Authors: Marina Gkouma, John Filos

Title: The significance of internal audit to an entity’s governance processes, internal controls & risk management

Abstract

The role of internal audit is to provide independent assurance that an organization's risk management, governance and internal control processes are operating effectively. Nowadays, it is taking on a more strategic and central role since all organizations are subject to risks and therefore it is of utmost importance the organization to identify, monitor and effectively manage these risks. Risks can either arise from error or fraud. There have been several instances in the past where frauds have been detected by the internal audit function and their reveal has led to the downfall of organizations as a whole. Due to the negative impact that both types of risks may have to the sustainability of a business, Managements and senior executives are increasingly concerned about the exposure of their businesses to risks and whether the internal control system is designed and operates effectively (D& I of control system). In other words, whether the organization is adequately protected from risks.

Internal auditors should provide objective assurance to the board and management that the controls in place are sufficient for identified risks and also to ensure that the controls are functioning effectively. In case a fraud incidence is identified, it is imperative the organization to have a well-defined response plan in order to handle this incidence effectively. A root cause analysis should also be performed by internal auditors in order to be able to recommend appropriate corrective actions to the organization’s Management.

In order to perform effectively their role, internal auditors should demonstrate compliance with both the International Professional Practices Framework Standards and the Code of Ethics. The Standards are mandatory requirements/guidance provided by the Institute of Chartered Certified Accountants (IIA). On the other hand, the Code of Ethics states the principles and expectations governing the behavior of individuals and organizations in the conduct of internal auditing.

The internal audit charter (which is being approved either by the board or the audit committee) is also a very important tool since it clearly identifies the roles and responsibilities of internal audit with respect to risks. Another aspect of vital importance for the internal audit function is internal auditor’s independence. In order internal auditors to ensure their independence, it is essential to have adequate access to the audit committee and have independent authority and reporting lines/whistleblower hotline. In addition, internal audit function should have adequate resources (human, capital, etc..) and specialized personnel in order to conduct internal audits effectively.

Last but not least, internal auditors should evaluate risks on a regular basis since the organizations operate in a continuous evolving - dynamic business environment, where various new risks may emerge. Therefore, an organization should be able to ensure timely risk management in order the risks to be mitigated or even eliminated completely (if feasible). In this way, the business strategy and objectives will be met and internal audit will add value to the organization.

 

Keywords: Internal Audit Function, Internal Controls, Design & Implementation of Controls (D&I), International Professional Practices Framework (IPPF), Code of Ethics, Institute of Chartered Certified Accountants (IIA), Risk Management,  Response Plan, Whistleblower Hotline, Adequacy of Resources (Human, Capital), Specialized personnel.

Authors: Spyridon Kapotas

Title: Digitalization of organizations and their cultures. A case study in a national defense industry

Abstract

Abstract

Digital transformation has become vital for organizations in order for them to differentiate from competitors providing a competitive advantage in the fast-changing environment they operate. Digital transformation is considered as a radical transformation affecting organization’s products, services, people and processes while improving performance. It is a risky and tremendous challenge for most organizations. With the current dissertation an approach on digital transformation, in a national defense company is attempted. Products and services provided are characterized through high quality standards and a strong culture. Those characteristics are considered a fruitable ground for providing a framework to transform an organization into a digital one. In addition, the case of how digital transformation can affect the organizational culture of a company and vice versa is examined.

Taking into consideration the above, a literature research on digital transformation of organizations and their benefits are provided. The digitalization process is analyzed in order to show the building blocks of transforming the organization into a digital one. However, in order to start such a process, the organization has to have an adaptive high performance organization culture. This is considered as the base to start the digitalization process. In order for the organization to have such a culture, current situation has to be assessed and certain actions to be taken. An assessment of above-mentioned company is presented and actions proposed. It is obvious that organizational digital transformation is inextricably linked with an organizational culture change. The benefits and barriers from such a transformation are shown and finally proposals presented regarding a digital strategy implementation as well as a vision and mission statement for the company.

Keywords

Digital transformation, digitalization process, digital strategy, organizational culture change, vision and mission statement

JEL Classification Code

M14

Authors: Anastasios Saraidaris

Title: The characteristics of the energy products’ tax incidence on consumers’ prices. Repercussions for the inflation in euro area countries.

Abstract

The current paper examines the characteristics of the energy prices in the HICP and in particular, the impact of the tax changes on the energy products’ prices as these are reflected in the harmonized index of consumer prices (thereafter HICP). The paper draws on the price index changes to identify the tax incidence as well as the pass-through characteristics. Since the precise magnitude of the impacts and the pass-through times remain largely uncertain in the relevant literature and policy practice, the scope becomes to differentiate the aspects of the tax incidence on the pertinent to energy items in the Divisions 4 and 7 of the HICP among the Euro Area Countries and other product categories.  The HICP provides the official measure of consumer price inflation in the euro area for the purposes of monetary policy and the assessment of inflation convergence as required under the Maastricht criteria for accession to the euro. Moreover, the strangle with rising inflation via reducing the energy prices has become extremely critical. The euro area headline inflation is vastly dominated by the strong contribution from energy prices which in 2022  are constantly increasing having reached unpreceded levels. Hence,  Europe has prompted euro area countries to put in place measures to shied households from the direct impact of the rising energy costs and the inflation eroding their income.

In the majority of the cases, the tax incidence differentiates in nature and appears rather unstable to changing external conditions. Moreover, the immediate pass-through of the changes in indirect taxes (excise duties and value added taxes) to consumer prices, is broadly serving  theoretical reasons and in reality  also varies according to factors such as the type of the product, the nature of the business, the supply chain, the macroeconomic conditions, the efficiency of the tax collection mechanism, etc. Those factors, occasionally play a different role in the time and magnitude aspects of the tax impact on the consumers’ prices.  The analysis findings provide insights on the potential efficiency and effectiveness of the widely differentiated mix of energy measures lately proposed by the euro area countries  with a view to combat the unprecedented shock on consumers’ prices merely due to the extremely high  prices in the energy market.

Authors: Georgios Patsiolas, Ioannis Tsakalos

Title: Fiscal and Monetary policy shocks in emerging market economies

Abstract

This study attempt to examine the impact of monetary and fiscal policy in emerging economies of Russia, Brazil, China, India, Mexico, South Korea, Indonesia and South Africa. The above countries are an example for study for macroeconomics analysts as well as for economists and social scientists as the context and specifics of each country have shaped the reasons and content of these analyzes in scope and duration. Using a panel – VAR model, we evaluate the macroeconomic impact of monetary and fiscal policy shocks in the abovementioned economies. We show that monetary policy contractions lead to a fall in real economy and that an increasement of government spending has positive impact to Gross Domestic Product.

Authors: Georgios Patsiolas, Ioannis Tsakalos

Title: The effect of ESG criteria on UK Mergers and Acquisitions after the Brexit Referendum

Abstract

Our study investigates how Merger and Acquisition deal characteristics are influenced by Environmental Social and Governance (ESG) criteria of UK based acquiring firms after the Brexit Referendum. Our scientific results uncover many unused bits of knowledge. To begin with, we look at the deal characteristics of the bidding firms and discover that they prefer cash payment and single bids. Second, we discover that target firms with medium and high ESG score levels are more likely to be acquired by firms with high ESG score levels. Third, we reveal that the  higher  ESG score a company has, the lower  lower bid premium intents to pay. Finally, we observe that abnormal return variable is positive and statistically significant when an acquirer announce a Merger or Acquisition deal.  Our results show robustness in various tests and different proxies.

Authors: Evangelia Kasimati, Panagiota Dionysopoulou, Eleni Mouratidou

Title: Total Quality Management, in Luxury Hotels, in region of Attica

Abstract

Total Quality Management is a management system which focus on delivering quality services and products to the customers, with the participation of all the people who are involved in the production, directly or indirectly. The purpose of this research is to investigate the Total Quality Management in luxury hotels throughout the region of Attica. Furthermore, there are exanimated  the contribution of the Human Resources and Standards Operating Procedures of the Hotel companies in the implementation of the Total Quality Management.

According to the results of the current research, the Leadership of the Hotel Industry in Attica have acknowledged the fact that the policy of providing quality services and products is aiming to the continuous evolvement of their services. Additionally, having as valuable tools of the continuous improvement the Standard Operating Procedures and as methods of quality control the Quality Management Systems and the Mystery Guests, they focus on the appreciation of their customers. In terms of Human Resources improvement are of great importance in matters of leadership, internal communication and empowerment. The implementation of the successful factors of the Total Quality Management, undoubtedly, leads to the prosperous economic development of these companies.

Keywords
Total Quality Management, Quality Services, Luxury Hotels, Standard Operating
Procedures, Mystery Guests, Human Resources

Authors: Evangelia Kasimati, Panagiota Dionysopoulou, Christina Tsalampampouni

Title: The impact of Corona virus on luxury hotels in the region of Attica & suggestions for dealing with it

Abstract

Στη μελέτη παρουσιάζεται πόσο σημαντική είναι η διαχείριση κρίσεων σε περιπτώσεις έκτακτης ανάγκης τόσο γενικά για τις επιχειρήσεις όσο και ειδικότερα στις επιχειρήσεις του τουριστικού τομέα. Στα πλαίσια της πανδημίας του κορωναϊού, που πρωτοστατεί ως πρώτη είδηση σε όλα τα μέσα από τον Δεκέμβριο του 2019 παγκοσμίως και από τον Μάρτιο του 2020 στη χώρα μας, παρουσιάζεται εκτενώς το φαινόμενο και οι συνέπειές του δίνοντας ιδιαίτερη έμφαση στις οικονομικές επιπτώσεις της πανδημίας  παγκοσμίως αλλά και ειδικότερα στην Ελλάδα. Στη δευτερογενή έρευνα της μελέτης, που αφορά το πρώτο μέρος της εργασίας αναλύονται σε μεγαλύτερο βαθμό οι συνέπειες του Covid-19 στον τουριστικό και ξενοδοχειακό κλάδο της Ελλάδας για όλο το 2020 καθώς μέσω των πολλών περιορισμών  και lockdown, που επιβλήθηκαν παγκοσμίως τα ταξίδια και ο τουρισμός επλήγησαν σε πολύ μεγάλο βαθμό. Στη συνέχεια γίνεται αναφορά στα μέτρα αντιμετώπισης της Πολιτείας όσο και στις διαρκείς προσπάθειες της Ευρωπαϊκής Ένωσης να φέρει εις πέρας την όσο το δυνατό καλύτερη διαχείριση της πανδημίας.

 

Στο ερευνητικό μέρος της εργασίας μέσα από μία σειρά ερωτήσεων, που απευθύνθηκαν στο σύνολο των ξενοδοχείων πολυτελείας της Περιφέρειας Αττικής γίνεται προσπάθεια καταγραφής τόσο των οικονομικών συνεπειών του κορωναϊού σε αυτές τις επιχειρήσεις όσο και στις προτάσεις για τον τρόπο διαχείρισης της παρούσας κρίσης και την επαναφορά τους στην προ covid εποχή. Βασικό συμπέρασμα της έρευνας είναι ότι το 2ο τρίμηνο του 2020 υπήρξε η μεγαλύτερη πτώση του τζίρου των Ξενοδοχείων Πολυτελείας αφού το 1ο lockdown και το ολικό κλείσιμο των επιχειρήσεων αποτέλεσε για αυτά κάτι πρωτόγνωρο και αδύνατο να διαχειριστούν. Επιπλέον εξήχθησαν σημαντικά συμπεράσματα όπως το πόσο χρειάστηκαν τα ξενοδοχεία 5* τη βοήθεια της Πολιτείας και πόσο έμφαση δόθηκε λόγω της φύσης των εν λόγω επιχειρήσεων στην ποιότητα της παροχής υπηρεσιών και στη χρήση των πρωτοκόλλων υγιεινής. Τέλος οι πρακτικές ανέπαφης τεχνολογίας και η χρήση των ηλεκτρονικών υπηρεσιών αποτελούν σύμφωνα με την έρευνα βασικές υπηρεσίες προσέλκυσης πελατών.

Authors: Mary Stathopoulou, Ioannis Antoniadis, Aikaterini Lantza

Title: Distant working in Greece: A short literature review of the Greek reality and practice

Abstract

[EXTENDED ABSTRACT]

Evidence from the literature shows that distant working affects the spatial and temporal context of work. The way we work is reorganized, affecting the work relationship, as well as the way control is exercised.

The above are also true for Greece and especially the public sector. The scale and depth of the structural changes that have taken place in the last three years with the compelling digitization of the public sector are enormous. Distant workinging is already a new alternative employment worldwide, and the Greek state has managed to maintain its smooth operation during the pandemic, thanks to the successful implementation by civil servants. The adoption of Law 4807/2021 regulated the framework for the organization and effective implementation of distant working in the public sector through the use of information and communication technologies and defines issues like the concept of distant working. This regulatory framework also established the basic principles that governs remote working such as voluntariness, principle of equal treatment of distant workinging and non-working employees, protection of personal data, respect for privacy, the deadlines and location of its provision, and other procedural issues for its implementation.

Faced with the energy crisis resulting from the war in Ukraine and threats by the Russian president that Moscow might close its gas taps, the European Union is looking for solutions. According to a report in the Spanish newspaper El Pais, the Commission is preparing an emergency plan of measures to be taken in the near future. Among the measures being considered is distant working up to three times a week, which could save up to 500,000 barrels of oil. One day of telecommuting is equivalent to saving 170,000 barrels of oil per day.

Notwithstanding the importance of the legal framework, there a number of managerial and organizational issues that cannot be covered by the provisions of a law. Unfortunately, due to the short period of time since the outbreak of COVID -19, scientific research in Greece is limited and mainly focused on how workers experience distant workings, what positive or negative impact it has on their professional and personal life and job satisfaction. There is a lack of data focusing on the relationship of employee productivity and efficiency that should be examined.

The present paper helps to highlight this gap while examining the areas that distant working impacts, by reviewing the relevant research in Greece. To achieve that we are reviewing more than 40 publications and published research, dealing with topics related to distant working in Greece. The results of these papers are thoroughly reviewed and systematically examined to identify possible bibliographic gaps in the domestic bibliography.

The results of this review show that there is a great lack of tools to measure the effectiveness and efficiency of remote workers and that there is a need for more in-depth and informed research in the Greek reality. Our findings also highlight the need to redefine the ways control is asserted ton remote work, and to reformulate management practices and roles. While telecommuting is a major change, it is also part of other changes that contribute to a broader transformation that drastically changes the work process, structures, and system of shared values.

In addition, this review contributes to the systematic recording of the relevant literature in Greece and aids in developing tools to measure the effectiveness and efficiency of workers who distant working to improve both employer and worker satisfaction.

Authors: Maria Malagkoniari, Kleopatra Deliou

Title: The Impact of COVID – 19 First Outbreak on Greek Private High Schools & the Distance Learning Experience

Abstract

Although when we speak of COVID – 19 the main affect concerns the health of individuals, it is clear that the pandemic has also affected many aspects of life such as the educational sector. Both teachers and students in Greece faced the challenge of the implementation of distance learning, national wide, during the pandemic.

There is still lack of a proper theoretical model and comprehensive scientific tools to measure the impact of COVID – 19 in education. The purpose of this research is to study and analyze whether the distance learning affected the Greek private high schools in different ways such as in terms of student’s graduation or their success rate in the PanHellenic Exams, during the first outbreak of COVID-19 pandemic.

Based on literature and feedback received from high schools’ principals we captured important results over the use of distance learning and its effectiveness. More specifically, through the quantitative study performed on 63 out of 79 private high schools’ principals, the researchers reached the conclusion that the majority of private schools managed distance education successfully. It was proved that both teaching and administrative staff were highly competent and skilled over the use of new technologies and therefore, distance education was not treated as a problematic situation but it steadily became part of each school’s daily routine.

Authors: Eirini Leriou

Title: Child Inequalities in the light of COVID-19 crisis: An Action Plan for Attica (Greece) based on Public Finance

Abstract

In the current announcement are presented the results of the fourth and fifth round of the quantitative research on children’s inequalities over time in the Attica region (Greece) and are proposed economic and social policies for maximizing the children’s quality of life. More specifically, during the last years, the previous economic crisis in Greece has had negative effects on the society as a whole. Nowhere are these effects more evident than in the rapid increase of child poverty in the same time period. This study focuses on the various factors in children’s well-being and, by negative inference, on child inequalities as reflected in the region of Attica by age group. In this way, it defines conceptually and operationally each of the aforementioned factors. Taking this into account, the presentation briefly discusses outputs of an empirical quantitative research on child poverty in the region of Attica on the basis of a new proposed methodological framework, in order to develop an evidence-based understanding of the multidimensional characteristics, extent and geographic distribution of the aggravation of children’s quality of life in the region of Attica (Greece). Moreover, rounds 4-5, of the quantitative research coincide with the outbreak of the pandemic of COVID-19. From this point of view, it is presented how the current health crisis of COVID-19 has affected children’s well -being in the Attica.