• Vulfs Kozlinskis Head of the Editorial Board


This special edition of Journal of Business Management’s 5th issue mainly consists of scientific papers that were presented during the 9th International Scientific Conference “Accounting and Finance in Transition, European and World Experience, and Public Policy Consideration”, or 9th ICAFT-2012. The conference was held in Riga International School of Economics and Business Administration (RISEBA) from the 11th to 13th of October 2012. Participants of the conference explored trends, concepts, experience, and issues generated by accounting and finance academics, researchers, practitioners, and policy makers in the context of dynamic political, economic and social changes. Representatives of 18 countries participated in the conference.

Presented topics covered various aspects of financial management in the context of researched organisations’ strategies, as well as search of methodological approaches to tackle the most complex issues of financial and accounting policies’ practical application both in private and public sectors. In most cases the general tendency of research appeared to be the problem of adequacy and quality of information disclosure in financial reporting of different organisations, including enterprises, banks and public sector, as well as application of integrated performance measurement system.

The articles published in this issue reflect most of the 9th ICAFT findings:
- There is a positive relation between corporate sustainability and financial performance (N.Vitezic, T.Vuko, B.Morec).
- Corporate social responsibility has been analysed mostly from the viewpoint of economic benefits a company possesses from its social orientation (N.Vitezic, T.Vuko, B.Morec).
- Non-financial performance measurement indicators can be grouped according to proposed nonfinancial perspectives (A.Sobota, D.Peljhan).
- High quality information disclosure is connected not only to references in financial statements, but even more to the financial statements being integrative and integral information (B.Ljutic, S.Jankovic, D.Vlasic).
- Regulatory recommendations alone are not sufficient to guarantee work effectiveness of a board and directors (A.Lagzdins).
- There is a limited evidence to support claims that different ownership structures (state-controlled, private or foreign-invested ownership) have a significant relationship with tax aggressiveness in China (G.Yuan, R.McIver, M.Burrow).
- The growing diversity of accounting data efficiency measures are getting more sophisticated and multidimensional to encourage education providers not only towards cost minimization, but also to increase the output quality (B.Mörec, V.Vitezic, M.Tekavcic).
- Decision time is the key indicator to determine costs of human resources (I.Purinsh, T.Reizinsh, G.Braslinsh, N.Svitlika).
- Autonomous (devolution) and assigned by the state to municipalities (delegation) functions are presented without any logic system and do not match any classification (G.Zigiene).
- Measurement and evaluation of long-lived assets is directly related to corporate governance and cannot be ignored, when developing investment strategies (I.Kuzmina, I.Kozlovska).
- There are relationships between convergence and divergence and business performance in the information and communication technologies sector (S.Veneti, Z.Sevic, D.Maditinos).

The presented research results determined the most disputable matters in the international financial thought. A number of points for discussions arose, for instance:
- How does a managerial optimism as well as other psychological biases affect a firm’s investment decision process?
- What is the role of different performance perspectives, when assessing efficiency of integrated performance management systems?
- Is such hypothetical amount as a “fair value” sufficiently understandable, reliable, relevant and comparable to be suitable for financial reporting?
- How should organisations plan their strategic positioning within the divergence-convergence recursive model in a timeline?
- Does the corporate governance structure influence future cash flows and investment strategy of a company?

JAnswers to these and other questions that arose during the conference discussions contribute to further development of theory and research of international experience and practice in the field of finance and accounting, thus also stimulating development of creative thinking and scientific research in future.

Vice Chair of the ICAFT conference,
Irina Kuzmina

Head of the Editorial Board,
Vulfs Kozlinskis