Leyla Huseynova

A high level of company bankruptcy in certain countries and a low level of profitability actualizes the need to find additional mechanisms for increasing the efficiency of their activities. One of such mechanisms is the growth of information transparency. The study deals with examining the effects of accounting information transparency on business performance on the example of construction companies in G7 countries. The transparency index was used as a parameter characterizing the level of accounting information transparency. The level of business performance was analyzed using the following indicators: value added of the construction industry, investment in the construction industry, number of construction firms, profitability of the construction industry, annual all-work construction output index, and total employees in construction firms. The dependence between the indicators was analyzed using the multiple regression analysis, Dickey-Fuller, Philips Perron, and Johansen tests. According to the results, the most vital link was between the level of accounting information transparency and the volume of investments (increased information transparency by 1 point leads to an increase in the volume of investments from 1.7% to 4.6%). At the same time, the level of accounting information transparency practically does not affect the number of employees (change by 0.1-0.2%) and added value (change by 0.1-0.3%). It was concluded that the policy of accounting information transparency should be an essential element of company strategy aimed to increase the level of its investment attractiveness and confidence of investors and consumers in its activities.

The study aims to analyze the impact of challenges and opportunities related to corruption, regulatory barriers to doing business, innovativeness of the business environment, and development of institutions and policies that ensure economic prosperity on the development of MSMEs in Central-Western Asia countries. The paper chooses seven Central-West Asian countries using Asian Development Bank statistics for 2010–2021. Based on eleven indicators of the Asian Development Bank (the absolute values and dynamics of the number of MSMEs, their employees, their contribution to GDP, financing by banks and non-banking financial institutions) and factor analysis, the composite indicator of MSMEs’ development was calculated. The highest levels of the composite indicator in 2021 were observed for Kazakhstan (1.248), Uzbekistan (1.120), and Azerbaijan (1.043), and the lowest values for the Kyrgyz Republic (0.676). Employing a panel regression analysis with time-fixed effects (for all countries), connections between composite indicators of MSMEs’ development and the Corruption Perceptions Index, Ease of Doing Business Index, Global Competitiveness Index, and Global Innovation Index were explored. The greatest impact was in 2019 – with an increase in the Corruption Perceptions Index by one unit (the higher it is, the less corruption is considered by experts), the MSME development indicator increased by 0.26 units. With an increase in the Ease of Doing Business, Global Competitiveness, and Global Innovation Indices by one unit (growth indicates deterioration of the country’s rating position), the composite indicator of MSMEs’ development decreases by 0.68, 0.69, and 0.67 units, respectively.