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This paper investigates the impact of macroeconomic indicators on non-performing loans at commercial banks in the Balkans. In this research, we calculated how the macroeconomic indicators mentioned below affect non-performing loans and how strong this relationship is. The study of this problem is crucial because the Balkan countries experience economic trends reflected in macroeconomic indicators. In this study, the OLS model was used to examine the relationship between macroeconomic factors and non-performing loans in the study period from 2006 to 2020. We used correlation, regression, and co-integration methods. Non-performing loans (NPLs) were the dependent variable, and the independent variables were gross domestic product (GDP), government debt to GDP ratio, unemployment, and inflation. According to the linear regression model, GDP and inflation negatively impacted non-performing loans, while government debt to GDP ratio and unemployment had a positive effect.

Purpose This study aims to examine the relationship between job burnout, psychological well-being and intention to change occupation among accounting professionals. It focuses on the role of psychological well-being in explaining the link between job burnout and intention to change occupation. Design/methodology/approach Data were collected with the help of a structured questionnaire. The final sample includes 218 accounting professionals in the private sector. To test the hypothesized model in this study, IBM AMOS ver26 was used to perform the structural equation modeling (SEM). Findings The results of this study show that job burnout has a positive impact on the intention to change occupation and a negative impact on psychological well-being. In addition, psychological well-being was found to mediate the relationship between job burnout and intention to change occupation. Practical implications This study provides important implications for accounting firms and recommends that they implement the necessary practices to increase the psychological well-being of accounting staff to reduce job burnout and intention to change occupation. Originality/value This work complements current studies in the field of accounting by highlighting the intermediary role of psychological well-being on the relationship between job burnout and intention to change profession among accounting professionals.

The study aims to investigate the effect of internal audit quality on the financial performance of insurance companies operating in Kosovo. To measure financial performance the ratio between net profit and total assets (ROA) is used. The data are taken from the 6-month financial statements of these companies for the period 2015-2021. The independent variables were internal audit standards, professional competence, independence of the auditor, and efficiency of the internal audit. In addition, three control variables were included (company growth, company size, and company age). The results of the study show that professional competence has a significant positive impact on financial performance, while the effectiveness of internal audits negatively impacts the financial performance of insurance companies. Regarding the control variables, the size of the insurance company has a strong positive correlation, in contrast to the age of the company, which has a negative and significant impact on the financial performance of insurance companies in Kosovo. The study recommends that insurance companies pay special attention to the effectiveness but also the independence of the internal auditor due to the negative impact they can have on financial performance. The findings of the study may be of interest to many different stakeholders, both inside and outside insurance companies, to improve the effectiveness and increase the independence of internal audits.

Purpose: This research will aim to provide a more complete view of the IAS implementation process by large enterprises in Kosovo and its impact on their financial position., Methodology: For this research, we used primary and secondary sources. We conducted quantitative research through a customized questionnaire, which was completed by the accountants of 102 chosen companies, regarding the implementation of IAS and its impact on the company’s financial position., Findings: Based on data analysis, we have identified that the level of implementation of IAS is average, and the main factors of this are the complexity of IAS, cost of implementation, lack of knowledge, and adequate certifications about IAS., Originality/Value: This paper aims to provide empirical evidence in the implementation of IAS in Kosovo and give a contribution to researchers in this field., peer-reviewed

Purpose: This research aims to present the process of adoption of International Financial Reporting Standards (IFRS) by large enterprises in Kosovo and main challenges faced during the implementation., Methodology: We conducted a quantitative research through a customized questionnaire regarding the challenges presented during the implementation period ,which was addressed to 138 companies which are required by law to report under IFRS of which 100 valid for research, which were completed by the accountants of those companies., Findings: Based on data analysis, we have identified that the main challenges faced during this process are related to the lack of knowledge of accountants and no continues professional development as well as lack of training and it is evident that the process of implementing IFRS is complex., Originality/Value: The findings of the study provide empirical evidence in the application of IFRS from development countires as well as challanges during adaption phase of IFRS., peer-reviewed

Purpose: This research aims to present the main obstacles of the application and implementation of the IFRS during the transition period from Kosovo Accounting Standards (KAS) to International Financial Reporting Standards (IFRS). Considering that the development of accounting in Kosovo, it has not been an easy transition as can be expected. -- Design/methodology/approach: We conducted a quantitative research through a customized questionnaire which was addressed to 130 certified accountants and auditors in Kosovo, regarding the challenges presented during this period, of which 77 have resulted in positive answers, but with 2 incomplete answers. -- Findings: Through this research we have managed to identify some of the main challenges faced by accountants and auditors during the transition period from KAS to IFRS and how many respondents agreed that the transition process is complicated. From the analysis of data and results we can conclude that the need for ongoing training and lack of knowledge and experience needed for accountants and auditors has increased the complexity of the IFRS application process. -- Originality/value: Findings from this study can be a contribution to the application of IFRS for developing countries as well as a contribution to the literature regarding the practical, legal challenges, continuing education regarding the transition phase and regarding the implementation and application of IFRS., peer-reviewed

The aim of this paper is to investigate internal and external determinants that impact the Net Interest Margin (NIM). The paper employs an OLS-PSCE procedure using quarterly Panel Data (From March 2013 to December 2019) for commercial banks in Kosovo. Results suggest that the Net Interest Margin in the banking sector in Kosovo is mostly influenced by factors within the bank such as: Loan-to-Deposit Ratio; Operation Costs and Fee Income, but less affected by external factors besides inflation. In addition, results suggest that external factors do not influence the net interest margin; therefore, a governmental policy intervention might not have an impact on Net Interest Margin. The results of the research are important for commercial banks in Kosovo, since they can help improve the efficiency through the internal and external indicators that are impacting the NIM., Cilj ovog rada je istražiti unutarnje i vanjske determinante koje utječu na neto kamatnu maržu (NIM). Rad koristi proceduru OLS-PSCE koristeći tromjesečne podatke panela (od ožujka 2013. do prosinca 2019.) za poslovne banke na Kosovu. Rezultati pokazuju da je neto kamatna marža u bankarskom sektoru na Kosovu uglavnom pod utjecajem čimbenika unutar banke kao što su: omjer kredita i depozita i operativnih troškova i prihodi od naknada, ali manje pod utjecajem vanjskih čimbenika osim inflacije. Osim toga, rezultati sugeriraju da vanjski čimbenici ne utječu na neto kamatnu maržu; stoga intervencija vladine politike možda neće imati utjecaja na neto kamatnu maržu. Rezultati istraživanja važni su za poslovne banke na Kosovu, jer mogu pomoći u poboljšanju učinkovitosti kroz interne i vanjske pokazatelje koji utječu na NIM.

From January 1, 2018, most of the commercial banks in Kosovo adopted IFRS 9. The new standard introduces the expected credit loss model to allow for timely recognition of credit losses, estimated not only on the actual credit loss but also on forward-looking information regarding the current loan portfolio. Although, transition phases may lead to increasing impairments and a decrease in banks’ equity, which directly influences the financial stability of banks. This paper examines the day-one transition effect of IFRS 9 on the level of assets balance, allowance for loan losses, and capital regulatory class II of banks in Kosovo. To test our hypothesis, we have performed a comparative analysis for the six biggest commercial banks in Kosovo to identify correlation and causality between studied variables. As a statistical technique, we have employed a “paired sample t-test” where we compare financial indicators before and after adopting IFRS 9 to examine the impact on financial stability for commercial banks in Kosovo. Our results are in line with the results of recent studies in the IFRS 9 field and conclude that the transition phase has a significant influence on the recognition of additional loan impairment but assets and capital regulations are not affected significantly. Results demonstrate the transition to IFRS 9 causes instability and re-consolidation of capital, but in the long-run reduce the possibility for large and sudden losses. Commercial banks in Kosovo should follow a balanced growth approach without compromising the quality of the loan portfolio.

Purpose: This research aims to present the essential differences during preparation of financial statements according to commercial accounting rules and tax accounting rules; the ability of authorized people to differentiate two categories of reporting, and other findings regarding their orientation of preparation FS under IAS and then use them for the preparation FS under tax rules or inversely., Design/methodology/approach: we have realized questionnaire research which was addressed to certified accountants and others under this qualification to gather the information that will serve our research questions. This paper applied descriptive statistics and analytical-inferential statistics in terms of the application research method., Findings: The findings of this research show that there is a satisfactory level of accountant’s knowledge about the differences between commercial accounting and tax accounting rules. According to the obtained empirical results, we concluded that more than 50% of the respondents prefer to prepare the FS initially according to KCFR requirements followed by adjustments under tax requirements., Originality/value: Few known studies of this type, increase the contribution of this research in terms of drafting regulations related to the preparation of FS according to IAS and preparation of FS according to TAK rules to create a more approximate system of both forms of reporting., peer-reviewed

This study provides empirical evidence on income smoothing from the banking sector in nine South-Eastern Europe (SEE) countries for the period 2005-2014 by applying a number of methodological approaches. First, by using a sample of 321 banks this paper confirms our first hypothesis that banks in the SEE region use loan loss provisions (LLPs) to smooth their incomes. Second, by dividing the loan loss provision into its two components (discretionary and non-discretionary,) the study provides new evidence on the effects of loan loss provisions components on growth in bank lending. The results clearly prove our second hypothesis that the components of LLPs do matter on growth in bank lending. Third, this paper estimates the use of loan loss provisions for capital management by banks. The empirical results do not support the hypothesis of capital management for SEE banks. The novelty of this paper, unlike other works, is the inclusion of SEE countries., Ovo istraživanje primjenom brojnih metodoloških pristupa pruža empirijske dokaze o izravnavanju prihoda u bankarskom sektoru u devet zemalja jugoistočne Europe (JIE) za razdoblje 2005.-2014. Prvo, korištenjem uzorka od 321 banke, ovaj rad potvrđuje našu prvu hipotezu da banke u regiji Jugoistočne Europe koriste rezervacije za gubitke po kreditima (LLP) kako bi izravnale svoje prihode. Drugo, dijeljenjem rezerviranja za kreditne gubitke na njegove dvije komponente (diskrecijsku i ne-diskrecijsku), ovo istraživanje pruža nove dokaze o učincima komponenata rezervacija za kreditne gubitke na rast bankarskog kreditiranja. Rezultati jasno potvrđuju našu drugu hipotezu da su komponente LLP-a bitne za rast bankarskog kreditiranja. Treće, ovaj rad procjenjuje upotrebu banaka za rezerviranje gubitaka po kreditima za upravljanje kapitalom. Empirijski rezultati ne podupiru hipotezu o upravljanju kapitalom za banke u jugoistočnoj Europi. Za razliku od ostalih istraživanja, novost u ovome radu je uključivanje zemalja jugoistočne Europe.

Unlike the other forms of investment strategies, foreign direct investment (FDI) involves the long-term commitment in the host country. FDI determinants are complex and multi-dimensional phenomena that result from both macro-economic and firm strategy considerations. The main objective of the present research is to review the empirical studies on FDI determinants in order to find out what motives international corporations are pursuing since the FDI policies and nation-specific business environment are directly affecting international corporations’ activity involvement. The literature and document review research method is adopted for this research, and the research is refined by including only papers that contained empirical studies on FDI determinants. Research has been carried out using secondary data drawn from a diverse pool of materials, including books, journals and other credible reports from international institutions. This research concludes the evidence of the mixed results on such a linkage.

Nowadays there is extensive research on financial reporting in banking industry. We also find a lot of studies specifically devoted to investigation of the estimation techniques of the amount of provisions, which represent important accrual amounts for a bank. In this paper we employ a non-statistical technique of meta-synthezis, through which we try to research the motives, existence, and effects of IFRS in income smoothing of banking institutions. As the theory of agency implies, the management can apply income smoothing because they may be oriented towards bonuses and wage increases more than towards the benefit of the economic entity. Factors such as their own reputation regarding the prediction of incomes, avoiding lack of analists’ expectations on incomes, to signal information on incomes, also contribute to earnings management. We find that most of the research find income smoothing in the banking sector, but also in other industries. Another issue that seems to emerge is that, based on research, the application of IFRS-es does not seem to have decreased the income smoothing phenomena in most of the countries where the studies were conducted.

This paper aims to present the effect of the pandemic crisis COVID - 19 on the economy of Kosovo, namely tax revenues focusing on the impact of the pandemic situation on macroeconomic indicators such as Gross Domestic Product. The impact of the crisis on the collection of tax revenues, the impact of the crisis on tax evasion, the effect of the crisis on business turnover, and the ratio of tax revenues to GDP. The data that have been used in this paper are data from primary sources through questionnaires and data from secondary sources. The findings of this research show that the pandemic situation in 2020 has slowed down local economic growth, declined trend of tax revenues, declined trend of GDP compared to the previous periods, and other negative effects such as declined economic activity, business, and employment level.

Commercial banks play an important role in the economic development and financial stability; therefore this study investigated the influence of internal factors in the profitability of commercial banks in Kosovo. Based on the literature review, a crucial internal factor on the profitability of banks in Kosovo was deemed: the repayment of assets (ROA) as a measure of profitability influenced by other independent variables, such as: bank size, capital adequacy, loan and liquidity risk. The aim of this study is to investigate the empirical relation between internal factors determining bank profitability and profitability as a dependent variable. The empirical analysis is based on the data of commercial banks in Kosovo published in the period 2010-2014. The data were analysed with SPSS 21 version, and the hypotheses were tested by means of correlation and linear regression. The findings of the study proved that commercial banks in Kosovo could enlarge their profitability by increasing the level of bank loaning and other investments, except for managing risk and liquidity properly.

Kosovo as the newest state in the region, in the economic aspect represents an economic complex with considerable potential of human, economic and demographic resources, having an open economy and entirely Euro integrated, with the central position in Balkan Peninsula. As a new state Kosovo is going through a transition phase and is found in an unsatisfactory position, therefore a serious professional intervention by the competent mechanisms is necessary towards finding an adequate solution which enables a speedier economic, social and cultural development, thus accessing into economic and political integrations in the region and in Europe. Kosovo economy during 2012 was characterised by a positive norm of growth. The real norm of economic growth in the country reached the figure of 2.9 per cent. The slowest developments in the regional and European markets during this year appeared as a challenge for the general economic activity in the country. In 2012, a decrease was marked from several important sources of financing in the country, especially the foreign direct investments. A reduction was also characterised in export of goods, but, growth of export of the services neutralised the effect of decrease of goods export. Kosovo suffers from the negative trade balance, implying that Kosovo depends on imports, whereas its opportunities to export local products into foreign market are very low. With intention of improving the competitive position of Kosovar enterprises, and for increasing export into world market, the existing economic policies need to be amended and supplemented and the institutional functioning needs to be improved as well. The aim of this study is to provide a realistic overview of the economic situation of Kosovo through an overall analysis and to also give recommendations with intention of improving the trade balance in favour of increase of Kosovar export in the future.

This research attempts to assess the impact of balanced scorecard on improving the performance and the profitability of the implementing companies. Research has been carried out using secondary data; narrative analysis has been adopted for this study. This research concludes that balanced scorecard has contributed to improve the performance and profitability for the businesses that have adopted the model. DOI: 10.5901/mjss.2016.v7n4p60

There is no sustainable economic development without a functioning rule of law. Besides sustainable economic policies like low interest rates, low inflation, low budget deficit, reasonable taxes and economic freedom for business development, the necessary ones for country’s economic growth are functioning of state institutions, support and development of reforms as well as successful fight against corruption.Corruption is a phenomena often encountered and spread in countries that have problems with rule of law as well as with judiciary system. Corruption manifestation is inevitable in circumstances when state institutions are weak. The phenomena is especially problematic in countries that go through transition periods since these countries are often characterized as nonefficient in fighting this phenomena1 . Countries in transition continue to have the image of countries with high level of corruption, which causes serious crisis from local opinion and continuous demand from international community due to the unsuccessful fight against this malevolence.World Bank considers corruption as the biggest obstacle in the fight for poverty eradication, since it undermines the rule of law, weakens state institutions and most of all it affects the poor. Politically, it undermines democracy and good governance, economic equal growth and development, as well as people’s trust in state institutions.Lately, several anti-corruption laws have been adopted in Kosovo, but they have not been implemented in practice and were not sufficient in fight against corruption. Kosovo’s long lasting dream of integrating in European Union, necessarily demands to built and functionalize anti-corruptive measures with priority, as a fundamental precondition for EU pre-accession process

The aim of this paper is to determine the effects of stock prices following the announcement of audited financial reports of Slovenian and Croatian public interest entities. Our research is to study the importance of variables and their significance regarding the audit in explaining the reactions of stock price movements (fluctuations). In this study we have applied discriminant analysis and logit models. Discriminant analysis and logit were performed with type of opinion as the dependent variable and eleven financial ratios as independent variables. Test results show that the audit quality, the auditor's opinion have an impact on the evolution of stock prices.

This research has aimed to analyze the determinants of capital structure among insurance companies in Kosovo, based on a data retrieved from 11 insurance companies during the period 2009-2012. For this purpose, the debt ratio is taken as a dependant variable whereas company size, growth, life, fixed assets and liquidity ratio were taken as independent variables. The result of RE model shows that these variables are in positive relationship with the debt ratio. On the other hand, the company size, the fixed assets ratio, liquidity ratio, company life and growth had considerable effects on debt equation. Based on the research results, the insurance companies should have a high consideration for asset increase because the size of company is an important factor that has a positive effect on debt/equity ratio. DOI: 10.5901/ajis.2014.v3n2p43

This paper aims at analysing activities, and some of the causes of deindustrialization of Kosovo’s economy, and the stage of initial establishment of the private sector in Kosovo. The purpose of the paper is to present the current situation and development orientations, namely to review some of the obstacles from the perspective of entrepreneurs, with a view of eliminating such obstacles and fostering development. The paper shall provide a comparison of exports and imports, with a special focus on obstacles to Kosovo’s SMEs. This paper shall prove an overview on the situation of SME development and its sectors, and it is an effort to mirror the main obstacles preventing competitiveness and development of the sector. The analysis in this paper represent an effort to inform stakeholders with the sector, and help interested parties to take necessary action in improving the situation in the sector, and to assist sectors in benefitting from business opportunities, by creating a business development conducive environment, so that the changes occurring in the sector feed economic development, foster employment and help in attracting foreign investmentsThe main goal of the paper is to provide a basis for informing various actors involved in industrial development policy making in Kosovo.On the other hand, it is also an effort to contribute in consolidating information and statistical records, with a view of providing an accurate overview on Kosovo’s industry.

This paper provides guidance for all those interested in research related to tax. In the study are included three main areas dealing with taxes and about taxes: (1) the role of information in corporation tax expenditures under the rules and laws of the country against financial statements according to international accounting standards, (2) case study PTK; how much effective tax and tax on extra profit has it paid (3) the impact of tax rules on investment decisions - the reasons and profits of the company and the host country. We will try to summarize here the three areas of study and come to some conclusions on how to deal with fiscal policy in Kosovo. In addition, we will offer our opinion on some interesting and important questions for future research.

Despite that in the last years, Kosovo has experienced economic growth, it still remains the least developed country in Europe. Kosovo’s economy is still fragile. During 2009 Kosovo’s economy peaked at 4.0% while during 2010, economic growth achieved 4.6%, while the GDP was estimated to be 4.2 Billion Euros. During 2009, Kosovo’s economy was characterised by deflation (-2.4%), during 2010 it saw a raise in inflation, while consumer price index was rated at 3.5%. There is still a high rate of unemployment in the labour market, about 45%, and it remains a challenge for the country’s economy. During 2009, money deposited from Kosovars living abroad experienced a decline of 5.6%, where during 2010 these deposits marked a slight improvement. Trading imbalances since the post-war period have continued in 2010, which has created a high level of dependence of commercial deficit (deficit constitutes about 45% of the GDP). The purpose of this study is to give a clear view of the macroeconomic situation of Kosovo through a comprehensive analysis and critical approach towards developments so far, in order to improve the economic state in the future.

Promotion of fair, efficient and not corrupted management of public finances from local government is crucial for functional democracy and it includes number of issues, institutions and methods.Fiscal transparency enables citizens to act as consumers by asking for high level of values toward the money they pay for taxes. Transparent operations also makes easier job to local government on offering these values. The New Constitution of the Republic of Kosovo, which was en-forced on June 15 2008, has a special chapter regarding the local gover-nance where is precisely determined basic principles and objectives of local governance in Kosovo. Constitution declares that” basic unit of lo-cal governance in the Republic of Kosovo is municipality. Municipalities has a large scale of local governance and they encourage and ensure acti-ve participation of all citizens on the decision making process of munici-pal authorities (article 124.1). The Constitution in 11 paragraphs gua-rantee the right of citizens on local governance, the request that establi-shment, competences and municipal borders to be regulated by the law, the right of the municipality to get financing from central government, the rights of municipality on cooperation between municipalities and cross-border cooperation, administrative borders of review of local activi-ties by the central government and also the obligations that municipa-lities has toward respecting the Constitution and the Law.Actual financial legislation for local government has extended the base for self municipal income which enables municipalities to increase their budgets.The aim of this study is to analyze the self income of Kosovo munici-palities and to show the impact of self income on service offering from municipal level to citizens

Through this paper we analyse the performance indicators of banks in Kosovo Banking System. According to the works of different authors worldwide, more accurate measurement of bank performance based on accounting data, in the application of coefficients leading financial banks are: Return on assets - ROA, return on equity - ROE and Cost Report to revenue - C / I. This paper describes the analysis of financial indicators for the period 2006 – 2007 – 2008 – 2009 -2010 - 2011 and 2012. The paper is organized as follows: - Section 2 provides literature review on the performance of banks in other countries; - Section 3 provides an analysis of the banking sector in Kosovo and macroeconomic indicators during the period analysed; - Section 4 presents the results of analysing the financial coefficients. While section 5 presents financial analysis and provides key conclusions.