Dear friends and colleagues,

In case you have missed the last issue of the Journal of East-West Business, allow me to pitch these four interesting and pertinent papers:



“Sanctions and Countersanctions Concerning the Russian Federation: The Czech Business Perspective” by Vít Hinčica, Hana Řezanková & Grace Worcester


The goal of the paper is to assess how Czech businesses have been impacted by the sanctions and countersanctions and their opinions on the issue. Companies being members of the Chamber of Trade and Industry for CIS Countries were addressed. From the surveyed companies that traded with Russia before 2014 and are currently engaged in trade with Russia, it was made evident that their overall attitude regarding the sanctions and countersanctions is rather negative. The research shows that business sector in the Czech Republic feels strong effects from the sanctions and countersanctions and believes it would benefit from their removal.


“Economic Sanctions Disruption on International Trade Patterns and Global Trade Dynamics: Analyzing the Effects of the European Union’s Sanctions on Russia” by June Borge Doornich & Andreas Raspotnik


Governments frequently use economic sanctions to influence or undermine the political actions or regimes of other countries. This case study of the economic sanctions imposed by the European Union on the Russian Federation in response to the annexation of the Crimean Peninsula serves as an illustrative example that provides new, in-depth insights into the implications of economic sanctions for international trade patterns and global trade dynamics. We conclude that sanctions negatively affect bilateral trade between the sanctioner and the target country, and that sanctions constrain the target country’s integration into the global economy.


“Russian Territories of Outrunning Development in Mono-Cities: Current and Prospective Opportunities for Foreign Investment into Manufacturing” by Igor Gurkov, Alexandra Kokorina & Zokirzhon Saidov


The paper describes a new form of investment attraction recently introduced in Russia—territories of outrunning socio-economic development (TOSEDs). These initiatives provide tax and other benefits to 20 territories in the Far East and to 90 cities in which a considerable number of jobs are concentrated in a single factory (mono-cities). Using secondary sources and interviews, we present the initial legislation for TOSEDs, the evolution of the initial legislation, and the functioning of TOSED residents. We also identify several opportunities for foreign investors who have installed or intend to install their new manufacturing facilities in TOSEDs.


“Earnings Manipulation and Financial Distress in the Eurozone and the Role of Auditor Size during the Current Recession” by Maria I. Kyriakou



This study aims to investigate the impact of financial distress on discretionary accruals, i.e. earnings manipulation, and the role of the Big4 or non-Big4 auditors during the economic recession. The four biggest Eurozone countries (Germany, France, Italy and Spain) are examined using the generalized method of moments (GMM) methodology, and the years have been separated into pre-crisis and in-crisis periods based on the negative and positive change in GDP, respectively. The findings suggest that earnings manipulation is prevalent in Italy for non-financial companies audited by both Big4 and non-Big4 auditors during the two periods.


I hope you enjoy reading! J



Prof. Dr. Desislava Dikova

WU | Vienna University of Economics and Business | IB Institute

Head of Competence Center for Emerging Markets and CEE


Editor in Chief Journal of East-West Business

Associate Editor European Management Review

Associate Editor Journal of International Management

European International Business Academy national representative (Austria)


Welthandelsplatz 1, D1, floor 5

A-1020 Vienna, Austria


phone: +43 1 313 36 / 5480; + 43 676 821 35 480

fax: +43 1 313 36 / 905015

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