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        <title>South East European Journal of Economics and Business Feed</title>
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            <title><![CDATA[Investigating Youth Happiness: The Interplay of Financial Self-Efficacy, Behavior, and Satisfaction]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0008</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This study examines the interplay of financial self-efficacy, financial behavior, financial satisfaction, and life satisfaction of young individuals using Psychological Capital Theory (PCT). Analyzing data from 970 high school and university students in Croatia using structural equation modeling, we find that higher financial self-efficacy positively influences financial behavior. Additionally, responsible financial behavior significantly enhances financial satisfaction, which in turn boosts life satisfaction. Our results indicate a partial mediation effect of financial satisfaction between financial self-efficacy and life satisfaction. The study suggests incorporating behavioral interventions in financial education programs to increase self-efficacy and financial capability perceptions among youth. These interventions have the potential to improve financial behavior and overall happiness among young individuals. These insights are valuable for educational policymakers, financial advisors, planners, psychologists, and behavioral researchers. Effective financial education programs can thus contribute to enhancing youth satisfaction by focusing on increasing financial self-efficacy and responsible financial behavior.]]></description>
            <category>ARTICLE</category>
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        <item>
            <title><![CDATA[The Impact of Financial Development and Financial Inclusion on Income Inequality: Evidence from OECD Countries]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0009</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This study examines the relationships between financial sector development, financial inclusion, and income inequality in OECD countries by utilizing panel data from 38 countries for the period 2010-2022. The impact of financial sector development and financial inclusion on Gini coefficient is examined, while applying fixed effects, random effects and GMM modeling. The results suggest that financial inclusion is associated with lower income inequality, while the effect of financial development, proxied by private sector credit, is positive but not statistically robust. We find that financial development, measured by private-sector credit, is associated with higher income inequality — a pattern consistent with credit concentration in favor of higher-income groups — whereas financial inclusion is associated with lower inequality, through channels of broadened access to savings, credit, and risk-management. This study adds value to the existing literature by providing new empirical evidence on the dynamic interplay between financial and real sectors.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Impacts of EPCS on Prague’s Residential Market Rents]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0010</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The EU has introduced legal regulations to mitigate climate change, and it is pertinent to investigate economic incentives to invest in higher Energy Performance Certificates (EPC). This paper examines the impact of EPCs on asking rents in Prague’s residential property market using a hedonic regression model. A newly collected dataset of 1,118 rental advertisements is analyzed, with control for the apartment total area, condition, location, and energy efficiency. The results indicate that more energy-efficient residential properties command a rental premium, even though the magnitude varies across location segments. In highly desirable areas, factors such as accessibility and prestige play a crucial role, while in less attractive areas, the EPC ratings are less pronounced. The findings contribute to the existing literature on the economics of energy efficiency by providing empirical evidence from a Central and Eastern European city, offering insights for policymakers, investors, and tenants.]]></description>
            <category>ARTICLE</category>
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        <item>
            <title><![CDATA[Perceived Risk Remedies in Cross-Border E-Commerce – From Theory to Practice Via Triangulation Between PLS-SEM &amp; FSQCA]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0014</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This study examines how seven dimensions of perceived risk interact to shape purchase intention in cross-border e-commerce (CBEC). Using survey data from 400 Hungarian CBEC users, the study applies a dual-method approach combining PLS-SEM and fuzzy-set qualitative comparative analysis (fsQCA). SEM results indicate that fraud risk and information risk exert significant negative net effects on purchase intention. However, fsQCA reveals multiple sufficient configurations, demonstrating that privacy risk and process &amp; time loss risk become critical when combined with high fraud and information risk. The finding highlights that certain risk dimensions are configurationally important despite being statistically insignificant in linear models. By distinguishing between net and configurational effects, this study advances the multidimensional theory of perceived risk and provides actionable insights for SMEs prioritizing risk mitigation in cross-border markets.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Asymmetric Effects of ISCED4 Graduates on Total and Youth Unemployment in Romania: Evidence from a NARDL Framework]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0011</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The aim of this article is to analyse how changes in the number of post-secondary non-tertiary education (ISCED4) graduates influence the total unemployment rate and the youth unemployment rate in Romania over the period 1991-2023. Using a nonlinear autoregressive distributed lag (NARDL) framework, we decompose lnISCED4 into positive and negative partial sums to test for potential short-run and long-run asymmetries while controlling for EU accession and the global financial crisis. The NARDL results for total unemployment suggest a long-run relationship and significant short- and long-run asymmetry. However, with controls included, the long-run coefficients on lnISCED4+ and lnISCED4– are imprecise, implying that asymmetry mainly reflects short-run adjustment. A benchmark linear ARDL model provides stronger evidence of cointegration and points to a modest negative long-run association between lnISCED4 and total unemployment. For youth unemployment, the NARDL estimates show robust short-run asymmetry. Increases in ISCED4 graduates are followed by short-run increases in youth unemployment, whereas decreases are also associated with subsequent short-run increases, while long-run education-related coefficients remain statistically insignificant. Robustness checks using labour force normalised ISCED4 intensity measures indicate that long-run asymmetry and levels relationships are sensitive to scaling and a shorter 1996-2023 window. These findings underline that expansions in intermediate vocational supply may generate temporary youth labour market pressures when absorption and matching mechanisms are weak and may support policy-makers in designing complementary measures to improve school-to-work transitions.]]></description>
            <category>ARTICLE</category>
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        <item>
            <title><![CDATA[Understanding Employees’ Readiness for Change in Small and Medium-Sized Enterprises: A Multidimensional Communication Framework]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0015</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[Drawing on internal communication and organizational change literature, this study develops a conceptual framework that examines the influence of internal communication on employee readiness for change. In theory, internal communication is recognized as an important prerequisite for employees’ perceptions and acceptance of change. Nevertheless, its role in small and medium-sized enterprises (SMEs) is not sufficiently studied, especially in the post-COVID-19 context which altered many communication preferences. To fill this gap, the proposed framework combines Internal Communication Satisfaction and perceived Quality of Change Communication, together with Work Demands and Information Overload as workplace stress-ors. The hypotheses were empirically tested through a quantitative survey of 454 employees from Croatian SMEs. Using a disjoint two-stage PLS-SEM approach, the findings confirmed that both Internal Communication Satisfaction and perceived Quality of Change Communication positively affect employee Readiness for Change. Results additionally revealed moderating and complementary mediating effects. The study has several theoretical contributions and offers practical implications for management.]]></description>
            <category>ARTICLE</category>
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        <item>
            <title><![CDATA[Link Between Entrepreneurship and Formal Institutions with Reference to the Legislative Framework – Evidence from Meta Regression Analysis]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0013</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[Summarising the results from a sample of 71 papers and 328 regressions, this paper provides new insights into the relationship between formal institutions and entrepreneurship. The results of the meta-regression analysis show that the basic effect of institutions on entrepreneurship is positive and statistically significant but becomes progressively weaker over time. However, when the analysis focuses on newly registered enterprises and controls for endogeneity, the results indicate an exceptionally strong, positive, and statistically significant effect of institutions on entrepreneurship in the short and medium term. The effect becomes even stronger if the models are specified without interactions of institutions with other variables. In contrast, this effect is absent in the case of women’s entrepreneurship. The paper highlights precisely defined conditions under which formal institutions have the greatest impact on entrepreneurship. The evidence provides policymakers with clear guidelines to help them reshape institutional frameworks to increase the level and efficiency of entrepreneurship in the economy.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Mediating Role of Self Control in the Effect of Work Stress and Burnout on Impulsive Buying]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0016</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This study investigates how work-related emotional burnout and work stress influence employees’ impulsive buying behaviors, focusing on the mediating role of self-control. By bridging the fields of consumer behavior and organisational studies, the research sheds light on how stress and burnout at work can spill over into personal consumption decisions. Data were collected from 1,228 employees across Turkey using established psychometric scales, and the hypotheses were tested through structural equation modelling. The results show that both emotional burnout and work stress significantly increase impulsive buying tendencies. More importantly, self-control emerged as a key factor in this relationship, suggesting that decreased self-control under stress and burnout leads to more impulsive purchasing behavior. These findings contribute to the literature by highlighting the psychological mechanisms that link work-related stress to consumer behavior, an area that has not been extensively explored. The study concludes by discussing implications for workplace interventions and suggesting avenues for future research to deepen our understanding of how occupational well-being influences financial decisions.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Horizontal Mismatch and Labor Market Outcomes: Evidence from Kosovo]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0012</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[Horizontal mismatch, the misalignment between workers’ fields of study and their current occupations, is a structural issue in Kosovo’s labor market. Evidence on its consequences remains scarce and primarily descriptive. This study analyzes its impact on hourly wages, working hours, quit intentions, and short-term contracts using data from the Kosovo Labor Force Survey (LFS) for 2012–2023. While descriptive statistics and OLS estimates indicate lower wages and slightly higher working hours among mismatched workers, mismatch status may be non-random and subject to endogeneity concerns. To address selection on observables, kernel propensity score matching (PSM) is implemented as the primary estimator. The findings, consistent with existing literature, suggest that mismatched workers earn €0.163 less per hour (6 percent relative to the mean hourly wage) and work 0.374 additional hours per week (0.9 percent relative to the mean weekly hours) compared to adequately matched workers. The estimated effects on short-term contracts (−0.1 percentage points) and quit intentions (+0.3 percentage points) are small and statistically insignificant. Overall, the results suggest that the primary economic cost of horizontal mismatch in Kosovo operates through earnings penalties rather than contractual instability or pronounced dissatisfaction.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Impact of Green Skills Mismatches on Green Job Creation: Evidence from North Macedonia]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0007</link>
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            <pubDate>Sat, 06 Jun 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The green transition and the adoption of new green technologies impact all workers, necessitating upskilling and reskilling to remain relevant to the changing labour market. The dynamics of the green transition is determined by many factors including the required green skills and related skills mismatches. Hence, the aim of this paper is to assess the impact of green skills mismatches on green job creation in North Macedonia. The empirical analysis is based on a survey of a representative sample of 530 companies, randomly selected from all regions, economic activities and company sizes. The green job creation is assessed by estimating fractional logit regression. Besides the standard control variables, particular attention has been paid to the underskilling, overskilling, skills deficits, skills obsolescence and horizontal skills mismatches. The results reveal that the green jobs creation is considerably limited by the presence of underskilling and skills obsolescence, while horizontal skills mismatches are emphasized as a problem that weakens the short run planning of green jobs. Accordingly, we suggest policy measures in the fields of education and business cooperation aiming to overcome skill mismatches and accelerate the green transition.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Double-Edged Sword of Sales Growth: Implications for SMES Insolvency Risk]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0002</link>
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            <pubDate>Tue, 17 Mar 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[Research on SME insolvency is one of the most important areas in economy because it is crucial for economic growth which would not be possible without growing firms. These two phenomena - insolvency and growth are typically studied independently. This study brings them together by examining the interaction between sales growth and insolvency among small and medium enterprises (SMEs). On the dataset of financial ratios for Croatian SMEs by applying logistic regression with interaction effects, it is investigated how sales growth, leverage and liquidity affect the probability of insolvency. The results showed that sales growth decreases the risk of insolvency, but that it depends on the level of indebtedness of SMEs. The least risky are those SMEs whose sales growth is supported by an adequate level of capital. SMEs with high sales decline have the highest probability of insolvency even when leverage and liquidity are suitable.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Relationship Between External Debt and Environmental Quality in Türkiye: A Fractional Frequency Fourier ARDL Bounds Test Approach]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0006</link>
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            <pubDate>Tue, 17 Mar 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[As efforts to achieve global sustainability goals intensify, it is increasingly important to understand the environmental consequences of countries’ economic policies, particularly the impact of macroeconomic variables such as external debt. This study analyses the impact of Türkiye’s external debt on environmental sustainability for 1970–2023 using the Fractional Frequency Fourier Autoregressive Distributed Lag (FFF-ARDL) method. Moreover, the variables of economic growth, renewable energy consumption (REN), and non-renewable energy (NREN) consumption were included in the model, and the Environmental Kuznets Curve (EKC) hypothesis was tested. Carbon dioxide (CO2) emissions were used as a proxy for environmental sustainability. The long-run coefficient findings indicate that increases in external debt reduce CO2 emissions, while economic growth initially increases emissions but then declines after a certain income threshold, confirming the EKC hypothesis. Moreover, REN energy consumption decreases CO2 emissions, whereas NREN energy consumption increases them. The Fourier Toda-Yamamoto test results indicate unidirectional causality running from CO2 emissions, REN, and external debt to NREN consumption. There is also unidirectional causality running from economic growth, REN, and NREN consumption to external debt. These findings suggest that Türkiye’s external debt management and the transition toward REN sources are crucial for reducing CO2 emissions.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Are Albanian Households Financially Fragile?]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0004</link>
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            <pubDate>Tue, 17 Mar 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[This study investigates financial fragility among Albanian households, measured by their ability to cover unexpected expenses, while analysing the impact of socio-economic factors and asset portfolios. Using data from Albania’s first Household Wealth Survey, we find that 59 % of households lack sufficient liquidity to withstand financial shocks, classifying them as financially fragile. Our multinomial regression analysis reveals three key findings: first, households with more educated heads show significantly lower fragility; second, access to formal financial services enhances resilience; and third, family support networks serve as an important buffer against financial vulnerability. These results demonstrate that both formal financial inclusion and informal family ties play crucial roles in household financial stability. These findings suggest that promoting financial education, expanding access to financial services, and supporting remittance channels can help reduce household vulnerability in Albania.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Leadership Styles and Employee Performance in Non-Profit Organizations: The Mediating Role of Employee Motivation and Creativity]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0001</link>
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            <pubDate>Tue, 17 Mar 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[Non-profit organizations (NPOs) depend on employees and volunteers to deliver services and advance the NPOs’ missions. This study examines how leadership styles shape employee motivation and creativity and, in turn, performance in NPOs. Primary data were collected via a structured questionnaire from 179 NPO employees in Croatia and analyzed using PLS-SEM. Results indicate that transformational and transactional leadership styles are positively associated with motivation and creativity, which both relate positively to performance. In contrast, autocratic and laissez-faire leadership styles were either non-significant or negatively associated with these outcomes (while democratic leadership was non-significant for motivation but negative for creativity). These findings suggest that emphasizing inspirational vision, individualized support, clear goals, and fair recognition can bolster day-to-day motivation and creative effort, translating into improved performance and greater organizational stability. In terms of theory, the study clarifies motivation and creativity as dual mechanisms linking leadership styles to performance within the non-profit context. In terms of practical implications, the results offer clear guidance for leadership development and HR policy in resource-constrained NPOs.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Top Team Management Heterogeneity: Does It Improve Large Companies’ Financial Performance?]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0005</link>
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            <pubDate>Tue, 17 Mar 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[The most crucial question in strategic management is the role of the top management team (TMT) in a company’s overall success. Empirical studies support the thesis that the TMT plays an important role in defining companies’ outputs, thereby focusing on TMT structure. The research question of this paper is as follows: What is the impact of TMT heterogeneity on large companies’ performance in Croatia? The authors employed a secondary quantitative approach. A panel analysis was conducted from 2015–2020. The research included 62 large companies that met the requirements. The results indicated a positive impact of gender and cultural heterogeneity on companies’ performance, as measured by return on assets (ROA). In the return on sale (ROS) model, a positive impact of TMT heterogeneity is not indicated. This paper contributes by identifying the TMT structure from heterogeneous aspects in Croatia and analysing the impact of heterogeneity on companies’ performance in line with the recommendations for defining the TMT structure.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Modelling of Structural Equations Based on the Relationship Between Financial Overdebt, Job Risk, Decreased Quality of Life, and Proactive Behavior in the Meaning of Finding an Additional Job]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2026-0003</link>
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            <pubDate>Tue, 17 Mar 2026 00:00:00 GMT</pubDate>
            <description><![CDATA[Modern lifestyles often put at risk careless and reckless financial management, which can lead to over-indebtedness, default and bankruptcy. The inability of individuals to manage their finances is accompanied by numerous negative business, social and family implications that manifest themselves through financial stress, limited spending opportunities, which are directly related to the quality of life, and increasing inequality. In the paper, the authors investigate the phenomenon of excessive borrowing in Croatia to improve the quality of life and artificially raise the standard of living, which limits the plans of the inhabitants of Croatia. Quality of life, within the framework of this research, encompasses the dimensions of financial stability, health, social inclusion and general satisfaction with life, analysing how an individual’s economic circumstances shape their personal and social well-being. Furthermore, the paper analyses (i) the characteristics of individuals in financial difficulties, their attitudes towards debt reduction planning and financial recovery strategies, and (ii) differences in proactive behaviour among individuals, particularly in the context of willingness to take on additional work and the benefits of living standards in response to the current deterioration of their financial situation. The research results indicate that the key to achieving an economy of well-being is finding a balance between the benefits of credit and a sustainable level of indebtedness adjusted to the individual’s financial capabilities. In this context, the research was conducted on a purposive sample of 782 respondents who experienced a loss of economic autonomy and sovereignty in making financial decisions, which influenced their proactive behaviour. The research results confirm that the key to achieving economic well-being is establishing a balance between the benefits of credit and a sustainable level of indebtedness that does not threaten the financial stability of the individual. The research was conducted on a purposive sample of 782 respondents who experienced a loss of economic autonomy, which had a direct impact on the quality of life. The research results suggest that economic factors, such as low income and increased indebtedness, have a more pronounced negative effect on quality of life, while job riskiness may be a reason for finding additional work.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Digitalization’s Effect on International Remittances: The Hindrance of Institutional Quality in Advanced Economies]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2025-0015</link>
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            <pubDate>Wed, 31 Dec 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[Digital technology is crucial in reshaping economies by diminishing transactional barriers and fostering economic expansion. Concurrently, international remittance inflow is a potent tool for poverty alleviation and employment enhancement. The paper’s objective is to explore the impact of digitalization on international remittances within advanced economies and to analyze how the level of institutional development influences this relationship. The research utilizes Internet user rates and fixed broadband subscription statistics as indicators of digitalization and the difference GMM estimators for a panel dataset of 34 developed countries from 2002 to 2021. The results present a counter-intuitive that digitalization and governance promote international remittances, but their interaction terms reduce these remittances. Furthermore, trade openness enhances remittances, while economic growth impedes them. From these findings, some policy lessons are suggested to look for insights into the role of institutional quality in the digitalization–international remittances nexus.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[Is Cost Competitiveness a Sufficient Driving Force for Croatian Exports?]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2025-0016</link>
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            <pubDate>Wed, 31 Dec 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[This paper examines the extent to which Croatia relies on a cost-based export strategy by analyzing the link between cost competitiveness, measured by unit labor cost (ULC) and exports of manufacturing firms from 2002 to 2022. Using a panel first-differences OLS approach, the study finds that cost competitiveness significantly shapes export activity of firms of all sizes and technological intensities, but with considerable heterogeneity. The results show a non-linear relationship between ULC and exports that is not asymmetrical. The relationship is weaker for firms with lower export intensity and for high-tech firms. Higher ULC is associated with greater export sensitivity and lower productivity, confirming that export sensitivity is lower for more productive firms. In the future, a further strengthening of the link between costs and exports can be expected, i.e. exports will react more sensitively to cost fluctuations. As a result, price and cost stability will become even more crucial. Overall, this analysis provides the most comprehensive study to date on how cost factors affect Croatian merchandise exports, implying that boosting product quality and productivity can reduce cost pressures and promote long-term competitiveness.]]></description>
            <category>ARTICLE</category>
        </item>
        <item>
            <title><![CDATA[The Dynamic Interplay between Credit Risk and Monetary Policy in Albania’s Banking Sector: A Comprehensive Analysis]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2025-0017</link>
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            <pubDate>Wed, 31 Dec 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[The study examines the relation between credit risk and monetary policy in Albania’s banking sector from 2015 to 2023, utilizing the Autoregressive Distributed Lag (ARDL) model. It analyzes post-crisis developments, particularly the Central Bank’s (CB) stabilization efforts and the write-off of NPLs. The findings show that higher CB rates increase NPLs in the short and long term.Following the 2008 financial crisis and the COVID pandemic, measures such as NPL write-offs and loan repayment postponements helped mitigate credit risk. Inflation contributed to credit stability by easing debt repayment burdens.Inflation and higher rates ease debt repayment and enhance credit stability. The Loan/Deposit Ratio influences NPLs, as managed decreases in LDR lower credit risk. Additionally, increased CB rates reduce new loan issuance, deterring high-risk borrowers and curbing NPL growth. The study highlights the effectiveness of Albania’s monetary policy in maintaining banking sector stability and supporting economic recovery.]]></description>
            <category>ARTICLE</category>
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        <item>
            <title><![CDATA[Product-Line Diversification and Financial Performance: The Case of the Macedonian Non-Life Insurance Market]]></title>
            <link>https://reference-global.com/article/10.2478/jeb-2025-0018</link>
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            <pubDate>Wed, 31 Dec 2025 00:00:00 GMT</pubDate>
            <description><![CDATA[This study investigates the relationship between product-line diversification and financial performance among non-life insurers in North Macedonia over the period 2013–2022. Drawing on firm-level data and applying fixed and random effects two-stage least squares (IV-2SLS) models, we examine whether diversification improves profitability in a market characterized by low insurance culture and heavy reliance on the regulated motor third-party liability (MTPL) segment. We use two diversification measures: the Herfindahl-Hirschman Index (HHI) of insurers’ product portfolios and a weighted HHI adjusted for market competition across lines of business. Our findings reveal a nonlinear relationship between diversification and profitability, supporting the coexistence of both diversified and specialized insurers. While initial diversification appears beneficial, excessive diversification may reduce returns, and evidence linking diversification away from competitive lines (e.g., MTPL) to higher profitability is weak. These insights carry important policy implications, suggesting that a measured liberalization of the MTPL market could support healthier diversification dynamics, while highlighting the need for careful monitoring of risk underpricing and solvency risks in evolving product strategies.]]></description>
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