaning that all of its segments are interrelated, so that every incremental change in one segment contributes to the change in other segments as well (Schmidt & Tyrell, 1997). When it comes to mainstream economics, generally it is based on methodological approach, mathematical expression of assumptions, and analytical evaluation of implications of assumptions and empirical observations (Rabin, 1998). Therefore, intrinsic human attributes of managers which are relevant for decision making, are being neglected or perceived as disturbance to the smooth mainstream approach. The aim of behavioral corporate finance is to account for all these intrinsic attributes of managers and examine what drives their behavior in the real environment. (Berneheim, 2009; Camerer, 2007) Tirole (2006) in his, in-depth book „The theory of corporate governance“ gives credentials to behavioral finance as a branch that „relaxes the rationality postulate that dominates this book.“ (p. 9). He notes two courses present in behavioral corporate finance. Focus of one course is managerial irrationality, while focus of the other branch is on investors` irrationality. Topic of this research fits in the first course of managerial irrationality. However, Tirole decides not to include detail coverage of behavioral finance in his studies on corporate governance and stick to standard approach given by agency theory for several reasons. He notes that behavioral finance is in its offspring, so he finds it early for a broad theoretical recapitulation of corporate governance from this approach. So, he finds it lacking behind the agency theory. ICESoS 2016 - Proceedings Book 169 �International Conference on Economic and Social Studies (ICESoS’16) Authors of this research find his reasons as additional motivation for urging the involvement of behavioral corporate finance in academic studies as soon as possible, in order to raise awareness of its importance and move build up theoretical framework in this regard and break such (mis)perception on the power of insights from behavioral finance. According to Rabin (1998) the importance of behavioral finance in decision making reflects in findings that managers in real environment are prone to systematically irrational judgments and choices. It is opposite to postulate of mainstream economics that managers follow objective statistical laws of probability while making evaluations that lead their decisions. Behavioral finance gathers evidences on biased, loss averse, fearful, and in other regards irrational behavior of managers which result in less than optimum efficiency decision making (Halaba & Ilgun, 2014). It contradicts rationality of managers along the main postulates set by standard finance decision making theories. These postulates are: - manager exerts constant preferences (Abdulnabi, 2014) manager chooses the option with the highest expected objective utility (Abdulnabi, 2014) manager makes decisions based on logic and controls his emotions (Hadžić, 2015). While these assumptions to some degree serve well, in that they help to simplify reality and build economic models, it is necessary to recognize what real decision making is actually like. Looking at the real managerial behavior in the actual decision making environment is the core objective of behavioral corporate finance (Halaba & Ilgun, 2014). In order to understand decision making process in a corporation, it is inevitable to form understanding over beliefs and preferences of managers, owners, as well as interaction of the two (Baker & Wurgler, 2011). In order to gain this understanding, in the section 2.3 we will look at patterns of judgment and decision making - apparently irrational ones - which managers are prone to. Before looking into these patterns, firstly we will provide overview over risk decision making in general and risk in banking industry. 1.2 Decision Making Under Risk in Commercial Banking 1.2.1 Decision Making Decision making can be defined as „process of problem identification and the process of solving it“ (Shermerhon, 1996, p. 194). These are processes that managers are constantly engaged in. Furthermore, decisions are made in groups, rather than individually, which makes decision making environment more complex. (Dervishi & Ibish, 2014) Hadžić & Ilgun (2015) note that decision making is marked with huge pressure which comes from numerous options and eventually results in sub-optimal decisions. 170 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Korte (2003) introduces results of the study done over 300 managerial decision over 20 years, done by Paul Nutt, published in Nutt`s book „Why decisions fail: Avoiding the blunders and traps that lead to debacles“ from 2002. Study revealed that decisions which result in optimum outcomes are characterized by the following: 1. A deliberate and thorough study of the claims by a variety of stakeholders 2. Early attention to social and political interests, and 3. Setting direction based on a cross-section of informed opinion“ (Korte, 2003, p. 446) 2.2.2 Agency Theory The basic theory of corporate governance in economics is agency theory. It assesses the relationship between principals – owners and agents – managers within an organization, with emphasis on risk perception of both parties. Owners are assumed to be risk neutral, following the assumption that they do not place entire investing capital in one investment, so only part of their wealth would be placed in individual bank. When their entire capital does not depend on performance of single bank, owners are likely to be less influenced by their emotions and therefore make more deliberate decisions. Managers are assumed to be more biased in decision making, since their personal incomes depend on the performance of the bank. Income for managers mainly comes from regular salaries, but also from different types of bonuses as well. (Wiseman & Gomez-Mejla, 1998) Basically, corporate structure should be such that encourages managers to behave in the best interests of owners. However, even despite some clearly established legal rules for owner-manager relationships, still there remains challenge of how to apply those rules in practice, to ensure that managers really do follow them. (Erner, Klos, & Langer, 2013) So, there are strict rules which direct owner-manager relationship. However, there are also bonus schemes, which are designed to motivate managers to behave in a way that benefits owners the most. However, Chen, Zhang, Xiao, & Li (2011) conducted study on bonus schemes among the five biggest banks in United Kingdom, which shows that incentives paid to managers did not result in favorable outcomes. All of these banks performed poorly with major liquidity problems. 2.2.3 Risk in Commercial Banking Classic definition of the risk is as follows „Risks are uncertainties resulting in adverse variations of profitability or in losses.“ (Bessis, 2002, p. 11). However, concept of risk is poorly understood (Abdulnabi, 2014) and there are many different definitions out there (Riabacke, 2006). ICESoS 2016 - Proceedings Book 171 �International Conference on Economic and Social Studies (ICESoS’16) So, Riabacke (2006) explains risk by putting it in the context of two other terms. These are: - Certainty, where manager knows for sure what will be outcomes of specific actions Uncertainty, where manager does not know at all what could be outcomes of specific actions. Risk is in between the above two. It implies that manager knows more than one possible outcome for each specific action, where each outcome is expected to occur at certain probability. However, manager cannot know whether: - All outcomes he accounts for are actually all possible ones Probabilities he assigns to each outcome are accurate. „Banking risks are defined as adverse impacts on profitability of several distinct sources of uncertainty“ (Bessis, 2002, p. 11). Basic types of banking risks are: credit risk, interest rate risk, market risk, liquidity risk, operational risk, foreign exchange risk, other risks (country risk, settlement risk, performance risk) (Bessis, 2002). Risk taking in banking industry is specific because of the role which this sector has in one country. Negative effects of the risk behavior in single bank influences other banks and very soon implications spread over to the financial system and complete economy. (García-Marco & Robles-Fernández, 2008) More complex environment makes it more difficult for managers to evaluate what might be outcomes of different options they can choose among (Erner et al., 2013). Eventually, it amplifies the risk they encounter. 1.3 Implications of Behavioral Corporate Finance for Decision Making Under Risk 1.3.1 Intuition Intuition can be defined as all those processes which happen in human mind on subconscious level (Isenman, 1997). Hadžić and Ilgun (2015, p.14) provide another more detailed definition of intuition by Woiceshyn (2014) who says that „Intuition, or the process of intuiting, is described as the inexplicable emergence of a sudden understanding – a “hunch” or a “gut feeling” – seemingly out of nowhere but involving the subconscious and one’s previous experience, often described as recognition of familiar patterns from previous experiences“. According to evidences from neuroscientists, people do not have conscious control of their behavior. They inform us that human brain is influenced by environment in which human operates. (Bloom, 2014) Therefore, managers cannot make their decisions as dissected from the context in which they operate, or influences of other group members. 172 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Managers are continuously asked to make decisions, which involves solving difficult questions under ambiguity, complexity, uncertainty. Confronted with such pressures, they tend to make the challenge easier, by swapping the actual problem for an easier one. The easier problem is the problem they perceive compatible with the present one, but it does not necessarily has to be true. The essence is that they take to the surface a problem which they are familiar with, their minds know how to solve it. This swap pattern is at fundaments of intuitive judgments and decision making. (Kahneman, 2011) Intuitive thinking underlies human thinking, judgment, and decision making overall. However in order to be properly utilized in academic circles, its importance has to be acknowledged by leading academicians. (Isenman, 1997) Intuition underlies the concept of heuristics, which are discussed in the following section. 1.3.2 Heuristics Heuristics are mental shortcuts which managers use when making difficult decisions in complex settings. They substitute difficult question with an easier one – which might lead decision maker from the essence of the actual problem, or in absence of relevant data they reach for available data – which might or might not be relevant for a problem at hand, but also might mislead decision maker from the actual problem. (Hadžić, 2015) Following the book „Thinking, Fast and Slow“ by father of behavioral economics Daniel Kahneman, which he wrote with priceless help of his colleague and friend Amos Tversky, authors of this research count four basic types of heuristics. These are: availability, representativeness, anchoring, and affect heuristic. Each of these will be discussed in following paragraphs. 2.3.2.1 Availability Heuristic Availability heuristic is decision making pattern based on information that is easily obtainable, that is on information that comes to a mind of managers with an ease and effortlessly (Sewell, 2011). It comes as result of replacing a difficult problem for an easier one and basically solving a problem and making a needed decision based on the information that can be reached the most easily, even though it might not be relevant for the present situation. Such decision making has a power to leave actual problem unresolved, or in the worst case make the problem even the more serious one. (Kahneman, 2011) One way in which bank managers can hurt bank`s asset structure is by following the available data from the news, since there is evidence for example that investments which are the most prompted up on the media platform, perform the poorest among other investments in two years (Sewell, 2011). This example is implicative of how data which is the most easily accessible, can be misleading. Managers should not carelessly follow the news on the macroeconomic situation or industry performances, but rather take an analytical and critical evaluation approach. ICESoS 2016 - Proceedings Book 173 �International Conference on Economic and Social Studies (ICESoS’16) 2.3.2.2 Representativeness Heuristic According to Kahneman (2011), people are wired to seek for certain correlation between events and situations to the extent that he refers to human species as to „pattern seekers“. Managers as well have a need to fit in any new circumstance into specific scheme, give it meaning, purpose and justification. It provides sense of control, while loss of control over situation upon which our well-being depends, causes negative feelings. Instead of objective assessment of events and situations, managers find certain context to put those events and situations in. In that way the actual situation or event loses its true context and of course can be misleading for decision making. It is troublesome especially when this need implies neglect of actual problem that needs to be solved. So, people have this tendency to perceive events and things which share certain attributes as the same (Baker & Nofsinger, 2002). If managers misevaluate potency of certain event`s amplitude to disturb their asset positions, it can significantly change their risk attitudes and behaviors. 2.3.2.3 Anchoring Heuristic Managers tend to evaluate options they have at disposal based on what those options contribute - either positively or negatively to their current level of returns. It harms their choice of options and final decision in a way that they neglect objective final utility expected from each of those options. While anchoring their evaluation to a certain value or a number, they focus on subjective value which those options provide them. (Helson, 1964; Rabin, 1998) More worrisome fact is that managers have tendency to anchor their evaluations to some values or numbers that are completely unrelated to the prospects they are evaluating, as opposed to their current returns level. Reference value upon which managers compare their options does not have to have any logical correlation to the actual choice they are making. Kahneman (2011) 2.3.2.4 Affect Heuristic Affect heuristic is based on influence that people`s emotions have on their judgments and decision making and according to Kahneman (2011) emotions have the highest power in directing the risk attitudes and preferences of managers. Basically, all decisions that people make are simply manifestation of their feelings towards specific option at certain point in time. According to Finucane, Alhakami, Slovic and Johnosn (2000) how managers perceive risk and therefore form their risk attitudes which drive their risk behavior is influenced primarily by affect heuristic. Prospects which provoke positive emotions with managers, they are likely to frame as „a low risk and high benefit“, whereas prospects which provoke negative emotions with managers, they are likely to frame as „ high risk and low benefit“. 174 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Another leading behavioral economist Dan Ariely (2008), came to a conclusion that people`s emotions obscure their deliberate thinking and have potency to drive their behavior. According to Kahneman (2011), people make deliberate decisions, except in those situations when their emotions take over their deliberate thinking. 2.3.3 Bias Bias refers to subconscious, faulty and unreasonable judgment and decision making. It fundamentally differs from logical and analytical objective thinking patterns. (Kahneman, Slovic, & Tversky, 1982) Biased thinking and acting is a path to situations in which the manager believes that he is close to maximizing firm value - and, consequently his incentives - but is in fact deviating from this ideal (Baker & Wurgler, 2011). Managers, as other humans do not always make judgments logically. Furthermore, once formed judgments do not always lead to final decisions in rational and consistent way. (M. P. Baker & Wurgler, 2011) However, there is evidence that certain personal abilities of managers are correlated to the performance of the firm (Kaplan, Klebanov, & Sorensen, 2011). On the other side, Simon (1955) introduced the term bounded rationality, under which he assumes that some type of cognitive or information gathering cost prevents managers from making fully optimal decisions. Bounded rationality allows managers to deal with complex environment by using heuristic. In that manner they manage to obtain satisfying performance. Since such approach to decision making has certain benefits they should strive at least to diminish sensitivity to their own biases. In following sections, authors discuss several most applicable biases when it comes to corporate behavior of managers individually and in groups. 2.3.3.1 Confidence and Optimism Bias These two types of biases are related and feed each other, so are discussed jointly. Managers have tendency to overvalue their capabilities and expertise and to be overly optimistic over future prospects that they personally feel affection for. Additionally, managers tend to put more value on the role that they played in certain achievements and successes, than they actually had. (Jarboui & Boujelbene, 2012) They are prompted to see their circumstances as more favorable than they really are. Also, managers usually fail at time management by overestimating their abilities and assigning less time for activities than they actually need. (Barberis & Thaler, 2003) Shiller (2000) notes that people in general have tendency to focus on favorable sides and ignore possible negative effects when a new situation arises. ICESoS 2016 - Proceedings Book 175 �International Conference on Economic and Social Studies (ICESoS’16) While over optimism and overconfidence can reflect negatively on corporate behavior, it has positive sides also when experienced moderately. They encourage managers to look for new prospects in environment, increases their self-awareness, and makes them utilize their full capacities. (Jarboui & Boujelbene, 2012) So, in order to benefit from these characteristics, managers have to control for them. But, along with complexity of environment and decisions that need to be made, managers are additionally burdened with group pressure. Group decision making feeds overconfidence and makes it harder to de-bias. (Gervais, 2010) 2.3.3.2 Confirmation Bias Once the move is made, no matter what the outcome is, managers put that outcome in the context and seek for proper justification of their previous actions. They seek confirmation for their actions. This is „tendency to interpret evidence as consistent with one`s preexisting beliefs“ (Daniel, Hirshleifer, & Teoh, 2002, p. 143) Beliefs and judgments once formed, is what managers firmly hold unto (Barberis & Thaler, 2003; Rabin, 1998) and are likely to discard any new data that opposes established judgments, however relevant these might be (Baker & Nofsinger, 2002). 2.3.3.3 Herding effect According to Sewell (2011), herding effect is due to need of people to socialize and make groups in order to survive and improve well-being through evolution. Socializing is crucial for information exchange, which is one of the most important resources. There is evidence that people are more likely to take higher risks when acting in a group. Being a member of a group reduces feelings of insecurity and anxiety over decisions. Company of other people changes risk behavior of each group member. (Chou & Nordgren, 2016) According to Shiller (2000) information exchanged between people in face-to-face conversations has higher impact than the same information exchanged in other ways. It is due to capacity of face expressions, or tone of voice to provoke specific emotions with participants of conversation. Acting in group benefits each member, since his capacity to perform increases. On the other side, it can be harmful since each member is likely to follow explicitly or implicitly implied set of activities. (Shiller, 2000) 3. Conclusion Effective risk management needs to account for insights from behavioral corporate finance, which are derived from psychology, neuroscience, and sociology. It is deemed necessary to approach risk taking behavior from a broader and more realistic perspective, instead of relying solely on standard risk approaches, which include relationship between risk and return, constant preferences and utility maximization. Significance of effective risk management increases in domain of banking industry, which serves as an integrator and financier of country`s economic system. It is up to academicians and practitioners both to gain more understanding into how human minds work and how managers make decisions. It will empower them to create 176 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation environments in which managers are compelled to behave in the best interest of all stakeholders involved. Managers themselves, should strive to understand and get to know themselves and members of their executive boards better. In that way, they will be better able to control their own decision making and establish better control over themselves. This study shed a light on the suggested approach to risk management, draw attention to its importance and hopefully developed interest from professionals in academics and real sector. Future research should definitely include development of model of managerial decision making under risk in commercial banking, since it would help standardization of risk management processes. References • Abdulnabi, N. L. (2014). Prospect Theory in Decision Making Process. Eastern Mediterranean University, Gazimagusa, North Cyprus. • Ariely, D. (2008). Predictably Irrational: The Hidden Forces That Shape Our Decisions. New York: HarperCollins Publishers. • Baker, H. K., & Nofsinger, J. R. (2002). Psychological Biases of Investors. Financial Services Review, 11(2), 97. • Baker, M. P., & Wurgler, J. (2011). Behavioral Corporate Finance: An Updated Survey (SSRN Scholarly Paper No. ID 1909013). Rochester, NY: Social Science Research Network. Retrieved from http://papers.ssrn.com/abstract=1909013 • Barberis, N., & Thaler, R. (2003). Chapter 18 A survey of behavioral finance. In M. H. and R. M. S. G.M. Constantinides (Ed.), Handbook of the Economics of Finance (Vol. Volume 1, Part B, pp. 1053–1128). Elsevier. Retrieved from http:// www.sciencedirect.com/science/article/pii/S1574010203010276 • Berneheim, D. B. (2009). The Psychology and Neurobiology of Judgment and Decision Making: What`s in it for Economists? In Neuroeconomics: Decision Making and the Brain (1st ed., pp. 115–125). London U.K.: Elsevier Inc. • Bessis, J. (2002). Risk Management in Banking (2nd ed.). West Sussex, England: John Wiley and Sons Ltd. • Bloom, P. (2014, February). The War on Reason. Retrieved March 24, 2014, from http://www.theatlantic.com/magazine/archive/2014/03/the-war-onreason/357561/ • Camerer, C. F. (2007). Neuroeconomics: using neuroscience to make economic predictions. Economic Journal, 117, C26–C42. • Caprio, G., & Levine, R. (2002). Corporate governance in finance: Concepts and international observations. Financial Sector Governance: The Roles of the Public and Private Sectors, 17–50. • Chen, J. J., Zhang, H., Xiao, X., & Li, W. (2011). Financial crisis and executive remuneration in banking industry - an analysis of five British banks. Applied Financial Economics, 21, 1779–1791. http://doi.org/10.1080/09603107.2011.5877 69 • Chou, E. Y., & Nordgren, L. F. (2016). Safety in Numbers: Why the Mere Physical Presence of Others Affects Risk-taking Behaviors. Journal of Behavioral Decision Making. • Daniel, K., Hirshleifer, D., & Teoh, S. H. (2002). Investor psychology in capital markets: evidence and policy implications. Journal of Monetary Economics, 49(1), 139–209. http://doi.org/10.1016/S0304-3932(01)00091-5 ICESoS 2016 - Proceedings Book 177 �International Conference on Economic and Social Studies (ICESoS’16) • Dervishi, A., & Ibish, K. (2014). Decision making under the conditions of risk and uncertainty in some enterprises of Prishtina and Ferizaj. European Scientific Journal. • Erner, C., Klos, A., & Langer, T. (2013). Can prospect theory be used to predict an investor`s willingness to pay? Journal of Banking & Finance, 37(2013), 1960–1973. • Finucane, M. L., Alhakami, A., Slovic, P., & Johnosn, S. M. (2000). The affect heuristic in judgements of risks and benefits. Journal of Behavioral Decision Making, 13, 1–17. • García-Marco, T., & Robles-Fernández, M. D. (2008). Risk-taking behaviour and ownership in the banking industry: The Spanish evidence. Journal of Economics and Business, 60(4), 332–354. http://doi.org/10.1016/j.jeconbus.2007.04.008 • Gervais, S. (2010). Capital Budgeting and Other Investment Decions. In K. H. Baker & J. R. Nofsinger, Behavioral Finance. Hoboken, Wiley. • Glaser, M., Noth, M., & Weber, M. (2003). Behavioral Finance. In Blackwell Handbook of Judgment and Decision Making - Chapter 26 (p. 32). Mannheim, Germany: Lehrstuhl für Bankbetriebslehre Universität Mannheim. Retrieved from http://www.sfb504.uni-mannheim.de/publications/dp03-14.pdf • Hadžić, Z. (2015). Intuition in Decision Making: Comparison of Middle-Eastern and European Decision Making Styles (Master Thesis). International Burch University, Sarajevo, B&H. • Halaba, A., & Ilgun, E. (2014). Behavioural Finance: The Review of Basic Concepts (1st ed.). Sarajevo, B&H: IBU Publications. • Helson, H. (1964). Adaptation-level theory: an experimental and systematic approach to behavior. Harper and Row: New York. • Hillson, D. (2014). Perspectives on risk management and behavioural finance Perspective 1. Journal of Risk Management in Financial Institutions, 7(2), 114–116. • Isenman, L. D. (1997). Toward an understanding of intuition and its importance in scientific endeavor. Perspectives in Biology and Medicine, 40(3), 395–403. • Jarboui, S., & Boujelbene, Y. (2012). The Behavioral Approach and the Rationality of Economic Decisions: Application to Banks Managers. In M. Nejati & M. Nejati, Global Business and Management Research : An International Journal Vol. 4, No. 2 (pp. 205–219). Universal-Publishers. • Kahneman, D. (2011). Thinking, Fast and Slow (First). New York: Farrar, Straus, and Giroux. • Kahneman, D., Slovic, P., & Tversky, A. (1982). Judgment under uncertainty: Heuristics and biases. • Kaplan, S. N., Klebanov, M. M., & Sorensen, M. (2011). Which CEO Charecteristics and Abilities Matter? Journal of Finance, Forthcoming. • Korte, R. F. (2003). Biases in decision making and implications for human resource development. Advances in Developing Human Resources, 5(4), 440–457. • Krohling, R. A., & Souza, T. T. M. de. (2012). Combining prospect theory and fuzzy numbers to multi-criteria decision making. Expert Systems with Applications, 39(2012), 11487–11493. • Marous, J. (2015, November 9). Securing Banking’s Role as Relationship Gatekeeper. Retrieved March 22, 2016, from about:reader?url=http%3A%2F%2Fthefinancialbrand.com%2F55226%2Fbankingcustomer-experience-loyalty-gatekeeper%2F • Rabin, M. (1998). Psychology and Economics. Journal of Economic Literature, 36(1), 11–46. • Riabacke, A. (2006). Managerial decision making under risk and uncertainty. IAENG International Journal of Computer Science, 32(4), 453–459. 178 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation • Santos, L. R., & Chen, K. M. (2009). The Evolution of Rational and Irrational Economic Behavior: Evidence and Insight from a Non-human Primate Species. In Neuroeconomics: Decision Making and the Brain (1st ed., pp. 81–93). London U.K.: Elsevier Inc. • Schmidt, R. H., & Tyrell, M. (1997). Financial systems, corporate finance and corporate governance. European Financial Management, 3(3), 333–361. • Sewell, R. (2011). Psychology of Successful Investing. U.K.: University of Cambridge. • Shen, C.-H., & Chih, H.-L. (2005). Investor protection, prospect theory, and earnings management: An international comparison of the banking industry. Journal of Banking & Finance, 29, 2675–2697. http://doi.org/10.1016/j.jbankfin.2004.10.004 • Shermerhon, J. R. (1996). Management and Organization Behaviour. New York: John Wiley & Sons. • Shiller, R. J. (2000). Irrational Exuberance. Princeton, New Yersey: Princeton University Press. • Simon, H. A. (1955). A Behavioral Model of Rational Choice. Quarterly Journal of Economics, 69(1), 99–118. • Tirole, J. (2006). The theory of corporate finance. New Jersey, USA: Princeton University Press. • Wiseman, R. M., & Gomez-Mejla, L. R. (1998). A Behavioral Agency Model of Managerial Risk Taking. Academy of Management Review, 23(1), 133–153. • Woiceshyn, J. (2014). Making Effective Decisions by Integrating. In J. Liebowitz (Ed.), Bursting the Big Data Bubble: The Case for Intuition Based Decision Making (1st ed.). Boca Raton, 711 Third Avenue, New York: Auerbach Publications. ICESoS 2016 - Proceedings Book 179 �� 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. 3313 Title A name given to the resource BEHAVIORAL FINANCE PERSPECTIVE ON MANAGERIAL DECISION MAKING UNDER RISK IN COMMERCIAL BANKS Author Author Halaba, Amra COSKUN, Ali Abstract A summary of the resource. Abstract: Decision making is the most important and the most difficult task that managers perform. On the other side they are most of the time confronted with risk and uncertainty, especially in banking industry. Objective of this study is to examine how managers of commercial banks performs this task, by putting it in the perspective of the newest findings from Behavioral finance field. Behavioral finance is based on premise that decision makers behave less than fully rational. Due to their deeply rooted human nature managers are prone to make decisions based on subjective evaluation of available options, relative to certain reference point and to current state of wealth, and also according to their personal interests which may contradict banks`, industry`s and social welfare`s. Specifically, this study explores role of heuristics, biases and intuition in decision making, through concise review of existing literature. Importance of the study is in a fact that commercial banks are simultaneously the most important industry for country`s economic development and stability and the most submissive industry to the risk. Owing to systematic nature of risk generally in financial markets, any irregularity in one country`s banking industry will eventually reflect on other countries and is able to make ground for crisis. Study will contribute to better understanding of managerial perception of risk and their behavior under risk, which is primarily useful for architects of banks` corporate governance and banks` regulative. As we will see, setting identical option in two different frames leads to different decisions, this opens up possibilities to construct an environment in such a manner that decision makers are naturally led to make decisions that are in the best interest of all stakeholders involved. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General) 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. 3605 Title A name given to the resource MANAGERIAL DECISION MAKING UNDER RISK IN COMMERCIAL BANKS: AN APPLICATION OF PROSPECT THEORY ON BANKS IN BOSNIA AND HERZEGOVINA Author Author Halaba, Amra Abstract A summary of the resource. The main objective of this research is to investigate behavioral factors in the managerial decision making under risk in commercial banking from the perspective of the basic theory in behavioral finance – the prospect theory. The study is important in that it contributes to the development of a comprehensive risk management approach in banking industry, by broadening already existing practices with behavioral finance findings, as summarized through the prospect theory. The theory explains the decision making processes, holding that managers become more risk seeking as their bank moves further below the specified targets and more risk seeking as their bank moves further above the specified targets. The theory is examined on the case of B&H banks from 1999 to 2015, in the light of returns on assets, returns on equity and capital ratio. Analyses show risk seeking among managers of banks below targets, whereas there is no evidence for risk aversion among managers of banks above target. Therefore, the prospect-theory-based model of managerial decision making offered in this research is suitable ground-basis to ingrain the behavioral insights into risk management processes in the banking industry of Bosnia and Herzegovina. Keywords: Prospect Theory, Decision Making, Risk, Commercial Banking, Bosnia and Herzegovina. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Thesis NonPeerReviewed H Social Sciences (General) 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. 3477 Title A name given to the resource THE IMPORTANCE OF FREQUENT USAGE OF VARIOUS MOTIVATIONAL STRATEGIES IN SECOND LANGUAGE ACQUISITION Author Author Hadžimehmedagić, Mahira Akbarov, Azamat Abstract A summary of the resource. Why do the students of second language acquire it with different level of achievement? Which factors influence better acquisition of L2? What is the role of motivation and motivational strategies in SLA? These questions always bother the ones who are involved in teaching process, and second language acquisition. These questions can be related to the term of motivation. Motivation is defined as the process that initiates, guides, and maintains goal-oriented behaviours, or collective set of ideas and forces that influence people to think in a certain way. So, motivation can, really be considered as a very important factor that has a great impact in students SLA, especially the motivation and the strategies employed by the teachers in the classroom. This paper is concerned about the various motivational strategies that teachers use to motivate their students while acquire the second language. In fact, how often do they use various motivational strategies in their teaching process in order to make the language acquisition and comprehension easier. The research study was conducted to find out how frequently and in which percentage are motivational strategies used by the teachers in the classroom, and which type or the group of the same was used the most. The participants of the research study were the teachers of International Primary Schools of Bosnia and Herzegovina, where English language is taught as a second language. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed PE English https://omeka.ibu.edu.ba/files/original/f488bf17fa2e130a4173cfd062dc4bd8.pdf 3c019835fd440c1d3562620db2ffe1e8 PDF Text Text THE RELATIONSHIP AMONG PERSONAL BACKGROUND, PERSONALITY TRAITS, ENVIRONMENTAL FACTORS AND ENTREPRENEURIAL INTENTION OF WOMEN IN NORTHERN MONTENEGRO Minela Hadžić International Burch University Bosnia and Herzegovina minela220@hotmail.com Sait M. Dinç International Burch University Bosnia and Herzegovina m.sait.dinc@ibu.edu.ba Abstract: Entrepreneurs are imperative for the long-term economic growth of every country. Researchers are trying to explain how important entrepreneurial intention is by taking different factors in considerations. This paper will discuss three most important groups of factors affecting entrepreneurial intention of unemployed women in the north of Montenegro. Based on literature review, those factors are personal background, personality traits and environmental groups of factors. In this study, focus will be on four factors from each group which are perceived as most important according to researchers. The study will provide new framework in this field. The main research focus will be on women since majority of unemployed people in the north of the country is women whose small proportion is entrepreneur. Keywords: Entrepreneurs, Entrepreneurial intention, Unemployed Women, Montenegro Introduction In recent years, the establishment of new businesses has attracted attention of many researchers. Developing countries and their policy makers have seen this issue as a core driver for improving economy and employment and in order to overcome current economic turbulence, they have focused on two terms: entrepreneurship and entrepreneurial intention. Entrepreneurship is a process of planned behavior and express ability of one person who is called entrepreneur to build new value to significant economical achievement (Ajzen, 1991)1985, 1987. Since the establishment of new business is a reason of general interest, researchers have started to discuss the concept of entrepreneurial intention firstly. Entrepreneurial intention is defined as precise human reaction and intellectual response to particular behavior (Farouk, Ikram, & Sami, 2014). In order to be able to understand this concept, it is important to clarify its antecedents. Plenty of studies have investigated individual impact of the factors affecting entrepreneurial intention. These factors are categorized into personal background, personality traits and environmental factors (Al-Harrasi, Al-Zadjali, & Al-Salti, 2014). Although the studies examine these factors influencing the entrepreneurial intention in developed countries, there is a scarcity of literature about developing and transitional countries. ICESoS 2016 - Proceedings Book 27 �International Conference on Economic and Social Studies (ICESoS’16) Montenegro is one of these countries in Balkan region. Higher unemployment rate and the global economical crisis have slowed down Montenegrin economy. On the other side, it created opportunity for small businesses (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013). The question arises whether that involvement is equally distributed in this small country. Since the Montenegrin labor market is divided and there is mismatch between supply and demand, there is also regional disparities and gender inequality (Golubović, 2012). Regarding the gender inequality in Montenegro, position of the women has become an interesting issue to discuss about. Reports from 2013 states that only 9,6% of women are entrepreneurs and women’s incomes are only 86% of male income. This statistic ranked Montenegro far behind other countries in the region, as well as European Union (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013) opens door for discussion. Because women and the elderly have a considerably lower income, unemployment rate in especially north part of the country is larger than the national average (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013). Overall, the most important issue of the women is what factors are influencing their potential intent to be active, to be entrepreneurs in Montenegro. So, the purpose of this study is to investigate the relationship among personal background factors, personality traits factors and environmental factors of women in Montenegro. Literature review Entrepreneurship and entrepreneurial intention Recently, entrepreneurship has been a widespread topic in academic environment. In order to better understand entrepreneurship and entrepreneurial activities, the antecedent of this concept should be known. One of the first and foremost antecedent is entrepreneurial intention. Individual belief to start new business with a clear and enthusiastic idea in a certain period of time is entrepreneurial intention (Thompson, 2009). In this definition, a highlighted point of believing of an individual that he can be entrepreneur is a starting point for creation of new businesses (Bird, 1988)entrepreneurs’ states of mind that direct attention, experience, and action toward a business concept, set the form and direction of organizations at their inception. Subsequent organizational outcomes such as survival, development (including written plans. It is created by different motivations and values (Fayolle, Liñán, & Moriano, 2014). Factors affecting entrepreneurial intention A large number of studies about influencing factors of entrepreneurial intention have emerged in the last decades. Researchers usually focus on psychological aspects of entrepreneurial intention. Regarding these aspects, the most discussed theory is The Theory of Planned Behavior (TPB). According to this theory, the things that shape behavioral intention are attitudes, subjective norms and perceived behavioral control (Ajzen, 1991). Personal background factors are age (Wagner, 2004), gender (Naidu & Chand, 2015), education (McMahon & Huijser, 2015), and business experience (Miralles, Giones, & Riverola, 2015) as indicators of entrepreneurial intention (Al-Harrasi et al., 2014). Main part in the literature concentrates on the question about what constitutes good and productive environment for entrepreneurship. Environment, as an external factor, comes in many forms and motivated by obtained literature, here it will come in a group of four elements: family support (Mark Pruett, Rachel Shinnar, Bryan Toney, Francisco 28 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Llopis, & Jerry Fox, 2009), government support (Sadeghi, Mohammadi, Nosrati, & Malekian, 2013), perceived entry barrier (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013), and political situation (Wagner & Sternberg, 2004). Certain research studies point out close relationship between personality traits factors and entrepreneurial intention, where each of them separately and differently influence one’s intention toward starting its own business (Wang, Chang, Yao, & Liang, 2015). Some important personality traits factors are innovativeness and need for achievement (Samydevan, Piaralal, Othman, & Osman, 2015), risk taking (Yurtkoru, Acar, & Teraman, 2014), and self-confidence (Peter B. Stimpson Robinson, 1991). The demographic analysis show that there are differences between men and women in many aspects, as well as on venture creation, attitudes, behavior toward entrepreneurship and employment choice (Kolvereid, 1996). In the last decades, number of women choosing entrepreneurship among other occupations is raising, but small number of them are in industries not so much feminine, and it is result of gender stereotyping (Sweida & Reichard, 2013). Even though women entered startups, entrepreneurship remains male stereotyped (Lewis, 2006). Some assumes that small number of women ownerships are coming from their early age and are driven by low entrepreneurial intention (Kennedy & Drennan, 2002). Assessment of environment for women entrepreneurship in Montenegro Nowadays, the unstable economical situation in Montenegro stems from changes in the its labor market which started from its independence in 2006. The turbulence created significant changes in the labor market, at one point making large shift to better position, but still some deficiencies remained (Golubović, 2012). Namely, Montenegro is country in transition which needs to develop economical and social system that will provide economic well-being. One of the ways to increase economical stability is to support small and medium enterprises which should reduce poverty and unemployment in the country (Bobera, Lekovic, & Berber, 2014). The statistics said that there are more women than men in same age group, but in certified working population of Montenegro there are more men, while women are marked as “inactive” population (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013). Methodology The quantitative method was used in this study. Self-administered survey is used as a tool to obtain data. Hybrid of mail and street intercept survey method of data collection is used. By using this method, participation in the study was voluntary, and anonymity is guaranteed. Measures First part of the survey includes demographic questions which are at the same time personal background questions for the framework. Second parts of questions are environmental and those questions are created to be appropriate for the northern region of Montenegro. Third part was prepared to measure personality traits and entrepreneurial intention related questions. Following Ajzen’s, (1991) TBT theory, questions about entrepreneurial intention included questions about attitudes, subjective norms and perceived behavioral control. Seven questions were adapted from the scales developed by Paço, Ferreira, Raposo, Rodrigues, & Dinis, (2011), Sagiri & Appolloni, (2009), Liñán & Chen, (2006) and Leong, 2008). Personality traits questions were based on the study of Bezzina (2010). ICESoS 2016 - Proceedings Book 29 �International Conference on Economic and Social Studies (ICESoS’16) The respondents rated the questions by using 5- points Likert scale. Survey was originally in English, and then translated into Montenegrin language. 202 useful surveys out of 450 were collected. Sample characteristics The collected data were analyzed using SPSS (v. 18) software package. The analysis is consistent of several parts forming one clear picture of examined topic. Initially, demographic questions were evaluated to describe sample characteristics. As we can see from Table 1, 44, 1% of our sample aged from 18 to 25. When it comes to education level the biggest part of the sample finished only high school (52%). Associated with the age of the sample, indicates that the biggest portion of the sample is consistent of young women, graduates from high school. Then, 45, 5% are married, while 37, 7 of the sample have children. Initial Analysis In order to define validity of the scales used in this study, exploratory factor analysis (EFA) is performed. This analysis is often used by researchers to define essential factors from its set of data (Hooper, 2012). Precisely in this study the principal component analysis was used as the factor extraction method, and the varimax method was used for the component rotations. After analysis, factor loadings and coefficient alpha is observed in order to extract variable that are not convenient for this study. Factor loadings for entrepreneurial intention are bigger than 0,8, while for personality traits are bigger than 0,6. To prove the reliability of the scales, Chronbach’s alpha was observed. Cronbach’s alpha of entrepreneurial intention and personality traits is 0,95 and 0,97 respectively. Table 1 Sample Characteristics Variable Age Education Level Marital status Children Employment status 30 ICESoS 2016 - Proceedings Book Demographics 18-25 26-35 or over 36 Total Primary school High school Undergraduate studies Graduate studies Total Single Married Total Yes No Total Employed Unemployed Total Number 89 55 58 202 8 105 60 29 202 110 92 202 75 124 202 29 173 202 Valid Percent 44,1 27,2 28,7 100 4 52 29,7 14,4 100 54,5 45,5 100 37,7 62,3 100 14,4 85,6 100 �Regional Economic Development: Entrepreneurship and Innovation More unemployed women in the family Yes 152 75,2 No Total 47 202 23,3 100 Results Correlations tests are performed to find the relationship among the variables in the study. Table 2 indicates the correlation results. The most significant correlations are between entrepreneurial intention (EI) and factors as ED (education), BE (business experience), FS (family support), GS (government support), and BN (barriers in the north) as well as between EI and personality traits factors (PT). Correlation does not exist only between AG (age) and PS (political situation). In the previous literature, there was relationship between those two factors and EI, but in this study absence of significant correlation can be explained by the nature of the sample considered. For example, having in mind that women in Montenegro are not politically active, it makes sense. Even though from the 2011 year there is “quota system” imposed by amendment for The Law on Election of Councilors and Parliament Members, for the list of the candidates to be submitted for elections requiring at least 30% to be women, it is still below the world average of 19,6% (Montenegrin Employers Federation & IPSOS Strategic Marketing, 2013). Table 2 Mean, standard deviations and correlations Variables .Min .Max Mean SD 1 2 3 4 5 6 7 8 AG .1 1 3 1,85 0,841 1 ED .2 1 4 2,54 0,786 -0,091 1 BE .3 1 2 1,62 0,487 0,002 -0,131 1 FS .4 1 5 3,39 1,533 0,027 **0,264 *-0,146 1 GS .5 1 2 1,71 0,456 0,103 **0,280 0,124 **-0,185 1 BN .6 1 5 3,89 1,164 *0,175 0,041 -0,024 *0,139 **0,265 1 PS .7 1 3 2,03 0,585 0,041 -0,020 **0,256 -0,037 0,094 -0,067 1 EI .8 1 5 3,24 1,274 -0,028 *0,150 **-0,183 **0,431 **-0,185 **0,267 -0,04 1 PT .9 1 5 3,39 1,299 0,062 0,044 -0,082 **0,393 -0,111 **0,313 0,043 **0,829 9 1 ;SD: standard deviations ;p<0,05; **p<0,01* Conclusion The study completed mosaic for entrepreneurial intention regarding unemployed women in the northern region of Montenegro, making foundation for improving policies and implications for further studies. Strong effect of environmental factors on entrepreneurial intention of unemployed women suggests that changes can occur since the environment is dynamic and constantly changing. The implications of the study make more suggestions to the policy makers due to the importance of the environment in this study and the rule they have in changing it. For making valuable policy, women need to be included in the creation of new policies, they need to cooperate and conjoin in designing economic programs. Encouraging women in choosing entrepreneurship among other occupations must be their major ICESoS 2016 - Proceedings Book 31 �International Conference on Economic and Social Studies (ICESoS’16) focus. Current government should at least remove perceived barriers and make northern region more attractive for start-ups. They should follow example from other countries and apply entrepreneurship education in the formal education through enriched curriculum and trainings and show positive examples from that field. References Ajzen, I. (1991). Theories of Cognitive Self-RegulationThe theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. Al-Harrasi, A. S., Al-Zadjali, E. B., & Al-Salti, Z. S. (2014). Factors Impacting Entrepreneurial Intention: A Literature Review. International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 8(8), 2479–2482. Bezzina, F. (2010). Characteristics of the Maltese Entrepreneur. International Journal of Arts and Sciences, 3(7), 292. Bird, B. (1988). Implementing Entrepreneurial Ideas: The Case for Intention. Academy of Management Review, 13(3), 442–453. Bobera, D., Lekovic, B., & Berber, N. (2014). Comparative Analysis of Entrepreneurship Barriers: Findings from Serbia and Montenegro. Engineering Economics, 25(2), 167–176. Farouk, A., Ikram, A., & Sami, B. (2014). The Influence of Individual Factors on the Entrepreneurial Intention. International Journal of Managing Value and Supply Chains, 5(4), 47–57. Fayolle, A., Liñán, F., & Moriano, J. A. (2014). Beyond entrepreneurial intentions: values and motivations in entrepreneurship. International Entrepreneurship and Management Journal, 10(4), 679–689. Golubović, V. (2012). The spectrum of employment policies and their impact on the labour market in Montenegro. SEER: Journal for Labour and Social Affairs in Eastern Europe, 15(4), 457–482. Hooper, D. (2012). Exploratory Factor Analysis. Books/Book Chapters. Retrieved from http://arrow.dit.ie/buschmanbk/8 Kennedy, J., & Drennan, J. (2002). Entrepreneurial Intentions of Women. Small Enterprise Research, 10(1), 75–87. Kolvereid, L. (1996). Prediction of Employment Status Choice Intentions. Entrepreneurship Theory and Practice, 21(1), 47–57. Leong, C. K. (2008). Entrepreneurial intention: an empirical study among Open University Malaysia (OUM) students. Open University Malaysia (OUM). Retrieved from http://library.oum.edu.my/repository/306/ Lewis, P. (2006). The Quest for Invisibility: Female Entrepreneurs and the Masculine Norm of Entrepreneurship. Gender, Work & Organization, 13(5), 453–469. 32 ICESoS 2016 - Proceedings Book �Regional Economic Development: Entrepreneurship and Innovation Liñán, F., & Chen, Y.-W. (2006). Testing the entrepreneurial intention model on a twocountry sample. Retrieved from http://ddd.uab.cat/record/44583 Mark Pruett, Rachel Shinnar, Bryan Toney, Francisco Llopis, & Jerry Fox. (2009). Explaining entrepreneurial intentions of university students: a cross-cultural study. International Journal of Entrepreneurial Behavior & Research, 15(6), 571–594. McMahon, C., & Huijser, H. (2015). “We Don”t Need No Education?’: Moving Towards the Integration of Tertiary Education and Entrepreneurship. In M. K. Harmes, H. Huijser, & P. A. Danaher (Eds.), Myths in Education, Learning and Teaching (pp. 97–113). Palgrave Macmillan UK. Miralles, F., Giones, F., & Riverola, C. (2015). Evaluating the impact of prior experience in entrepreneurial intention. International Entrepreneurship and Management Journal, 1–23. Montenegrin Employers Federation, & IPSOS Strategic Marketing. (2013). Assessment of the Environment for Women Entrepreneurship. Naidu, S., & Chand, A. (2015). National Culture, Gender Inequality and Women’s Success in Micro, Small and Medium Enterprises. Social Indicators Research, 1–18. Paço, A. M. F. do, Ferreira, J. M., Raposo, M., Rodrigues, R. G., & Dinis, A. (2011). Behaviours and entrepreneurial intention: Empirical findings about secondary students. Journal of International Entrepreneurship, 9(1), 20–38. Peter B. Stimpson Robinson, D. V. S. (1991). An Attitude Approach to the Prediction of Entrepreneurship. Entrepreneurship: Theory &amp; Practice, 15, 13–31. Sadeghi, M., Mohammadi, M., Nosrati, M., & Malekian, K. (2013). The Role of Entrepreneurial Environments in University Students Entrepreneurial Intention. World Applied Programming, 3(8), 361–366. Sagiri, S., & Appolloni, A. (2009). Identifying the Effect of Psychological Variables on Entrepreneurial Intentions. DSM Business Review, 1(2). Samydevan, V., Piaralal, S., Othman, A. K., & Osman, Z. (2015). Impact of Psychological Traits, Entrepreneurial Education and Culture in Determining Entrepreneurial Intention among Pre-University Students in Malaysia. American Journal of Economics, 5(2), 163– 167. Sweida, G. L., & Reichard, R. J. (2013). Gender stereotyping effects on entrepreneurial self-efficacy and high-growth entrepreneurial intention. Journal of Small Business and Enterprise Development, 20(2), 296–313. Thompson, E. R. (2009). Individual Entrepreneurial Intent: Construct Clarification and Development of an Internationally Reliable Metric. Entrepreneurship Theory and Practice, 33(3), 669–694. ICESoS 2016 - Proceedings Book 33 �International Conference on Economic and Social Studies (ICESoS’16) Wagner, J. (2004). Are young and small firms hothouses for nascent entrepreneurs? Evidence from German micro data (No. 989). IZA. Retrieved from http://papers.ssrn. com/sol3/papers.cfm?abstract_id=494202 Wagner, J., & Sternberg, R. (2004). Start-up activities, individual characteristics, and the regional milieu: Lessons for entrepreneurship support policies from German micro data. The Annals of Regional Science, 38(2), 219–240. Wang, J.-H., Chang, C.-C., Yao, S.-N., & Liang, C. (2015). The contribution of selfefficacy to the relationship between personality traits and entrepreneurial intention. Higher Education, 1–16. Yurtkoru, E. S., Acar, P., & Teraman, B. S. (2014). Willingness to Take Risk and Entrepreneurial Intention of University Students: An Empirical Study Comparing Private and State Universities. Procedia - Social and Behavioral Sciences, 150, 834–840. 34 ICESoS 2016 - Proceedings Book � 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. 3330 Title A name given to the resource THE RELATIONSHIP AMONG PERSONAL BACKGROUND, PERSONALITY TRAITS, ENVIRONMENTAL FACTORS AND ENTREPRENEURIAL INTENTION OF WOMEN IN NORTHERN MONTENEGRO Author Author Hadzic, Minela DINC, Muahmmet Sait Abstract A summary of the resource. Abstract: Entrepreneurs are imperative for the long-term economic growth of every country. Researchers are trying to explain how important entrepreneurial intention is by taking different factors in considerations. This paper will discuss three most important groups of factors affecting entrepreneurial intention of unemployed women in the north of Montenegro. Based on literature review, those factors are personal background, personality traits and environmental groups of factors. In this study, focus will be on four factors from each group which are perceived as most important according to researchers. The study will provide new framework in this field. The main research focus will be on women since majority of unemployed people in the north of the country is women whose small proportion is entrepreneur. Date A point or period of time associated with an event in the lifecycle of the resource 2016 Keywords Keywords. Conference or Workshop Item PeerReviewed H Social Sciences (General)