Legal Form Of Organization Research Articles

THE COOPERATIVES IN BULGARIA – PAST AND PRESENT

In Bulgaria, the emergence of modern cooperatives as a social business model dates back to the end of the 19th century. Cooperatives develop over time a variety of specific models based on their different subject of activity. Given the wide scope of the researched topic, we limit the purpose of the scientific development to the study of the spread of cooperatives in the economic life of Bulgaria, analyzing their characteristics manifested in the current century, looking for a connection with the period of their emergence, in order to explain certain trends in their development. The methodological approach used is based on statistical groupings of a large array of official data on cooperatives registered in the Commercial Register of Bulgaria from 2005 to the current year. Selected indicators reflecting in the development of cooperatives by planning areas, economic sectors, annual revenues, etc. are established. Through the historical analysis, individual moments of the birth of the first Bulgarian cooperatives are revealed. Results: In Bulgaria, cooperatives were first born in the villages to meet the needs of the local population, and then cooperatives appeared in the cities. This process in our country is the opposite of other countries in Europe with a more developed market economy.; Due to the agrarian direction of development of the Bulgarian economy at the end of the 19th century, the first type of cooperatives built were agricultural credit cooperatives in the villages. Years after them, at the beginning of the 20th century, consumer cooperatives appeared, followed by the popular urban banks, as well as some professional cooperatives/associations.; In Bulgaria, the cooperative as a legal organizational form is widespread in almost all economic sectors of the national economy. Its role is dominant, however, in two sectors: A. „Agriculture, forestry and fisheries“ and G. „Trade, repair of cars and motorcycles“; The activity of the Bulgarian cooperatives is low-profit; In regional terms, the largest number of functioning cooperatives is in the South Central region, with a dominant location in the Plovdiv and Haskovo areas for almost all economic sectors, followed by the Southeast region, where the Stara Zagora area has a leading position. In the conditions of modern challenges and heterogeneous problems, the study of cooperatives in Bulgaria must continue and be upgraded in order to find answers to many questions related to their past and future development. Finding an answer to the problematic aspects in their development is important not only to enrich the theory, but also above all to support the cooperative practice in our country. Key words: cooperatives, development, regional distribution, sector, income. JEL code: D22; R12

Универсальность прав человека как агрегация закона и морали

Human rights, despite criticism of their universalism, are important for any person, regardless of his ethnic and racial affiliation, social status and religious views. One or another development of the discussion on the acceptability of a universal view of human rights, objectified in law, legislation and law enforcement, is embodied in the relationship of a person with the state and society and directly affects their well-being, security, ability to evolve and progress. Purpose. The main purpose of the article is to identify the role of the institution of human rights as a carrier of interrelated legal and moral prescriptions. Methodology. Causation of the problems of the functional connection of law, morality and fundamental rights of the individual is carried out by methods of theoretical synthesis and legal synergetics, which make it possible to actualize scientific knowledge about the universality and egalitarianism of human rights, the degree of perception of which by public consciousness and legislation strictly correlates with the processes dominating social dynamics and determining a particular state of public well-being and security. Results. Human rights are not a given, but the direction of society's development towards freedom, justice, equality, a necessary condition for the formation and functioning of the rule of law. Human rights impart morality to the law, strengthening the legitimacy of the legal norm; in turn, the law, relying on the universalism of these rights, gives moral prescriptions legal force. Combining the power of law and the properties of morality, human rights, recognized and protected by the state, allow society to come to certain, considered by a significant and most successful part of humanity to be the highest, legal forms of organization of the state.

Output distortions and the choice of legal form of organization

Output distortions and the choice of legal form of organization

COMPARATIVE ANALYSIS OF COOPERATIVE AND CORPORATE BUSINESS MODELS IN BULGARIIAN AGRICULTURE

Cooperative is a form of cooperation and mutual assistance to achieve a common goal. Through the cooperative model, prosperous cooperation in economic activity is achieved with real economic benefit. The collective management of the factors of production under market conditions is most often a manifestation of some of the following postulates, that when the individual size of the factors are highly limited and the possibilities for their increase are not profitable, the need for association is manifested. According to F. Raiffeisen's maxim, which states that "when one can't achieve something alone, everyone can do it together", referring to the cooperation of their efforts. In addition, when the production factors owned by the individual owners have technological qualities that allow them, when combined, to perform the relevant work more efficiently and optimally, the LLC as a legal organizational form is suitable in agricultural activity, when there is ownership of property and land fund, which can hardly be differentiated. In order to fairly organize the relations and overcome the contradictions between the owners, the fragmentation of the land, it is necessary to apply this structural form of the enterprise. The effectiveness of this form of enterprise is also expressed in economic cases of lack of financial capital for its investment in expensive equipment and facilities that are beyond the capabilities of an individual individual. In this regard, the partners in the LLC can be not only natural persons, but also legal entities.

THE ROLE OF DIGITAL (SOCIAL) MEDIA IN THE MANAGEMENT OF INNOVATION PROJECTS AT THE COMPANY AND SELF-EMPLOYMENT LEVELS

The study of the impact of digital social media on the development of entrepreneurial innovation projects of different levels is topical. The aim of the study was to create a conceptual approach to assessing the impact of digital social media on innovative business development, regardless of the legal form of organization. Therefore, a new concept of mediatization was identified in the course of the research, which describes the role of different digital media as part of the process of communicative construction of the economic, social and cultural environment. The research involved the methodology for data analysis from an empirical context. The start-up incubator — Neudali, Germany — was the practical background of the research. The research sample included all start-ups (innovative projects) that were launched in 2017-2020 (3,426 projects), regardless of whether they continue as start-ups or have already entered the serial production stage. The research objective was fulfilled through the methods and tools of economic and statistical analysis, forecasting and business simulation. Studies have confirmed that the legal form of organization does not affect the project’s success, but only the assessment of information effects (mediatization effect) does, which includes all forms of communication in social networks (R2=0.8 for companies and R2=0.6 for self-employed persons). In theoretical terms, this study has bridged the gap in the literature regarding the lack of research on the role of social media in the innovation potential of both companies and self-employed individuals. In practical terms, this research has implications for various stakeholders, primarily businesses, academics and consumers.

How Do Firms Choose Legal Form of Organization?

How Do Firms Choose Legal Form of Organization?

Examining drivers and outcomes of corporate social responsibility in agri-food firms

This study attempts to contribute to the debate on the impact of corporate social responsibility (CSR) on the financial performance (FP), image and reputation (IR) of agri-food firms, examining whether the legal form of organization (LFO) (cooperatives vs. capital firms) moderates these relationships. To this aim, we also consider the potential effects of two scarcely investigated factors that can determine firms' CSR orientation, that is, the capacity to absorb CSR-related knowledge and the perception that managers have of ethics and social responsibility. Using data from a sample of 107 trading firms in the agri-food sector in Almeria (Spain), we show that both factors play a decisive role in the firms' CSR orientation, which has been measured as a multidimensional construct. Also, the orientation towards socially and environmentally responsible practices positively affect IR of agri-food firms and their FP. The relationship with the FP is stronger in the case of cooperatives compared to capital firms. Key implications for researchers and practitioners are discussed.

DIGITAL INTERVENTION IN LEGAL MECHANISMS FOR DETECTING THE PROCEEDS OF CORRUPTION

The article reveals the digital intervention in the legal mechanisms of detection of corruption proceeds. It is determined that digital technologies in the prevention of corruption are tools to promote integrity in the public sphere of public relations by ensuring non-contact interaction of an official with other citizens, avoiding the physical delivery of gifts and bribes, formalizing procedures and eliminating anthropogenic and sociogenic factors. Legal mechanisms through digital technologies are capable of neutralizing corruption risks. Their ability to take into account the specificity of the corrupting influence of private interest on the public interest, energetically superior to human control, does not detect expression and/or other variants of subjectivity, which are ontologically corrupt in and of themselves. Innovativeness becomes an important feature of anti-corruption legislation implemented through digital tools, as they are constantly updated. Due to this connection, the anti-corruption legal mechanism acquires the features characteristic of the digital format of information circulation through telecommunications. This makes anti-corruption legislation a more dynamic system, which is minimally archaic, eliminates the dysfunction of algorithms of existing rules, because it is mathematically consistent. It is established that the process of changing the anti-corruption legislation due to the intervention of the digital format of data circulation has become natural. This contact between the numbers and the rules of law is strengthened. They are united by an initial element for recording specific legal and mathematical values, respectively. Numbers are the ontological essence of formalization of legal requirements in electronic format. The calculation of the functional purpose of anti-corruption legislation is mentally seen through the construction of abstract models of legal regulation of social relations, based on human virtues. It is emphasized that the intensified use of digital technologies will help to differentiate the nature of corrupt practices for all dimensions of public administration and/or economic relations. Particular effects are expected in the areas of state budgets/funds, taxes, finance, national defense, law enforcement, circulation of information, and culture. It is emphasized that the electronic algorithmization of anti-corruption procedures makes it possible to provide a valid correlation of the degree of corruption risks with the degree of thoughtfulness of the proposed legal norms to eliminate them. Such norms must be consistent with the values and other components of the political and legal system in which they are applied, as well as prevent problems of cross-border corruption, in particular within the framework of the EU, into which Ukraine is integrating. It is concluded that electronic methods of anti-corruption law enforcement together and separately reveal the specifics of their manifestation. It is important to combine them with traditional legal regulators of integrity in the sphere of public law, where human nature is respected. It is promising to identify the specifics of digital technologies used in transitional and sustainable legal forms of organization of political, economic and other social interaction.

The Kansas tax experiment: The matter of legal form of organization

Using a dynamic stochastic occupational choice model with heterogeneous firms, this paper studies a sweeping business tax-cut program enacted in the State of Kansas during 2012–2016. This paper finds that “The Kansas Tax Experiment” distorts entrepreneurial choice of legal form of organization (LFO), and encourages the adoption of the pass-through status over the C-corporate legal form. Because pass-through businesses face more constraints on access-to-capital, the policy reduces aggregate productive efficiency and leads to declines in output, capital formation, and employment growth. This article highlights the importance of considering LFO choice when making a business tax policy change.

COVID-19 Interruptions and SMEs Heterogeneity: Evidence from Poland

This study contributes to the emerging stream of the literature on the COVID-19-related risks and their impact on businesses’ performance. The growing evidence within is, however, missing the uniqueness of country-level settings, as well as lacking the voice of SMEs solely. The extant literature provides some evidence on SMEs’ vulnerabilities to the crisis, but it commonly compares SMEs with large firms. To cover this gap, the main aim of this study is to analyze the perception of COVID-19 interruptions by various groups of Polish SMEs. Thus, this work adds primarily by revising the perceptions of COVID-19 risks, given the heterogeneity of SMEs if we consider their size, age, legal form of organization and status of a family firm. Based on the survey results on SMEs operating in Poland, we employ ANOVA and k-means ranks to provide strong evidence that COVID-19’s impact was perceived as more interruptive by micro and very young firms, as well as by the firms that perform as sole proprietorships. We have also found evidence that family firms do not differ from non-family ones in the perceptions of COVID-19 impacts.

Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession

<ns3:p>Using data from 14 government sources, we develop comprehensive estimates of U.S. economic activity by sector, legal form of organization, and firm size to characterize how four government direct lending programs—the Paycheck Protection Program, the Main Street Lending Program, the Corporate Credit Facilities, and the Municipal Lending Facilities—related to these classes of economic activity in the United States. The classes targeted by these programs are vast—accounting for 97 percent of total U.S. employment—though entity-specific financial criteria limited coverage within specific programs. We relate our estimates to those from timely alternative data sources, which do not typically cover the majority of the economic universe.</ns3:p>

Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession

Using data from 14 government sources, we develop comprehensive estimates of US economic activity by sector, legal form of organization, and firm size to characterize how four government direct-lending programs--the Paycheck Protection Program, Main Street Lending Program, Corporate Credit Facilities, and Municipal Liquidity Facility--relate to these classes of economic activity in the United States. The classes targeted by these programs are vast--accounting for 97 percent of total US employment--though entity-specific financial criteria limit coverage within specific programs. These programs notionally cover a far larger universe than what was targeted by analogous Great Recession-era lending policies.

The legal status of participants who create medicines in the national innovation system

Formulation of the problem. Carrying out scientific research in the field of creating innovative medicines is the key to the competitiveness of pharmaceutical enterprises in the internal Ukrainian and world markets. Proper legal regulation of the legal status of business entities and scientific institutions that create medicines should become a guarantee of state support for scientific research in this area. Recent research on the topic. The scientific works of V.M. Pashkova, I.S. Voronina, M.V. Bunyak and other researchers are devoted to certain problems of innovative activity in the sphere of medicine circulation. At the same time, the problems of the legal status of participants in the national innovation system who create new medicines have not found their coverage in the scientific literature. The purpose of this research is to determine the legal status of participants in the national innovation system, who create medicines. Article’s main body. The scientific research is devoted to the determination of the legal status of the participants of the national innovation system who create medicines. Legislative and by-laws, statistical information posted on the official websites of authorities, publications of researchers who studied innovative activities in the field of medicine circulation were studied. It is stated that the development of innovative medicines can be carried out by research institutes, institutions of higher education and pharmaceutical manufacturing enterprises. Medicines productions are created in the organizational and legal form of private and state enterprises, business entities. Research institutes and institutions of higher education have legal form of organization. These institutions are subordinate to either the Ministry of Education and Science, or the Ministry of Health Protection, or the National Academy of Medical Sciences, or the State Service for Medicines and Drug Control of Ukraine. Among the conditions for obtaining a license for the medication production there is no requirement for a laboratory to create new medicines at the enterprise. Requirements for such a laboratory are not provided for in legislative and bylaws. Conclusions and prospects for the development. The author proposes definitions of “medicine developer” and “innovative pharmaceutical organization”. The features of the pharmaceutical enterprise innovativeness, in our opinion, are the presence of a scientific department in the structure of the enterprise and the registration of an innovative project by this enterprise in the prescribed manner. The consolidation of these definitions in the legislation of Ukraine may be important for obtaining state support for scientific research on the new medicines creation.

УДОСКОНАЛЕННЯ ОБЛІКОВО-ІНФОРМАЦІЙНОГО ЗАБЕЗПЕЧЕННЯ УПРАВЛІННЯ ВЛАСНИМ КАПІТАЛОМ

The article covered the interpretation of the concept of «equity» in the various legal and regulatory instruments and scientists and the need to take into account the economic, accounting, and rights-based approaches to the interpretation of equity. The impact of equity accounting information on management decisions was also considered. The components of the company's equity according to the Statement of financial condition are considered. The stages of formation of accounting and analytical support of enterprise capital management are highlighted. The problems of planning, maintenance, use of accounting for certain components of equity are considered. Based on the study of the role, importance, and functions of equity identified its main characteristics for the enterprise: the basis for the beginning and implementation of activities; market value base; source of risk investment financing, coverage of temporary damages, the welfare of the founders (participants); performance measure, the degree of independence and influence of owners on the company; the measure of liability and protect creditors from losses. The results of the research in the part of the improvement of accounting provision of users with the information about formation and change of own capital are highlighted. It is established that efficiency of equity management and methodology of its accounting is determined by the composition and structure of management objects, which depend on: the form of ownership of a business entity, legal form of organization, method of formation (establishment) of an enterprise, size of an enterprise, list of operations on changes in equity, software and technical means of data processing, etc. It is established that the process of equity accounting consists of many blocks, which should be specified and detailed depending on a set of operations with the equity capital. The informativeness of financial statements, in particular the balance sheet, the statement of financial results, the statement of shareholders' equity, and notes on the volume, structure, and reason for changes in shareholders' equity as a whole and its components are disclosed.

Across the Universe: Policy Support for Employment and Revenue in the Pandemic Recession

Using data from 14 government sources, we develop comprehensive estimates of U.S. economic activity by sector, legal form of organization, and firm size to characterize how four government direct lending programs—the Paycheck Protection Program, the Main Street Lending Program, the Corporate Credit Facilities, and the Municipal Lending Facilities—relate to these classes of economic activity in the United States. The classes targeted by these programs are vast—accounting for 97 percent of total U.S. employment—though entityspecific financial criteria limit coverage within specific programs. These programs notionally cover a far larger universe than what was targeted by analogous Great Recession-era lending policies. We relate our estimates to those from timely alternative data sources, which do not typically cover the majority of the economic universe.

Institutions, entrepreneurial adaptation, and the legal form of the organization

PurposeThis paper aims to examine how economic freedom impacts the initial choice of legal structure for startup firms. The authors do this by first exploring whether economic freedom is an essential determinant of the initial legal form of organization (LFO). The authors then explore the impact of economic freedom on firms' choice of changing their initial legal structure over time and how this change impacts their survival rate.Design/methodology/approachThe authors employ a multinomial logistic regression model to measure the initial determinants of LFO by utilizing an eight-year panel data set of 4,928 startups in the USA through the Kauffman firm survey and merge it with the Economic Freedom in North American index from the Fraser Institute. The authors then employ a logistic regression model to examine the determinants facilitating a change in legal structure over time.FindingsThe results show that economic freedom is a significant determinant in the choice of legal structure. The findings also report that the majority of startups do not change their legal form, but of those that do change the legal structure show a higher survival rate.Research limitations/implicationsMajor limitations are the size of the data and the nature of somewhat limited economic freedom differences with the USA. More nuanced measures of economic freedom would be highly desirable.Practical implicationsPolicymakers should take note that limited red tape, smoothly working labor markets and straightforward processes for changes of legal structures of organizations would improve survival and growth odds for entrepreneurs.Originality/valueDrawing on the theory of institutions, the authors attempt to bridge a gap in the literature by explicitly analyzing the determinants of the legal structure in startups in light of economic freedom. Institutional factors do not work in isolation; therefore, the authors also employ traditional entrepreneur-specific variables that affect the choice of legal structure in addition to the institutional framework.

EFFICIENCY OF SUBSIDIES ALLOCATION TO AGRICULTURAL ENTERPRISES IN THE REPUBLIC OF MOLDOVA

As the Republic of Moldova has limited opportunities to provide generous financial support to farmers, it is extremely important to efficiently use subsidy means, so as to contribute to the development and modernization of agriculture and rural areas. The development of agriculture in a dynamic way can be achieved on the basis of an efficient subsidy system, administered, monitored and evaluated. The aim of the research is to analyse and evaluate the efficiency and impact of subsidization on the development of the agricultural sector and to ensure a stable increase in agricultural production, emphasizing main support measures in this direction. To carry out this study, various research methods were used, such as: observation method, table method, analysis and synthesis method, comparison method, monographic method, statistical data collection. This article presents an analysis of the evolution of the subsidy fund for agricultural producers, which has increased 2.25 times in the last 7 years. There has also been analysed the structure of beneficiaries of subsidies according to the legal organizational form, who received subsidies during the reference period. It has been found that households are in the top of beneficiaries of subsidies who had a share of 62.03% in 2018. The distribution of subsidies by development regions and per one hectare of agricultural land in the profile of development regions has been studied and it has been found that the predominant share is held by agricultural enterprises in the Centre region, about 38.9% of the means of the subsidy fund. The results of the research show an increase in the subsidy level, through support measures. In this context, we can mention that the support measures must ensure an efficient use of the subsidies

Changes in Russia’s agrarian structure: What can we learn from agricultural census?

The classification of agricultural producers by legal-organizational form (agricultural enterprises, peasant (family farms), household plots and gardening associations), traditionally used by the Russian official statistics, is outdated and masks the dynamic changes that have taken place. Due to the lack of output and sales data in 2016 agricultural census, the paper uses some assumptions to calculate the so called “standard revenue” as a measure of the potential output in each census farm. The results highlight that there is only a small share of commercial production units in Russia and there is high heterogeneity of agricultural producers within each legal-organizational farm type. Contrary to a priori expectations, a large number of household plots became commercialized between the previous census in 2006 and the latest census in 2016 and they contribute 19% of the standard revenue of all commercial census units, more than the share of family farms. These results suggest that the old classification used for statistical purposes does not reflect adequately the dynamic changes stemming from the response to market signals.

НЕКОТОРЫЕ АСПЕКТЫ ЗАЩИТЫ ГРАЖДАНСКИХ ПРАВ ТОВАРИЩЕСТВ СОБСТВЕННИКОВ НЕДВИЖИМОСТИ

Today, consideration of ways to protect the civil rights of various subjects of civil law relations is of particular importance in civilist studies. One of the results of the reform of civil legislation on legal entities in 2014 was the emergence of a new legal form of organization -partnership of property owners. Therefore, it is important to consider in detail the main ways to protect the civil rights of this legal entity. It is not possible to consider all ways of protecting civil rights in one article. In this con-nection, only some of the most common methods of protecting the civil rights of real estate partnerships have been investigated, namely: recognition of the right; restoration of the posi-tion that existed before the violation of the right and suppression of actions that violate the right or threaten to violate it; invalidation of the transaction and application of the consequences of its invalidity, application of the consequences of a void transaction. The method of protection, such as recognition of the right, is often used by real estate as-sociations. And in this method, both an application for recognition of a right to be present and an application for recognition of a right to be absent are possible. The question of the applica-bility of the statute of limitations to this method is a matter of discussion. It seems that in most cases it is possible to apply the statute of limitations to claims for recognition of a right. The general nature of this method was revealed by examining the restoration of the situa-tion that existed before the violation of the right and the prevention of actions that violate the right or threaten to violate it. Usually, when such demands are made, the courts ask to specify them. And only in rare cases where no other protective measures are applied, do the courts allow for the possibility of submitting a direct request to restore the situation that existed be-fore the violation of the right. The third way of protecting the civil rights of property associations was significantly changed in 2013. Thus, the rule of Article 168 of the Civil Code of the Russian Federation on the nullity of a transaction that does not comply with the law has been fundamentally re-formed, unless the law establishes other consequences. Such a transaction is now considered void. The possibility of claims for invalidation of a void transaction has also been established by law. Previously, the courts allowed such claims, but in the doctrine the question of the possibility of such claims was debatable, since the Civil Code of the Russian Federation did not mention them.

Output Distortions and the Choice of Legal Form of Organization

We study the distortions to aggregate output created by the differential tax treatment of corporations and pass through entities. We develop an industry equilibrium model in which the legal form of organization is an endogenous choice for firms facing trade off between tax treatment of business income, access to external capital, and the evolution of productivity over time. We match this model to features of the US economy. We find that, relative to the benchmark economy, revenue-neutral tax reform in which legal forms receive the same tax treatments leads to 1.25% increase in the aggregate output.