1. Estimating the determinants of bank profitability : comparative study for EU and US banksIvo Mijoč, Matija Kuzmić, Matej Vujanić, 2025, original scientific article Abstract: Background/Purpose: This paper examines the significant differences in market returns between the US and EU
banking sectors following the 2008 financial crisis. The analysis reveals that the profitability of US banks, measured
by return on equity, is higher than that of European banks, partially explaining the observed differences in returns.
Methodology: The study employs two unbalanced panels of data for EU and US banks covering the period 2008-
2022. Static and dynamic estimators were used to identify significant determinants of bank profitability that include
the impact of the profitability trend in the observed period on future profitability.
Results: Based on a sample of 250 banks, operational efficiency, diversification, and risk were found to influence
the profitability of banks in both regions. For European banks, past profitability, the share of deposits and loans in
assets, and inflation were also found to exert influence. On the other hand, American banks exhibit a higher predictive power for these variables, confirming the differences in determinants between the two markets. Although risk
partially explains the higher profitability of American banks, other results did not confirm the original hypothesis.
Conclusion: The main contribution of the paper is a direct comparison of the determinants of profitability for EU and
US banks using static and dynamic models in the post-2008 financial crisis period. In addition, the existing methodology of static models with dynamic estimators has been extended by WLS models and robust estimators, and it was
shown that there are certain determinants influencing their profitability that should be extended and subsequently
examined.
Keywords: profitability, EU/US banks, panel data, static models, dynamic estimators
Published in DKUM: 04.08.2025; Views: 0; Downloads: 8
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2. The impact of financial support mechanisms and geopolitical factors on the profitability of investments in solar power plants in SloveniaIztok Gornjak, Filip Kokalj, Niko Samec, 2024, original scientific article Abstract: This article examines the impact of financial support mechanisms and geopolitical factors on the profitability of investments in solar power plants within Slovenia. The European Union’s energy policy prioritizes increases in renewable energy sources, aiming to reduce dependency on unstable and volatile fossil fuel markets. Solar power plants play a vital role in this transition. The energy policy framework also includes mechanisms and support systems to operate such facilities. This article analyzes electricity price trends over the past decade and addresses which support type—guaranteed purchase or operational support—has proven more profitable for investments in solar power plants up to 50 kW in Slovenia, considering economic and geopolitical influences on the electricity market. Although the global energy market has been affected by various significant events in recent years, it was found that the COVID-19 pandemic had minimal impact on the electricity market. In contrast, the onset of the conflict in Ukraine has contributed to rising electricity prices and has influenced the support dynamics essential for the development and sustainability of renewable energy systems. Analyses from the past decade indicate a higher return on investment in solar power plants when operational support mechanisms are chosen over guaranteed purchase support.
Keywords: renewable energy sources, solar power plants, support system, investment profitability factors, electricity price
Published in DKUM: 16.12.2024; Views: 0; Downloads: 12
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3. The relationship between leadership in BPM and company profitabilityDušan Gošnik, Maja Meško, Igor Stubelj, 2023, original scientific article Abstract: This paper studies the relationship between leadership as an activity of business process management (BPM) and company performance. Business process data about leadership and business processes in SMEs were collected via questionnaires on the population of 3007 SMEs in Slovenia. Aspects of leadership such as the involvement of employees, middle management, customers and suppliers were studied. The financial data of the SMEs of the sample were obtained from publicly available financial statements to assess relative residual income profitability ROEr and ROEa. Data analysis was performed using Bartlett’s, Kaiser–Maier–Olkin and nonparametric Mann–Whitney U tests. We confirmed a positive relationship between employee involvement in leadership as an activity of BPM and company profitability. It was proved that companies that involve employees and middle management in improving core business processes to a greater degree are more profitable. Intense involvement of employees in changes in core business processes results in higher company profitability, which has been detected by the higher risk-adjusted profitability measure ROEa. Companies that involve middle management to a greater degree by leading employees based on their interests are more profitable. The results are important for managers as decision-makers and other company stakeholders, especially those responsible for business process improvements. Theoretical and practical implications and further research possibilities are discussed.
Keywords: management, leadership, BPM, risk-adjusted profitability measures, SME, performance
Published in DKUM: 16.04.2024; Views: 200; Downloads: 10
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4. The importance of using discounted cash flow methodology in techno-economic analyses of energy and chemical production plantsZorka Novak-Pintarič, Zdravko Kravanja, 2017, original scientific article Abstract: This paper demonstrates the correct application of discounted cash flow methodology for evaluating and designing energy and chemical production plants. Such processes usually correspond to capital intensive long-term projects. Simple economic criteria, like the profit or production cost are insufficient for this type of decision making because they do not take into account the time value of money and underestimate the profitabilities of the evaluated plants. This paper shows that some of those criteria based on the discounted cash flows establish suitable compromises between long-term cash flow generation and profitability. As several alternative options are usually evaluated in parallel, it is shown how to rank mutually exclusive alternatives properly and how to select the best option from among them. Two large-scale case studies demonstrate that using discounted cash flow methodology can result in substantially different decisions than non-discounted criteria, however, these decisions are affected by several input parameters.
Keywords: discounted cash flow analysis, time value of money, net preset value, profitability, process
Published in DKUM: 04.08.2017; Views: 1308; Downloads: 537
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5. The role of maintenance regarding improving product quality and company's profitability : a case studyDamjan Maletič, Matjaž Maletič, Basim Al-Najjar, Boštjan Gomišček, 2012, published scientific conference contribution Abstract: This paper presents a study, which examines the role of maintenance regarding improving product quality and companyŽs profitability. The empirical data for this study was drawn from a Slovenian company in order to address the researchproblem. The main results of the case study showed, that 3.22 % of profit could be generated at weaving machine, if all unplanned stoppages and loss of quality due to decrease in the productivity would be prevented. Results also showed that due to productivity improvement, quality rate would be improved for approximately 2 %. These Žndings therefore, indicate that maintenance has impact on product quality and companyŽs profitability. Thus, these findings also acknowledge maintenanceŽs potential of increasing the overall profit.
Keywords: vzdrževanje, kakovost, produktivnost, dobičkonosnost, maintenance, quality, productivity, profitability
Published in DKUM: 10.07.2015; Views: 1757; Downloads: 63
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