European Financial Systems 2017 - Proceedings of the 14th International Scientific Conference (Part 2)

Markov chain sensitivity analysis of expected paid/unpaid overdue receivables – SME case study

Markov chain sensitivity analysis of expected paid/unpaid overdue receivables – SME case study
(Markov chain sensitivity analysis of expected paid/unpaid overdue receivables – SME case study)

Author(s):Ladislav Lukáš
Language:English
Subject(s):Business Economy / Management, Methodology and research technology
Page Range:11-18
No. of Pages:8
Keywords:accounts receivable analysis; fundamental matrix; absorption Markov chains; sensitivity analysis;
Summary/Abstract:The paper uses existing Markov chain theory to estimate expected paid/unpaid overdue receivables, and is focused mainly upon sensitivity analysis of calculated estimations. Since such calculations depend upon fundamental matrix of absorption Markov chain chosen, the particularly important role plays data and algorithm for its composition. As a case study, we selected a SME ranked company which provided us its accounting records with payment pattern details of related receivables. First, the available data are sorted to extract overdue receivables, which serve to estimate transition probability matrices of absorption Markov chains having several transient states and two absorption ones representing paid and unpaid overdue receivables. Based either on number of overdue receivables or their financial volumes we build different transition probability matrices. The sensitivity analysis of expected paid/unpaid overdue receivables concerns influence of different overdue threshold and tolerance accepted, conditional probabilities between transient and absorption states, as well as distribution of financial volumes in particular transient states registered. The results are discussed in detail showing their practical importance in financial management and providing deeper insight into overdue payment processes thus contributing to risk management, too. All computations and graphical issues are performed by sw Mathematica.

The Development of Debt Financial Markets – the Case of Selected CEE and Latin America Economies

The Development of Debt Financial Markets – the Case of Selected CEE and Latin America Economies
(The Development of Debt Financial Markets – the Case of Selected CEE and Latin America Economies)

Author(s):Jan Mači, Jan Öhm
Language:English
Subject(s):National Economy, Business Economy / Management, Economic policy, Comparative politics, Financial Markets
Page Range:19-25
No. of Pages:7
Keywords:Debt; credit; corporate finance; financing policy; financial market;
Summary/Abstract:This article deals with loans and other debt sources provided to non-financial sector. Naturally, especially in perfect market conditions, all of the debt sources are substitutes to each other. However, in real economy the choice between loans and other debt (e.g. bonds) depends on many variables. Some studies state that the choice among variety of debt sources depends on the development of the financial market respectively of the economy as a whole. For example, it is quite well known that European market is rather bank-based, while US one rather capital-based. The aim of this paper is to characterize and compare the development of selected Central and Eastern European (CEE) and Latin America financial loan markets. For this purpose we analyzed the data from the Bank of International Settlements (BIS), which gathers these data from the reporting economies (e.g. advanced, emerging market and other economies). The method that was used for the data analysis was time series correlation analysis. From the conducted research there can be stated that there are no significant differences between the development of CEE and Latin America markets at aggregate level as well as among each analyzed country separately. The only notable exception is the development in Argentina, which still suffers from the consequences of state bankruptcy.

Interrelation of personal characteristics with financial literacy as a guide to financial behavior of Russian students

Interrelation of personal characteristics with financial literacy as a guide to financial behavior of Russian students
(Interrelation of personal characteristics with financial literacy as a guide to financial behavior of Russian students)

Author(s):Marina Yuryevna Malkina, Dmitry Rogachev
Language:English
Subject(s):Business Economy / Management, Higher Education , Financial Markets, Socio-Economic Research
Page Range:26-34
No. of Pages:9
Keywords:financial literacy; financial behavior; students; personal characteristics; correlation;
Summary/Abstract:The research is aimed at analyzing influence of various personal characteristics of young students along with financial literacy on their expected financial behavior. Besides financial literacy, we singled out such personal characteristics as prodigality, credulity, risk preference and propensity for offence or unethical behavior. Our research is based on the data obtained by sample questionnaire survey of full-time students learning economics at Lobachevsky State University of Nizhni Novgorord, Russia. For evaluation of each personal characteristic we asked respondents to answer twelve direct and indirect questions, which enabled us to both outline distribution of the estimated features among students and calculate their average values. For the whole sample we found medium positive correlation between prodigality, risk preference and propensity for offence or unethical behavior, while other pairs demonstrated weak correlations. Further clustering of the whole sample into six approximately equal groups with use of the Ward’s method allowed us to receive more pronounced dependencies between characteristics within these groups, albeit different by sign. We found out that combining various characteristics with different level of financial literacy ensured quite opposite types of expected financial behavior. This emphasizes the role of personality development as a complex task even more important for students just entering the financial market.

Decomposition of spatial inequality in budget provision by income sources: case of modern Russia

Decomposition of spatial inequality in budget provision by income sources: case of modern Russia
(Decomposition of spatial inequality in budget provision by income sources: case of modern Russia)

Author(s):Marina Yuryevna Malkina
Language:English
Subject(s):Public Administration, Fiscal Politics / Budgeting, Socio-Economic Research
Page Range:35-43
No. of Pages:9
Keywords:budget revenues per capita; spatial inequality; indices; sources; decomposition;
Summary/Abstract:The research is aimed at assessment of contribution of various income sources to spatial inequality in budget revenues per capita in modern Russia. It is based on itemized data on various tax and non-tax revenues in consolidated budgets of Russian regions in 2012-2015. For assessment of interregional disparities in budget revenues per capita we employed three alternative measures: the population-weighted Gini coefficient, the coefficient of variation and the Theil index. The decomposition of spatial inequality by sources was made by means of the A. Shorrocks and R. Lerman – Sh. Yitzhaki techniques, as well as by the nested disintegration of the Theil index. As a result we obtained the structure of spatial inequality in budget provision per capita in Russian regions for four years and estimates of spatial inequality elasticity with respect to various budget revenue sources. We found that two most profitable taxes, i.e. corporate income tax and personal income tax, provided the lion share of inequality, although the elasticity of inequality with respect to corporate income tax was significantly higher than to personal tax. Non-tax revenues, such as incomes obtained from the use of public and municipal property and sale of tangible and intangible assets, provided relatively larger contribution to spatial disparities in budget provision compared to their share in total revenues, enhancing inequality even stronger. Inter-budgetary transfers, including grants, subsidies, subventions and other intergovernmental aid, proved to have the most smoothing effect on budget provision, although relative efficiency of different types of transfers in different years altered due to the changes in rules of their funding.

Corporate Tax Revenues of Selected EU Countries Using Spatial Autocorrelation Approach

Corporate Tax Revenues of Selected EU Countries Using Spatial Autocorrelation Approach
(Corporate Tax Revenues of Selected EU Countries Using Spatial Autocorrelation Approach)

Author(s):Slavomíra Martinková, Jakub Danko
Language:English
Subject(s):Economic policy, Methodology and research technology, EU-Accession / EU-DEvelopment, Fiscal Politics / Budgeting
Page Range:44-52
No. of Pages:9
Keywords:corporate income tax revenues; spatial autocorrelation; local indicators of spatial association (LISA) method;
Summary/Abstract:The reason of state interventions in economic processes of countries is in the economic literature supported by the hypothesis of the failure of the market mechanism with the efficient allocation of economic resources in the context of social optimum. In terms of fiscal policy affecting the rate of growth of corporate income tax revenues, there are numbers of views expressed by experts in economic theory. During the process of increasing internationalization, it is important to monitor the economic, and spatial contexts that are influencing changes in corporate tax revenues in countries. The main goal of this study is to model spatial autocorrelation of corporate income tax revenues in the EU member countries of selected time periods. Authors analyse the spatial structure of corporate income tax revenues of selected EU member countries by using the Local Indicators of Spatial Association Method. The used method identifies the range of the relevant spatial clusters of selected indicator, while the partial aim of the contribution is to identify areas with negative spatial autocorrelation of selected EU member countries’ corporate income tax revenues. The results of the analysis are compared by observing fiscal indicators in terms of the tax policies of individual countries.

How are 1bis pension pillar funds performing? A cross-country analysis

How are 1bis pension pillar funds performing? A cross-country analysis
(How are 1bis pension pillar funds performing? A cross-country analysis)

Author(s):Michal Mešťan, Ján Šebo, Ivan Králik
Language:English
Subject(s):Labor relations, Economic policy, Government/Political systems, Comparative politics
Page Range:53-60
No. of Pages:8
Keywords:1bis pension pillar; pension funds; Sharpe ratio; Sortino ratio; performance;
Summary/Abstract:Private DC pension schemes implemented in CEE countries possess common features in the way how contributions are made, investment vehicles and investment management. As the investment risk and subsequent adequacy risk is effectively shifted onto savers, pension funds’ performance net of fees and inflation is of utmost importance for the sustainability of the pension schemes and ability to deliver expected results from the view of replacement ratios. Understanding the investment returns and the impact of fees under the comparative analysis is therefore our main objective. Object of our research are the particular investment vehicles (pension funds) in three countries: Slovakia, Estonia and Latvia. Subject of our research is the risk adjusted returns of analyzed pension funds provided under the 1bis pillar pension scheme in these countries. We use conventional Sharpe and Sortino ratio to assess the performance and confirm that even if there are no major differences in investment policies, the risk adjusted performance is vastly different even when comparing similar pension funds based on their portfolio structure. We also suggest that these differences in risk adjusted performance may result in vastly different pension pots and thus replacement ratios.

The structure of limited liability companies with low registered capital

The structure of limited liability companies with low registered capital
(The structure of limited liability companies with low registered capital)

Author(s):Kateřina Mičudová
Language:Estonian
Subject(s):Business Economy / Management, Civil Law, Commercial Law
Page Range:61-69
No. of Pages:9
Keywords:code on capital corporation; law capital; limited liability company; registered capital;
Summary/Abstract:The extensive recodification of private law in the Czech Republic, which was actively taking place primarily from 2002 to 2012, was completed on January 1, 2014, when Act No. 89/2012 Coll., the Civil Code, and subsequent Act No. 90/2012 Coll., on Commercial Companies and Cooperatives (Business Corporations Act), came into effect. Since that date, besides other things, the amount of minimum registered capital necessary for setting up limited liability companies has changed. At present, the minimum member´s contribution is CZK 1. The paper aims to analyse the structure of limited liability companies with registered capital less than CZK 200,000. The first chapters will clarify the reasons that had led to the reduction of the minimum amount of registered capital, and also the advantages and disadvantages that this reduction has brought about. The next chapters will examine the distribution of companies with low registered capital by individual regions and industrial sectors in the Czech Republic. The paper will also answer the question of whether there is a relation between the amount of registered capital and the territorial, or more precisely sectoral structure of limited liability companies. A separate chapter will deal with the analysis of companies with registered capital from CZK 1 to CZK 1,000.

Assessing and Managing Absenteeism with Bradford Factor Score Analysis

Assessing and Managing Absenteeism with Bradford Factor Score Analysis
(Assessing and Managing Absenteeism with Bradford Factor Score Analysis)

Author(s):Ondřej Mikulec, Adéla Špačková
Language:English
Subject(s):Business Economy / Management, Methodology and research technology, Accounting - Business Administration, Human Resources in Economy
Page Range:70-77
No. of Pages:8
Keywords:Absenteeism; Bradford Factor Score analysis; Human Resource Management (HRM); People Analytics;
Summary/Abstract:Proper work with quantitative data is important for each segment of a company including Human Resource Management. People analytics represents a datadriven approach to HRM and implementation of quantitative models in decision processing about company´s workforce planning. Absenteeism is becoming an issue with high importance for all production companies. High costs following increasing absenteeism connected with decreased production or increased overtime work are at stake, and companies feel the necessity to set action steps and try to deal with it. This work aims to present the analysis of sick leave absenteeism based on information from five production companies with almost four thousand employees in total during 2016 and ways of managing and dealing with sick leave absenteeism. Focus groups are determined and their approach to absenteeism is discussed as well as HRM approach to this problem. Furtherly the analysis based on Bradford factor score is proposed. Bradford factor score represents a managerial tool to evaluate individuals according to the total length of their absenteeism and frequency of their absenteeism events. Rules and ways of possible active use of Bradford factor score analysis to manage the

The investment through bonus certificates

The investment through bonus certificates
(The investment through bonus certificates)

Author(s):Peter Mokrička
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:78-85
No. of Pages:8
Keywords:bonus certificate; risk; return; investment;
Summary/Abstract:If a potential investor makes a decision regarding the choice of an asset, he has still an option to invest in this asset direct or indirect. One of the options of an indirect investment is a bonus certificate. The aim of this paper is to examine the change in the investment characteristics, especially a change in the expected return and the risk of investment, provided that the investor will use the bonus certificate instead of a direct investment in the underlying asset. First will be selected an underlying asset. Then it will be modeled the development of the value of this asset by using Monte Carlo simulation. Next it will be discussed possible ways of construction of bonus certificates. Components from which is bonus certificate comprised will be priced and it will be modeled development of the value of bonus certificates on chosen underlying. Then it will be statistically evaluated and assessed the change in investment characteristics compared with investment characteristics of direct investment in the underlying asset. Finally, discussions will be carried out and formulated recommendations.

Tax Rate Changes Impact on Mineral Oils Taxes Yields in the Czech Republic

Tax Rate Changes Impact on Mineral Oils Taxes Yields in the Czech Republic
(Tax Rate Changes Impact on Mineral Oils Taxes Yields in the Czech Republic)

Author(s):Lukáš Moravec, Gabriela Kukalová, Pavel Ptáček
Language:English
Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Fiscal Politics / Budgeting
Page Range:86-94
No. of Pages:9
Keywords:consumption taxes; tax burden; tax rate; tax yield; mineral oil taxes;
Summary/Abstract:The study identifies the importance of mineral oils tax rates and other relevant factors for the mineral oil taxes yields amount. The study is focused on the unleaded fuel and diesel because of the yields importance. The correlation was confirmed by the Pearson coefficients, which reached the value above of 0.8. Moreover, the tax rate was surprisingly identified as highly important factor for mineral oils taxes yields using the econometric modeling, together with factors as the net income per capita and number of registered vehicles. On the other side GDP, transport performance (freight and passenger transport), consumer retail price of petrol and diesel, and price of petrol were identified as not statistically important for the unleaded petrol and diesel tax yields amount in the condition of the Czech Republic within the analyzed period.

Evaluating the Implementation Level of Management and Control Principles of the Public Finances

Evaluating the Implementation Level of Management and Control Principles of the Public Finances
(Evaluating the Implementation Level of Management and Control Principles of the Public Finances)

Author(s):Petr Musil, Jana Boulaouad, Pavel Vyleťal
Language:English
Subject(s):Public Administration, Public Finances
Page Range:95-102
No. of Pages:8
Keywords:Efficiency; Effectiveness; Economy; Internal Regulations; Public Administration Entity;
Summary/Abstract:The article deals with evaluating the level of application of management and control principles of public finances in selected public administration entities. Standards for this evaluation, valid principles of management and control of public finances and the rules for their application have been established between 2000 and 2001. They are applicable in activities during the acquisition and operation of property. The article focuses on the current status and monitoring 3E concept – effectiveness, economy and efficiency and the use of the term accuracy. These should be part of common public administration management during their decision-making procedures. The management of public administration entities uses internal regulations for their internal activities, which determine the procedures and methods for ensuring the management and controlling public finances. The article's results of principles application in the management and control of public finances in selected public administration entities can subsequently be the basis for changing the internal standards in order to improve these activities of management not only for the analysed public administration entities.

Outsourcing in the public sector in the Czech Republic: case studies

Outsourcing in the public sector in the Czech Republic: case studies
(Outsourcing in the public sector in the Czech Republic: case studies)

Author(s):Juraj Nemec, Markéta Šumpíková
Language:English
Subject(s):Public Administration, Labor relations, Accounting - Business Administration, Human Resources in Economy, Transport / Logistics
Page Range:103-110
No. of Pages:8
Keywords:outsourcing; Czech Republic; process; results;
Summary/Abstract:The relevant literature suggests that if, and only if, outsourcing is properly implemented, then it may, but might not, improve cost effectiveness and deliver the necessary quality. In this paper, we present two cases describing the processes and results of outsourcing by public sector bodies in the Czech Republic. Data are based on an in-depth audit delivered by students preparing their master’s degree theses under the supervision of one of authors of this paper. Compared to our previous in-depth audits in Slovakia, we did not find very visible cases of inefficiency connected with in-house versus outsourcing decisions. However, our data confirm that the core problematic service in our public administration conditions is transportation. The ‘habit’ of public bodies having company cars or even in-house drivers is usually a very expensive practice. If such cars and the time capacity of the drivers are underutilised, the costs of taxi services can actually be much cheaper. The data also show that even with only a few competing bidders, public organisations can receive very low-cost offers for cleaning and security services, much below the minimum costs of internal production. Suppliers can achieve this by ‘manipulating’ the labour costs or the costs of the quality of the delivered service.

Stabilization Programs of the International Monetary Fund in the Course of Time

Stabilization Programs of the International Monetary Fund in the Course of Time
(Stabilization Programs of the International Monetary Fund in the Course of Time)

Author(s):Marián Nemec
Language:English
Subject(s):Supranational / Global Economy, Economic history, Financial Markets
Page Range:111-119
No. of Pages:9
Keywords:financial crises; financial stability; International monetary fund; stabilization programs;
Summary/Abstract:Since starting its business in 1947, the IMF also began to support member countries with balance of payments problems by giving them credits. This process was accompanying by design of the respective stabilization (financial) program. In the early 50th, a specific approach in the form of a simple model as well as accompanying set of conditions for ensuring financial stability was developed as the base of the IMF´s approach. Afterwards, the methodology of the program design has been changing in accordance with changing conditions. The aim of the paper is by method of historic analysis to find out how the IMF has been changing the way of construction of its stabilization programs from the side of theory and methodology and how it complies with stabilization mandate of the IMF. There are some criticisms that claim the IMF fails to fulfill its aims also for unsound methodological framework of stabilization programs. Our analysis shows that thanks to the flexibility of the IMF´s approach that allows to prepare country tailored programs, this institution have succeeded in the course of time in creating of the reliable framework for preparing of the stabilization programs.

Financial Literacy: Study of the Financial Literacy Level

Financial Literacy: Study of the Financial Literacy Level
(Financial Literacy: Study of the Financial Literacy Level)

Author(s):Josef Nešleha
Language:English
Subject(s):Higher Education , Socio-Economic Research
Page Range:120-134
No. of Pages:15
Keywords:financial literacy; financial education; subjective assessment; comparison;
Summary/Abstract:Financial literacy is usually interpreted as a set of knowledge which is necessary to have for being able to make proper and correct decisions concerning personal investments, debts and other ones related to personal finance. Such type of education has become an important part of every educational system, since its importance has increased within previous years. As a consequence of this, financial literacy needs to be measured and regularly tested. The goal of the study is to measure if there is a difference between objective level of financial literacy and between subjective self-assessment. The study focuses on differences among various age groups. The results of the study help to target further proposal for formal and informal education system amendments. The study is based on data collected through an electronic questionnaire. As for methods, the study is based on comparison of average values across various groups of respondents, therefore, t-test is employed. Consequently, the study also includes various descriptive statistics.

The impact of foreign exchange intervention in the balance sheet of the Czech National Bank

The impact of foreign exchange intervention in the balance sheet of the Czech National Bank
(The impact of foreign exchange intervention in the balance sheet of the Czech National Bank)

Author(s):Dalibor Pánek
Language:English
Subject(s):Business Economy / Management, Economic history, Economic policy, Present Times (2010 - today), Financial Markets
Page Range:135-140
No. of Pages:6
Keywords:Central bank; non-standard monetary policy instrument; exchange rate intervention; the balance of the central bank; the banking sector; the reserve banks; foreign exchange reserves;
Summary/Abstract:The aim of the text is an analysis of the manifestations of the foreign exchange intervention of the Czech National Bank in the central bank's balance sheets and their connections in the banking sector. The motivation of the text is the manifestation of the interventions in the central bank's balance sheets and the resulting possible manifestations after their termination. The analysis of the manifestations of foreign exchange intervention in the central bank's balance sheets was conducted from the data for the years 2010 – 2016. The data include the period before the use of this instrument and in the course of its application. The text characterizes the effects of the active and passive sides of the balance sheet of the central bank and assesses the achievement of the objectives set. Analysis of selected items of the balance of the central bank was carried out on the basis of the theoretical background of the used resources and the practical knowledge of the author. In conclusion, the author presents his views on the use of this instrument of monetary policy and pronounced his prediction. In the text were used methods description of the theoretical and practical parts, methods of comparison, analysis and prediction in the part of monitoring the evolution of balance sheet items and their context.

Blockchain-Applications in Banking & Payment Transactions: Results of a Survey

Blockchain-Applications in Banking & Payment Transactions: Results of a Survey
(Blockchain-Applications in Banking & Payment Transactions: Results of a Survey)

Author(s):Peter Haiss, Andreas Moser
Language:English
Subject(s):Business Economy / Management, ICT Information and Communications Technologies
Page Range:141-149
No. of Pages:9
Keywords:blockchain; payment transaction service; cybercrime; electronic banking;
Summary/Abstract:We examine different opportunities to implement the blockchain technology into online payment and sales transaction systems with a focus on the financial sector of the German speaking area in Europe. To this end, we conduct a literature review and conduct a questionnaire survey among payment transaction experts. In addition the advantages and disadvantages are pointed out as well as other applications. Results from the survey suggest that many experts are investigating the new technology, but the efforts made at Austrian, German and Swiss banks are low since there are still many open issues pending. Especially setting up a legal framework for the international treatment of payment transactions based on the blockchain would be an important step.

Forecasting of Crisis Phenomena in Emerging Financial Market: Real-Time Monitoring of Demand and Supply Anomalies in the Stock Exchange

Forecasting of Crisis Phenomena in Emerging Financial Market: Real-Time Monitoring of Demand and Supply Anomalies in the Stock Exchange
(Forecasting of Crisis Phenomena in Emerging Financial Market: Real-Time Monitoring of Demand and Supply Anomalies in the Stock Exchange)

Author(s):Sergey Petrov, Nadezhda Yashina, Oksana Kashina, Natalia N. PRONCHATOVA-RUBTSOVA
Language:English
Subject(s):Economic history, Transformation Period (1990 - 2010), Financial Markets
Page Range:150-158
No. of Pages:9
Keywords:financial crisis forecasting; asset pricing theory; demand and supply in the stock exchange; emerging markets; bid-ask quotations in the stock exchange;
Summary/Abstract:The aim of the paper is to examine “anomalies” of instantaneous demand and supply in the stock exchange that was detected as alarm signals of a financial crisis in authors’ investigations. The authors proposed to record and to analyze online information on bid-ask quotations in the stock exchange to monitor how the large investors’ sentiment varies in real time. The original theoretical model of share pricing developed in the previous authors’ papers plays a key role for such analysis. The model is based on the concept of time-varying Walrasian equilibrium under exchange processes in the stock exchange. Many observations for emerging stock market in Russia between 2008 and 2017 show that if capital holdings of traders on the side of demand is systematically higher than the ones on the side of supply, in most cases the uptrend will take place for share price later on; similar statement is also valid for downtrend forecasting. However, this regularity is violated in rare conditions that may be specified as “anomalies” of demand and supply. The result of the analysis carried out is that the anomalies are the specific features of drastic and protracted crises, such as stock market crash in Russia in 2008-2009. The hypothesis that investigating the anomalies of demand and supply one can foresee the beginning of protracted crisis as well as its finish was successfully verified: an investment strategy based on the idea has shown a statistically significant “abnormal” return over the period of the crisis.

Duration analysis in forecasting internal capital adequacy in banks

Duration analysis in forecasting internal capital adequacy in banks
(Duration analysis in forecasting internal capital adequacy in banks)

Author(s):Edward Pielichaty
Language:English
Subject(s):Business Economy / Management, Financial Markets, Accounting - Business Administration
Page Range:159-166
No. of Pages:8
Keywords:debt financial instruments; interest rate risk; duration analysis;
Summary/Abstract:The duration analysis as a dynamic method can constitute an effective tool in the internal system of measurement and control of interest rate risk in bank book. In this article, the author outlines the practical application of the duration analysis in the management of the bank balance when it comes to the interest rate risk. The key objective of this article is to show the use of duration method in estimating internal capital budget to cover the interest rate risk by the bank. Duration analysis is a sophisticated method of measuring interest rate risk used by Polish banks, with traditional banking practice, for single financial instruments. The originality of the article stems from its author’s proposition to use the duration method to manage the entire portfolio of fixed income instruments in the banks’ balance. The study of interest rate risk was conducted based on financial reports from a selected cooperative bank.

Gender differences in saving for retirement

Gender differences in saving for retirement
(Gender differences in saving for retirement)

Author(s):Sylwia Pieńkowska-Kamieniecka
Language:English
Subject(s):Gender Studies, Socio-Economic Research
Page Range:167-176
No. of Pages:10
Keywords:gender differences; saving; retirement; Social Diagnosis;
Summary/Abstract:As the level of pension security offered by the state has been decreasing, it is necessary to save additionally for retirement. These savings determine financial condition of households, particularly in the period of limited income after finishing one's professional activity. The results of numerous research indicate that financial behaviours, motives and willingness to save among men and women differ significantly. Also, the willingness to save for retirement is determined by many factors, including gender. The objective of the article is to evaluate to what degree gender determines saving, including saving for retirement by households, as compared with other individual sociodemographic personality traits. The article presents the data of representative research "Social Diagnosis 2015". This research comprised of individual interviews conducted in 11,740 households with 35,279 members. The main conclusion which may be drawn from the research is that the chances of a household to save, including saving for retirement, decrease when a woman plays the role of household head.

Comparison of relative efficiency of Czech and Slovak cultural heritage institutions

Comparison of relative efficiency of Czech and Slovak cultural heritage institutions
(Comparison of relative efficiency of Czech and Slovak cultural heritage institutions)

Author(s):Michal Plaček, Milan Půček, Milan Křápek
Language:English
Subject(s):Cultural history, Museology & Heritage Studies
Page Range:177-182
No. of Pages:6
Keywords:Museums; public sector; efficiency;
Summary/Abstract:This paper deals with a comparative analysis of the relative efficiency of museums founded by the central authorities in the Czech and Slovak Republics. Through the DEA method, we evaluate data for all 22 Czech and 42 Slovak institutions for 2015. For these purposes, we chose a group of indicators that are available in both countries and where museums have a duty to report. For inputs, there are the founder’s contributions and the number of employees. For outputs, there are the number of visitors, the number of exhibitions and expositions. The results revealed the differences between the Czech and Slovak institutions, which relied especially on the use of inputs and potential to achieve returns of scale.

Bankruptcy Prediction Models in Relation to SME Segment in the Czech Republic

Bankruptcy Prediction Models in Relation to SME Segment in the Czech Republic
(Bankruptcy Prediction Models in Relation to SME Segment in the Czech Republic)

Author(s):Tomáš Plíhal, Martina Sponerová, Miroslav Sponer
Language:English
Subject(s):Business Economy / Management, Micro-Economics
Page Range:183-191
No. of Pages:9
Keywords:Credit risk; bankruptcy prediction; SME; bankruptcy model; insolvency; probability of default;
Summary/Abstract:Financial analysis is an essential tool for those interested in assessing the economic situation of enterprises and subsequent decision making to predict the bankruptcy. Relating credit risk of a bank is a permanent subject of many scientific researches. We focus on small and medium sized enterprises (SMEs) because they are significantly different from large corporates from credit risk point of view. Our motivation is to show the importance of modeling credit risk for SMEs separately moreover we delimit medium sized, small sized and micro sized enterprises. The aim of this article is the comparison of the real predicting abilities of several bankruptcy models to each segment. There exist several popular bankruptcy models, that are often applied, namely the Altman Z-score, the Ohlson O-score, the Zmijewski’s model, the Taffler’s model, and the IN05 model. The basic form of the models is used as proposed by their authors. The results are compared using the contingency table and ROC curve.

Evaluation of Bancassurance Functioning in Selected Countries of the Financial Group KBC Group

Evaluation of Bancassurance Functioning in Selected Countries of the Financial Group KBC Group
(Evaluation of Bancassurance Functioning in Selected Countries of the Financial Group KBC Group)

Author(s):Lenka Přečková
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:192-198
No. of Pages:7
Keywords:financial group; insurance group; bancassurance; assurfinance;
Summary/Abstract:This paper will evaluate the level of internal integration among bancassurance products and financial institutions belonging to the financial group KBC Group in selected countries of Europe. There shall be selected four countries which are located in Central and Eastern Europe: the Czech Republic, Slovak Republic, Hungary and Bulgaria. The research was conducted as of December, 2016. This paper aims at determining whether similarities in how the financial group KBC Group is organized correspond to similarities in how bancassurance in the selected countries functions. To make this possible, a critical analysis of bancassurance-related literature shall be conducted and a hypothetical basis for the practical evaluation shall be formulated. Characteristics for evaluation of the level of integration inside the financial group and also a bancassurance product will also be set. To evaluate how bancassurance functions in practice, a qualitative research based on data available on web sites and also financial and annual reports shall be used. The qualitative research is to contain a detailed analysis, sorting and a comparison of the set characteristics. Finally, it shall be determined which attributes are identical and which are different in the integration of financial groups and bancassurance products.

The Specifics of Forced IFRS Adoption by Czech Private Companies: A pilot field study

The Specifics of Forced IFRS Adoption by Czech Private Companies: A pilot field study
(The Specifics of Forced IFRS Adoption by Czech Private Companies: A pilot field study)

Author(s):David Procházka
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:199-206
No. of Pages:8
Keywords:IFRS adoption; forced adopters; private companies; parent-subsidiary links;
Summary/Abstract:The adoption of International Financial Reporting Standards (IFRS) around the globe is one of the most challenging events in accounting area of the last decade. The accounting research focuses mainly on the outcomes of mandatory IFRS adoption by listed companies and partially on the determinants of voluntary IFRS adoption by other firms. However, some countries put restrictions on voluntary adoption by unlisted companies and require them to retain the reporting under local GAAP regime. This restriction challenges especially such subsidiaries, for which their parent company prepares IFRS consolidated financial statements. The subsidiaries shall then assure the preparation of two sets of accounting information – public financial statements in compliance with local GAAP for statutory purposes and internal financial statements in compliance with IFRS for consolidation purposes of the parent company. The relation between cost and benefit of such forced IFRS adoption is unclear, which may endanger the quality of information submitted by subsidiaries to parents. This paper investigates specifics of forced IFRS adoption in transition country, applying a qualitative pilot field study by three Czech companies.

How do remittances react to business cycle in receiving countries? Evidence from transition countries

How do remittances react to business cycle in receiving countries? Evidence from transition countries
(How do remittances react to business cycle in receiving countries? Evidence from transition countries)

Author(s):Cristina Procházková Ilinitchi, David Procházka
Language:English
Subject(s):National Economy, Business Economy / Management, Economic history, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today)
Page Range:207-215
No. of Pages:9
Keywords:Remittances; Economic cycle; Migration; Transition countries;
Summary/Abstract:There are two main views on remittances. The first one implies that remittances increase dependency of receiving countries and distort economic development, serving as a transfer mechanism for business cycles. The second view claims that remittances serve as an important mechanism for internal development through various channels and that on the contrary remittances reduce volatility of economic growth in receiving countries due to their stability and size. The paper assesses the association of remittances with the aggregate output in receiving countries. The analysis consists of 11 transition countries over the period 1993-2015. The findings reveal that remittances towards transition countries seem to be rather procyclical as in 4 countries there is a downturn in remittances when GDP decreases and vice-versa. Only in one country remittances are found to be countercyclical. For the remaining 6 countries, no pattern of cyclicality is found, the character of remittances being assessed as acyclical. The paper discusses possible explanations for these findings.

Analysis of Prize Money Gap in Wimbledon 2007 - 2016

Analysis of Prize Money Gap in Wimbledon 2007 - 2016
(Analysis of Prize Money Gap in Wimbledon 2007 - 2016)

Author(s):Zuzana Rakovská, Martin Svoboda
Language:English
Subject(s):Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Sports Studies
Page Range:216-222
No. of Pages:7
Keywords:tennis; gender inequality; gender bias; prize money;
Summary/Abstract:Currently, it is rare in professional sports to offer equal prize money to male and female players. Tennis Grand Slam tournaments represent the leading part of those sports that committed to prize money parity. In 2007, Wimbledon, the oldest Grand Slam tournament, became the last Grand Slam to pay the same prize money to male and female players. Although men and women are paid equally they still play a different number of best-of sets: men play best-of-three sets while women play best-of-two sets in Wimbledon. These two competing circumstances have given rise to a financial gap in prize money obtained for a game played by men compared to women on average. The present paper estimates this financial gap by analyzing the unique data set on Wimbledon prize money and game scores in years 2007-2016.

Comparison of algorithmic trading using the homogeneous and non-homogeneous Markov chain analysis

Comparison of algorithmic trading using the homogeneous and non-homogeneous Markov chain analysis
(Comparison of algorithmic trading using the homogeneous and non-homogeneous Markov chain analysis)

Author(s):Pavla Říhová, Milan Svoboda
Language:English
Subject(s):Business Economy / Management, Methodology and research technology, Financial Markets
Page Range:223-231
No. of Pages:9
Keywords:algorithmic trading; Markov chain analysis; share price prediction;
Summary/Abstract:This empirical study deals with stochastic modelling of a short-term share price development. We use Markov chain analysis (MCA) to predict the share price development. When defining a state space we assume that the share price moves in three types of trends: primary, secondary and minor. The subject of our interest is a minor trend, which usually lasts for several days. During this trend the share price accumulates a certain profit or loss in relation to the price at the beginning of the trend. The state space is defined by the amount of the accumulated profit or loss. The aim of this study is to compare two approaches to modelling the state space. In the first approach, we assume homogeneous Markov chains, i.e. approximately the same volatility, and MCA is performed with unvarying state space. In the second approach, we assume non-homogeneous Markov chains, i.e. a changing volatility, and MCA is performed with varying state space. We create trading strategies for automatic generation of buying and selling orders based on these models. Three business systems have been created for each approach. The profitability of each business system is calculated and compared. The study was performed using historical daily prices (opening and closing) of CEZ shares from the beginning of 2006 until the end of 2016. This study has proved that trading models with varying state space, on the average, outperform trading models with unvarying state space.

Analysis of quality of life in Poland based on selected economic indicators

Analysis of quality of life in Poland based on selected economic indicators
(Analysis of quality of life in Poland based on selected economic indicators)

Author(s):Katarzyna Sawicz
Language:English
Subject(s):National Economy, State/Government and Education, Socio-Economic Research
Page Range:232-238
No. of Pages:7
Keywords:quality of life; the health of the region; the level of poverty; education level;
Summary/Abstract:The standard of living in Poland is diverse. This level is determined by many factors. The article analyzes the level of life of the population in particular voivodships. Attention was drawn to several indicators that determine the quality of life. The article analyzed, among other things, income and wealth, health status, education in particular voivodships. For the analysis in the paper the statistical data has been used from the Central Statistical Office of Poland (Statistical Yearbook of the Regions – Poland 2016). The object of the analyses were all the Polish voivodships in 2015. Indices were selected so the provinces could be identified with high, medium and low living standard.

Effective Risk Culture in Banks: Responsibilities and boundaries of the Risk Management

Effective Risk Culture in Banks: Responsibilities and boundaries of the Risk Management
(Effective Risk Culture in Banks: Responsibilities and boundaries of the Risk Management)

Author(s):Eugenia Schmitt
Language:English
Subject(s):Business Economy / Management, Governance
Page Range:239-246
No. of Pages:8
Keywords:risk taking; corporate governance; risk management; Value at Risk; banking regulation;
Summary/Abstract:The Financial Crisis of 2007-09 showed, that a not appropriate risk culture as well as deficiencies in the risk management played a major role in banking failures. To establish a “good” risk culture has become an object of focus by regulators. They are focusing on the bank’s norms, attitudes and behaviors, linked with the risk taking and risk awareness. There is not an ideal, how banks should manage their risk taking, but it becomes clear, that the enterprise-wide risk oversight should be improved, the chief risk officers’ role in corporate governance should be strengthened. Effective risk culture contributes to the bank’s ability to act with risk changes. Because taking risks is a part of the bank business, there still will be a chance, even if a small one, that some undesirable outcomes will appear. A good risk management contributes to avoid unpredictable and unwanted developments. The appropriate risk management framework must be designed in accordance with the banks optimal risk level and the business strategy. To change a risk culture in a bank is not an easy task, because it requires not only improvements in risk measurement, governance and communication process. Behavioral aspects should also be taken into account. The cycle of an appropriate risk level setting in line with the business strategy, risk taking in line with value-growth opportunities and timely, transparent and honest communication of risks should be reconsidered. The risk management should gain a higher weight in the decision-making process. This paper provides an explanatory framework for the setting the right risk level and discuss the responsibilities and boundaries of risk management in the new light of the current regulatory environment. It shows, that risk management is closely related to governance structure and business model.

Testing the Semi-strong Form of Efficiency in Czech Stock Market

Testing the Semi-strong Form of Efficiency in Czech Stock Market
(Testing the Semi-strong Form of Efficiency in Czech Stock Market)

Author(s):Petr Seďa, Juan Antonio Jimber Del Río, María de los Baños García-Moreno García
Language:English
Subject(s):Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
Page Range:247-255
No. of Pages:9
Keywords:CAPM; Czech stock market; event study; semi-strong form of efficiency; statistical tests;
Summary/Abstract:The efficient market hypothesis represents possible analytical approach when analyzing behaviour of financial markets. The aim of this paper is to test the efficient market hypothesis in its semi-strong form using data from Czech stock market. Information efficiency of the Czech stock market is assessed in relation to seven announcement of Moody´s rating agency regarding changes of credit rating of Greek government bonds in the period of 2009-2012 years. For the purpose of this paper, the event study method is applied. The basic idea of this statistical method is to determine values of abnormal returns, which can be defined as a difference between actual and equilibrium returns. In order to calculate equilibrium returns the Capital Asset Pricing Model is used. Observed differences between actual and equilibrium returns were verified with a help of selected nonparametric statistical tests. Namely, the exact sign test and the Wilcoxon sign-ranked test were utilized. Based on results of statistical tests, the null hypothesis of efficiency was rejected.

Tax burden and interest burden on business in the agriculture, fishing and forestry sector

Tax burden and interest burden on business in the agriculture, fishing and forestry sector
(Tax burden and interest burden on business in the agriculture, fishing and forestry sector)

Author(s):Jaroslav Sedláček
Language:English
Subject(s):Business Economy / Management, Agriculture, Fiscal Politics / Budgeting
Page Range:256-264
No. of Pages:10
Keywords:financial burden of business; tax burden; interest burden; accounting statements; financial analysis; performance and efficiency;
Summary/Abstract:Financial burden on enterprises is determined by negative cash flows, which brings down the value their assets and owner’s equity. The aim of this paper is to analyze the financial burden on Czech business in the agriculture, forestry and fisheries in the past six years and point out the factors that influenced their capital structure and performance. According to Du Pont equations the financial burden is given as reduction of interest and taxes from earnings before interests and taxes. The value of financial burden of enterprises is dependent on macroeconomic environment, in which the enterprises exist. It was detected asynchronously dependence between real payments and changes of rates of interests and tax rates in the analysis. Reducing both rates had a positive effect on the performance of Czech enterprises, their capital base has increased, it has become more attractive to foreign investors and improved return on invested capital. In following up the results of analysis is performed an estimate of the development of financial results of companies in 2016 - 2018

The analysis of Slovak Republic's competitiveness

The analysis of Slovak Republic's competitiveness
(The analysis of Slovak Republic's competitiveness)

Author(s):Elena Šira, Dana Kiseľáková, Beata Šofranková, Miroslava Šoltés
Language:English
Subject(s):National Economy, Economic policy, Economic development
Page Range:266-272
No. of Pages:7
Keywords:Global Competitiveness Index; Slovak Republic; Ranking; World Economic Forum;
Summary/Abstract:The aim of the article is to analyse the competitiveness of Slovak republic. There are many organisations, that evaluate the competitiveness of the countries. We choose the Global Competitiveness Index published by World Economic Forum as the key competitiveness index. We analyse the position of selected countries including the Slovak Republic in this yearly published ranking for the 5 years. We try to answer, in which pillar has our country competitiveness advantage, in which not. It is important to learn the model of successful countries to make our country more competitive. According to this, we choose countries from European Union, which take the top position in the Global Competitiveness Index and the countries with similar position in this index that have Slovak Republic. Besides this index, we analyse other factors, which may affect competitiveness advantage in the future. We analyse the dependence between selected indicators. This dependence will be verified using statistical tests. We will use data from Statistical Office, Eurostat, World Economic Forum and other institutions.

Legal Background for an Expert Witness to a Corporate Name Valuation

Legal Background for an Expert Witness to a Corporate Name Valuation
(Legal Background for an Expert Witness to a Corporate Name Valuation)

Author(s):Roman Skalicky
Language:English
Subject(s):Business Economy / Management, Civil Law, Marketing / Advertising, Commercial Law
Page Range:273-279
No. of Pages:7
Keywords:expert witness valuation; corporate name; brand;
Summary/Abstract:According to American Marketing Association, brand is a name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. A corporate name is one of the possible forms of the brand. In the sense of the Czech Civil Code, a corporate name is a name under which the entrepreneur is registered in the commercial register. An entrepreneur may not have several corporate names. The role of an expert witness is to provide the court with an independent and neutral assessment (e. g. valuation) based on his expertise. The aim of this paper is within the legal system of the Czech Republic to define legal background of the institute of a corporate name so that it can subsequently result in a reliable valuation by an expert witness. For this purpose, the paper examines the legal nature of a corporate name and its possible dispositions that might require an expert valuation.

The Development of the Excise Gap on Mineral Oils: Recent Evidence from Slovakia

The Development of the Excise Gap on Mineral Oils: Recent Evidence from Slovakia
(The Development of the Excise Gap on Mineral Oils: Recent Evidence from Slovakia)

Author(s):Ľudomír Šlahor, Mária Barteková, Jana Gasperová
Language:English
Subject(s):Energy and Environmental Studies, Economic policy, Environmental and Energy policy, Fiscal Politics / Budgeting
Page Range:280-286
No. of Pages:7
Keywords:Indirect taxes; Excise duty collection; Excise gap on mineral oils;
Summary/Abstract:Tax evasion and avoidance are both phenomena that are probably as old as taxation itself. Wherever and whenever authorities decide to levy taxes, individuals and firms try to avoid paying them. Though this problem has always been present, it becomes more pressing in the course of globalization as this process extends the range of opportunities to circumvent taxation while simultaneously reducing the risk of being detected. In recent years, an increasing numbers of tax authorities have attempted to estimate the amount of tax that is legally owing to their government but not collected. This amount is commonly referred to as “tax gap” which is the difference between the theoretical tax liability due in accordance with the tax legislation and the actual revenue collected. The aim of this paper is to analyse the collection efficiency of the excise duty on mineral oils in Slovakia.

Analytical view on performance evaluation of service enterprises

Analytical view on performance evaluation of service enterprises
(Analytical view on performance evaluation of service enterprises)

Author(s):Beata Šofranková, Dana Kiseľáková, Jarmila Horvathova, Svetlana Maťková
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:287-294
No. of Pages:8
Keywords:Financial indicator; Economic Value Added; performance;
Summary/Abstract:Recently, there have been several changes in performance measurement approaches as well as in the application of performance evaluation methods and tools. In the past, business performance was evaluated using a profit margin, later evaluated by profit maximization and various profitability indicators. Currently, the main indicator of performance and competitiveness measurement is the Economic Value Added indicator, which is an important benchmark for determining value added for owners. The aim of our paper is to find out and identify key performance indicators of service enterprises and their mutual influences by applying selected mathematical and statistical methods. To evaluate performance, 55 financial indicators have been selected, divided into 7 groups. Key performance indicators have been identified by selected mathematical and statistical tools to uncover the interrelationships and links between selected financial indicators and the Economic Value Added indicator, which is a modern tool for evaluating the performance and competitiveness of enterprises. The contribution of the paper is to identify the key determinants of the performance and competitiveness of service enterprises and to identify strengths and weaknesses in the area of financial performance assessment and competitiveness for the service sector.

Determination of Revenue Potential of Financial Transaction Tax and its consideration as own resource of the EU budget

Determination of Revenue Potential of Financial Transaction Tax and its consideration as own resource of the EU budget
(Determination of Revenue Potential of Financial Transaction Tax and its consideration as own resource of the EU budget)

Author(s):Veronika Solilova, Danuše Nerudova
Language:English
Subject(s):Economic policy, EU-Accession / EU-DEvelopment, Financial Markets, Fiscal Politics / Budgeting
Page Range:295-302
No. of Pages:8
Keywords:Sustainability; funding; FTT; European Union; budget;
Summary/Abstract:Although the responsibility for realizing the Europe 2020 strategy is shared between the EU and its 28 member states, the main criticism of the current EU budget relates to the lack of a link between the budget and Europe 2020 strategy. Therefore a new budget design as well as alternative revenue sources is currently explored within a mid-term review. One of the possible candidates is a Financial Transaction Tax (FTT). To research FTT revenue potential, a model based on a remittance system was designed. We analyze full or partial replacement of VAT- and GNI-based own resources by the transfer of the tax revenues from a FTT raised on a national level to the EU budget. Our research revealed that the introduction of a FTT would be able to fully replace VAT-based own resources (except of variant B and E). In the case of GNI-based own resources, the full replacement of GNI-based own resources in the amount of USD 89,255 mil would only be reached by variant D. In the remainder of the cases, partial replacement would be achieved.

The Government Expenditure Efficiency in OECD Countries with DEA Approach

The Government Expenditure Efficiency in OECD Countries with DEA Approach
(The Government Expenditure Efficiency in OECD Countries with DEA Approach)

Author(s):Jakub Sopko, Beata Gavurova, Kristína Kočišová
Language:English
Subject(s):Economic policy, Government/Political systems, Health and medicine and law, Demography and human biology
Page Range:303-311
No. of Pages:9
Keywords:health expenditure; life expectancy; infant survival rate; physicians´ density; impatient bed density; Data Envelopment Analysis;
Summary/Abstract:Data Envelopment Analysis (DEA) is one of the methods to measure efficiency in the service sector. DEA searches individual scales for each production unit. In the presence of different input and output factors, efficiency is perceived as the ratio of the weighted sum of outputs to the weighted sum of inputs. The aim of our paper is to analyze efficiency in the health care sector using DEA models. In several OECD countries, it is possible to point to the ineffectiveness of public spending on health care. We use the basic health characteristics of the population as well as the basic macro indicators from the point of view of health financing in OECD countries. The paper shows on the impact of individual indicators on the level of efficiency in the health sector.

Efficiency of humanitarian nonprofit organizations – a case of the Red Cross in the Europe and Central Asia

Efficiency of humanitarian nonprofit organizations – a case of the Red Cross in the Europe and Central Asia
(Efficiency of humanitarian nonprofit organizations – a case of the Red Cross in the Europe and Central Asia)

Author(s):Jindřich Špička, Klára KOBLÍŽKOVÁ
Language:English
Subject(s):Human Rights and Humanitarian Law, Economic policy, Comparative politics
Page Range:312-319
No. of Pages:8
Keywords:humanitarian network; super-efficiency score; Europe; Central Asia; expenditures;
Summary/Abstract:The efficiency of nonprofit organizations has been a key issue since the donors are interested in efficient and effective utilization of donations. The aim of the article is to compare the efficiency of the Red Cross and Red Crescent national societies (RCNSs) as the world’s largest nonprofit humanitarian network. Moreover, the relationship between financial efficiency and super-efficiency score based was investigated. Super-efficiency score is defined as the number of clients to the number of paid staff and volunteers. The Data Envelopment Analysis (DEA) in its super-efficiency modification was used as an indicator of efficiency of the RCNSs from 49 European and Central Asian countries in the average of 2013 - 2015. Nonparametric DEA method has been more frequently used than parametric methods in the nonprofit sector so far. Super-efficiency modification emerged as a good method for efficiency evaluation of humanitarian nonprofit organizations. The results show significant variance in the efficiency scores between countries. Our findings suggest distinct clusters of Red Cross national societies as they were identified by combination of financial efficiency and super-efficiency scores. Authors revealed negative relationship between financial efficiency and technical super-efficiency in all clusters.

The analysis of the efficiency of on-line auctions in Poland based on data coming from service Allegro.pl

The analysis of the efficiency of on-line auctions in Poland based on data coming from service Allegro.pl
(The analysis of the efficiency of on-line auctions in Poland based on data coming from service Allegro.pl)

Author(s):Anna Sroczyńska-Baron
Language:English
Subject(s):Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Page Range:320-328
No. of Pages:9
Keywords:online auctions; efficiency; collectible market; Allegro.pl; stationary process;
Summary/Abstract:Nowadays online auctions become more and more popular. There are many participants, who buy different kinds of products every day. They have information of products and historical prices thanks to new technology and wide access to Internet. The main aim of this work is to check if on-line auction markets are still inefficient (like traditional auctions characterized by geographical fragmentation and limited access to information) and it is possible to gain abnormal profit. Data used in the researches come from one of the Polish biggest and oldest online auction market – Allegro.pl. The category Mobile Phones in Electronics was chosen for the researches. The on-line auction market efficiency was checked by two tests: a unit roots test and variance ratio test. Both tests showed that auctions during the examined period were inefficient. It could mean that it is possible to gain abnormal return with on–line auctions in Poland. Of course, individually participants of on–line auctions usually do not possess a significant amount of money but commonly pose very important market, that’s why it seems to be the important problem.

Development of Patent Activity in Czech Republic

Development of Patent Activity in Czech Republic
(Development of Patent Activity in Czech Republic)

Author(s):Stanislava Štefánková
Language:English
Subject(s):Business Economy / Management, Commercial Law
Page Range:329-337
No. of Pages:9
Keywords:intangible assets; patent; patent activity; engineering sector;
Summary/Abstract:Intangible assets play an important role in business activities and represent a significant source of competitive advantage. Firms usually tend to protect their assets regardless of whether they are tangible or intangible. This study focuses on patents and patent activity in the Czech Republic. The aim of our research is to discuss factors affecting the value of a patent and factors affecting its vulnerability. Research in this field also revealed why firms tend to patent their technology. In this paper we analyse the historical development of patent activity, focusing on the engineering sector (classes F16-F17 according to the International Patent Classification), and factors influencing the development. Data were obtained from the annual reports of the Industrial Property Office and the Czech Statistical Office. The analysis showed that the number of national patent applications has been rapidly decreasing since 2002, when the Industrial Property Office became a recipient of European patent applications. Nevertheless, the number of nationally granted patents and European patents validated in the Czech Republic has a rising tendency, suggesting that the Czech market is competitive and worth securing protection of new technology.

Difficulties in Terminology of Private Equity

Difficulties in Terminology of Private Equity
(Difficulties in Terminology of Private Equity)

Author(s):Tomáš Štofa, Michal Šoltés
Language:English
Subject(s):Business Economy / Management
Page Range:338-346
No. of Pages:9
Keywords:private equity; venture capital; growth capital; definition;
Summary/Abstract:This article is focused on the theoretical definition of private equity capital, which, despite a relatively long history, is not precisely defined. Different entities often use different definitions in this area, which ultimately increases the disharmony of private equity, makes entry of new investors more difficult, and limits the demand for this asset. Even within the European Union, there is an inconsistent definition of private equity capital. We can see differences when comparing the institutional view of the European Union and some companies providing private equity capital. Therefore, we have focused on comparing several views of private equity to create clear definition of this category. Our new view on definition of private equity should adequately reflect the needs of our rapidly changing world and clearly distinguish private equity strategies. The effort to unify terminology is accompanied by highlighting the differences between types of private equity capital.

Disparities in capital markets of the EU and the US

Disparities in capital markets of the EU and the US
(Disparities in capital markets of the EU and the US)

Author(s):Erik Suchý, Leos Safar
Language:English
Subject(s):Economic policy, Comparative politics, Economic development, EU-Accession / EU-DEvelopment, Financial Markets
Page Range:347-355
No. of Pages:9
Keywords:Capital Market Union; stock markets; capital market; stock exchange;
Summary/Abstract:The aim of the paper is to give strong preview of the EU and US position in global trade by comparing capital/stock markets in the EU and US. For this purpose we used trading volumes on several instruments. After presenting dependence between trading volumes and market capitalization for both sides of pacific, we gradually show major differences in overall trades/volumes and specific areas such as interest rates trading, ETFs, stock options, investment funds etc., using data collected from 70 biggest exchanges, covering more than 90% of total stock market capitalization, In line with expectations, our findings prove that US market is definitely significantly bigger and more dynamic than EU market with almost doubled market capitalization and more than tripled number of trades. Findings in this paper show that Capital Markets Union concept brought by the European Commission could lead to increase in those numbers subsequently make EU market more flexible and dynamic. Improving redistribution and transmission of assets and capital in the EU market supported by CMU could lead to better economic growth and better overall performance.

IFRS valuation models vs. business entities‘ practice – a case of Polish publicly traded enterprises

IFRS valuation models vs. business entities‘ practice – a case of Polish publicly traded enterprises
(IFRS valuation models vs. business entities‘ practice – a case of Polish publicly traded enterprises)

Author(s):Aleksandra Sulik-Górecka, Marzena Strojek-Filus, Ewa Wanda Maruszewska
Language:Polish
Subject(s):Business Economy / Management, Evaluation research, Accounting - Business Administration
Page Range:356-364
No. of Pages:9
Keywords:financial reports’ valuation; accounting models for measurement; earnings management; Polish accounting practice;
Summary/Abstract:Disclosure of information about the economic situation including description of assets, liabilities, and equity structure, as well as results of financial performance compose an inherent part of the obligations imposed on contemporary enterprises, especially those whose shares are publicly traded. In order to fulfill the duties, entities must organize bookkeeping procedures; inter alia make decisions regarding valuation models and techniques. From the point of view of stakeholders (investors among them), the above is of crucial importance as faithfulness and relevance of financial reporting depend on the proper decisions in the field of valuation techniques reflecting the results of economic phenomena that it purports to represent. The main aim of the paper is to compare valuation models and techniques encompassed into International Financial Reporting Standards with Polish local accounting norms in the scope of measurement regulations. The meta-analysis of previous studies was conducted in order to present differences between valuation models as well as problems already stated by researchers. Furthermore, the objective of the study conducted is to analyze Polish enterprises’ preferences in the domain of assets and liabilities valuation models. The material for the study comprises of financial reports of the biggest Polish publicly traded companies that are incorporated into WIG 30 index.

The future of value added tax in European Union in accordance with size criteria of business entities

The future of value added tax in European Union in accordance with size criteria of business entities
(The future of value added tax in European Union in accordance with size criteria of business entities)

Author(s):Radka Šumanová, Anton Marci
Language:English
Subject(s):Business Economy / Management, Economic policy, EU-Accession / EU-DEvelopment, Fiscal Politics / Budgeting
Page Range:365-372
No. of Pages:8
Keywords:value added tax; size criteria; intra-community supply of goods and services;
Summary/Abstract:In current value added tax system applicable in the single market of European Union is cross border value added tax fraud expected to be responsible for fraud worth around 50 billion of euros and it bears significant administrative burdens with current fragmented rules (Ondrušová, 2015). The aim of the paper is to explore possible approaches to tackle current problems in the area of ongoing value added tax reform in European Union with focus on solutions comparable to already existing mini-one-stopshop solution for certain e-commerce services and the impact of similar system used for goods delivered to consumers in the single market from one member state to other member state of European Union. Combination of mini-one-stop-shop approach with upholding of thresholds for intra-community value added tax registration in different member state for businesses established for purposes of delivery of goods on current levels would be a path worth of exploring further as minimizing of administrative burdens is vital part of aims stated in the documentation of VAT Expert Group assisting European Commission in the value added tax administration.

The Importance of Financial Management in Small and Mediumsized Entrepreneurship

The Importance of Financial Management in Small and Mediumsized Entrepreneurship
(The Importance of Financial Management in Small and Mediumsized Entrepreneurship)

Author(s):Veronika Svatošová
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:373-382
No. of Pages:10
Keywords:small and medium-sized entrepreneurship; financial management; financial strategy; financial analysis; methods of statistical induction;
Summary/Abstract:Current practice and researches show that the decisive factor of long-term success is the prioritization of effective financial management. However, enterprises, especially small and medium-sized enterprises, often confuse the principles of financial management with functioning accounting. Underestimating the role of financial management may be the reason for the impossibility of developing small and mediumsized enterprises. The main objective of this paper is therefore to evaluate the importance of financial management that SMEs attribute to the financial management aspects on their long-term development. The partial objective of the paper is to identify whether SMEs evaluating financial management as more important are more financially successful than SMEs evaluating financial management as less important. The fulfilment of the main and partial objective of the paper is fulfilled through methods of personal polling, selected methods of financial analysis and selected methods of statistical induction. The research is carried out on a selected sample of small and medium-sized enterprises based on selected restrictive criteria. The research has shown that small and medium-sized enterprises are undermining the importance of financial management and do not attribute the same strategic importance of financial management on their business development. At the same time, it was confirmed that SMEs evaluating financial management as more important are more financially successful (higher volume of assets, ROE and EAT) than SMEs that do not do so.

Comparison of banking rating systems

Comparison of banking rating systems
(Comparison of banking rating systems)

Author(s):Martin Svítil
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:383-390
No. of Pages:8
Keywords:Rating; Risk Management; Hard-Facts; Soft-Facts:
Summary/Abstract:The aim of the article is to compare several rating systems used by banks and their affiliates, especially in German-speaking countries and Central European countries. The research is focused on the rating of business entities, more precisely the corporate, (especially limited liability companies or joint-stock companies). In particular, two aspects of the rating of the corporate are highlighted in the rating system comparison, namely: (i) which quantitative indicators are used for the calculation of the hard-facts (quantitative analysis based on data from reports, especially balance sheets and profit and loss accounts); and (ii) how the soft-facts are included in the rating system (qualitative indicators usually based on a questionnaire). In addition, the hard- and softfacts weights used to calculate the overall rating result are mentioned and whether these scales are always constant, or vary with a change in a certain quantity of the rated enterprise (usually the size). Also some other characteristics of individual rating systems are briefly mentioned, like the resulting rating scale used. The procedure of collecting empirical data, their assessment according to the criteria of verifiability and relevance and the application of the induction method was used and a generalization of conclusions was subsequently made. The result of the research shows, that concerning the quantitative indicators (i), the highest emphasis is put on the capital structure of an enterprise (whether in the form of Equity to Liabilities or Equity to Total assets) in all compared rating systems. Concerning the other indicators used for the calculation, the monitored rating systems are different, and the total number of indicators also differs (from 6 to 9). For soft-facts (ii) all rating systems agree on some of the queries (e.g. the sensitivity of the rated entity to market fluctuations), but otherwise the number and the topics of the queries overlap only partially.

Intangible Assets in Pharmaceutical Companies in the Czech Republic

Intangible Assets in Pharmaceutical Companies in the Czech Republic
(Intangible Assets in Pharmaceutical Companies in the Czech Republic)

Author(s):Patrik Svoboda, Hana Bohušová, Lucie Semerádová
Language:English
Subject(s):National Economy, Business Economy / Management, Health and medicine and law
Page Range:391-399
No. of Pages:9
Keywords:Intangible Assets; Fixed Assets; GDP; Goodwill; IFRS;
Summary/Abstract:Due to the technical and scientific progress, the cost structure of business entities changes significantly. An important item of costs are costs associated with intangible assets such as software, patents, licenses, copyrights and goodwill. We can assume that the share of these assets in total assets of companies has changed over time. The paper is focused on the evaluation of the share of intangible assets in total assets of entities involved in chemistry in the Czech Republic. The analyzed sample of companies represents entities preparing financial statements in accordance with the Czech Accounting Legislation. The results are compared with the companies operating in the chemical industry and prepare their financial statements according to IFRS. The aim of this paper is to evaluate the materiality of this category, its structure and its changes over time and to identify possible reasons for this situation.

Comparison between CreditMetrics™ and KMV

Comparison between CreditMetrics™ and KMV
(Comparison between CreditMetrics™ and KMV)

Author(s):Yuan Tian, Josef Novotny
Language:English
Subject(s):Business Economy / Management, Financial Markets
Page Range:400-408
No. of Pages:9
Keywords:Economic capital; credit risk; Creditmetrics™; KMV; VaR;
Summary/Abstract:The topic of this paper is comparison between Creditmetrics™ and KMV. The goal is to estimate the benchmarks for both the Creditmetrics™ model and the KMV model, and then compare these two models theoretically and diagrammatically. Credit risk is determined in a portfolio that consists of ten selected quoted companies in the Frankfurt Stock Exchange (FSE) with a total nominal value of 10 million euro and the time horizon is one year, from March 24th, 2016 to March 24th, 2017. Under the framework of Creditmetrics™ and KMV, credit risk associated with the portfolio is quantified in terms of the values of economic capital. After calculating the expected loss and the unexpected loss for the whole portfolio by Creditmetrics™ (at a 99,9% confidence level) and KMV, the values of economic capital, which is the difference between the expected loss and the unexpected loss, equal to 513 316 € and 870 370 €, respectively. The most essential difference between two models is that Creditmetrics™ is a backward-looking model, while KMV is a forward-looking model.

The Tale of Twin Deficits: Which Comes First?

The Tale of Twin Deficits: Which Comes First?
(The Tale of Twin Deficits: Which Comes First?)

Author(s):Menbere Workie Tiruneh
Language:English
Subject(s):Economic policy, EU-Accession / EU-DEvelopment, Fiscal Politics / Budgeting
Page Range:409-418
No. of Pages:10
Keywords:twin deficit; current account balance; budget balance; VAR;
Summary/Abstract:This paper is aimed at contributing to the ongoing debate on the possible bi-directional relationship between government budget deficit and current account deficit in the European Union. While there is a bulk of empirical papers addressing the underlined question this paper takes the most recent time series covering longer time paper (2004Q1-2014Q4) and fairly large number of countries and shows that twin deficits still poised a problem with no clear evidence whether the causality goes from budget deficit to current account or vice versa. This study based on a Pairwise Granger test for all EU countries and indicates that the direction of the causality goes from current account deficit to budget deficit and not vice versa. Splitting the sample into “new EU” and “old EU” members, however, the results seem to suggest that the relationship turns bidirectional. The estimates based the VAR model and corresponding response functions seem to suggest fairly week relationship between budget and current account deficits.

Identifying and Managing Construction Risks in the Public Sector

Identifying and Managing Construction Risks in the Public Sector
(Identifying and Managing Construction Risks in the Public Sector)

Author(s):Piotr Tworek
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:419-426
No. of Pages:8
Keywords:construction; risk management; public projects; public-private partnership; public sector;
Summary/Abstract:The paper aims to outline some issues related to risk identification in implementation of investment projects in the public sector, with the focus on distribution of risk in projects carried out under public-private partnerships (PPP). In particular, it is an attempt to find out which types of risks Polish public investors are exposed to when performing construction undertakings, as the right identification of construction risk is a prerequisite for sound management when conducting public investment projects. The paper contains a review of scholarly literature.

Healthcare benefits: luxury or necessity goods? EU countries case revisited

Healthcare benefits: luxury or necessity goods? EU countries case revisited
(Healthcare benefits: luxury or necessity goods? EU countries case revisited)

Author(s):Paulina Ucieklak-Jeż, Agnieszka Bem, Paweł Prędkiewicz, Rafal Siedlecki
Language:English
Subject(s):Comparative politics, Health and medicine and law, EU-Accession / EU-DEvelopment
Page Range:427-435
No. of Pages:9
Keywords:healthcare services; healthy life years; income elasticity; demand; luxury good; necessity good;
Summary/Abstract:The aim of presented research is to analyse, whether healthcare services are luxury or necessity goods, taking into account several differences (income, healthcare’s financing system) between European countries. We have posed the following hypotheses: (H1): the character of healthcare services is affected by the level of national income; (H2): the character of healthcare services is affected by the model of healthcare financing. We have employed data coming from 28 European countries, covering the years 2004-2014. Data were obtained from Eurostat Database and OECD Health Data. Using the LS and WLS methods, we can conclude that: (1) in richer Europeans countries healthcare services are luxury goods; (2) in poorer European countries healthcare services are necessity goods; (3) in countries, where healthcare services are finance based on Beveridge system, healthcare benefits are necessity goods, while (4) in countries, where Bismarck system is employed – healthcare services are luxury goods. We have also found, that both in “poor countries” and “Beveridge countries” subgroup, the reduction of income inequalities, as well as the lowering of the ratio of people at risk of poverty, decrease the level of healthcare spending, while in the subgroup of “rich countries”, as well as in “Bismarck countries” this influence is entirely opposite.

Performance of Czech hospitals: comparison with ideal solution

Performance of Czech hospitals: comparison with ideal solution
(Performance of Czech hospitals: comparison with ideal solution)

Author(s):Lucie Váchová, Taťána Hajdíková
Language:English
Subject(s):Health and medicine and law
Page Range:436-441
No. of Pages:6
Keywords:hospitals; performance; TOPSIS;
Summary/Abstract:Healthcare system is in general considered as an important consumer of state expenses. Therefore the attention should be paid to its performance. For modelling the financial situation, models predicting financial distress are frequently used. They are usually based on monitoring financial indicators. Specific area of health care consists of hospitals that can have various legal forms. In the paper, we compare selected hospitals based on The Technique for Order Preference by familiarity to Ideal Solution (TOPSIS). The aim of the paper is to create list of hospitals ranked according to their performance. Additionally, we aim to identify if, how and why the position of hospitals changed in consecutive years. In the paper we consider data from the Czech Republic. Based on the analysis we can read if some strong differences exist in performance of hospitals. Results can eventually help the hospital management in looking for improvements in the process of decision making.

Analysis of the Czech state-funded institutions accounting data

Analysis of the Czech state-funded institutions accounting data
(Analysis of the Czech state-funded institutions accounting data)

Author(s):Jana Vodáková
Language:English
Subject(s):Business Economy / Management, Government/Political systems, Accounting - Business Administration
Page Range:442-449
No. of Pages:8
Keywords:state-funded institution; contributory institution; financial reporting, state administration;
Summary/Abstract:This paper deals with starting points of possible economic analysis carried out within the Czech state-funded institutions. State-funded institutions represent the most frequent organizationally-legal type of accounting units operating in the Czech non-profit sector and dispose of significant financial sources. Their accounting outputs, primarily financial statements, are harmonized and prepared in a unified form from 2011. Statements are a subject to authorization by the founder but not an external audit. The paper concentrates on one type of these units, i.e. the state-funded institutions that are founded by the state, more precisely particular Czech ministries. For purposes of this paper the state-funded institutions were selected according to their prevailing CZ NACE (International classification of economic activities) and further analysed and compared. It seems that financial statements and other supplemental data create suitable database for possible economic analyses. As the main data sources besides scientific articles and relating legal regulations, financial accounting data from the server Monitor administered by the Ministry of Finance of the Czech Republic were used. Description, analysis, comparison, and synthesis of main findings were used as basic scientific methods in the paper.

Non-pension privileges in Poland – the impact of professions on taking financial decisions

Non-pension privileges in Poland – the impact of professions on taking financial decisions
(Non-pension privileges in Poland – the impact of professions on taking financial decisions)

Author(s):Damian Walczak
Language:English
Subject(s):Socio-Economic Research
Page Range:450-458
No. of Pages:9
Keywords:privileges; profession; financial awareness; savings;
Summary/Abstract:In Poland there are many occupational privileges. The groups benefiting from these privileges in Poland include miners, teachers, uniformed services and farmers. This study found that these professional groups make different financial decisions from those made by professionally non-privileged persons. In terms of saving money for financing current needs, they save far less frequently than others. The reason may be their better financial situation, stability of employment, or the multiplicity of forms of support received from the employer (mainly the State), which is the result of having a privileged profession. The aim of the article is to present the non-pension privileges existing in Poland as well as indicate that the beneficiaries of these privileges make financial decisions that differ from those made by other professional groups. The article uses data from 11,740 households with 35,279 members examined within the ‘Social Diagnosis 2015’ survey. The logistic regression method was applied (with the use of the IBM SPSS Statistics 24 software) while attempting to reach the research aim of this study.

The selected issues of tax legislation on the use of estimation method based on expenses for physicians’ income calculation in the case of tax fraud in Poland

The selected issues of tax legislation on the use of estimation method based on expenses for physicians’ income calculation in the case of tax fraud in Poland
(The selected issues of tax legislation on the use of estimation method based on expenses for physicians’ income calculation in the case of tax fraud in Poland)

Author(s):Radosław Witczak
Language:English
Subject(s):Economic policy, Health and medicine and law, Law on Economics, Fiscal Politics / Budgeting
Page Range:459-465
No. of Pages:7
Keywords:combating tax fraud; income taxes; the estimation of tax base; health care institutions;
Summary/Abstract:The aim of this article is to determine the possibility of using the rules concerning the based on taxpayer’s expenses method of income estimation in case of tax fraud committed by physicians doing business. The descriptive study including critical attitude to the tax acts and literature was used to solve the research problem. The income of physicians who commit the tax fraud can be determined on the basis of methods of tax base estimation regulated in Tax Ordinance or as the income of not revealed sources of incomes regulated in Personal Income Tax. Most of the statuary methods of estimation of the tax base rather cannot be used for income estimation of physicians. The changes in 2016 in the tax law on the provisions of not revealed sources of incomes can be seen positively. The new rules are more precisely than the old ones which were claimed as unconstitutional. However, there are doubts if the based on expenses of taxpayer method can be applied in a situation when the physician claims receiving the sources from the business. The based on taxpayer’s expenses method should be indicated as one of the methods of income estimation regulated in Tax Ordinance. It could be determined in more detail in the provisions like provisions of not revealed sources of incomes. The conclusions of paper could be used by the legislator.

Assessing financial condition of municipalities using taxonomic methods

Assessing financial condition of municipalities using taxonomic methods
(Assessing financial condition of municipalities using taxonomic methods)

Author(s):Agnieszka Wojtasiak-Terech, Anita Makowska
Language:English
Subject(s):Public Administration, Economic policy, Methodology and research technology
Page Range:466-473
No. of Pages:8
Keywords:municipalities financial condition; financial indicators; municipalities rating; taxonomic methods;
Summary/Abstract:The goal of this paper is to develop a concept of assessing and comparing financial condition of municipalities (communes) using taxonomic methods and implement this concept into communes of Lower Silesia region in Poland. To analyze financial condition of the municipalities authors proposed 14 financial indicators which fall into four categories: related to incomes (four indicators), related to expenditures (four indicators), related to current balance (two indicators) and related to debt (four indicators). Selection of indicators was based on the revision of the literature, guidelines for municipalities, conducted local and international researches and best practices discussing financial condition of local governments. These indicators were calculated for all Lower Silesia municipalities (169 communes) for the year 2015. In order to group similar municipalities, in terms of financial conditions, authors created rating scale.

Effectiveness of Financing the Public Expenditures on Health Care

Effectiveness of Financing the Public Expenditures on Health Care
(Effectiveness of Financing the Public Expenditures on Health Care)

Author(s):Nadezhda Yashina, Sergey Petrov, Natalia N. PRONCHATOVA-RUBTSOVA, Oksana Kashina
Language:English
Subject(s):Economic policy, Government/Political systems, Health and medicine and law, Public Finances
Page Range:474-482
No. of Pages:9
Keywords:human capital; public health care; effectiveness; public finance management; complex indicator;
Summary/Abstract:The human capital and the person value are the main factors of economic growth and government prosperity in the knowledge-based economy. During the "age of human capital" in the study of public finance management issues, it is necessary to place emphasis on the person and his characteristics. Qualitative characteristics of the human capital are indicators of public health. Therefore, one of the most important state problems is the assessment of effectiveness of government expenditure on health care financing that is the aim of the paper. The complex indicator is based on specially criteria developed system (fertility, mortality, incidence, disability) that allows to create a numerical evaluation of health care public investment effectiveness and to draw conclusions about the quality of public health, the medical care development, training, medico-improving technologies in Russian Federations’ regions. The system of quantitative indices includes a group of health care resource provision indicators and a group of health care availability and quality indicators. Using the methods of economic, system analysis, mathematical statistics and solution optimization makes it possible to identify and select factors that affect the resource provision, accessibility and quality of health care. For technique approbation the official open databases of the Federal State Statistics Service, the Ministry of Finance and the Fund of obligatory medical insurance of the Russian Federation for 2015 have been used.

Personal income tax redistribution: new possibilities for fiscal federalism in Russia

Personal income tax redistribution: new possibilities for fiscal federalism in Russia
(Personal income tax redistribution: new possibilities for fiscal federalism in Russia)

Author(s):Nadezhda Yashina, Maria Ginzburg, Louisa Chesnokova
Language:English
Subject(s):Economic history, Economic policy, Government/Political systems, Present Times (2010 - today), Fiscal Politics / Budgeting
Page Range:483-491
No. of Pages:9
Keywords:tax redistribution; personal income tax; tax revenues; budget; fiscal federalism;
Summary/Abstract:The purpose of this study is to develop a calculation mechanism for differentiation of personal income tax revenues among three budget levels: Federal, regional and local, instead of currently existing administrative distribution mechanism, which does not take into consideration real economic capacity of the territories. The authors tested the following hypothesis: return of tax revenues differentiation between Federal, regional and local budget levels within the framework of economic model, taking into consideration a number of differentiating criteria, developed with allowances made for regions social and economic indexes, will allow to tie territories taxable capacity with social and economic peculiarities of their development. Methods of factor analysis, timeseries analysis allowed to test the algorithm built for dividing tax revenues, confirming their relevance and significant value. We evaluated each criteria received for 83 regions of the Russian Federation for the period of 2010-2014 and identified the possibility of splitting revenues from personal income tax between the Federal, regional and local budgets. Nizhny Novgorod region, one of the regions of Russian Federation, was taken as an example in the course of study. As the result of this study the authors exposed 4 groups of personal income tax possible distribution among three budget levels. Check-up analysis showed, that the model, offered by the authors of this research for consideration, allows to increase territories tax potential, the level of their own revenues, financial stability of these territories, and it can be used in the countries with federal form of government. Replacement of existing mechanism of tax revenues administrative distribution according to budget levels for differentiating calculation mechanism would create additional incentives for development of the economy in regions, which will encourage the implementation of justice concept in tax assessment.

Assessment of Changes in the Trend of Interdependences between the Capital Market of Germany and the Markets of Poland, the Czech Republic and Hungary

Assessment of Changes in the Trend of Interdependences between the Capital Market of Germany and the Markets of Poland, the Czech Republic and Hungary
(Assessment of Changes in the Trend of Interdependences between the Capital Market of Germany and the Markets of Poland, the Czech Republic and Hungary)

Author(s):Marek Zineker, Edyta Łaszkiewicz, Tomáš Meluzín, Michał Pietrzak, Adam P. Balcerzak
Language:English
Subject(s):National Economy, Financial Markets
Page Range:492-500
No. of Pages:9
Keywords:capital markets interdependence; DCC-GARCH model; conditional variance; conditional correlation; confirmatory factor analysis;
Summary/Abstract:The subject of the article concerns the identification of a common factor (latent variable) describing the interdependence system for selected capital markets. Within the study we conducted an analysis of the correlation between the capital market of Germany and the markets of Poland, the Czech Republic and Hungary. The values of conditional correlations derived from the DCC-GARCH model were used to evaluate the interdependence between the capital markets. Then, based on the established interdependencies between the markets, a cointegration analysis was carried out. The degree of integration of conditional correlation series using the Phillips-Perron test was tested. Based on the Johansen procedure, a long-term system of linkages between the capital markets was determined. The identification of the cointegration process for the interdependence system was an argument for identifying a common factor on the basis of the affirmative factor analysis. The common factor reflects the leading direction of changes in the interdependence system between the German capital market and the markets of Poland, the Czech Republic and Hungary. The estimation of the square trend parameters for the identified common factor allowed us to determine the direction of change in the interdependence system between the examined capital markets. The results obtained confirmed that the increase in the level of interdependence was due to the global financial crisis and the slow stabilization of the analyzed markets.

European Financial Systems 2017 - Proceedings of the 14th International Scientific Conference (Part 2) European Financial Systems 2017 - Proceedings of the 14th International Scientific Conference (Part 2)

Markov chain sensitivity analysis of expected paid/unpaid overdue receivables – SME case study

Markov chain sensitivity analysis of expected paid/unpaid overdue receivables – SME case study (Markov chain sensitivity analysis of expected paid/unpaid overdue receivables – SME case study)

The Development of Debt Financial Markets – the Case of Selected CEE and Latin America Economies

The Development of Debt Financial Markets – the Case of Selected CEE and Latin America Economies (The Development of Debt Financial Markets – the Case of Selected CEE and Latin America Economies)

Interrelation of personal characteristics with financial literacy as a guide to financial behavior of Russian students

Interrelation of personal characteristics with financial literacy as a guide to financial behavior of Russian students (Interrelation of personal characteristics with financial literacy as a guide to financial behavior of Russian students)

Decomposition of spatial inequality in budget provision by income sources: case of modern Russia

Decomposition of spatial inequality in budget provision by income sources: case of modern Russia (Decomposition of spatial inequality in budget provision by income sources: case of modern Russia)

Corporate Tax Revenues of Selected EU Countries Using Spatial Autocorrelation Approach

Corporate Tax Revenues of Selected EU Countries Using Spatial Autocorrelation Approach (Corporate Tax Revenues of Selected EU Countries Using Spatial Autocorrelation Approach)

How are 1bis pension pillar funds performing? A cross-country analysis

How are 1bis pension pillar funds performing? A cross-country analysis (How are 1bis pension pillar funds performing? A cross-country analysis)

The structure of limited liability companies with low registered capital

The structure of limited liability companies with low registered capital (The structure of limited liability companies with low registered capital)

Assessing and Managing Absenteeism with Bradford Factor Score Analysis

Assessing and Managing Absenteeism with Bradford Factor Score Analysis (Assessing and Managing Absenteeism with Bradford Factor Score Analysis)

The investment through bonus certificates

The investment through bonus certificates (The investment through bonus certificates)

Tax Rate Changes Impact on Mineral Oils Taxes Yields in the Czech Republic

Tax Rate Changes Impact on Mineral Oils Taxes Yields in the Czech Republic (Tax Rate Changes Impact on Mineral Oils Taxes Yields in the Czech Republic)

Evaluating the Implementation Level of Management and Control Principles of the Public Finances

Evaluating the Implementation Level of Management and Control Principles of the Public Finances (Evaluating the Implementation Level of Management and Control Principles of the Public Finances)

Outsourcing in the public sector in the Czech Republic: case studies

Outsourcing in the public sector in the Czech Republic: case studies (Outsourcing in the public sector in the Czech Republic: case studies)

Stabilization Programs of the International Monetary Fund in the Course of Time

Stabilization Programs of the International Monetary Fund in the Course of Time (Stabilization Programs of the International Monetary Fund in the Course of Time)

Financial Literacy: Study of the Financial Literacy Level

Financial Literacy: Study of the Financial Literacy Level (Financial Literacy: Study of the Financial Literacy Level)

The impact of foreign exchange intervention in the balance sheet of the Czech National Bank

The impact of foreign exchange intervention in the balance sheet of the Czech National Bank (The impact of foreign exchange intervention in the balance sheet of the Czech National Bank)

Blockchain-Applications in Banking & Payment Transactions: Results of a Survey

Blockchain-Applications in Banking & Payment Transactions: Results of a Survey (Blockchain-Applications in Banking & Payment Transactions: Results of a Survey)

Forecasting of Crisis Phenomena in Emerging Financial Market: Real-Time Monitoring of Demand and Supply Anomalies in the Stock Exchange

Forecasting of Crisis Phenomena in Emerging Financial Market: Real-Time Monitoring of Demand and Supply Anomalies in the Stock Exchange (Forecasting of Crisis Phenomena in Emerging Financial Market: Real-Time Monitoring of Demand and Supply Anomalies in the Stock Exchange)

Duration analysis in forecasting internal capital adequacy in banks

Duration analysis in forecasting internal capital adequacy in banks (Duration analysis in forecasting internal capital adequacy in banks)

Gender differences in saving for retirement

Gender differences in saving for retirement (Gender differences in saving for retirement)

Comparison of relative efficiency of Czech and Slovak cultural heritage institutions

Comparison of relative efficiency of Czech and Slovak cultural heritage institutions (Comparison of relative efficiency of Czech and Slovak cultural heritage institutions)

Bankruptcy Prediction Models in Relation to SME Segment in the Czech Republic

Bankruptcy Prediction Models in Relation to SME Segment in the Czech Republic (Bankruptcy Prediction Models in Relation to SME Segment in the Czech Republic)

Evaluation of Bancassurance Functioning in Selected Countries of the Financial Group KBC Group

Evaluation of Bancassurance Functioning in Selected Countries of the Financial Group KBC Group (Evaluation of Bancassurance Functioning in Selected Countries of the Financial Group KBC Group)

The Specifics of Forced IFRS Adoption by Czech Private Companies: A pilot field study

The Specifics of Forced IFRS Adoption by Czech Private Companies: A pilot field study (The Specifics of Forced IFRS Adoption by Czech Private Companies: A pilot field study)

How do remittances react to business cycle in receiving countries? Evidence from transition countries

How do remittances react to business cycle in receiving countries? Evidence from transition countries (How do remittances react to business cycle in receiving countries? Evidence from transition countries)

Analysis of Prize Money Gap in Wimbledon 2007 - 2016

Analysis of Prize Money Gap in Wimbledon 2007 - 2016 (Analysis of Prize Money Gap in Wimbledon 2007 - 2016)

Comparison of algorithmic trading using the homogeneous and non-homogeneous Markov chain analysis

Comparison of algorithmic trading using the homogeneous and non-homogeneous Markov chain analysis (Comparison of algorithmic trading using the homogeneous and non-homogeneous Markov chain analysis)

Analysis of quality of life in Poland based on selected economic indicators

Analysis of quality of life in Poland based on selected economic indicators (Analysis of quality of life in Poland based on selected economic indicators)

Effective Risk Culture in Banks: Responsibilities and boundaries of the Risk Management

Effective Risk Culture in Banks: Responsibilities and boundaries of the Risk Management (Effective Risk Culture in Banks: Responsibilities and boundaries of the Risk Management)

Testing the Semi-strong Form of Efficiency in Czech Stock Market

Testing the Semi-strong Form of Efficiency in Czech Stock Market (Testing the Semi-strong Form of Efficiency in Czech Stock Market)

Tax burden and interest burden on business in the agriculture, fishing and forestry sector

Tax burden and interest burden on business in the agriculture, fishing and forestry sector (Tax burden and interest burden on business in the agriculture, fishing and forestry sector)

The analysis of Slovak Republic's competitiveness

The analysis of Slovak Republic's competitiveness (The analysis of Slovak Republic's competitiveness)

Legal Background for an Expert Witness to a Corporate Name Valuation

Legal Background for an Expert Witness to a Corporate Name Valuation (Legal Background for an Expert Witness to a Corporate Name Valuation)

The Development of the Excise Gap on Mineral Oils: Recent Evidence from Slovakia

The Development of the Excise Gap on Mineral Oils: Recent Evidence from Slovakia (The Development of the Excise Gap on Mineral Oils: Recent Evidence from Slovakia)

Analytical view on performance evaluation of service enterprises

Analytical view on performance evaluation of service enterprises (Analytical view on performance evaluation of service enterprises)

Determination of Revenue Potential of Financial Transaction Tax and its consideration as own resource of the EU budget

Determination of Revenue Potential of Financial Transaction Tax and its consideration as own resource of the EU budget (Determination of Revenue Potential of Financial Transaction Tax and its consideration as own resource of the EU budget)

The Government Expenditure Efficiency in OECD Countries with DEA Approach

The Government Expenditure Efficiency in OECD Countries with DEA Approach (The Government Expenditure Efficiency in OECD Countries with DEA Approach)

Efficiency of humanitarian nonprofit organizations – a case of the Red Cross in the Europe and Central Asia

Efficiency of humanitarian nonprofit organizations – a case of the Red Cross in the Europe and Central Asia (Efficiency of humanitarian nonprofit organizations – a case of the Red Cross in the Europe and Central Asia)

The analysis of the efficiency of on-line auctions in Poland based on data coming from service Allegro.pl

The analysis of the efficiency of on-line auctions in Poland based on data coming from service Allegro.pl (The analysis of the efficiency of on-line auctions in Poland based on data coming from service Allegro.pl)

Development of Patent Activity in Czech Republic

Development of Patent Activity in Czech Republic (Development of Patent Activity in Czech Republic)

Difficulties in Terminology of Private Equity

European Financial Systems 2017 - Proceedings of the 14th International Scientific Conference (Part 2)
European Financial Systems 2017 - Proceedings of the 14th International Scientific Conference (Part 2)

Markov chain sensitivity analysis of expected paid/unpaid overdue receivables – SME case study
(Markov chain sensitivity analysis of expected paid/unpaid overdue receivables – SME case study)

The Development of Debt Financial Markets – the Case of Selected CEE and Latin America Economies
(The Development of Debt Financial Markets – the Case of Selected CEE and Latin America Economies)

Interrelation of personal characteristics with financial literacy as a guide to financial behavior of Russian students
(Interrelation of personal characteristics with financial literacy as a guide to financial behavior of Russian students)

Decomposition of spatial inequality in budget provision by income sources: case of modern Russia
(Decomposition of spatial inequality in budget provision by income sources: case of modern Russia)

Corporate Tax Revenues of Selected EU Countries Using Spatial Autocorrelation Approach
(Corporate Tax Revenues of Selected EU Countries Using Spatial Autocorrelation Approach)

How are 1bis pension pillar funds performing? A cross-country analysis
(How are 1bis pension pillar funds performing? A cross-country analysis)

The structure of limited liability companies with low registered capital
(The structure of limited liability companies with low registered capital)

Assessing and Managing Absenteeism with Bradford Factor Score Analysis
(Assessing and Managing Absenteeism with Bradford Factor Score Analysis)

The investment through bonus certificates
(The investment through bonus certificates)

Tax Rate Changes Impact on Mineral Oils Taxes Yields in the Czech Republic
(Tax Rate Changes Impact on Mineral Oils Taxes Yields in the Czech Republic)

Evaluating the Implementation Level of Management and Control Principles of the Public Finances
(Evaluating the Implementation Level of Management and Control Principles of the Public Finances)

Outsourcing in the public sector in the Czech Republic: case studies
(Outsourcing in the public sector in the Czech Republic: case studies)

Stabilization Programs of the International Monetary Fund in the Course of Time
(Stabilization Programs of the International Monetary Fund in the Course of Time)

Financial Literacy: Study of the Financial Literacy Level
(Financial Literacy: Study of the Financial Literacy Level)

The impact of foreign exchange intervention in the balance sheet of the Czech National Bank
(The impact of foreign exchange intervention in the balance sheet of the Czech National Bank)

Blockchain-Applications in Banking & Payment Transactions: Results of a Survey
(Blockchain-Applications in Banking & Payment Transactions: Results of a Survey)

Forecasting of Crisis Phenomena in Emerging Financial Market: Real-Time Monitoring of Demand and Supply Anomalies in the Stock Exchange
(Forecasting of Crisis Phenomena in Emerging Financial Market: Real-Time Monitoring of Demand and Supply Anomalies in the Stock Exchange)

Duration analysis in forecasting internal capital adequacy in banks
(Duration analysis in forecasting internal capital adequacy in banks)

Gender differences in saving for retirement
(Gender differences in saving for retirement)

Comparison of relative efficiency of Czech and Slovak cultural heritage institutions
(Comparison of relative efficiency of Czech and Slovak cultural heritage institutions)

Bankruptcy Prediction Models in Relation to SME Segment in the Czech Republic
(Bankruptcy Prediction Models in Relation to SME Segment in the Czech Republic)

Evaluation of Bancassurance Functioning in Selected Countries of the Financial Group KBC Group
(Evaluation of Bancassurance Functioning in Selected Countries of the Financial Group KBC Group)

The Specifics of Forced IFRS Adoption by Czech Private Companies: A pilot field study
(The Specifics of Forced IFRS Adoption by Czech Private Companies: A pilot field study)

How do remittances react to business cycle in receiving countries? Evidence from transition countries
(How do remittances react to business cycle in receiving countries? Evidence from transition countries)

Analysis of Prize Money Gap in Wimbledon 2007 - 2016
(Analysis of Prize Money Gap in Wimbledon 2007 - 2016)

Comparison of algorithmic trading using the homogeneous and non-homogeneous Markov chain analysis
(Comparison of algorithmic trading using the homogeneous and non-homogeneous Markov chain analysis)

Analysis of quality of life in Poland based on selected economic indicators
(Analysis of quality of life in Poland based on selected economic indicators)

Effective Risk Culture in Banks: Responsibilities and boundaries of the Risk Management
(Effective Risk Culture in Banks: Responsibilities and boundaries of the Risk Management)

Testing the Semi-strong Form of Efficiency in Czech Stock Market
(Testing the Semi-strong Form of Efficiency in Czech Stock Market)

Tax burden and interest burden on business in the agriculture, fishing and forestry sector
(Tax burden and interest burden on business in the agriculture, fishing and forestry sector)

The analysis of Slovak Republic's competitiveness
(The analysis of Slovak Republic's competitiveness)

Legal Background for an Expert Witness to a Corporate Name Valuation
(Legal Background for an Expert Witness to a Corporate Name Valuation)

The Development of the Excise Gap on Mineral Oils: Recent Evidence from Slovakia
(The Development of the Excise Gap on Mineral Oils: Recent Evidence from Slovakia)

Analytical view on performance evaluation of service enterprises
(Analytical view on performance evaluation of service enterprises)

Determination of Revenue Potential of Financial Transaction Tax and its consideration as own resource of the EU budget
(Determination of Revenue Potential of Financial Transaction Tax and its consideration as own resource of the EU budget)

The Government Expenditure Efficiency in OECD Countries with DEA Approach
(The Government Expenditure Efficiency in OECD Countries with DEA Approach)

Efficiency of humanitarian nonprofit organizations – a case of the Red Cross in the Europe and Central Asia
(Efficiency of humanitarian nonprofit organizations – a case of the Red Cross in the Europe and Central Asia)

The analysis of the efficiency of on-line auctions in Poland based on data coming from service Allegro.pl
(The analysis of the efficiency of on-line auctions in Poland based on data coming from service Allegro.pl)

Development of Patent Activity in Czech Republic
(Development of Patent Activity in Czech Republic)

Difficulties in Terminology of Private Equity
(Difficulties in Terminology of Private Equity)

Disparities in capital markets of the EU and the US
(Disparities in capital markets of the EU and the US)

IFRS valuation models vs. business entities‘ practice – a case of Polish publicly traded enterprises
(IFRS valuation models vs. business entities‘ practice – a case of Polish publicly traded enterprises)

The future of value added tax in European Union in accordance with size criteria of business entities
(The future of value added tax in European Union in accordance with size criteria of business entities)

The Importance of Financial Management in Small and Mediumsized Entrepreneurship
(The Importance of Financial Management in Small and Mediumsized Entrepreneurship)

Comparison of banking rating systems
(Comparison of banking rating systems)

Intangible Assets in Pharmaceutical Companies in the Czech Republic
(Intangible Assets in Pharmaceutical Companies in the Czech Republic)

Comparison between CreditMetrics™ and KMV
(Comparison between CreditMetrics™ and KMV)

The Tale of Twin Deficits: Which Comes First?
(The Tale of Twin Deficits: Which Comes First?)

Identifying and Managing Construction Risks in the Public Sector
(Identifying and Managing Construction Risks in the Public Sector)

Healthcare benefits: luxury or necessity goods? EU countries case revisited
(Healthcare benefits: luxury or necessity goods? EU countries case revisited)

Performance of Czech hospitals: comparison with ideal solution
(Performance of Czech hospitals: comparison with ideal solution)

Analysis of the Czech state-funded institutions accounting data
(Analysis of the Czech state-funded institutions accounting data)

Non-pension privileges in Poland – the impact of professions on taking financial decisions
(Non-pension privileges in Poland – the impact of professions on taking financial decisions)

Assessing financial condition of municipalities using taxonomic methods
(Assessing financial condition of municipalities using taxonomic methods)

Effectiveness of Financing the Public Expenditures on Health Care
(Effectiveness of Financing the Public Expenditures on Health Care)

Personal income tax redistribution: new possibilities for fiscal federalism in Russia
(Personal income tax redistribution: new possibilities for fiscal federalism in Russia)