International Journal of Innovative Technologies in Economy

DEVELOPMENT TRENDS OF GEORGIAN CAPITAL MARKET AND PENSION FUND

2024-08-04T17:29:03+00:00

Since January 2019, a cumulative pension system has been launched in Georgia. The reform’s main goals are reducing fiscal pressure and ensuring a "decent" pension at retirement age. In addition, the possible positive impact of the accumulated pension fund on the capital market of Georgia is important. The purpose of the paper is to analyze the current reality of the capital market of Georgia. In order to determine what opportunities it creates in the investment process of the Georgian pension agency.
During the research, we mainly used statistical analysis methods. The discussion is based on indicators such as: composition of total debt of non-financial companies in Georgia; liquidity and activity on the Georgian stock exchange; total balance of corporate bonds denominated in GEL; the ratio of the total capitalization of the stock market; assets of the Georgian pension agency and its investment portfolio.
Due to research findings, although there is a lack of institutional investors in the financial markets of Georgia, there are no existing securities in the local market, which would allow the pension agency to make more investments in the local capital market. Growth at such a rate requires investing in assets with a higher risk than the existing ones. In particular, since the capital market assets have a higher rate of return, it is important for the policy of the pension agency to either increase the limits for investing in the foreign market, or to be more opportunities and alternatives in the local capital market.

A RESEARCH ON THE AVAILABILITY OF RISK CAPITAL IN RESOLVING THE MARKETING AND FINANCE PROBLEMS OF SMALL AND MEDIUM-SCALE ENTERPRISES (SMEs)

2024-08-16T01:38:21+00:00

Small and medium-sized enterprises (SMEs) play a vital role in many economies, serving as a source of technological innovation and a foundation for larger enterprises. However, SMEs often face significant challenges in the areas of marketing and finance. This study aims to investigate the potential of venture capital in addressing these issues and facilitating the growth and development of SMEs. Methods: A comprehensive survey was conducted among SMEs in the computer, machinery, equipment, textile, and related product manufacturing sectors in the Izmir and Istanbul provinces of Turkey. The target population consisted of 250 SMEs, with a goal of reaching a representative sample of 100 enterprises. Data was collected through face-to-face interviews and mailed questionnaires, and analyzed using non-parametric tests in SPSS. Results: The findings reveal that SMEs face numerous marketing challenges, including difficulties in market penetration, intense competition, unfair trade practices, and restrictive economic policies. Financial constraints were also prominent, with SMEs struggling to secure loans due to high collateral requirements, limited credit opportunities, and bureaucratic obstacles. Notably, while nearly half of the respondents were aware of venture capital as a financing tool, only 6% had actually utilized it, primarily due to a lack of detailed knowledge about the mechanism. Discussion: The study underscores the critical need for alternative financing options, such as venture capital, to support the growth and competitiveness of SMEs. Policymakers and financial institutions should prioritize initiatives to increase awareness and accessibility of venture capital, while also addressing the broader regulatory and infrastructural barriers faced by SMEs. Future research should explore the specific factors influencing venture capital adoption and its impact on SME performance across diverse contexts.

REDUCTION OF BANKING RISKS AND STRESS TESTS: A COMPREHENSIVE ANALYSIS

2024-08-20T02:41:35+00:00

Introduction. The management of liquidity and market risks in the banking sector is of paramount importance for maintaining a robust financial system and mitigating potential crises. Despite extensive research and implementation of risk management techniques, recent experiences have highlighted the inadequacy of purely statistics-based approaches in extreme situations. This study aims to critically examine the current state of banking risk management, focusing on the effectiveness of methods such as Value at Risk (VaR) for foreign currency risks and Gap Analysis for liquidity and interest rate risks. By identifying limitations and proposing enhancements, this research seeks to contribute to the development of more resilient risk management frameworks in the banking industry.
Methods. This study employs a comprehensive literature review and empirical analysis of risk management practices in the banking sector. VaR and Gap Analysis methods are applied to real-world data from a representative sample of banks to assess their efficacy in capturing and mitigating liquidity, foreign currency, and interest rate risks. The results are critically evaluated using advanced statistical techniques and benchmarked against industry standards.
Results. The findings reveal significant limitations in the current application of VaR and Gap Analysis methods, particularly in extreme market conditions. The study identifies key factors contributing to these shortcomings and proposes a set of enhanced risk management strategies that incorporate scenario analysis, stress testing, and machine learning techniques. These innovations demonstrate improved risk capture and mitigation capabilities.
Discussion. The outcomes of this research have significant implications for risk management practices in the banking sector. The proposed enhancements to VaR and Gap Analysis methods offer a pathway towards more robust and adaptive risk frameworks. Future research should focus on the practical implementation and validation of these strategies across a wider range of banking institutions and market conditions.

NEGLECTING THE FUNDAMENTALS: HOW FOCUS ON WEB APPS AND FRAMEWORKS LEAVES GAPS IN NETWORK SECURITY

2024-08-17T16:53:34+00:00

In the contemporary digital landscape, the rapid proliferation of web applications and frameworks has captivated the focus of cybersecurity professionals. While these modern technologies are crucial for user experience and business operations, this shift in attention often comes at the expense of foundational network protocols—DNS, DHCP, and TCP/IP. These protocols form the bedrock of network security and efficiency. This paper explores the critical role of managing DNS, DHCP, and TCP/IP in maintaining a secure and efficient network infrastructure. By emphasizing the need to balance attention between cutting-edge web technologies and fundamental network protocols, this study highlights the vulnerabilities that arise from neglecting these essential components. Effective management of these protocols is likened to fortifying the basic structures of a country house, ensuring a robust defense against vulnerabilities.

IS CORPORATE SOCIAL RESPONSIBILITY A TOOL USED BY COMPANIES TO ENHANCE THEIR REPUTATION OR A CONTRIBUTION TO SUSTAINABILITY?

2024-08-17T22:36:35+00:00

Sustainable development, corporate social responsibility and social sustainability, joint efforts for the benefit of society, reduction of carbon dioxide emissions are among the most discussed topics in modern economic literature and articles. Events, discussions and debates are held in this direction. Companies, regardless of size, join this trend and try to make CSR a major part of their strategy. The group of companies really does it and strives to take care of their employees, their families, other stakeholders and society as a whole, and does it with a true sense of social responsibility. Their only goal is to improve the social well-being of their employees, create equal, comfortable working conditions, provide social comfort in society and transmit positive energy. This can be considered an activity that has achieved its goal.
On the other hand, some companies approach this work as a part of their marketing activities only to raise their reputation. Sometimes they use CSR to attract customers and partners who are sensitive to sustainable development and the environment, sometimes to increase the attractiveness of their brand, sometimes to avoid sanctions imposed by the government.
The real value of CSR lies in honest intent and a long-term commitment to doing the right thing. Transparency, consistency and a focus on measurable impact are key. When businesses approach CSR with integrity, they not only improve their reputation, but also play a vital role in creating a sustainable and fair world for all.

AGRICULTURAL DYNAMICS IN THE PROVINCE OF CONSTANTINE THROUGH THE EVOLUTION OF THE PRODUCTION

2024-08-20T02:51:07+00:00

Algerian policy for economic development has taken the agricultural sector as pillars, which is not without risk because of the vulnerability of the sector (climate change, the immensity of desert areas, etc.) but also because of the faillur of the various policies initiated until today. The challenge are high, and the benefits that can emerge are capable of guaranteeing sustainable development for the country. The current research aims to determine the impact of Agricultural and rural renewal in province of Constantine. Constantine is a proven agricultural center in eastern Algeria; the province has experienced agricultural dynamics since the beginning of the 2000s, which has resulted in increases in surface areas and yields. This increase did not have as a corollary an increase in production, which remains quite low compared to national efforts and ambitions; This analysis reveals that the main causes remain the low use of irrigation and the impact of climate change on annual rainfall.