2 2 2020 2020-12-30 https://tefmj.ibupress.com/issue/volume-2-issue-2 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

influencer-marketing-the-case-of-north-macedonia 2020 2 It is believed that influencer marketing is making a huge impact on businessess. Whenever someone online attracts the attention of the consumer, he/she can be considered as an influencer. Whether the consumer is following a politician or an expert on Instagram, or picking recipes and cooking according to the Facebook chef page or is growing flowers as a Pinterest gardener, or is watching a video from the favorite YouTube vlogger, it is a matter of communicating with an influencer. Influencer is a person who is at the forefront of social trends. He/ she is able to create new ideas, concepts or content (innovators) or discovers trends before anyone else and is spreading them further into the social medium (disseminators). Influencers are Internet users with a lot of subscribers across different social networks, who have significant influence on their followers. In simple words, an influencer is a person who is able to impact on purchasing decisions of others by using social networks. Companies are trying to use influencers in order to attract more consumers to see and buy their products or services. However, there are many intrigues related to this kind of marketing. Many experts and marketers believe that influencer marketing is not achieving the expected results and that it is only about tricks and frauds. This paper attempts to explain the use and impact of influencer marketing on Macedonian consumers. Do they believe in influencers and do they buy according to influencers‘ recommendations. In order to achieve this goal and answer the questions, an electronic survey was conducted

]]> Influencer marketing, social networks, Instagram, Facebook, YouTube, innovators, disseminators 2020-12-30 https://tefmj.ibupress.com/articles/influencer-marketing-the-case-of-north-macedonia 2 1-10 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/156/21.pdf / /

]]> Savica Dimitrieska International Balkan University – Skopje true Tanja Efremova National Bank of the Republic of North Macedonia 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

effects-of-tax-change-regime-on-the-economic-growth-of-the-republic-of-north-macedonia 2020 2 This paper tries to determine the impact of the change of tax regime in Republic of Macedonia, where from being a progressive tax rate until 2006 it became flat tax for the time period 2007 - 2017. In order to analyze such effects on economic growth of the Republic of North Macedonia for the time period 2000 – 2017, quarterly time series of real GDP growth rate, Direct tax divided into Personal Income Tax and Corporate Income Tax and a dummy variable regarding the time period of the change has been employed. One of the main justifications for changing the tax regime from progressive to flat, was that this change will reflect in the improvement of the employment, thus will reduce the unemployment rate. Moreover, the main objective is to investigate how the tax regime change has affected the economic growth in Republic of Macedonia, analyzing the two different time periods, first when was applicable progressive tax rate from 2000 – 2006, and then the second time period 2007-2017, when was applicable flat tax rate, by applying the VAR model and by creating a dummy variable indicating the period t > 2007q1. The results imply that the effect of the change of the tax regime is insignificant and inefficient for the case of the Republic of North Macedonia.

]]> flat tax, progressive tax, growth, VAR 2020-12-30 https://tefmj.ibupress.com/articles/effects-of-tax-change-regime-on-the-economic-growth-of-the-republic-of-north-macedonia 2 11-16 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/155/22.pdf / /

]]> Afrim Alili University of Tetovo, North Macedonia true Liza Alili Sulejmani 1 International Balkan University – Skopje Ahmet Lokce International Balkan University – Skopje 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

risk-management-banking-strategies-in-the-information-age 2020 2 The importance of the issue that is subject of this research stems out of the significance and relevance of the banking system stability, as a primary economic factor that is particularly apparent in times of financial crises. One of the key reasons for the serious difficulties and the severe financial crisis in which the financial institutions find themselves, is the inappropriate risk management in the banking operations. The increasing financial liberalization and the inventiveness in the contemporary world influence the rising offer of new banking products and services that carry intricate risks with them. The technology increasingly has, and shall continue to have, a key role in the risk management. In order to be able to adapt to the new global standards and regulations, banks would have to focus their attention towards reduction of transaction costs and to have prudent risk management. This means necessity to use the latest information techniques and technologies in the banking operations that will contribute towards offering new products and services, in higher quantity and at competitive prices. The implementation of the Basel standards also refers to the need for continuous improvement of the methods and strategies for measuring and strengthening of the risk management processes in the banking operations. Namely, in order to respond to the increasingly complex banking system to the need of international harmonization of the banking regulation and the need to strengthen the resilience of the banks towards financial distresses, the Basel Committee on Banking Supervision (BCBS) continuously revise the Basel standards introduced back in 1988. The long-term trends in the banking sector impose the need to use new, stricter methodologies for quantitative and qualitative risk measurement and management, including the need for development of new techniques that will enable their successful implementation. The reoccurrence of the financial crisis only confirms the fact that there is still room for further improvement of the risk management methodologies that were used. In this paper, special attention is paid to identifying methods and proactive strategic approaches that banks should adopt in order to build a strong team and efficient risk management processes in the information age. The rapid development of e-banking brings about benefits, but also risks. Risks in ebanking should be timely identified, controlled and properly managed by banking institutions. As it shown in this paper the technological complexity of the activities related to e-banking, as well as their rapid development particularly affect the intensification of strategic, operational and reputational risk. Analytic and field research was used for preparation of this paper. Additionally, analysis and synthesis methods have been applied. Internet was used as a major tool to approach data and literature.

]]> risk management, banking system, information and communications technology 2020-12-30 https://tefmj.ibupress.com/articles/risk-management-banking-strategies-in-the-information-age 2 17-26 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/154/23.pdf / /

]]> Elena Parnardzieva Stanoevska International Balkan University – Skopje true 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

the-role-of-marketing-in-the-new-normal 2020 2 The novel Coronavirus (Covid-19) was declared as a pandemic by the World Health Organisation in March, 2020. It was called „once in a century pandemic“, or a „Wuhan virus“ as it has firstly appeared in the Chinese city of Wuhan in December 2019. Measures that governments have taken in order to keep people safe, had a significant impact on economies, markets and consumers.While certain industries and sectors had to close down for lenghty periods, lay off staff and fear for their existence, other made huge profits and rushed to move their activities online. Consumers, under government restrictions and faced with lockdowns, needed to shift their buying habits and patterns. Their buying priorites and behavior significantly changed. Consumers mostly purchase basic food products, personal hygiene products, disinfectants, vitamins, immunosuppressive drugs, anti-bacterial products, but also computers and computer equipment and teleommunication services. Bars, restaurants, travel agencies, entertainment industry, as well as automobiles, jewelry, luxury goods have experienced a sharp decline in consumption. This paper aims to show how marketing can help companies reconnect with their consumers. The paper uses world-class analysis done by multiple marketing agencies. Even in the aftermath of a pandemic, companies need to continue their marketing activities. One of the wrong decisions of managers is to cut marketing costs in times of crisis. Consumers always remember the companies that were with them even in the worst of times, offering them goods and services, as well as, words of support, comfort and hope.

]]> Marketing, companies, pandemic, Covid-19, government’s measures, consumers 2020-12-30 https://tefmj.ibupress.com/articles/the-role-of-marketing-in-the-new-normal 2 27-32 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/153/24.pdf / /

]]> Savica Dimitrieska International Balkan University – Skopje true Tanja Efremova National Bank of the Republic of North Macedonia 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

factors-affecting-bank-liquidity-in-republic-of-north-macedonia 2020 2 Banks' liquidity is a critical phenomenon that must be constantly monitored and managed in order for bank to achieve an appropriate maturity transformation of liabilities into assets, while maintaining an appropriate level of profitability. Additionally, liquidity as a critical point in the management of the bank's assets indirectly affects the growth, development, but also the functioning of the banks in general. The purpose of this research is to determine the factors that affect the liquidity of banks in the Republic of North Macedonia measured through gross loans to total assets ratio. In order to determine which factors affect the liquidity of the banks in RNM, the regression model includes secondary data on micro-factors affecting the liquidity of the banking sector, ie NPL / Gross loans (non-fin.), ROAA, Cost to income ratio, Loan growth, Deposit growth, CAR and secondary data on macroeconomic factors. ie GDP growth, inflation and unemployment. Furthermore, the empirical research continues to focus more on the individual groups of banks by size, in order to determine the micro factors that have a significant impact on the liquidity of large, medium and small size banks in the Republic of North Macedonia for the time spin 2005q1 – 2020q1.

]]> liquidity, bank-specific factors, macro-factors, bank size, OLS 2020-12-30 https://tefmj.ibupress.com/articles/factors-affecting-bank-liquidity-in-republic-of-north-macedonia 2 33-42 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/152/25.pdf / /

]]> Andrijana B. Danevska International Balkan University – Skopje true Liza Alili Sulejmani 1 International Balkan University – Skopje Ahmet Lokce International Balkan University – Skopje 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

compliance-with-basel-standards-and-practices-of-risk-management-trends-and-challenges-of-the-macedonian-banks 2020 2 The risk management process is a continuous process that is constantly evolving. As the world changes, the activities of banks change, there is a need for new types of products, new ways and practices for operation, new software solutions. Organizational schemes, security policies, etc. are also changing. Everything leads to the emergence of new risks or the re-emergence and intensification of existing, controlled risks. There is a need for new fresh capital or more productive use of available resources for more efficient multiplication of existing capital. Therefore, permanent evolution and upgrading of the risk and capital management system is required, both domestically and internationally. The Basel standards that are being developed in order to strengthen the banking sector and introduce additional market discipline have the ultimate goal of strengthening the capital of banks and improving the practices in risk management, i.e. the financial landscape of a national economy. In this paper special attention is given to the compliance of the Macedonian banks with the application of the Basel standards and the recommendations of the Basel Committee for Banking Supervision (BCBS) on the best practices of risk management. Primary goal is to demonstrate why is necessary domestic regulation to be harmonized with Basel standards and to what extend the Macedonian legislation complies with it. Particularly, in the paper progress is presented of the Macedonian banks in implementing the Basel III regulatory reforms in a full, timely and consistent manner. The analysis shows that Macedonian banks have made particular progress towards meeting the Basel III capital requirements. Capital and liquidity ratios are on satisfactory level and have generally remained stable in the first half of the year beside the impact of Covid-19. However, the Macedonian legislation lags behind and there is still room for further harmonization with Basel’s standards and practices of risk management. Analytic and field research was used for the preparation of the paper. Surveying as well as analysis and synthesis methods have been applied. Internet was used as a major tool to approach to data and literature. Additionally, tables and graphical methods have been employed for visual presentations during the research.

]]> Risk Management, Capital Management, Basel standards, banks 2020-12-30 https://tefmj.ibupress.com/articles/compliance-with-basel-standards-and-practices-of-risk-management-trends-and-challenges-of-the-macedonian-banks 2 43-58 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/151/26.pdf / /

]]> Elena Parnardzieva Stanoevska International Balkan University – Skopje true 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

organizational-change-importance-and-effective-management-of-change 2020 2 Organizational change is of high significance for all organizations. It can be considered as a procedure through which an organization directs its performance toward reaching its ideal state. Organizational change comes as e result of an ever-changing environment, a reaction to a crisis situation currently occurring, or is triggered by a leader. Successful organizational change is not just a process of adapting and adjustment, but also requires sufficient abilities and skills for managing. However, there are many issues to be tackled in order to achieve successful change. Hence, this project paper elaborates on what causes organizational change, approaches, its process and elements, then resistance and how to manage it and lastly the possible factors that might lead to its collapse.

]]> organizational change, organizational development, causes of organizational change, processes of organizational change, resistance, management of organizational change 2020-12-30 https://tefmj.ibupress.com/articles/organizational-change-importance-and-effective-management-of-change 2 59-68 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/150/27.pdf / /

]]> Tirana Ameti International Balkan University – Skopje true 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

the-relationship-between-liquidity-and-profitability-an-empirical-study-for-the-case-of-alkaloid 2020 2 The relationship between liquidity and profitability is one of the most popular topics of research in the financial management field but still not exhaustively examined and documented for the industries in the Republic of North Macedonia. Taking into account the importance of the pharmaceutical industry for every country’s well-being, the purpose of this paper is to examine the relationship between liquidity and profitability in the pharmaceutical sector in the Republic of North Macedonia. This paper analyzes the biggest and the most influential pharmaceutical producer and seller in the RNM, listed on the Macedonian Stock Exchange. For its purpose, this empirical research has used secondary annual financial data over the period 2010 – 2019. Current ratio (CR), quick ratio (QR) and cash ratio (CAR) were used to measure the liquidity position while return on assets (ROA) and return on equity (ROE) were used to measure the company’s profitability. The statistical tests performed, primarily involved were descriptive statistics, correlation and regression analysis. The findings suggest that there is negative relationship between profitability and liquidity determinants of the biggest North Macedonian pharmaceutical firm. This study contributes to the existing literature in this field and represents one of the pioneer attempts in the case of RNM.

]]> current ratio, quick ratio, cash ratio, return on assets, return on equity, pharmaceutical firms 2020-12-30 https://tefmj.ibupress.com/articles/the-relationship-between-liquidity-and-profitability-an-empirical-study-for-the-case-of-alkaloid 2 69-79 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ / /

]]> Angela Zafirova Institute of Economics – Skopje true 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

evaluation-of-the-financial-performances-of-the-companies-from-the-confectionery-industry-in-north-macedonia 2020 2 The purpose of the paper is to conduct an evaluation of the financial performances of the companies from the confectionery industry in North Macedonia. The companies that are evaluated and analyzed are competitive within the food sector, i.e. the confectionery industry. The objective of this research is to highlight and compare the financial situation of Evropa AD Skopje and Vitaminka AD Prilep as representatives of the confectionery industry in Macedonia. The paper is dedicated to the practical use of financial analysis, analyzing data from the audited financial statements and income statements. The theoretical section of the research contains a discussion regarding the different factors that affect the confectionery industry, an analysis of the most appropriate financial factors that are determined by many researchers, specific financial statements, methods of financial statement analysis and financial ratio analysis. Similarly, the annual performances of the two companies are not analyzed and used in order to choose the best one in the market, rather the selection of the two companies would provide an example to rate how a company’s individual performances are used aiming for comparison with a similar entity that operates in the same market or industry. The study demonstrates that the Macedonian confectionery industry is significantly affected by both companies, especially in the period from 2014 to 2017. Development and stable situations were observed within the studied companies, with positive and negative manners throughout the years, however resulting as a strong pillar of the industry.

]]> Evaluation, confectionery, financial performance, confectionery industry 2020-12-30 https://tefmj.ibupress.com/articles/evaluation-of-the-financial-performances-of-the-companies-from-the-confectionery-industry-in-north-macedonia 2 80-90 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/148/29.pdf / /

]]> Valon Ramadani International Balkan University – Skopje true 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com

global-governance-in-the-light-of-pandemic-covid-19 2020 2 The situation, with the COVID-19 has emerged with the enforcement of new societal rules. Moreover, when the language of global governance is evoked, the global rules and norms are intended to become a substitute for the authority and rule of territorial state. United Nation can play important role in establishing a credible global governance system of rule. Moreover, UN with their credibility can be in purpose for successful coordination and cooperation among national sovereign states. The contemporary situation and precaution measure with pandemic COVID-19 are similar with the infection control in Islam which includes isolation and quarantine. Moreover, the precautionary principle contributes to overcome pandemic situation with COVID-19 and can facilitate the management of interdependence and increase the policy coordination among state. In interaction between states for allocation and protection of Global Public Goods is desirable outcome of agreement pursued by justice and fairness. In this discourse in international arena Islam plays an important part in protecting GPG and resolving situation with the COVID-19. So global governance helps to resolve collective action problems experienced by members of international system and to provide and protect global public goods which states acting individually cannot ensure.

]]> Global Governance, United Nation, Covid 19, Islam, Precautionary principle, Global Public Goods 2020-12-30 https://tefmj.ibupress.com/articles/global-governance-in-the-light-of-pandemic-covid-19 2 91-98 en CC BY-NC-ND 4.0 https://creativecommons.org/licenses/by-nc-nd/4.0/ https://tefmj.ibupress.com/file/147/30.pdf / /

]]> Gafur Zharku true 2671-3357 2671-3365 Balkan University Press https://tefmj.ibupress.com