European Financial Systems 2019: Proceedings of the 16th International Scientific Conference

Time-based Fee for Vehicles in the Czech Republic: New Model and Challenge?

Time-based Fee for Vehicles in the Czech Republic: New Model and Challenge?
(Time-based Fee for Vehicles in the Czech Republic: New Model and Challenge?)

Author(s):Břetislav Andrlík, Lucie Zborovská
Language:English
Subject(s):EU-Accession / EU-DEvelopment, Transport / Logistics
Page Range:14-22
No. of Pages:9
Keywords:vignette; model of time-based fees; Czech Republic; road motor vehicle; motorcycle;
Summary/Abstract:Road motor traffic in the European Union member states is priced not only through tax instruments, but also through various charges and fees related to the operation of a motor vehicle. This article examines fees based on a time period, applied to vehicles of the maximum weight of 3.5 t. It focuses on the analysis of the current application of time-based fees in individual countries of the EU. The goal of the contribution is designing a new model of time-based pricing of road motor vehicles in the territory of the Czech Republic. The contribution also includes the analysis of legal standards regulating the issue in the Czech Republic and in the EU countries. The outcome of the contribution is a constructed model of a time-based fee, based on predefined assumptions which were determined by needs ensuing from the current conditions that affect the operation of chargeable passenger cars and light commercial vehicles. In conclusion, a comparison of receipts from the current system of time-based fees with receipts resulting from the proposed model of time-based fees for the Czech Republic is made.

Financial Bilingualism as a Success Factor for Effective Business Combination Project: The Case of US Investors

Financial Bilingualism as a Success Factor for Effective Business Combination Project: The Case of US Investors
(Financial Bilingualism as a Success Factor for Effective Business Combination Project: The Case of US Investors)

Author(s):Alexandra Bagiová, Jitka Meluchová, Martina Mateášová
Language:English
Subject(s):Business Economy / Management
Page Range:23-29
No. of Pages:7
Keywords:IFRS; US GAAP; business combinations; investment decision; goodwill; merger and acquisition;
Summary/Abstract:Many of the world’s capital markets require some version of IFRS for financial statements of listed entities. With IFRS covering 87% of the world´s biggest jurisdictions, it is a key success factor for a US capital market participant to be financially bilingual, as they continue to look for global investment opportunities. In this paper we identify the key issues evolving in the decision-making process when engaging in business combinations with IFRS preparers. Using detailed textual analysis of the current IFRS and US GAAP provisions, the paper identifies the set of factors to consider in any merger or acquisition made between US company and a company reporting under IFRS. We concluded that despite of the global harmonization of accounting reporting in the area of business combinations there are still implication differences causing significant changes in the value of shares, equity or goodwill that might imperil the success of investment decisions of US investors. Therefore, the aim of the submitted paper is to provide guidelines on reduction risks resulting from a lack of knowledge of the differences between the IFRS and the US GAAP and to create information basis for both, investors primarily using US GAAP but also those preferring the IFRS, to become financially bilingual.

Evaluation of the Policies Supporting Cultural and Creative Industries in the Slovak Republic

Evaluation of the Policies Supporting Cultural and Creative Industries in the Slovak Republic
(Evaluation of the Policies Supporting Cultural and Creative Industries in the Slovak Republic)

Author(s):Mária Barteková, Helena Majdúchová
Language:English
Subject(s):Government/Political systems, EU-Accession / EU-DEvelopment, Public Finances
Page Range:30-39
No. of Pages:10
Keywords:cultural and creative industries; public finance; government support; public policy; EU Structural funds;
Summary/Abstract:The aim of this paper is to evaluate the various policies supporting the cultural and creative industries development at the national level. Cultural and creative industries operate partly on different principles compared to traditional sectors, so the governmental support takes into account these specificities. The regulatory framework is important in boosting the entrepreneurial activity of cultural and creative industries. Granting fiscal reductions or incentives to investors in the cultural and creative industries can enable greater investment. The investment of the European Structural Funds should be encouraged, with special support to regional networking initiatives and platforms for cultural and creative industries. EU Cohesion and Structural funds could function as part of the resources allocated to Cultural and Creative industries at a European level as well as at the regional level. Cultural and creative entrepreneurs rely heavily on the use of networks within highly innovative and risk-oriented environments. However, the lack of access to finance and to market can hinder their development.

The Divergence between the EU and non-EU Fiscal Councils

The Divergence between the EU and non-EU Fiscal Councils
(The Divergence between the EU and non-EU Fiscal Councils)

Author(s):András Bethlendi, Csaba Lentner, András Póra
Language:English
Subject(s):Economic policy, EU-Accession / EU-DEvelopment, Fiscal Politics / Budgeting
Page Range:40-48
No. of Pages:9
Keywords:rules-based fiscal policy; fiscal council; independent fiscal institutions; fiscal prudency;
Summary/Abstract:The European sovereign crisis that followed the 2008 crisis showed that rulesbased fiscal policy is insufficient in itself in order to avoid fiscal alcoholism and excessive sovereign debt. Nevertheless, these policies have become more and more widespread in order to limit indebtedness. This article deals with one of the most important elements of rules-based systems: the fiscal council. The key question imposed was: is it mostly a European phenomenon, or rather a global standard? Is there a divergence between the EU and non-EU fiscal councils, or not? As a method, we employed descriptive statistics, then a hierarchical cluster analysis, based on the data of the IMF Fiscal Council Dataset. In conclusion, an EU and a non-EU cluster were formed, thus our working hypothesis was mostly underpinned. Our results have thus contributed to the literature and advanced the case that the increased number of fiscal councils can be attributed to European regulations or internal political issues rather than strengthening of fiscal prudency.

Robust Optimization Methods in Modern Portfolio Theory

Robust Optimization Methods in Modern Portfolio Theory
(Robust Optimization Methods in Modern Portfolio Theory)

Author(s):Maroš Bobulský, Mária Bohdalová
Language:English
Subject(s):Business Economy / Management, Methodology and research technology, Accounting - Business Administration
Page Range:49-56
No. of Pages:8
Keywords:Markowitz model; robust optimization; data filtering;
Summary/Abstract:One of the main questions that an investor faces when investing, is how to allocate resources among the variety of different assets. Markowitz portfolio optimization problem as a part of modern portfolio theory (MPT) solve this problem. The main idea of the Markowitz model is to create such portfolio management strategies that lead to the biggest expected returns with minimal possible risk. The expected returns (represent profit) and the covariance matrix (represents risk measure) of assets of the investor's portfolio are his inputs. After solving the optimization problem. its direct outputs are the weights of the distribution of funds over specific assets in order to maximize expected profit. However, needed inputs are difficult to predict which causes low credibility of the results. Therefore, we will introduce a robust way to solve this problem. We define filter matrices that make the selection of the right parameters more uncertain. After that, we solve this problem by so-called worst-case optimization, when at every point of the domain of optimization problem we deliberately choose the worst possible parameter from the relevant uncertainty set of parameters. In our case, the set of uncertainty consists of filter matrices, which change the data slightly so also expected returns and covariance matrix will change. The main goal of this paper is to examine this problem in the real time portfolio modeling when at every point in time we recalculate weights for assets and adjust portfolio composition. Finally, we discuss variations of this model when the addition of the new parameter gives a minimization function that will enable us to use the Markowitz model in solving more difficult non-linear Hamilton-Jacobi-Bellman differential equation.

The Impact of the Ways of Agricultural Activity Reporting on Financial Statements under IFRS and Czech Accounting Legislation

The Impact of the Ways of Agricultural Activity Reporting on Financial Statements under IFRS and Czech Accounting Legislation
(The Impact of the Ways of Agricultural Activity Reporting on Financial Statements under IFRS and Czech Accounting Legislation)

Author(s):Hana Bohušová, Patrik Svoboda
Language:English
Subject(s):Business Economy / Management, Agriculture, Law on Economics, Accounting - Business Administration
Page Range:57-65
No. of Pages:9
Keywords:agricultural reporting; Fair value; cost measurement; Bearer plants; consumable assets;
Summary/Abstract:The specific nature of agricultural activity compared to other business activities undertaken for profit requires different methodological approaches for their recognition, measurement, recording and reporting. The contribution deals with the impact of International Financial Reporting Standards (IFRS) reporting in agricultural activities on financial analysis ratios. The aim of the research is the evaluation of the impact of the treatments for individual kinds of biological assets (such as consumable plants and bearer plants) and their changes in value during their life reporting. The comparison of traditional accounting approaches, cost models and fair value models is the starting point of evaluation. The data of the Institute of Agricultural Economics and Information are used as a source of the information on the market values of agricultural produce and cost of individual agricultural activities. According to the authors´ research the way of biological assets reporting could affect the financial position and performance of business entities involved agricultural sector significantly.

Capital Asset Prices in the V4 Countries

Capital Asset Prices in the V4 Countries
(Capital Asset Prices in the V4 Countries)

Author(s):Gábor Bóta, László Nagy, Mihály Ormos
Language:English
Subject(s):Business Economy / Management, Economic policy, EU-Accession / EU-DEvelopment, Financial Markets, Accounting - Business Administration
Page Range:66-73
No. of Pages:8
Keywords:asset pricing; multi-factor models; V4 countries;
Summary/Abstract:In our paper we investigate the factors behind the price development of the capital markets of the Visegrad four countries: the Czech Republic, Hungary, Poland and Slovakia. We compare our results with developed European capital markets, namely Austria, France, Germany and the United Kingdom as well. We run regressions for different market equilibrium models: the standard CAPM by Sharpe (1963), Fama and French (1993 and 1996) three-factor model, Carhart (1997) four-factor model, Pastor-Stambaugh (2003) five-factor model and also Fama and French (2015) five-factor model. We use different sets of factors in order to detect the differences and similarities of these capital markets and to find the market equilibrium models with the highest explaining power. The regressions cover the period of 2005-2018 on a daily basis.

Statistical Arbitrage Portfolio Selection in the Old and New EU Member States

Statistical Arbitrage Portfolio Selection in the Old and New EU Member States
(Statistical Arbitrage Portfolio Selection in the Old and New EU Member States)

Author(s):Bálint Botos, László Nagy, Mihály Ormos
Language:English
Subject(s):International relations/trade, EU-Accession / EU-DEvelopment, Financial Markets
Page Range:74-81
No. of Pages:8
Keywords:pairs trading; asset pricing; cointegration; statistical arbitrage; market neutral strategy;
Summary/Abstract:In this study we analyze the return gained by cointegration-based pairs trading arbitrage strategy in Western and Eastern European capital markets. To achieve that, we showcase the contrarian evidence to the weak form of market efficiency found. The aim of the paper is to explore the mean reversion nature of the highly cointegrated stock pairs and to create a trading strategy with predefined entry and exit points. The portfolios used are created over 250-day long testing periods based on the cointegration selection of the pairs and then traded for 125 days. The realized return between 2012 and 2017 were 16.98% and 20.74% annually in the Western end Eastern European markets respectively. We also evaluate the standard deviations of returns achieved by the strategy and the portfolios’ correlations to the MSCI Europe, S&P 500 and the riskfree rate. As the strategy result in low correlation to the market, we confirm its market neutrality. The Sharpe-ratios of the portfolios for the full sample period are 0.57 (western) and 0.92 (eastern) but come up to 1.89 and 1.39 in the last 10 years.

Determinant Factors of Fiscal Revenues, under Current Economic Conditions

Determinant Factors of Fiscal Revenues, under Current Economic Conditions
(Determinant Factors of Fiscal Revenues, under Current Economic Conditions)

Author(s):Loredana Andreea Cristea, Alina Daniela VODĂ, Dragoș Mihai Ungureanu
Language:English
Subject(s):National Economy, Economic policy, EU-Accession / EU-DEvelopment, Fiscal Politics / Budgeting
Page Range:82-89
No. of Pages:8
Keywords:fiscal revenues; taxation; determinant factors; European Union;
Summary/Abstract:Most of the state's financial resources are covered by compulsory deductions, namely taxes, fees and social security contributions, translated into fiscal revenues. In recent years, financial and economic research has focused heavily on the interdependence between taxes and economic growth. The main purpose of this research is to analyze the factors that lead to the increase or decrease of fiscal revenues collected by the state. Taking into account the current economic situation, the research will focus on a comparative study of Romania with an emerging state and a developed country, from the European Union, for a period of 10 years. The following variables are taken into account: fiscal revenues, inflation, unemployment rate, number of emigrants, imports and exports, factors with a significant impact on economic growth. In order to achieve the proposed objective, we will use the statistical analysis, through the SPSS software, to see the relationship between the independent variables and the dependent variable. The Pearson correlation coefficient will be used to measure the relationship between model variables. The study’s data is taken from the Eurostat and World Bank databases. After analyzing the results, there are outlined proposals for the optimization of the fiscal policy of the state, depending on the determinants of fiscal revenues, in order to ensure a balanced economy.

Hurst Exponent and the Efficiency of the Czech Electricity Market

Hurst Exponent and the Efficiency of the Czech Electricity Market
(Hurst Exponent and the Efficiency of the Czech Electricity Market)

Author(s):Juraj Čurpek, Jitka Veselá
Language:English
Subject(s):Energy and Environmental Studies, Financial Markets
Page Range:90-97
No. of Pages:8
Keywords:Efficient Market Hypothesis; electricity market; Hurst exponent;
Summary/Abstract:Efficient Market Hypothesis (EMH) assumes a random, independent movement of the investment instrument prices. EMH validity testing, especially on stock and currency markets, did not bring clear results. Part of the research conducted so far confirms the validity of EMH, part of the research refutes the validity of EMH. This paper focuses on commodity market efficiency testing, specifically on the electricity market in Czechia (Czech electricity and gas market operator OTE) using a time-varying Hurst exponent estimated by the Detrended Fluctuation Analysis in period 2016-2018 applied on the returns of transformed hourly intra-day electricity prices. Since the value of 0.5 for the Hurst exponent is associated with the random process, and thus with the weak form of EMH, its value can indicate whether the studied market is efficient or not. To conduct our research, we computed the Hurst exponents in the subsamples that slid along the full sample, which is called the sliding-window technique, and thereby we were able to get a view of temporal behavior of the Hurst exponent. First, our results showed the so-called multi-scale nature of the returns of transformed electricity prices, i.e. we detected two Hurst exponents on different time scales separated by the crossover. Secondly, the Hurst exponent temporal behavior, calculated on the smaller time scale, revealed the short periods when the studied market approached the weak-form efficiency. On the other hand, for the larger time scale, the Hurst exponents attained values associated with the mean-reverting process and not the random one, and thus in that case the short-term electricity market in Czechia was inefficient with respect to the weak form of EMH.

The Effectiveness of Lower Secondary Education in OECD Countries

The Effectiveness of Lower Secondary Education in OECD Countries
(The Effectiveness of Lower Secondary Education in OECD Countries)

Author(s):Darya DANCAKOVÁ, Jozef Glova
Language:English
Subject(s):Labor relations, School education, State/Government and Education, Socio-Economic Research
Page Range:98-108
No. of Pages:11
Keywords:secondary education; student achievement; PISA 2015; spending on education; DEA;
Summary/Abstract:In contemporary society the meaning of education has changed dramatically. The phenomenon of knowledge economy represents the highest stage of the postindustrial society and economy development, where the competitiveness of a country is no longer defined through the ever-larger number of factory workers, but is directly related to the stock of knowledge and capability for learning new skills embodied in even more educated population. Therefore, in today´s fast-changing global environment, education is recognized as one of the most important factors, besides financial and material resources, determining a success of a modern society. Mainly, the secondary education attainment could be perceived as an important stage in educational progressing across developed countries, since leaving school with a good qualification is crucial for getting into tertiary education as well as for entering a job market. The following study measures the efficiency of secondary education using Data Envelopment Analysis (DEA) and compares the results across the selected EU countries. The aim of the paper is to provide an empirical analysis of the relationship between educational expenditures and its efficiency reflected in the PISA testing results

Information Asymmetry in Insurance Market

Information Asymmetry in Insurance Market
(Information Asymmetry in Insurance Market)

Author(s):Michaela Florianová
Language:English
Subject(s):Financial Markets, Socio-Economic Research
Page Range:109-117
No. of Pages:9
Keywords:Information asymmetry; insurance; insurance market; moral hazard; adverse selection; asymmetric information;
Summary/Abstract:Does information asymmetry exist in the insurance market? Does it impact the market equilibrium? These are current topics of the research dealing with economic and insurance issues. Many publications have been published over the last century, confirming or refuting the existence of information asymmetry in the non-life insurance market same as in the life insurance market. The aim of this article is to introduce the topic of information asymmetry, including the supply and demand point of view and dividing the asymmetry on adverse selection and moral hazard. The main goal of this paper is to review and compare the results of existing publications and papers dealing with information asymmetry in the insurance market, with focus on differences between life and non-life insurance research results, and open the door for further discussions on this issue.

IFRS 16 Leases: The Result of the IASB and FASB Cooperation with a Focus on Differences Compared to ASC 842

IFRS 16 Leases: The Result of the IASB and FASB Cooperation with a Focus on Differences Compared to ASC 842
(IFRS 16 Leases: The Result of the IASB and FASB Cooperation with a Focus on Differences Compared to ASC 842)

Author(s):Milan Gedeon
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:118-125
No. of Pages:8
Keywords:IFRS 16; ASC 842; lease accounting; financial statements;
Summary/Abstract:IFRS 16 Leases was issued by the International Accounting Standards Board (IASB) on 13 January 2016. The European Union effective date was approved for periods beginning on or after 1 January 2019. The standard brings fundamental changes to lease accounting that replace previous accounting and no longer distinguishes between an operating lease and a finance lease. Accounting entities have to make many judgments and apply estimates in order to implement IFRS 16. The IASB and the Financial Accounting Standards Board (FASB) have been working jointly to improve the accounting for leases in International Financial Reporting Standards (IFRS) and US Generally Accepted Accounting Principles (US GAAP). The FASB issued a similar standard as ASC 842. The aim of the paper is to explain the impact of IFRS 16 on the financial statements and to determine the main differences between IFRS 16 and ASC 842. The aim was achieved by an analysis of IFRS 16 and comparison of the articles in IFRS 16 and ASC 842. Despite an effort to convergence IFRS and US GAAP, the standard-setters have reached the divergence regarding some aspects in the lease accounting. Companies that report under both IFRS and US GAAP will have to deal mainly with the different classification of a lease from the lessee´s point of view lessee.

Robotic Process Automation for Investment Modelling

Robotic Process Automation for Investment Modelling
(Robotic Process Automation for Investment Modelling)

Author(s):Ján Gogola, Petr Šild
Language:English
Subject(s):Business Economy / Management, ICT Information and Communications Technologies
Page Range:126-132
No. of Pages:7
Keywords:robotic process automation (RPA); theory of portfolio; data mining;
Summary/Abstract:The developments in data science, machine learning and artificial intelligence force us to revisit the question “What should be automated and what should be done by humans?” The main objective of our contribution is to apply Robotic Process Automation (RPA) to create a model which identifies risk situations on the model based on the market prices and external data such as M2 Money Stock, Consumer Confidence Index (CCI), Daily Treasury Yield Curve etc., and recommend a proportion of assets in the portfolio. Our goal is to build a model that will beat its benchmark, the S&P 500 index, for that purpose we create a portfolio composed of individual stock titles contained in the S&P 500 index and compare the model rate of return with the real rate of the S&P 500 for the period from 1.1. 2004 to 1.1. 2019. As a result we can show that the cumulative yield of the model beats its benchmark approx. 7 times during the period under review.

Excessive Debt of Households and Financial Exclusion

Excessive Debt of Households and Financial Exclusion
(Excessive Debt of Households and Financial Exclusion)

Author(s):Ewa Gubernat
Language:English
Subject(s):Micro-Economics, Socio-Economic Research
Page Range:133-138
No. of Pages:6
Keywords:household debts; financial exclusion; overindebtedness;
Summary/Abstract:The issue of financial exclusion and excessive indebtedness is increasingly the subject of actions taken at the national level. The growing interest in overindebtedness problem is a response to the observed systematic increase in household indebtedness, which in a situation of economic slowdown may lead to lower income of households and threaten timely settlement of liabilities incurred. Awareness of the scale of financial exclusion and excessive indebtedness and the negative consequences of what they involve on a micro-economic scale for households and as well for on a macro-economic for the whole economy, is not reflected in considerations on the basis of identification of interdependencies and concomitance of both phenomena. Currently, there are no studies which, based on the identification of determinants of both phenomena, would indicate the existence of a relationship between them. The aim of the article is to indicate the relationships that occur between the phenomenon of excessive indebtedness and financial exclusion, especially banking. For its implementation, it will be necessary to outline the size of household debt and financial exclusion in Poland, and then to identify the causes and effects of both phenomena, with an indication of the relationship between them. The author accepted the hypothesis that the emergence of debt is the effect of incurring liabilities of households as a natural stage of its development. Loans improve the quality of life and provide better access to the necessary goods and services. By contrast, over-indebtedness means a deterioration in the financial situation that leads to financial exclusion. The analysis of aggregated financial data was used to verify hypotheses.

Implications of IFRS 9-based Multi-Year Risk Parameters for Bank Management

Implications of IFRS 9-based Multi-Year Risk Parameters for Bank Management
(Implications of IFRS 9-based Multi-Year Risk Parameters for Bank Management)

Author(s):Peter Haiss, Alexandra Brandstaedter
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:139-147
No. of Pages:9
Keywords:IFRS 9; expected credit loss model; provisioning;
Summary/Abstract:What is the impact of the International Financial Reporting Standards 9 - based multi-year risk parameters on banks? We find that the main innovation brought on by IFRS 9 is a fundamental change of the risk assessment process. This process is based on the so-called Impairment Model and incorporates Expected Loss (EL) measures. Financial assets are allocated into assumed risk categories according to their estimated risk level. IFRS9 also requires immediate recognition of credit losses. Though intended to stabilize markets, this may have ambiguous effects. We argue that banks need to adapt not only risk management, but also lending processes accordingly.

Excise Tax Harmonization in the EU

Excise Tax Harmonization in the EU
(Excise Tax Harmonization in the EU)

Author(s):Taťána Hajdíková, Karel Janák, Olga Oberreiterová
Language:English
Subject(s):Economic policy, EU-Accession / EU-DEvelopment, Fiscal Politics / Budgeting
Page Range:148-154
No. of Pages:7
Keywords:fiscal benefits; harmonization; excise duty; tax rate;
Summary/Abstract:Excise taxes are a constant part of state budget revenue. They represent a stable income that governments can influence by raising the tax rate. Despite the fact that excise duties are mainly burdened with products that negatively affect our health and the environment, governments must increase their tax burden with caution. For most of these products it is not possible to find suitable substitutes and therefore the elasticity of demand is very small. The application of a change in the rate of excise duties can significantly affect the overall impact of taxes on taxpayers and the distribution of income in a company of a particular state. In trade between states, different procedures can be used to include or exclude excise duties on the prices of taxed products and tax competition between states can occur. The paper comments on its findings from the unfulfilled partial objective of excise tax harmonization, which consists in unifying the rate for individual selected products. The main reason for this failure is the collection of excise duty in the state where the selected product is put into circulation. Thus, the choice of excise duty remains the responsibility of national governments. States are also influenced by the historical development of the country in the rate setting, where certain types of alcoholic and tobacco products may be preferred. Yet harmonization in this tax area is successful in unifying the structure of selective taxes. A comparison of the taxation of individual groups of alcoholic beverages in selected European Union countries shows that these countries comply with the prescribed minimum rates for these selected products.

Searchability and Machine-Readability of the Financial Statements of the Czech Business Corporations and Their Influence on the Financial Performance

Searchability and Machine-Readability of the Financial Statements of the Czech Business Corporations and Their Influence on the Financial Performance
(Searchability and Machine-Readability of the Financial Statements of the Czech Business Corporations and Their Influence on the Financial Performance)

Author(s):Filip Hampl, Elena Láncošová, Zuzana Rakovská
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:155-162
No. of Pages:8
Keywords:financial analysis indicators; financial performance; financial statements; logistic regression; machine-readability; non-searchability; searchability;
Summary/Abstract:Financial and non-financial data presented in the financial statements and annual reports represent a valuable information source capturing economic activities in business corporations, accounting units. Machine-readable (or at least searchable) financial statements allow software equipment to find, to recognise and to extract easily data and valuable information about, e.g. ownership of risk-assets, cryptocurrencies or research and development activities. The paper aims to find out whether the Czech business corporations prepare their financial statements in the machinereadable/ searchable format and whether the machine-readability/searchability is connected to their financial performance. The examined period was 2015-2017, and logistic regression was used. The data was obtained from the Czech Business Register by using a software script written by the authors and from the database of Czech and Slovak economic entities Bisnode Magnusweb. We discovered that most business corporations prepare non-searchable financial statements (no company prepares machine-readable statements). The ratio of searchable statements decreases each year. More companies change their statements from searchable to non-searchable than vice versa during the examined period. We found out that companies with non-searchable statements are more likely to have higher future long-term performance.

The CBA Analysis of IFRS Implementation in the Czech Republic

The CBA Analysis of IFRS Implementation in the Czech Republic
(The CBA Analysis of IFRS Implementation in the Czech Republic)

Author(s):Irena Honková
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:163-171
No. of Pages:9
Keywords:International Financial Reporting Standards (IFRS); International Accounting Standards (IAS);
Summary/Abstract:As part of the ongoing harmonization of accounting system there is an increasing tendency to keep the accounts under IAS/IFRS. Consequently, a research in companies following the IAS/IFRS has been conducted. The aim of the research was to identify information, financial and time demands and also the benefits of the IAS/IFRS implementation. It was found that more companies use the services of an external consultant than an internal employee. Businesses normally do not share their knowledge. The costs of the implementation process are most often up to 100 thousand Euros, but most businesses acknowledged additional unquantified costs. The duration of the implementation process was to one year. There are different views of the respondents on the level of individual standards. Most respondents admitted making mistakes in the first years of the implementation, but these were rather minor flaws. Regarding the perceived benefits, the majority of respondents agreed that the IAS/IFRS enable good comparability. However, when it comes to their brand and financial statements, they stated that for the company’s reputation the brand was more important than financial statements. It was found, however, that the majority of businesses have not experienced a reduction in the cost of capital.

Profitability of Agricultural Entities in Countries of Visegrad Group

Profitability of Agricultural Entities in Countries of Visegrad Group
(Profitability of Agricultural Entities in Countries of Visegrad Group)

Author(s):Jana Hvozdenská
Language:English
Subject(s):Business Economy / Management, Agriculture, Accounting - Business Administration
Page Range:172-177
No. of Pages:6
Keywords:financial analysis; agricultural enterprises; financial reports; profitability indicators;
Summary/Abstract:Based on selected individual data obtained from Farm Accountancy Data Network database the output efficiency of agricultural entities in countries of Visegrad Group is evaluated. This paper deals with the relationship between the profitability indicators as return on assets, return on equity, return on sales and the milk yields of agricultural entities in the states. The entities were divided into size categories according to outputs. The aim of the paper is to confirm the relationship between the indicators of profitability, the milk yields and the size of farming units. The survey results show that the profitability indicators with unit size are decreasing, milk yields on the other hand are increasing, however they are not unambiguous.

The Yield Curve as a Predictor of Economic Activity – the Case of Germany, Great Britain and France

The Yield Curve as a Predictor of Economic Activity – the Case of Germany, Great Britain and France
(The Yield Curve as a Predictor of Economic Activity – the Case of Germany, Great Britain and France)

Author(s):Jana Hvozdenská
Language:English
Subject(s):National Economy, Economic history, Economic policy, Comparative politics, Transformation Period (1990 - 2010), Present Times (2010 - today)
Page Range:178-183
No. of Pages:6
Keywords:bonds; GDP prediction; slope; spread; yield curve;
Summary/Abstract:In this paper we study the ability of the yield curve to predict GDP activity in Germany, France and Great Britain. The dataset contains the spread between 10-year and 3-month sovereign bonds and real GDP of the countries mentioned above between the years 2000 and 2018. The natural and probably the most popular measure of economic growth is GDP growth, taken quarterly. The steepness of the bond yield curve should be an excellent indicator of a possible future economic activity. A rise in the short rate tends to flatten the yield curve as well as to slow down real growth the near term. The relationship between the spread and future GDP activity was proved already before. The results showed that the prediction of the GDP growth or decrease was proven after year 2008 (the financial crisis) in all mentioned countries, the predictive power of the yield curve was lowered before the year 2008. Certainly the simple yield curve growth forecast should not serve as a replacement for the complex predictive models, it does, however, provide enough information to serve as a useful check on the more sophisticated forecasts. The results showed that the best predictive lag is a lag of five quarters. The theory says that it should be lag of four quarters. The results presented also confirm that 10-year and 3-month yield spread has significant predictive power for real GDP growth after financial crisis. These findings provide further evidence of the potential usefulness of the yield curve spreads as indicators of the future economic activity. These findings might be beneficial for investors and provide further evidence of the potential usefulness of the yield curve spreads as indicators of the future economic activity.

Investing in Emerging Markets: Contrasted Mean and Median Models in Egyptian Stock Markets

Investing in Emerging Markets: Contrasted Mean and Median Models in Egyptian Stock Markets
(Investing in Emerging Markets: Contrasted Mean and Median Models in Egyptian Stock Markets)

Author(s):Mai A. Ibrahim, Mohammed El-Beltagy, Motaz Khorshid
Language:English
Subject(s):Methodology and research technology, Financial Markets
Page Range:184-191
No. of Pages:8
Keywords:Emerging markets; higher moment models; median models; mixed-Integer linear programming; non-Linear programming;
Summary/Abstract:Emerging Markets return distributions have shown significance departure from normality were they are characterized by fatter tails relative to the normal distribution and exhibit levels of skewness and kurtosis that constitute a significant departure from normality. Therefore the classical Markowitz Mean-Variance is not the most suitable portfolio optimization model to apply for emerging markets since it assumes normally distributed returns and a quadratic utility function. Alternative models were suggested in the literature, higher moments models have been introduced to account for the insufficiency of the description of a portfolio by only its first two moments while the median model has been introduced as a robust statistic which is less affected by outliers than the mean. Alternative risk measures have been introduced instead of variance to capture the effect of risk. The purpose of this paper is to investigate the performance of different portfolio models in an emerging market such as the Egyptian Market to decide which can suit better the characteristics of this market. Higher moment models including Mean-Variance-Skewness and Mean-Variance-Skewness-Kurtosis and median models including Median Value-at-Risk and Median Mean-Absolute-Deviation are compared to the Markowitz model. The formulation of the models varied between single-objective nonlinear programming problems (NLP), single-objective mixed-integer linear programming (MILP) problems and single-objective quadratic programming problems. All the models are tested on real financial data in the Egyptian main Index EGX30. In general, median models have shown better performance than higher moments models and specifically the MedianVaR model. The MedianVaR model has provided the higher final wealth for the investor over the entire period of study. These findings can guide the decision making process for portfolio optimization in the Egyptian market were one can barely find any study on the portfolio optimization problem for the Egyptian Market in specific and the MENA region in general.

Key Performance Indicators System for Small and Medium-sized Enterprises in Non-productive Automotive in the Czech Republic: A Research Design

Key Performance Indicators System for Small and Medium-sized Enterprises in Non-productive Automotive in the Czech Republic: A Research Design
(Key Performance Indicators System for Small and Medium-sized Enterprises in Non-productive Automotive in the Czech Republic: A Research Design)

Author(s):Nikola Janíčková, Ondrej Zizlavsky
Language:English
Subject(s):Business Economy / Management, Micro-Economics
Page Range:192-200
No. of Pages:9
Keywords:key indicators; performance measurement; Balanced Scorecard; small and medium-sized enterprises; company performance;
Summary/Abstract:The aim of this article is to outline the research process that will be driven by small and medium-sized enterprises (SMEs) operating in the automotive industry as a car dealers or as other nonproductive works. The research will lead to the creation of key performance indicators system based not only on the Balanced Scorecard approach, but also on the other methodologies like as critical success factors that can improve and streamline financial management not only for firms in non-productive Automotive, but also for other companies. The research methodology consists of two parts. First part is literature review of scientific knowledge and finding a gap in knowledge in this area and second is schedule and planning of individual parts of the research, including to define the main research questions. The scientific aim of upcoming research is to define a system of key performance indicators based on the Balanced Scorecard approach, which will be applicable to all SMEs in the Czech Republic operating in the selected sector. The results of literature review show that it is necessary to define a system of financial performance management for nonproductive SMEs, because there is a lower level of knowledge and understanding in the financial performance and key indicators. But even this research cannot be without certain limitations. The limitation is that SMEs often lacking the necessary finances or knowledge of how implement this approach.

Analysis of Financial Market Using Soft Computing Techniques

Analysis of Financial Market Using Soft Computing Techniques
(Analysis of Financial Market Using Soft Computing Techniques)

Author(s):Zuzana Janková, Petr Dostál
Language:English
Subject(s):Financial Markets, ICT Information and Communications Technologies
Page Range:201-209
No. of Pages:9
Keywords:artificial intelligence; financial market; fuzzy logic; soft computing techniques;
Summary/Abstract:Soft computing is part of artificial intelligence containing fuzzy logic and artificial neural networks. Soft computing based systems are able to extract relevant information from large data sets by discovering hidden patterns in the data. The combination of these two techniques can provide an intelligent system with more ability and flexibility. Financial markets are becoming increasingly complex and demanding to predict stock price movements due to their non-linear and dynamic nature. The present study combines fuzzy c-means clustering and a neural network to support investment decisions in the ETF in the US stock market. The proposed model is designed to help investors identify profitable opportunities in stock markets.

Stock Price and Investment Decisions – Case of Warsaw Stock Exchange

Stock Price and Investment Decisions – Case of Warsaw Stock Exchange
(Stock Price and Investment Decisions – Case of Warsaw Stock Exchange)

Author(s):Magdalena Jasiniak
Language:English
Subject(s):Business Economy / Management, Financial Markets, Accounting - Business Administration
Page Range:210-217
No. of Pages:8
Keywords:financial markets; behavioural finance; low price anomaly; investment decisions;
Summary/Abstract:The main aim of the paper is to verify whether the price is one of the determinants of the investment decisions. According to theory of market efficiency, stock price should not influence rate of investment return and investment decisions. However, investors who are influenced by behavioural biases show a greater tendency to invest in the low – priced stocks. This phenomenon occurs in particular among investors with less experience who are under the illusory impression that low – priced stocks will grow faster and will bring above – average profits. This has an impact on managerial decisions and the desire to keep the company’s stock prices at optimal price range (f.e. by dividing the shares) to ensure effective capital allocation and liquidity of the company’s stocks. Article presents the results of questionnaire study conducted among individual investors in Poland. The analysis is based on the logit model. The results of the proved that price does matter in investment decision process and influence the future profits.

Financial Position of the Slovak Spa Companies

Financial Position of the Slovak Spa Companies
(Financial Position of the Slovak Spa Companies)

Author(s):Sylvia Jencova, Petra Vašaničová, Igor Petruška
Language:English
Subject(s):Business Economy / Management, Economic history, Present Times (2010 - today), Accounting - Business Administration
Page Range:218-225
No. of Pages:8
Keywords:competitiveness; spa companies; indicators; model; Slovak Republic;
Summary/Abstract:In recent years, the Slovak spa companies, through increasing in spa guests (self-payers, or clients of insurance companies), has been significantly contributing to the support of tourism, especially health tourism. The aim of the paper is to evaluate the financial position of non-financial business entities divided by SK NACE 869 - Other human health activities. In the analysis, we use financial data about 21 spa companies for the period 2013-2017 that are obtained from the Register of Financial Statements of the Ministry of Finance of the Slovak Republic. The research sample is considered according its revenues in a given period. In terms of legal form, research sample consists of 16 joint stock companies (a.s.), 3 limited liability companies (s.r.o.), and 2 stateowned companies (s.o.). Financial and economic analysis of spa companies in space is determined using four methods of Multi-Criteria Evaluation. Within this methodology, we use productivity and intensity indicators, namely basic earning power of the decision making unit, return on sales, personal costs-to-net turnover ratio, value added-to-sales ratio. Results have shown that the best position in the period 2013-2017 have had these Slovak spa companies: Spa Bojnice, Spa Lúčky, Spa Dudince, Bardejov Spa, and Slovak Health Spa Piešťany.

Cultural Diversity in Working Teams

Cultural Diversity in Working Teams
(Cultural Diversity in Working Teams)

Author(s):Yvona Kaňovská, Klára Strašáková, Lenka Janošová
Language:English
Subject(s):Sociology of Culture, Human Resources in Economy
Page Range:226-238
No. of Pages:13
Keywords:cultural diversity; team effectiveness; team performance; team influence;
Summary/Abstract:With ever-increasing globalization and new trends in the labor market, we are increasingly confronted with teams that are not homogeneous, whether this heterogeneity is based on a different gender, age, nationality or race. This paper focuses on cultural diversity, as due to the openness of the Czech economy and the high share of foreign capital, Czech managers must face culturally diverse teams more often at the workplace. It is also necessary to adapt the style of leadership and communication to exploit the potential of cultural diversity. Although some authors deny the existence of a relationship between diversity and team performance, most authors agree that diversity enhances the competitiveness of a company and assists in increasing the firm’s value. On the other hand, however, authors admit that diverse teams face several problems, which if not solved, can end up harming the business. The aim of this article is to present studies on cultural diversity using a systematic literary review and to help answer the question of whether cultural diversity affects the effectiveness and performance of teams and, if so, whether it is a positive or negative influence, and what factors have an impact on it.

Foreign Capital Inflows and Domestic Savings in Turkey

Foreign Capital Inflows and Domestic Savings in Turkey
(Foreign Capital Inflows and Domestic Savings in Turkey)

Author(s):Özcan Karahan
Language:English
Subject(s):National Economy, Business Economy / Management, Economic history, International relations/trade, Transformation Period (1990 - 2010), Present Times (2010 - today)
Page Range:239-246
No. of Pages:8
Keywords:Capital Inflows; savings; ARDL Model;
Summary/Abstract:Since a high level of financial funding is needed to stimulate investment and thus enhance economic growth, most of the developing countries have sought to attract foreign capital to their financial system. Accordingly, after the implementation of different policies aiming the country to be attractive for foreign funds, Turkey have attracted huge financial capital to the own economy over the last decades. This study aims to determine the impact of capital inflows on total saving in Turkey by using ARDL Bound Testing Approach for quarterly data between 2002 and 2018. Empirical findings indicated that capital inflows to Turkey could not create the positive effect on total saving as much as expected from them. This is because foreign funds provided by capital inflows to Turkey had a substitution effect rather than completing domestic savings in the Turkish Economy. This result also shows that external dependence and thus fragility of financial markets in Turkey have significantly increased. Therefore, it is necessary to give priority to policies related to the management of capital inflows in order to ensure financial stability and achieve sustainable growth in Turkey.

The Role of IFRS 15 in the Evaluation of the Effects of Business Model Innovation

The Role of IFRS 15 in the Evaluation of the Effects of Business Model Innovation
(The Role of IFRS 15 in the Evaluation of the Effects of Business Model Innovation)

Author(s):Mariusz Karwowski
Language:English
Subject(s):Business Economy / Management, Evaluation research, Accounting - Business Administration
Page Range:247-254
No. of Pages:8
Keywords:IFRS 15; revenue; business model innovation; financial statements;
Summary/Abstract:The proper recognition of revenue is an important element in the preparation of the statement of profit or loss and other comprehensive income and, as such, it is an extremely difficult and complex issue. The challenge is greater in the context of business model innovation (BMI), which now constitutes a key source of growth and value creation. The objective of the research underlying this article is to determine the role of the new IFRS 15 “Revenue from Contracts with Customers” in evaluating the effects of BMI. A review of pertinent literature was conducted as well as an empirical study based on financial statements for the year ending in 2018 of companies from sectors in which BMI very often occurs: biotechnology, games, IT, and the pharmaceutical industry. Based on the research into relevant literature and the empirical study, it was found that IFRS 15 enables companies to match revenue more closely to the work performed to earn it and to calculate the value transferred to customers. Due to the complexity of these rules, when evaluating the effects of BMI, it is important to provide information supplementing the presentation of revenue in the statement of profit or loss and other comprehensive income. In the field of accounting research, this article may be treated as an attempt to look at revenue, the key element of financial statements, from the perspective of BMI.

Methodological Aspects of Evaluating the Efficiency of Public Procurement in order to Improve the Effectiveness of Financial Control in the Regions of Russia

Methodological Aspects of Evaluating the Efficiency of Public Procurement in order to Improve the Effectiveness of Financial Control in the Regions of Russia
(Methodological Aspects of Evaluating the Efficiency of Public Procurement in order to Improve the Effectiveness of Financial Control in the Regions of Russia)

Author(s):Oksana Kashina, Natalia N. PRONCHATOVA-RUBTSOVA, Sergey Petrov, Nadezhda Yashina
Language:English
Subject(s):Economic policy, Methodology and research technology, Evaluation research, Fiscal Politics / Budgeting, Socio-Economic Research
Page Range:255-261
No. of Pages:7
Keywords:public procurement; budget funds; efficiency; evaluation methodology; financial control;
Summary/Abstract:The world economy instability, the crisis phenomena and the need to quickly overcome their consequences explain the flexibility requirements of the state financial policy, which ensures the transition to an innovative model of socio-economic development. An important mechanism of state regulation is the public procurement system development, which will allow to rationally use budget funds in the limited financial resources context, given the desire to fully implement public functions. In this regard, the study purpose is the development of an evaluation the public procurement efficiency methodology in order to improve the financial control effectiveness in the Russian regions. The proposed methodology for assessing the public procurement efficiency is based on a systematic and integrated approach, which requires the formation of an indicators’ set, including such key indicators as the share of capital and current purchases in regional budget expenditures, savings on the state order conclusion, the share of the contracts’ cost with a single supplier of the total contracts’ value. In the work, modern scientific tools and various research methods are used: economicstatistical, system-analytical and expert assessments. Methodology approbation was carried out on the example of the Russian regions on the basis of official open data from the Unified Procurement Information System, the Federal Financial Monitoring Service, the Federal Treasury of the Russian Federation for 2016-2018. The practical implementation of the proposed methodology allows ranking the regions on the basis of a consolidated indicator for evaluating the public procurement efficiency, taking into account the established indicators. The analysis results of this annual rating can be used in the state executive bodies work in making concepts for the territorial development aimed at improving public administration, developing a competitive public procurement market, improving the efficiency and transparency of using budget funds to increase the financial control effectiveness and maximize satisfaction social needs.

Evaluation of Financial Health of Companies in Slovak Republic Based on Selected Mathematical-statistical Methods

Evaluation of Financial Health of Companies in Slovak Republic Based on Selected Mathematical-statistical Methods
(Evaluation of Financial Health of Companies in Slovak Republic Based on Selected Mathematical-statistical Methods)

Author(s):Michaela Kavčáková
Language:English
Subject(s):Business Economy / Management, Methodology and research technology, Accounting - Business Administration
Page Range:262-270
No. of Pages:9
Keywords:financial health; financial distress prediction; Beaver´s test; Altman´s test; Quick test;
Summary/Abstract:The main purpose of this paper is to evaluate financial health of companies in Slovakia through selected mathematical-statistical methods and to compare them. The data used in the analysis of this paper has been obtained from the Slovak internet portal Finstat and we have been analysing the data between 2013 and 2017. From each group of models used to evaluate the financial health of companies we have chosen one test to use them in this paper – Beaver´s test, Altman´s test and Quick test. These tests differ in the way they calculate financial health, so on that basis we can determine the differences between them and we can determine which type of test is most reflective of the real situation of companies. In our paper, we will use Beaver´s test, Altman´s test and Quick test to evaluate financial health of companies in Slovakia in the chosen industry from 2013 to 2017.

Bitcoin as a Panacea for the Venezuelan Crisis

Bitcoin as a Panacea for the Venezuelan Crisis
(Bitcoin as a Panacea for the Venezuelan Crisis)

Author(s):Agata Kliber, Katarzyna Świerczyńska
Language:English
Subject(s):National Economy, Economic history, Present Times (2010 - today), Financial Markets, ICT Information and Communications Technologies
Page Range:271-281
No. of Pages:11
Keywords:safe haven asset; Bitcoin; Venezuela; crisis; gold;
Summary/Abstract:The aim of the article is to verify which asset: gold, oil or bitcoin can be considered a safe-haven in a crisis-driven Venezuela. Our study covers the period 01.05.2014-31.07.2018, as in August 2018 Venezuela changed its currency to Bolivar Soberano. We estimate a threshold vector autoregression model for the returns of all the above-specified assets, where the threshold variable was the return of Venezuelan Stock Exchange General Index (IBC). We allow for three regimes: the extreme upward movements of the index (the hype), the moderate behavior, and the extreme downward changes (the crisis). We verify whether the relationships between the three pairs of assets (IBC and gold, IBC and oil, IBC and bitcoin) change depending on the regime. We also assume that the error term from the regression model follows a GARCH model. Our results suggest that both gold and oil could have been considered a safe-haven asset in a crisis-driven Venezuela, as the instruments changed in the opposite direction to the IBC when the extreme downward movements of the index have been observed. Additionally, their volatility was much smaller and uncorrelated with the volatility of the IBC. Eventually, our results suggest that investing in bitcoin has been considered by the investors as an alternative to investment not only in the moments of the extreme changes of the index, but also in its “moderate” regime.

FinTechs as Alternative Financial Market Players

FinTechs as Alternative Financial Market Players
(FinTechs as Alternative Financial Market Players)

Author(s):Monika Klimontowicz, Krystyna Mitręga-Niestrój
Language:English
Subject(s):Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
Page Range:282-289
No. of Pages:8
Keywords:FinTech; financial innovations; new technology; financial services;
Summary/Abstract:The dynamic development of technology has resulted in changing customer needs, expectations and market behaviour. As a result bank and other financial entities were forced to change their product and distribution policy. Among external factors influencing banking market conditions, the dynamic development of nonbank technologyoriented service providers is thought to be one of the highest potentials to impact the market structure. This trend is also visible in Poland, where development of FinTech companies in different financial services market areas is noticable. The paper presents different approaches to the FinTech phenomenon. It shows the taxonomy of the FinTech companies and analysis the segments of financial markets which are characterised by low market entry barriers. The main aim of the article is to outline the Polish FinTech landscape – to characterise the FinTech market, showing main participants, drivers of development and challanges. The research method includes inductive and deductive methods, together with comparative analysis.

Analysis of Consumption Tax Dependence on Beer consumption in the Czech Republic

Analysis of Consumption Tax Dependence on Beer consumption in the Czech Republic
(Analysis of Consumption Tax Dependence on Beer consumption in the Czech Republic)

Author(s):Eva Kolářová, Vendula Kolářová
Language:English
Subject(s):Economic policy, Substance abuse and addiction, Fiscal Politics / Budgeting
Page Range:290-298
No. of Pages:9
Keywords:Tax Policy; Consumption Tax; Alcohol; Beer; Revenue;
Summary/Abstract:The tax on alcohol falls under excise duties, which form part of the state budget. Alcohol is one of the most harmful psychotropic substances. There is probably no one in the Czech Republic who does not know beer. It's the most popular alcoholic beverage. The total amount of alcohol consumption is logically made by the consumption of each type of alcohol. Alcohol consumption in the Czech Republic is one of the largest in the EU according to the 2017 OECD results. It may also depend on the level of consumer income and the price of alcohol affected by the tax rate on alcoholic beverages. Furthermore, macroeconomic indicators such as unemployment, GDP growth and inflation may also affect consumption. The aim of our article is to determine whether the level of taxation will affect the reduction of beer consumption, whether the amount of wages will affect the amount of beer consumption, whether the ban on smoking in restaurants and public spaces will affect beer consumption.

Does Gender Matter in the Performance of Family Firms? Evidence from the Czech Republic

Does Gender Matter in the Performance of Family Firms? Evidence from the Czech Republic
(Does Gender Matter in the Performance of Family Firms? Evidence from the Czech Republic)

Author(s):Daniela Kolouchová, Ondřej Machek, Aleš Kubíček
Language:English
Subject(s):Gender Studies, Business Economy / Management, Family and social welfare, Socio-Economic Research
Page Range:299-306
No. of Pages:8
Keywords:family firms; gender; performance; women’s directorship;
Summary/Abstract:This study aims to examine the effect of women’s presence in key management position on family company performance. On a sample of 343 observations of female-led firms and 2 668 observations of male-led Czech family firms from the period 2008-2013, we perform regression analysis and Student's t-test to find the differences in return on assets and its predictors. Women’s directorship is a statistically significant predictor of family business performance as measured by return on assets. Women who reach the top management positions in a family business perform better than their male counterparts, and family firms led by women use more debt and are smaller than family firms led by men. Female managers in family businesses are likely to contribute to their organization's current and future success, as well as to the success of their families. Supporting the advancement of women to higher positions and, at the same time, supporting family firms may be beneficial to society.

Analysis of Migration Processes and Assessment of their Impact on the Development of International Money Transfers of Ukraine

Analysis of Migration Processes and Assessment of their Impact on the Development of International Money Transfers of Ukraine
(Analysis of Migration Processes and Assessment of their Impact on the Development of International Money Transfers of Ukraine)

Author(s):Irina Kolupaieva, Olena Shevchenko, Ivan Mytsenko, Alina Borysova
Language:English
Subject(s):Migration Studies, Socio-Economic Research
Page Range:307-317
No. of Pages:11
Keywords:migration policy; international money transfers; financial system; transmission; money transfer channel;
Summary/Abstract:The main purpose of the research is to analyse migration processes of Ukraine and to determine the factors influencing the development of the market of international money transfers in Ukraine as a significant direction of strengthening the financial system of the country. According to the purpose, the dynamics of migration in Ukraine according to the geographical structure was analyzed, factors of influence on migration processes in Ukraine were determined. The impact of migration processes on the development of international money transfers was analyzed. Factors that affect the volumes of money transfers by official channels were determined. The estimation of factors according to the degree of influence and the dynamics of influence on money transfers was carried out. Measures to increase migrant remittances were identified.

Regional Differences in the Relation of Flat Prices to Net Disposable Income of Households

Regional Differences in the Relation of Flat Prices to Net Disposable Income of Households
(Regional Differences in the Relation of Flat Prices to Net Disposable Income of Households)

Author(s):Lenka Komárková, Libor Votava, Jiří Dvořák
Language:English
Subject(s):Regional Geography, Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets, Socio-Economic Research
Page Range:318-324
No. of Pages:7
Keywords:real estate market; flat prices; household disposable income; panel data; regional analysis;
Summary/Abstract:The residential real estate market (especially flats) is currently a very topical issue both from an economic as well as social point of view. Flat and house prices determine the economic burden in family finances and the availability of housing for households in regions. The paper aims to identify differences in the relation between flat prices and net disposable income of households among 14 regions in the Czech Republic based on the publicly available data from the period 2000 - 2017. To deal with the panel (longitudinal) data, a linear mixed model was used for the analysis. Twenty statistically significant differences from a total of 91 were identified. The results show that flat prices grow with increasing household disposable income faster in Prague as compared to other regions, except South Moravia. The results of our study can be helpful in the perspective of the regional economic policy or households’ decision makings about their living place or the family real estate investment.

Foreign Trade in Central Europe: The Analysis of Openness

Foreign Trade in Central Europe: The Analysis of Openness
(Foreign Trade in Central Europe: The Analysis of Openness)

Author(s):Jaroslav Kovarnik, Eva Hamplova
Language:English
Subject(s):Business Economy / Management, Economic policy, International relations/trade
Page Range:325-333
No. of Pages:9
Keywords:Central Europe; The Czech Republic; export; foreign trade; import;
Summary/Abstract:The main topic of this article is the analysis of selected issues of foreign trade in the countries from central Europe, namely the Czech Republic, Poland, Slovakia, Hungary, Germany, and Austria. The Czech Republic, Poland, Slovakia, and Hungary are member states of so-called Visegrad Four, and they can be considered as developing countries, at least in comparison with other two analysed countries. Germany and Austria are not only strong and powerful countries, but they are also important business partners for all V4 countries. This article focuses on selected aspects of foreign trade development, because foreign trade is considered to be very important for successful and sustainable development of almost all countries around the world. The article analyses development of foreign trade with goods and with services, where we have discovered relatively surprising results (the weakest country in terms of services has been Germany, where the country with highest net balance has been Poland). Consequently, the article analyses the dependency of analysed countries on foreign trade. Several indicators can be used for this analysis, where the authors have been used export on GDP ratio, import on GDP ratio, and turnover on GDP ratio. From theoretical point of view, strong and large economies should be less dependent on foreign trade, where weak and small countries should be more dependent. This fact has been proved, but on the other hand, although small and relatively weak countries are more dependent on foreign trade, the final benefit of net balance on GDP is relatively low, which is relatively surprising fact again.

Contextual Non-financial Information Analysis of Annual Reports

Contextual Non-financial Information Analysis of Annual Reports
(Contextual Non-financial Information Analysis of Annual Reports)

Author(s):Zuzana Kubaščíková, Miloš Tumpach, Zuzana Juhászová, Bazhan TUREBEKOVA, Saule SAPARBAYEVA
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:334-342
No. of Pages:9
Keywords:sentiment analysis; annual report; narrative data;
Summary/Abstract:When assessing a firm‘s current and future financial performance, various information sources are available to interested parties. Annual reports, within which companies reveal their activities, results, developments and trends, are one of the most important information sources. Such a report contains, alongside financial data, narrative disclosure of contextual non-financial information providing broader insight into a company´s business and performance. With the increasing average length of narratives in recent years we may also observe the growing interest of investors or analysts in information revealed here as a means of supporting their decisions. The aim of this paper is to accept or reject the claims that non-financial "narrative" data could also be used for the assessment of the financial position and financial performance of a company. Our study confirms the assumption that qualitative data expressed in annual report narratives preceded change in quantitative financial data, and therefore could be used for the prediction of company financial performance. However, as qualitative and quantitative data complement and support each other they should be considered simultaneously by the annual report users, in order for them to be able to make the right decisions. Ergo, we recommend that investors and other annual report users examine narratives alongside individual financial situations and other information sources, in order to get a complete picture of the potential future developments of a company’s financial performance. This would consequently contribute to their ability to make the right investment decisions and enable them to appraise the value of their funds.

Lowered VAT Rate Transfer to the Consumer Prices: Selected Medicaments Case Study

Lowered VAT Rate Transfer to the Consumer Prices: Selected Medicaments Case Study
(Lowered VAT Rate Transfer to the Consumer Prices: Selected Medicaments Case Study)

Author(s):Gabriela Kukalová, Lukáš Moravec, Dana Bína Filipová, Viktor Janáček, Miroslav Ulrych
Language:English
Subject(s):Economic policy, Fiscal Politics / Budgeting, Socio-Economic Research
Page Range:345-352
No. of Pages:8
Keywords:VAT; tax rate; tax burden; price; Czech Republic;
Summary/Abstract:The contribution focuses on changes in the tax burden on consumers following the introduction of a second reduced rate of value added tax on selected products. The shift in tax burden was assessed on a sample of specific pharmacy products that had been included in the second reduced VAT rate since 1st January 2015. Based on the pharmacy chain recommendations that provided the necessary data, the products were selected as a typical assortment sample, including contraception, high blood pressure medication, vaccine, antibiotics, and baby food. The provided data included mainly sales prices for final consumer for selected products in the months of 2014 and 2015. Data on sales prices were adjusted for inflation. The results show that the impact of the inclusion of selected products in the second reduced VAT rate on the final consumer price was positive. Reducing the VAT rate by including the price change set by the vendor and including inflation reduced the tax burden on the final consumer for all the products examined. The amount of change was highly variable in the individual products, thanks to the entry of other non-tax factors into the price formation process.

Do European Investors React to Extreme Oil Prices? Evidence from Granger Causality in Tails Test

Do European Investors React to Extreme Oil Prices? Evidence from Granger Causality in Tails Test
(Do European Investors React to Extreme Oil Prices? Evidence from Granger Causality in Tails Test)

Author(s):Blanka Łęt
Language:English
Subject(s):Energy and Environmental Studies, Financial Markets
Page Range:353-361
No. of Pages:9
Keywords:Granger causality in tails; crude oil; stock market; risk; extreme value;
Summary/Abstract:In this paper we analyze relationship between selected European stock markets and crude oil market. The aim of our analysis is to check whether stock market participants react to extreme changes in oil price. Specifically, we verify whether there is contemporaneous and delayed Granger causality between occurrence of the extreme negative or positive returns on the crude oil market and main European stock markets. We use daily Brent futures prices and stock indices from Belgium, France, Germany, Greece, Italy, Netherlands, Norway, Poland, Spain, Sweden and United Kingdom. We implement Candelon and Tokpavi (2016) testing procedure. Our results show that in the analyzed period in most cases the symmetrical contemporaneous causality was dominant, i.e. extreme negative or positive returns on the oil market and stock markets occurred on the same day and had the same direction. Results of Granger delayed causality test show that more long-lasting reaction occurred as a result to the negative news from the oil market.

Implementation of IAS/IFRS and Their Impact on Selected Financial Performance Indicators

Implementation of IAS/IFRS and Their Impact on Selected Financial Performance Indicators
(Implementation of IAS/IFRS and Their Impact on Selected Financial Performance Indicators)

Author(s):Jozef Lukáč
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:362-368
No. of Pages:7
Keywords:International Financial Reporting Standards; IAS; IFRS; financial performance; financial indicators;
Summary/Abstract:International harmonization is the result of the gradual alignment of the individual accounting principles within the regional representation of states with their own system and habits, while the regional (territorial) groups rank continental, South American, Anglo-Saxon and mixed among these bases. From the point of view of the Slovak Republic, together with the countries of the former Eastern Bloc and the countries of the Visegrad Group (with the exception of the Czech Republic), the Slovak Republic is one of the countries with a mixed accounting system. The European Union countries themselves use more than 25 different accounting systems. The aim of the paper is to point out the research carried out in the area of measuring the financial performance of enterprises in the transition from national accounting legislation to the system of international financial reporting standards. The objective of the paper is also to compare financial indicators in 8 financial statements before and after the adoption of IAS/IFRS.

Impact of Brexit on Volatility Connectedness across ASX’s Subindices

Impact of Brexit on Volatility Connectedness across ASX’s Subindices
(Impact of Brexit on Volatility Connectedness across ASX’s Subindices)

Author(s):Lukáš Marek
Language:English
Subject(s):Transformation Period (1990 - 2010), Present Times (2010 - today), EU-Accession / EU-DEvelopment, Financial Markets
Page Range:369-376
No. of Pages:8
Keywords:Brexit; connectedness; spillover; variance decomposition; VAR;
Summary/Abstract:In this paper, we apply (Diebold and Yilmaz, 2012) a generalised variance autoregressive framework to measure historical FTSE All-share Index’s (hereafter ASX) sector volatility connectedness with a focus on the Brexit era. The main goal of the paper is to examine if Brexit has altered British inter-market connectedness. We analyse six major ASX’s sectors provided by Bloomberg, which stands for almost 50 % of ASX’s market capitalisation. We use daily prices from May 2006 to the end of May 2019 obtained via Bloomberg Terminal to compute weekly volatility. Then the forecast error variance decomposition is applied to the volatility dataset. The static, as well as the dynamic measurement, is being calculated. We find that the methodology greatly captures volatility shocks, including the shocks primarily caused by Brexit issue. Based on the results, we infer, that the increased volatility connectedness is more of a temporary character than a structural nature.

An Empirical Analysis of the Impact of R&D on Productivity in EU Countries

An Empirical Analysis of the Impact of R&D on Productivity in EU Countries
(An Empirical Analysis of the Impact of R&D on Productivity in EU Countries)

Author(s):O. Mykolenko, Svitlana Strapchuk, O. Kozyrіeva
Language:English
Subject(s):Business Economy / Management, Labor relations, International relations/trade, EU-Accession / EU-DEvelopment, Human Resources in Economy
Page Range:377-384
No. of Pages:8
Keywords:R&D; productivity; technological level;
Summary/Abstract:The research investigates the question whether research and development expenditures contribute to productivity growth and depend on the particular countries’ capacity and industries’ technological level. The paper deals with the analysis of the impact of R&D on the companies’ productivity on the industry level in EU countries based on panel data and the stochastic frontier production function approach. We estimate the production function separately for six different sectors and one industry. The results indicate that distribution of production and other relevant factors, such as physical capital per employee, labour force with tertiary education, ICT goods exports etc., vary significantly across industries, reflecting different absorption and diffusion capability of economies and their potential to structural changes. The findings have the practical value for strategic development of Ukrainian economy in the course of integration into EU market, and suggest the design of R&D policy based on the experience of EU countries, structure of the national industries, their technological level and future perspectives.

Milestones in the Development of the Modern Insurance Market in the Czech Republic

Milestones in the Development of the Modern Insurance Market in the Czech Republic
(Milestones in the Development of the Modern Insurance Market in the Czech Republic)

Author(s):Svatopluk Nečas, Eva Vávrová
Language:English
Subject(s):Business Economy / Management, EU-Accession / EU-DEvelopment, Financial Markets
Page Range:385-391
No. of Pages:7
Keywords:insurance market; commercial insurance company; market structure ;market leader; demonopolization; transformation;
Summary/Abstract:The main goal of the paper is to define the fundamental milestones of the modern insurance market in the Czech Republic. The article will deeply analyze the transformation of the insurance market in the Czech Republic, launched in 1991. The accession of the Czech Republic to the European Union will not be forgotten either. These milestones will be supported by selected indicators specifically used to describe the insurance industry that can be used to document the event and learn more about it. The methods of description, analysis and comparison will be used in the paper. Regarding results, the number of commercial insurance companies stabilized over the time at around fifty, with the largest insurer’s share now reaching just over 20%, as measured by premiums written. The impact of the Czech Republic's accession to the EU is also traced in the paper. We can distinguish domestic insurance companies and branches of insurance companies from the EU and third countries. There is a significant increase in the number of branches after the Czech Republic's accession to the EU; in the first years after entry it roughly doubles, after ten years from entry it rises roughly three times compared to the number of branches before entry.

Transaction Costs in the Czech and Slovak E-procurement: Selected Issues

Transaction Costs in the Czech and Slovak E-procurement: Selected Issues
(Transaction Costs in the Czech and Slovak E-procurement: Selected Issues)

Author(s):Juraj Nemec, Matúš GREGA, Marta Orviská, Markéta Šumpíková
Language:English
Subject(s):Business Economy / Management, ICT Information and Communications Technologies
Page Range:392-399
No. of Pages:8
Keywords:public procurement; electronisation; transaction costs; Czech Republic; Slovakia;
Summary/Abstract:Experts and public procurement offices state that e-procurement increases the competition in public procurement and thank to this saves an important sum of public money. However, the real picture is not so simple. First, their calculations use the difference between estimated and final price to calculate savings, which is very problematic indicator. Second, there is the issue of transaction costs – and some studies suggest that transaction costs can be higher than above indicated formal savings. The goal of this paper was to calculate selected types of transaction costs of e-solutions in the public procurement in the Czech Republic and in the Slovak Republic. The first part of the analysis presented the estimates of the transaction costs of the Slovak e-market system, which is functional from 2012 and its current software available from 2014. The second part of the analysis presented similar calculations for the Czech national eprocurement tool – NEN. The calculated data have important methodological limitations and should not be used to say in definite way that e-procurement is very effective, or – opposite – too costly. However these data seem to suggest that electronisation of procurement has important potential, especially in situations when new electronic solutions are implemented for reasonable costs (no corruption) and serve to large number of purchasing operation (economies of scale).

Tax Haven Ties and the Profitability of Foreign Owned Companies

Tax Haven Ties and the Profitability of Foreign Owned Companies
(Tax Haven Ties and the Profitability of Foreign Owned Companies)

Author(s):Danuše Nerudova, Veronika Solilova, Marian Dobranschi, Marek Litzman
Language:English
Subject(s):Business Economy / Management, Economic policy, Fiscal Politics / Budgeting, Accounting - Business Administration
Page Range:400-408
No. of Pages:9
Keywords:profit shifting; corporate income tax; stochastic frontier model; tax havens;
Summary/Abstract:Tax haven countries are the prevalent territories chosen by the Multinational Enterprises to place their income in order to avoid tax burden. By exploiting tax differences and preferential tax regimes, the Multinational Enterprises can engage in profit shifting in order to decrease the corporate income tax. This paper aims to analyze the impact of links with tax haven countries on the profitability of foreign owned companies based in the Czech Republic. The objective of this research is to investigate whether Czech subsidiaries that have sister companies based in tax haven countries report less profit before taxation. We adopt the stochastic frontier model to estimate the effect of links with tax haven on the output inefficiency reported by the Czech companies. We focus our empirical analysis on the firm-level data and their ties with 50 world tax haven countries. The links with tax havens are expected to have a negative impact of company efficiency, proxied by profit before taxation. This negative effect represents an indirect evidence of profit shifting from the Czech Republic to tax haven countries.

The Financial Education among Pupils in the South Moravian Region

The Financial Education among Pupils in the South Moravian Region
(The Financial Education among Pupils in the South Moravian Region)

Author(s):Josef Nešleha, Lenka Janošová
Language:English
Subject(s):Regional Geography, School education, Pedagogy
Page Range:409-417
No. of Pages:9
Keywords:financial literacy; primary school; South Moravian Region; Czech Republic; pupil; analysis of variance; ANOVA;
Summary/Abstract:Needles to say that financial literacy has become one of the important topics related to finance. Not only has it been implemented into the curriculums of most of the schools in the Czech Republic, yet it also has become a subject of testing. This confirms the existence of several studies conducted in past. The subject of this study is the level of financial literacy level among young pupils in the Czech Republic, particularly in the South Moravian Region. The goal of it is to provide results concerning a recently conducted study on primary schools in the region. The results are devoted to several tested predictors of the financial literacy level. It has been shown that the area of pupils’ hobbies is a statistically significant predictor of financial literacy level, together with pupils’ profession. On the other hand, gender and presence of siblings have been rendered as statistically insignificant predictors. The study is based on quantitative research and several statistical methods, such as t-tests or ANOVA are applied.

Evolution of the Financial Stability Reports – Theoretical Approach

Evolution of the Financial Stability Reports – Theoretical Approach
(Evolution of the Financial Stability Reports – Theoretical Approach)

Author(s):Aleksandra Nocoń
Language:English
Subject(s):Business Economy / Management, Economic policy, Accounting - Business Administration
Page Range:418-425
No. of Pages:8
Keywords:financial stability report; central bank; monetary policy; communication system;
Summary/Abstract:Over the last decade, financial stability has become the overriding objective of central banks’ monetary policy. Monetary authorities as well as governments paid particular attention to the need to maintain stability of the financial system. The main reason were the negative consequences of the global financial crisis as well as new types of risk, appearing as a result of financial markets and instruments development, increased financial institutions’ propensity to undertake excessive risk and persistently high level of systemic risk. One of the visible signs of increased interest in the issue of financial stability is growing number of Financial Stability Reports (FSR), published by central banks. Moreover, after the outbreak of the global financial crisis, production of these reports is a rapidly growing "industry" (Čihák, 2006, p. 4; Čihák et al., 2012, p. 5). The main aim of the paper is the analysis of the evolution of the Financial Stability Reports (FSR) into more preventive tool for identifying how central banks contribute to financial stability and what kind of actions they undertake in this field. Moreover, the study points out that the Financial Stability Reports should be characterized by the proactive approach, which means that they should meet the changing external conditions, adapt to identified new areas of risk that may potentially have a negative impact on the financial system's condition, and at the same time systematically assess quality of central banks’ actions, in order to improve them.

Investment in Land – Strategic Decision

Investment in Land – Strategic Decision
(Investment in Land – Strategic Decision)

Author(s):Josef Novotny, Renáta Myšková
Language:English
Subject(s):Business Economy / Management, Agriculture, Financial Markets
Page Range:426-433
No. of Pages:8
Keywords:Land; Investment; Finance index; Investor; Production Factor;
Summary/Abstract:Nowadays, there is a significant loss of arable land both on a global and national scale and that is why this production factor is becoming an interesting investment tool for the investor public also in the Czech Republic. A problem that occurs in the Czech market environment is the lack of knowledge of the issues related to the investment plans into this asset by the domestic as well as foreigner investors and the uncertainty in the decision-making and the assessment on how strategically profitable it is to own land. The article points out the investment opportunities in land in real form and disadvantages of land ownership resulting from valid legislation of the Czech Republic and from the supply and demand in the land market. The key attributes that encourage the interest in this asset by the investors and speculators are described, and it is shown, using model examples, how the current legislative and market conditions reflect in the price of land and if it is strategically appropriate for the landowners to keep the land or sell it. Given the fact that the Czech investor environment has an absolute lack of finance index of this asset, a methodology of land index creation is designed

Identifying of the Expectations of Stock Trading Participants for the Diagnosis of Financial Market Environment Using the Online Analysis of an Order Book

Identifying of the Expectations of Stock Trading Participants for the Diagnosis of Financial Market Environment Using the Online Analysis of an Order Book
(Identifying of the Expectations of Stock Trading Participants for the Diagnosis of Financial Market Environment Using the Online Analysis of an Order Book)

Author(s):Sergey Petrov, Nadezhda Yashina, Oksana Kashina, Natalia N. PRONCHATOVA-RUBTSOVA, Mikhail Rogozin
Language:English
Subject(s):Business Economy / Management, Micro-Economics, Financial Markets, ICT Information and Communications Technologies
Page Range:434-442
No. of Pages:9
Keywords:financial market forecasting; investors’ expectations; flows of exchange orders; bid-ask spread; the depth of the stock market;
Summary/Abstract:Modern trading platforms made it possible to monitor the exchange auction of counter orders in real time that opened up an access to valuable information on many intramarket processes and the emergence of new market price trends. The paper aims to develop an original approach permitting to discover stock market players’ expectations with regard to the future share price dynamics. The theoretical framework is based on the microeconomic model of individual trader’s net demand proposed in the authors’ previous studies. The model explains conditions under which traders place either limit or market orders to buy and to sell stock. It associates price and volume of any limit order with the capital capacity of the trader’s net demand which is viewed as an indicator of the trader’s holding of the given stock. In this way it becomes possible to construct an algorithm for monitoring of holdings of stocks owned by traders responsible for the separate quotes in the order book. As an application of the algorithm an example is considered signaling about market participants’ expectations of a share price rising at a given point in time. The experimental procedure proposed in the paper involves the ongoing analysis of instantaneous data of the trading platform that are displaying by an order book for stock. Some variants of computerizing of the algorithm are discussed aiming to implement it for the monitoring of financial market environment. The methods developed are of interest either for por

Implementation of the European Directive on Non-financial Information in the European Economic Area

Implementation of the European Directive on Non-financial Information in the European Economic Area
(Implementation of the European Directive on Non-financial Information in the European Economic Area)

Author(s):Veronika Popelková, Jaroslav Sedláček
Language:English
Subject(s):Law on Economics, EU-Accession / EU-DEvelopment, EU-Legislation
Page Range:443-451
No. of Pages:9
Keywords:non-financial reporting; Corporate Social Responsibility; the European Directive on non-financial information;
Summary/Abstract:With effect from 1 January 2017, states of the European Economic Area were obliged to implement Directive 2014/95/EU of the European Parliament and of the Council amending Directive 2013/34/EU as regards the disclosure of non-financial information and information on diversity by some large companies and groups. The aim of this article is to compare, on the basis of the chosen criteria, the national transpositions of the individual states concerning the reporting of non-financial information and to assess the degree to which individual Member States have transposed the requirements of the European Directive 2014/95/EU on non-financial information. Based on a detailed analysis of the European Non-Financial Information Directive, the following criteria have been chosen to compare national legislation: definition of public interest entity, public topics of non-financial information and their content, standards and frameworks for reporting non-financial information, auditor’s involvement, Safe Harbour Principle, description of diversity policy, disclosure requirements and sanctions for breach of obligations. Based on the statistical evaluation, the degree of implementation of the European Directive in the individual states is assessed.

The Expense Ratio Development of Insurance Portfolios in Selected Insurance Companies in the Czech Republic in 2010-2017

The Expense Ratio Development of Insurance Portfolios in Selected Insurance Companies in the Czech Republic in 2010-2017
(The Expense Ratio Development of Insurance Portfolios in Selected Insurance Companies in the Czech Republic in 2010-2017)

Author(s):Lenka Přečková, Eva Vávrová
Language:English
Subject(s):Business Economy / Management, Present Times (2010 - today)
Page Range:452-461
No. of Pages:10
Keywords:bancassurance; insurance group; insurance company; expense ratio;
Summary/Abstract:This paper shall compare insurance portfolios in selected insurance companies operating in the Czech Republic based on the growth rate of premiums written and the expense ratio. It shall compare these insurance companies: ČSOB Pojišťovna, Komerční pojišťovna, Kooperativa pojišťovna, Pojišťovna České spořitelny and Česká podnikatelská pojišťovna. ČSOB Pojišťovna and Komerční pojišťovna were selected because they are subjects with a developed bancassurance model and because the previous research suggested that insurance companies applying this model achieve a lower expense ratio. Kooperativa pojišťovna, Česká podnikatelská pojišťovna and Pojišťovna České spořitelny were selected because they are members of the insurance group VIG in the Czech Republic and the group has cooperated with the Erste Group Bank since 2008 based on their Strategic Cooperation Agreement. The aim of this paper is to determine whether or not the selected insurance companies and the group VIG achieve lower expense ratio of the insurance portfolio than what is the average of the expense ratio of insurance portfolios on the Czech insurance market. The paper shall compare the expense ratio of selected commercial insurance companies and the average of the expense ratio on the Czech insurance market in the 2010-2017 period. The research confirms that ČSOB Pojišťovna and Komerční pojišťovna reach lower values of expense ratio in life insurance. The insurance companies belonging to the VIG group (with the exception of Česká podnikatelská pojišťovna) reach lower values of ER in life insurance than the overall insurance market on average.

Extreme Tools of World Economy Management and Their Risks

Extreme Tools of World Economy Management and Their Risks
(Extreme Tools of World Economy Management and Their Risks)

Author(s):Rejnuš Oldřich
Language:English
Subject(s):Supranational / Global Economy, Economic policy, Comparative politics, Economic development, Fiscal Politics / Budgeting
Page Range:462-470
No. of Pages:9
Keywords:World economics; fiscal and monetary policy; economic system; new macroeconomic tools; economic crises;
Summary/Abstract:This paper deals with the problems of contemporary development of world economy and the manner of its management. Its aim is to evaluate current development of the economy of the most important countries of the world and, subsequently, to analyze assets and risks of their macroeconomic management and to predict future development, with special respect to early identification of possible commencement of future crisis. Firstly, this is an analysis of contemporary economic development of the most important world economies, before all the US, China, Japan, the most important member states of the EU and further globally important countries, in context with specific manners of their management. In connection with this, pros and cons of tools of monetary and fiscal regulation, used by them, as well as further problems that might result in future world crisis, are specified. Furthermore, contemporary global economic development is analysed and its future course is predicted and the most important risks are specified, both current risks and those ones related to potential feasible introduction of further, newly considered extreme tools of macroeconomic management. In conclusion, prognosis made by German economist and politician Marcus Faber, published in 2015: “The collapse of contemporary system is unavoidable” has been confirmed.

Reliability of Investment Recommendations

Reliability of Investment Recommendations
(Reliability of Investment Recommendations)

Author(s):Pavla Říhová, Milan Svoboda
Language:English
Subject(s):Business Economy / Management, Financial Markets, Accounting - Business Administration
Page Range:471-479
No. of Pages:9
Keywords:intrinsic value; investment recommendations; market price; share; target price;
Summary/Abstract:This article deals with the reliability of investment recommendations for selected companies traded on the Prague Stock Exchange. Stock analysts issue investment recommendations and set the so-called target share prices. The target price of a share is an intrinsic value of the share that has been determined by fundamental analysis. The market price of the share should reach exactly this value within one year. The investor should therefore buy (sell) such shares where there is a sufficiently large difference between the intrinsic value and the current market price in favour of the intrinsic value (in favour of the market price). The article aims to evaluate the overall reliability or, more precisely, the accuracy of investment recommendations. The target share price to be reached within one year has been compared with the development of its market price for every published investment recommendation. If the market price of the share has reached its target price within one year, the investment recommendation can be considered as a successful one and vice versa. The investment recommendations were analysed for the six-year period, from the beginning of 2012 until the end of 2017. The data were taken from the database of Patria a.s. The analysis has shown that investing based on investment recommendations does not yield good results.

Experimental Design: Testing the Zero Yield Bias

Experimental Design: Testing the Zero Yield Bias
(Experimental Design: Testing the Zero Yield Bias)

Author(s):Ilja Schaab, Eric Frère, Alexander Zureck
Language:English
Subject(s):Business Economy / Management, Economic policy, Methodology and research technology
Page Range:480-487
No. of Pages:8
Keywords:Behavioral finance; portfolio theory; reaching for yield; unstable risk preferences; Zero Interest Rate environment;
Summary/Abstract:The various impacts of the European Central Bank’s monetary policy induce a necessity for new research approaches as the established theories provide only limited explanations to the new cause and effect relationships. First empirical studies on the topic of an investor’s risk stability in a low interest rate environment provided valuable insights for the portfolio theory and behavioral finance. According to the results, investors tend to allocate more funds into riskier assets when the interest rates are low. This paper proposes an experimental design which extends the differentiation between only a risk-free and a risky asset to a close-to-reality set-up. By presenting unlabeled asset classes with their key characteristics in different interest rate environments, the test subject gets the opportunity for a multidimensional assessment of the situation. The development of the six investment opportunities as well as their characteristics is explained in detail to provide transparency about the realistic set-up. The research based on this experimental design should provide deeper insights about the interrelation of the three dimensions of the triangle of finance and investing.

A Critical Analysis of Too Prominent to Fail in Times of Neymar

A Critical Analysis of Too Prominent to Fail in Times of Neymar
(A Critical Analysis of Too Prominent to Fail in Times of Neymar)

Author(s):Dennis Schmidt, Alexander Zureck, Martin Svoboda, Stephan Burmeister
Language:English
Subject(s):Business Economy / Management, Financial Markets, Sports Studies
Page Range:488-493
No. of Pages:6
Keywords:Football; too big to fail; UEFA; FFP; transfer sums;
Summary/Abstract:Sales of football, the world's most popular sport increased worldwide by nine percent from 2009-2013. In times of revenue growth, however, spending has increased disproportionately. Media, fans and even scientists are wondering how the future financial situation of football companies will look like at a time when a club like Paris Saint-German is paying over EUR 200 million for player Neymar. The aim of the article is to analyze, if football companies have a higher survival rate. This serves as a basis for discussing whether football companies are "too big to fail". For this purpose, current article contributions and studies are analyzed with regard to the topic. In order to prevent the cycle of indebtedness on the football market, more regulation is needed. After the financial crisis from 2007 onwards, the excesses of the financial industry could be contained through increased regulation. In the football sector, UEFA is attempting to impose stricter budget restrictions in the form of the "Financial Fair Plays". The transfer of Neymar in 2017 for more than EUR 200 million proves that the clubs can by-pass the FFP. As in the financial industry and the "too big to fail" doctrine, this is still based on subjective assumptions of the supporting organizations. It can be assumed that the increasing transfer sums will increase the systematic risks in the future. In addition, it must be determined whether football companies will eventually be "too big to save". An improved approach to financial fair play could force football companies to balance their economies, leading to a lower rate of bankruptcy on the football market.

Critical Investigation of the Effects of Series Extensions on the Stock Price of the Provider

Critical Investigation of the Effects of Series Extensions on the Stock Price of the Provider
(Critical Investigation of the Effects of Series Extensions on the Stock Price of the Provider)

Author(s):Dennis Schmidt, Alexander Zureck, Stefanie Gradetzki, Gennadij Seel
Language:English
Subject(s):Business Economy / Management, Film / Cinema / Cinematography
Page Range:494-501
No. of Pages:8
Keywords:Quality-TV; Movie Business; Streaming; Behavioral Finance; Priming;
Summary/Abstract:The desire of audiences to consume content in a series format, independent of time and place has increased in recent years. Technological advancement has helped this trend progress. In this paper, series are considered as goods whose sales are linked to the degree of viewers’ attention. Thus, the good series operate on two interconnected levels, an economic and an emotional. The decision to invest in the production of another season of a series is intended to increase the number of subscriptions and the associated revenues. Capital market participants are influenced by various emotional biases when making investment decisions under uncertainty. In the context of an event study, it is examined whether announcements of season extensions have a significant influence on the share price of the respective provider. The results show that investors react with a changed investment behavior. Furthermore, findings from the film industry are transferred to series production.

Risk Taking and Corporate Governance in the New Bank Regulatory Requirements

Risk Taking and Corporate Governance in the New Bank Regulatory Requirements
(Risk Taking and Corporate Governance in the New Bank Regulatory Requirements)

Author(s):Eugenia Schmitt
Language:English
Subject(s):Business Economy / Management, Governance, Financial Markets
Page Range:502-509
No. of Pages:8
Keywords:Corporate governance; banks; regulation; risk-taking; moral hazard;
Summary/Abstract:The financial crisis (2008) and the sovereign debt crisis (2011) have revealed that excessive risk-taking and unethical corporate cultures constitute risks for the global financial system. Apparently, globally significant financial institutions need to change some of their fundamental ethical norms and behaviours. Large information asymmetries, opaqueness and complexities characterize the banking sector. Hence, to establish an effective corporate governance is a crucial determinant of success or failure as well as for maintaining financial stability. New macroprudential capital requirements have been phased-in, in successive steps across the 28 European Union (EU) countries starting in 2014. The Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD IV) have introduced a new macroprudential framework transposing the Basel III agreement in the EU. Stricter rules on capital adequacy, as well as new corporate governance and remuneration rules were enclosed. Banks should be encouraged to take acceptable levels of risks while minimizing the likelihood of bankruptcy. The principal-agent theory shows that the presence of imperfect information may be represented as moral hazard caused by the existence of distorted incentives between the principal and the agent.

Prediction of Electricity Prices, Comparison of Germany and the Czech Republic

Prediction of Electricity Prices, Comparison of Germany and the Czech Republic
(Prediction of Electricity Prices, Comparison of Germany and the Czech Republic)

Author(s):Pavel Sedláček, Elena Láncošová
Language:English
Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Comparative politics
Page Range:510-515
No. of Pages:6
Keywords:electricity; futures; prices; prediction;
Summary/Abstract:The aim of this paper is to analyze time series that might have an impact on prices of energy commodities. Analysis and econometric modelling reveal which time series are corelated and how and the difference of Czech and German commodity exchange markets. This is input for further modelling of forecasting tool for electricity future prices prediction in near future. Selected time series are electricity and gas prices, contracted quantity per day, oil prices, coal prices, prices of emission allowances, weather (temperature and sunlight defining the consumption of energies), prices of electricity on day ahead market, currency exchange rate (EUR/CZK and EUR/USD) and correlation of particular week day. For the predicted value was chosen price of electricity on EEX for Germany and Czech Republic. The product is future “Cal+1” (product delivery is in next year) and time series were selected for period 1/2015-12/2018.

Economic Effects of IFRS 16 Implementation

Economic Effects of IFRS 16 Implementation
(Economic Effects of IFRS 16 Implementation)

Author(s):Jaroslav Sedláček
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:516-522
No. of Pages:7
Keywords:IFRS 16; Czech accounting standards; operating and financial leasing; accounting statements; right-of-use asset; off balance sheet leases; financial analysis;
Summary/Abstract:This paper is devoted to the economic effects of implementing the IFRS 16 Lease standard, which came into force on 1 January 2019. The new standard limits offbalance sheet accounting and lease reporting for asset lessees. The aim of the research is to characterize the development tendencies on the world, European and Czech leasing market and to determine the market shares of the operational leasing of lessees, accounting and reporting under IFRS as well as to identify and evaluate the volumes of hitherto unreported leases broken down by business lines of companies. In order to evaluate the expected effects of the implementation, the aggregated data of Czech industrial enterprises reported by companies in 2017 were used. The comparison between Czech and international rules measured the undervaluation of assets and liabilities of Czech lessees and the economic effects assessed using financial analysis indicators. The differences between the two approaches should be taken into account when assessing the financial and revenue situation of companies using leasing, in order to avoid the wrong decisions of management and investors.

Record Keeping for Individual Entrepreneurs in the Czech Republic

Record Keeping for Individual Entrepreneurs in the Czech Republic
(Record Keeping for Individual Entrepreneurs in the Czech Republic)

Author(s):František Sejkora, Petra Hromuľáková
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:523-528
No. of Pages:6
Keywords:Tax Accounting; Accrual Accounting; Entrepreneur; Comparison;
Summary/Abstract:The role of individual entrepreneurs is irreplaceable in every market economy. This group of entrepreneur’s acts as a competitor in relation to monopolistic market players, as they are usually quicker and more agile in response to changes in demand. The entrepreneurial activity of individuals can be recorded according to current Czech legislation on the basis of accrual accounting or tax accounting. Both systems serve to capture information about the business and subsequently become an important basis for decision-making. The article uses scientific methods mainly analysis, synthesis and comparison for recognition of these two systems. The questionnaire survey examines the administrative complexity of these systems and the factors that affect entrepreneurs in selecting a system of recording of economic transactions. In choosing a system the most important factors include tax optimization, legislative regulation and administration costs. Respondents are aware of the benefits of tax accounting and accrual accounting. Data do not provide a statistically significant difference in responses between respondents.

Long-Term Social Care – The Problem of Sustainable Financing in Slovakia

Long-Term Social Care – The Problem of Sustainable Financing in Slovakia
(Long-Term Social Care – The Problem of Sustainable Financing in Slovakia)

Author(s):Ľudomír Šlahor, Mária Barteková, Janka Gasperová, Dagmar Palátová
Language:English
Subject(s):Government/Political systems, Demography and human biology, Socio-Economic Research
Page Range:529-537
No. of Pages:9
Keywords:demographic ageing; long-term social care; sustainable financing;
Summary/Abstract:Demographic changes challenge Slovakia in various perspectives and in various ways. Future trends, especially the growth of the elderly population, are expected to affect significantly the provision and sustainability of long-term social care (LTSC), i.e. services that support the care dependent person in carrying out activities of daily life (bathing, clothing, eating, shopping, cooking, etc.) or support the informal carer in carrying out these tasks. Looking into the future, the formulation of a sustainable LTSC policy will increasingly become the major focus for social policy. Several barriers to access the LTSC occurred in the Slovak LTSC system. Main of them are financial barriers, geographic barriers and organizational barriers. Financing system of the Slovak LTSC is mixed. Long term social care is funded from two sources, differed by type of provided LTSC. The scope of this paper will be restricted to addressing the most important questions concerning financial sustainability with respect to collective and individual arrangements and public and private responsibilities. This paper will highlight the common challenges regarding financing LTSC in Slovakia and builds on examples from several EU countries to discuss the different financing schemes for LTSC, the trade-offs associated with each option and recent trends.

Does the Linkage between Agricultural Business Insurance and Use of Debt Exist? Empirical Evidence from Polish Farm Businesses

Does the Linkage between Agricultural Business Insurance and Use of Debt Exist? Empirical Evidence from Polish Farm Businesses
(Does the Linkage between Agricultural Business Insurance and Use of Debt Exist? Empirical Evidence from Polish Farm Businesses)

Author(s):Michał Soliwoda, Agnieszka Kurdyś-Kujawska
Language:English
Subject(s):Business Economy / Management, Agriculture, Transformation Period (1990 - 2010), Present Times (2010 - today)
Page Range:538-545
No. of Pages:8
Keywords:agricultural insurance; credit; farm households;
Summary/Abstract:The objective of this paper is to investigate into the linkage between participation in agricultural business (crop/livestock) insurance programs and debt ratios (mainly debt-to-assets and debt-to-equity ratio). Our methodological approach was based on previous empirical studies on the role of determinants of purchase of agricultural insurance. We used a farm-level data from Farm Accountancy Data Network (FADN) for 2009-2015 (after significant changes in Polish law on agricultural insurance). We performed a Mann-Whitney U test between insured and non-insured farm businesses. Additionally, we used chi-squared test for data in contingency tables in order to indicate dependencies between agricultural insurance participation and use of liabilities, long-term and short-term credits and loans. Our findings were mostly consistent with previous studies. Farm business that use crop/livestock insurance (about 20% in FADN sample) were characterized by higher debt ratios (Debt-to-Assets, Debt-to-Equity) and the share of long-term liabilities in total liabilities. Our findings may be useful insurers and financial institution that offer various credits for rural inhabitants. The use of crop/livestock insurance is important variable from the perspective of credit scoring. Further research will refer to dynamic processes, including credit risk migration of farmers and credit signaling in agriculture. Particular attention should be paid in two types of farms: “field crops” and “mixed” that are sensitive to risk related to crop production.

Factors of Professional Qualification Test Results of Selected Non-Bank Consumer Credit Providers Employees

Factors of Professional Qualification Test Results of Selected Non-Bank Consumer Credit Providers Employees
(Factors of Professional Qualification Test Results of Selected Non-Bank Consumer Credit Providers Employees)

Author(s):Ivan Soukal, Eva Hamplova
Language:English
Subject(s):Gender Studies, Business Economy / Management, Demography and human biology, Socio-Economic Research
Page Range:546-553
No. of Pages:8
Keywords:consumer credit; qualification test; non-bank financial institution; gender; age; time;
Summary/Abstract:Non-bank financial institutions providing or intermediating consumer credit were throughout a year of 2018 ensuring the qualification of their employee to meet requirements of a recent regulation. Czech National Bank stipulated decree no. 381/2016 and decree no. 384/2016 to implement legal act no. 257/2016 Coll., on consumer credit. This regulation came into force recently and therefore, a professional qualification level of all employees involved in the provision and intermediation of a consumer credit now has to be proven. Qualification could be proven at accredited institutions only by passing an exam test. We analyzed the test results of 1.916 employees of two medium sized nonbank financial institutions who took the final qualification test at an accredited institution. We set main and auxiliary hypotheses regarding an effect of gender, age, and time. Gender was not found as a factor of performance in the qualification testing. Age was found as a factor of the test score. The youngest and the oldest employees performed statistically worse than employees between age of 30–59. The last tested variable of time was found as a factor. Performance of employees who took the test in the first quartile was both statistically as well as from practitioner’s point of view significantly better.

Prediction of Economic Growth to Determine the Growth Rate of Business Value

Prediction of Economic Growth to Determine the Growth Rate of Business Value
(Prediction of Economic Growth to Determine the Growth Rate of Business Value)

Author(s):Pavla Srbová, Mária Režnáková
Language:English
Subject(s):National Economy, Business Economy / Management, Economic development
Page Range:560-567
No. of Pages:8
Keywords:business value; discounted cash flow; growth rate; business cycle; composite indicator;
Summary/Abstract:The aim of this paper is to describe approaches to determining the growth rate of two-stage discounted cash flow valuation method and to propose possibilities to refine its prediction. Business value is given by a set of business-economic variables, so-called value drivers; one of which is the growth rate. The determination of the growth rate is based on an analysis and prediction of macroeconomic factors and on the company’s internal factors. According to our research the value of an enterprise is very sensitive to changes in the growth rate. Therefore, we believe the issue requires closer attention. The growth rate as a value driver is commonly derived from the GDP growth rate, which characterizes economic cycles. In literature this is often identified with business cycles. Authors of this paper deal with GDP prediction and possibilities of using composite indicators to determine the growth rate of cash flow, specifically to refine the first phase prediction. Composite indicators are used to predict the development of economic cycles and their use is therefore particularly suitable for pro-cyclical sectors. Another possibility of using composite indicators is to incorporate partial factors directly into business valuation models. In particular, we see the benefit of using composite indicators in their better accessibility. For the purpose of our analysis we use the Pearson correlation coefficient to determine the correlation between the GDP and the selected industry from 2007 to 2017 or the composite indicator, the logarithmic difference to analyse economic cycles and the mean deviation value to compare the GDP prediction with the real GDP.

Importance of VAT in Government Budgets

Importance of VAT in Government Budgets
(Importance of VAT in Government Budgets)

Author(s):Zdeněk Strmiska, Jana Vodáková
Language:English
Subject(s):Economic policy, Government/Political systems, EU-Accession / EU-DEvelopment, Fiscal Politics / Budgeting
Page Range:568-573
No. of Pages:6
Keywords:value added tax; government revenues; VAT to GDP ratio; tax rate; effective tax rate; VAT Gap;
Summary/Abstract:Value added tax (VAT) is one of the most important government revenue sources globally. It is especially significant for the European Union countries known for above average public expenditure. This article aims to analyze importance of VAT in government budgets of the European Union countries and investigate various factors that can influence VAT revenue. VAT significance can depend on various circumstances, for instance on the level of economic development, fiscal policy, tax policy etc. One of the important aspects related to VAT revenue is VAT Gap. It measures revenue loss due to tax avoidance, fraud, evasion and due to bankruptcies, financial insolvencies or miscalculations. We compare European Union countries according to selected criteria and aim to analyze reasons behind VAT importance among government revenue sources. Data about taxation are mainly provided by Eurostat. VAT Gap report published by European Commission is used for data about VAT Gap and certain other VAT information. We use regression analysis to assess impact of VAT Gap, VAT rates, GDP per capita and geographical location on VAT revenues.

Strategic Approaches of SMEs in Economic Performance of E-commerce

Strategic Approaches of SMEs in Economic Performance of E-commerce
(Strategic Approaches of SMEs in Economic Performance of E-commerce)

Author(s):Veronika Svatošová
Language:English
Subject(s):Business Economy / Management, Methodology and research technology, Accounting - Business Administration, ICT Information and Communications Technologies
Page Range:574-583
No. of Pages:10
Keywords:e-commerce; SMEs in e-commerce; financial analysis; methods of statistical inductions; financial strategy in e-commerce; economic performance in e-commerce;
Summary/Abstract:The researches and practice declare the strategic key factor of long-term business success is considered to be strategic approach to economic performance along with proposing and implementing financial strategy. The paper deals with the issue of economic performance of SMEs in e-commerce along with their financial strategy. The aim of the research is to evaluate the economic performance of enterprises primarily focused on e-commerce, which affects the financial strategy in e-commerce. The research sample of enterprises involved to the survey is selected based on the following restrictive criteria: headquarter of enterprise in the Czech Republic, legal form of business joint stock company and limited liability company, existence of enterprise in ecommerce minimum 5 years, main business area B2C market. The main research methods are following: methods of personal interviewing among selected enterprises, selected methods of financial analysis and selected methods of statistical induction for verifying stated hypotheses. The main results of paper revealed the level of long-term coverage is the biggest problematic area in the creation and implementation of a financial strategy that reduces the economic performance of e-commerce and type of financial strategy does not correspond to the type of corporate strategy in e-commerce.

Leasing Companies in the Czech Republic from the Perspective of Basel III Regulation

Leasing Companies in the Czech Republic from the Perspective of Basel III Regulation
(Leasing Companies in the Czech Republic from the Perspective of Basel III Regulation)

Author(s):Martin Svítil
Language:English
Subject(s):Business Economy / Management, Evaluation research
Page Range:584-594
No. of Pages:11
Keywords:Leasing; Basel III; capital; regulatory capital;
Summary/Abstract:The aim of the paper is to evaluate the situation of leasing financing providers (leasing companies) against the rules of capital adequacy, especially the newly prepared rules of 2017 Basel III regulatory framework (sometimes called Basel IV), that should enter into force between 2022 and 2027. In the first part, the article summarizes the opinion of leasing companies associated in the European Federation of Leasing Company Associations Leaseurope on the new capital adequacy rules of Basel III. This opinion is based on the theoretical basis of risk management (especially credit risk) in leasing, as well as on several empirical studies conducted with real data sets. These studies and their results are discussed in more detail in the article. The results clearly show that the risk associated with the provision of foreign capital through leasing is significantly lower than the risk calculated by the capital adequacy calculation for Basel III rules. This is confirmed by several other sources mentioned in the text. The second part of the article focuses on the situation in the Czech Republic. It is based on publicly available data on the largest leasing companies operating on the Czech market and shows the state of their capital adequacy on simplified indicators of the ratio of Equity / Balance sheet total and Equity / Receivables.

Structural Breaks in Consumer’s Behavior according to their Demand for Credits and Deposits

Structural Breaks in Consumer’s Behavior according to their Demand for Credits and Deposits
(Structural Breaks in Consumer’s Behavior according to their Demand for Credits and Deposits)

Author(s):Martin Svoboda, Annika Rüder, Noel Opala, Gennadij Seel
Language:English
Subject(s):Behaviorism, Socio-Economic Research
Page Range:595-602
No. of Pages:8
Keywords:structural breaks; behavioral finance; credit and deposits; future balance sheet and maturity structure;
Summary/Abstract:Dealing with strategic maturity transformation and the consequences for balance sheet structures leads to a most relevant question in interest rate risk management and measurement for banks worldwide: Are there any structural breaks in consumer’s behavior to their demand of credits and deposits? According to such structural breaks, the predictability of future balance sheet structure is relevant for the return forecast and the funding plan. Most of the strategic maturity transformation positions are deposits by private consumers or credited to private consumers. Throughout, risk measure methods, financial forecasts and the Asset Liability Management apply the return and risk prediction under constant action of the consumers. Changed maturity preferences cannot take balance sheet structure and interest rate risk measurement into account. This article answers the question if there is a structural break of consumer’s preferences in the maturity of their deposits or the credit term. Therefore, different time series from the Deutsche Bundesbank, concerning the German bank markets, get analyzed with a CUSUM-test. We test if the change of the new business volume has a constant mean or identical coefficients in case of multivariate new business volumes. This research confirms the hypothesis that there are breaks in the change of the new business volume.

Countercyclical Capital Buffer as a Macroprudential Instrument and its Implementation in Selected EU Countries

Countercyclical Capital Buffer as a Macroprudential Instrument and its Implementation in Selected EU Countries
(Countercyclical Capital Buffer as a Macroprudential Instrument and its Implementation in Selected EU Countries)

Author(s):Łukasz Szewczyk
Language:English
Subject(s):Supranational / Global Economy, Economic policy, EU-Accession / EU-DEvelopment, EU-Legislation
Page Range:603-609
No. of Pages:7
Keywords:macroprudential policy; countercyclical buffer; Basel III;
Summary/Abstract:Countercyclical capital buffer has become one of the most important instruments that aim to ensure that banking sector capital requirements take account on the macro-financial environment in which banks operate. In EU it was implemented through the Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms and it has become an important factor that affects cyclical systemic risk by smoothing fluctuations in the credit cycle. The main objective of this study is to show the macroprudential goals of this instrument and mechanisms of its impact on banks. The emphasis will also be put on its methodology and analysis of the existing experience in selected EU countries that decided to activate it. A main research method used in this paper is critical analysis of the literature connected with this subject and reports issued by institutions that form financial safety nets on a national and international level. Results of this research will help to understand current problems connected with this instrument and its perspectives.

Impact of Indebtedness on the Company Performance: Comparison of Merged and Non-Merged Companies

Impact of Indebtedness on the Company Performance: Comparison of Merged and Non-Merged Companies
(Impact of Indebtedness on the Company Performance: Comparison of Merged and Non-Merged Companies)

Author(s):Petr Valouch, Josef Nešleha
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:610-615
No. of Pages:6
Keywords:Merger; indebtedness; statistics; influence;
Summary/Abstract:The object of the study is the influence of the merger on the company performance. Company performance might be measured by various indicators, such as profitability, various forms of the company profit, liquidity, etc. In this paper, we have taken into account another possibility (less conventional) how the company performance might be evaluated – indebtedness. The goal of the study is to verify whether there is a relationship between the company performance of companies that merged and those which did not merge. The dataset consists of 276 merged companies and 234 companies that did not merge. Concerning methodology, the test is based on non-parametric tests, particularly Wilcoxon Matched Pairs Test and Sign Test.

Local Debt Burden at LAU2 Level in the EU countries

Local Debt Burden at LAU2 Level in the EU countries
(Local Debt Burden at LAU2 Level in the EU countries)

Author(s):László Vértesy
Language:English
Subject(s):Public Administration, Economic policy, EU-Accession / EU-DEvelopment, Public Finances
Page Range:616-624
No. of Pages:9
Keywords:local governments; local debt; local borrowing; public debt; debt management;
Summary/Abstract:This paper examines the magnitude and relevance of local debt burden at a subnational: LAU2 level, for identifying some relevant correlation and country groups. According to the official Eurostat figures the total debt amount of the local governments worth € 847.4 billion in 2017, which is 6.7 % of the EU28’s general government gross debt. Therefore, public debt is still a quotidian topic in economics, most countries worldwide face its management challenges. The research is based on legal and economic methodology with quantitative analysis, because of the cross-disciplinary nature of the topic. An overwhelming proportion (64.8 %) of it is denominated in loans, since it is simpler and easier for municipalities to borrow money from the financial intermediaries, and they are able to provide suitable coverages. The confidence in local bonds is low, for temporary financial difficulties the account payable solution is preferred. In some Mediterranean and Nordic countries state or local government-owned specialised financial institutions were established; and despite of creation at different times, they share many similarities. Since the different structures and the level of fragmentation of decentralization, relevant categories for the indebtedness may not be identified, only loose connection can be established. Generally, in countries with larger and more populous LAU2s with greater fiscal autonomy, the sum of the local debt is not so high, but for a single municipality or for a local citizen, it still means a higher burden. Parallel to this, a public administration with small municipalities bears a larger total sum, but this is dispersed among the numerous cities and villages, therefore the debt burden for a single local authority is not significant.

The Changes in the Polish Tax System and their Influence on the Tax Evasion

The Changes in the Polish Tax System and their Influence on the Tax Evasion
(The Changes in the Polish Tax System and their Influence on the Tax Evasion)

Author(s):Radosław Witczak, Tomasz Florczak
Language:English
Subject(s):National Economy, Economic policy, Law on Economics, Fiscal Politics / Budgeting
Page Range:625-632
No. of Pages:8
Keywords:tax fraud; tax administration; VAT; income taxes;
Summary/Abstract:One of the phenomena that can be observed in the economy is tax evasion. The most important way to combat tax evasion is the change of the tax system. The aim of the article is to indicate and evaluate the main changes in the Polish tax system in the last years and their influence on the tax evasion. The analysis of main changes in the Polish tax system was given. The reform of the tax administration and tax proceedings was described. The changes in the VAT were given. The changes in the income taxes were presented. The different estimations of the shadow economy were discussed. Research showed that the increase of revenues from VAT and income taxes was caused not only by the increase of the consumption and production (GDP) but also was an effect of the changes in the tax system

Methodological Aspects of Assessing the Fiscal Sustainability of the Russian Federations’ Regions in Modern Economic Conditions

Methodological Aspects of Assessing the Fiscal Sustainability of the Russian Federations’ Regions in Modern Economic Conditions
(Methodological Aspects of Assessing the Fiscal Sustainability of the Russian Federations’ Regions in Modern Economic Conditions)

Author(s):Sergey N. Yashin, Nadezhda Yashina, Natalia N. PRONCHATOVA-RUBTSOVA, Oksana Kashina, Sergey Bogomolov
Language:English
Subject(s):National Economy, Regional Geography, Economic policy, Methodology and research technology, Fiscal Politics / Budgeting
Page Range:633-641
No. of Pages:9
Keywords:fiscal sustainability; final normalized indicator; budget management; efficiency; population well-being;
Summary/Abstract:In the conditions of economy volatility, the increased sensitivity of the fiscal system of the state to negative impacts and limited financial resources, the need to improve the quality of public finance management through the rational use of mobilized revenues and optimization of public spending is becoming more pressing. In this regard, the goal of the study is to develop a methodology for assessing the fiscal sustainability of regions in modern economic conditions to ensure sustained economic growth and development of the country, contributing to improving the population well-being. The paper considers the features of the regional budgets analysis based on a specially formed system of fiscal sustainability indicators. The study is based on a systems approach that allows analyzing various aspects of fiscal sustainability assessment in modern economic conditions. The authors propose to calculate indicators, reflecting the peculiarities of financing human capital and productive economy sectors, the specifics of the income structure and budget management efficiency. Used methods of economic, systems analysis and mathematical statistics. The methodology has been tested on a sample of official data on the execution of consolidated regional budgets from open databases of the Federal State Statistics Service, the Federal Tax Service and the Federal Treasury of the Russian Federation for 2016-2018. The result of the methodology application is the ordering of the Russian regions based on the value of the final normalized indicator for assessing the fiscal sustainability.

Generational Shadow in Polish Family Firms - May Second Generation Change Anything?

Generational Shadow in Polish Family Firms - May Second Generation Change Anything?
(Generational Shadow in Polish Family Firms - May Second Generation Change Anything?)

Author(s):Robert Zajkowski, Ada Domańska, Beata Żukowska
Language:English
Subject(s):Business Economy / Management, Micro-Economics, Family and social welfare, Socio-Economic Research
Page Range:642-649
No. of Pages:8
Keywords:generational shadow; family firms; generations in family firm; family enterprise goals;
Summary/Abstract:In the paper the issue of the reciprocal impact of both first and second generation of the family on the family businesses was taken into consideration. The main attempt was to investigate whether in the companies in which ‘generational shadow’ effect exists, inheritors are able to have a stab at the company functioning. Hence the aim of this paper is to identify a potential impact of the second generation on the aspects of functioning of family businesses. The differences in the average perception of family business purposes were statistically analysed in two groups of companies: one – with a presence of only founders‘ generation and the other with a presence of two generations among company’s owners. The main conclusion which was that a presence of the second generation of the family in the owners and managerial staff structure modifies partly the perception of long term objectives of family business functioning. On the other hand, it is necessary to reject the assumption that the presence of second generation of the family in the owners and managerial staff structure impairs the perception of objectives directed towards the family and family values. The results reveal that despite of the ‘generational shadow’ effect, the existence of the successors’ generation might lead to particular changes in company’s functioning and perception of various processes in family businesses.

A Non-asymptotic Automobile Bonus-malus System with Varying Transition Rules

A Non-asymptotic Automobile Bonus-malus System with Varying Transition Rules
(A Non-asymptotic Automobile Bonus-malus System with Varying Transition Rules)

Author(s):Silvie Zlatošová
Language:English
Subject(s):Business Economy / Management, Transport / Logistics
Page Range:650-655
No. of Pages:6
Keywords:bonus-malus system; optimal relativities; non-asymptotic criterion; the efficiency of a bonus-malus system;
Summary/Abstract:In this paper, we examine a non-asymptotic criterion for a bonus-malus system in vehicle insurance, and we combine it with varying transition rules. Policies are in effect only during a finite number of insurance periods. If most of the policies are far from a stationary state, it is useful to change the criterion so that to consider the rating error for new policies and policies of medium age too. Therefore we use a bonus-malus system based on minimization weighted average of the expected square rating errors for selected insurance periods. We calculate the relative premium associated with each level of the bonus-malus system. Finally, we compare our proposed bonus-malus system with the system from the Czech Insurance Company. We find that the proposed examples of non-asymptotic bonus-malus system are more effective than the current system used by the Czech Insurance Company.

Teaching and Learning with Audiovisual Media: Empirical Analysis of the Effectiveness of Podcasts in Financial Literacy

Teaching and Learning with Audiovisual Media: Empirical Analysis of the Effectiveness of Podcasts in Financial Literacy
(Teaching and Learning with Audiovisual Media: Empirical Analysis of the Effectiveness of Podcasts in Financial Literacy)

Author(s):Alexander Zureck, Eric Frère, Gennadij Seel, Lars Klingenberger
Language:English
Subject(s):Higher Education , Socio-Economic Research, Distance learning / e-learning, Pedagogy
Page Range:656-663
No. of Pages:8
Keywords:Financial literacy; financial education; e-learning; podcasting; digitization;
Summary/Abstract:The more differentiated we explore learning materials in terms of financial literacy, the more diverse are the ways to remember and retain. The reminder rate increases significantly the more senses are involved in the learning process. Audio recordings can be useful in addition to classroom teaching and can be used at any time, any place, and any pace. While other studies considered the implications of digitization, and eventually e-learning, or the knowledge gap regarding to student-generated podcasts in language learning, this paper examines the impact of podcasting in financial literacy. As part of the primary data collection, a questionnaire was conducted with students from both, Bachelor's and Master's degree programs at FOM University of Applied Sciences in Germany. Within the survey, the general handling and attitude to podcasts was examined, as well as the evaluation of defined contributions to the topic of financial literacy. From the questionnaire results (n = 86) the method of logistic regression is used to answer some important hypotheses in this paper. The outcomes present binary insights with respect to the usage of podcasts in the field of financial literacy and education. Firstly, the study derives, that configuration of podcasts affects the transfer of knowledge in financial literacy. With respect to the length of formats, cross connection to recent findings in human psychology are depicted. Furthermore, in terms of learners' perspective, the study reveals limited dependency of the acceptance of podcasts with respect to age, gender and prior education.

Prediction of Bankruptcy in a Different Period of Economic Development

Prediction of Bankruptcy in a Different Period of Economic Development
(Prediction of Bankruptcy in a Different Period of Economic Development)

Author(s):Martina Sponerová, Miroslav Svoboda, Miroslav Sponer
Language:English
Subject(s):Economy, National Economy, Financial Markets
Page Range:554-559
No. of Pages:6
Keywords:credit risk; bankruptcy prediction; SME; financial indicator
Summary/Abstract:The ability to predict bankruptcy is the factor, which eliminates the credit risk of a bank, so the prediction of bankruptcy and credit risk of a bank is a permanent subject matter of many scientific types of research. This paper focuses on the Czech economy, specifically at small and medium-sized enterprises (SMEs). We have chosen the SMEs sector because it plays a significant role in this economy. The aim of this article is finding if there exist different factors that could predict bankruptcy in the time at the end of the financial crisis and at the time of upturn. Our motivation is to show the most important factors which have to be taken into attention in different stages of economic development. We have investigated around 2 800 companies from the segment small and medium-sized enterprises (SMEs), of which 642 failed during the period 2010 – 2017. We have investigated financial data for the years from 2010 to 2017. The whole dataset was divided into two parts, to the period of the financial crisis and to the period of the upturn. The analyses were done separately for each period and for the whole period to capture different characteristics of companies in a different time. Our suggestion is that it is necessary to evaluate the financial information of the company according to the period of economic development.

European Financial Systems 2019: Proceedings of the 16th International Scientific Conference European Financial Systems 2019: Proceedings of the 16th International Scientific Conference

Time-based Fee for Vehicles in the Czech Republic: New Model and Challenge?

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Financial Bilingualism as a Success Factor for Effective Business Combination Project: The Case of US Investors

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Evaluation of the Policies Supporting Cultural and Creative Industries in the Slovak Republic

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The Divergence between the EU and non-EU Fiscal Councils

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Robust Optimization Methods in Modern Portfolio Theory

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The Impact of the Ways of Agricultural Activity Reporting on Financial Statements under IFRS and Czech Accounting Legislation

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Capital Asset Prices in the V4 Countries

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Statistical Arbitrage Portfolio Selection in the Old and New EU Member States

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Determinant Factors of Fiscal Revenues, under Current Economic Conditions

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Hurst Exponent and the Efficiency of the Czech Electricity Market

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The Effectiveness of Lower Secondary Education in OECD Countries

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Information Asymmetry in Insurance Market

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IFRS 16 Leases: The Result of the IASB and FASB Cooperation with a Focus on Differences Compared to ASC 842

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Robotic Process Automation for Investment Modelling

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Excessive Debt of Households and Financial Exclusion

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Implications of IFRS 9-based Multi-Year Risk Parameters for Bank Management

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Excise Tax Harmonization in the EU

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Searchability and Machine-Readability of the Financial Statements of the Czech Business Corporations and Their Influence on the Financial Performance

The CBA Analysis of IFRS Implementation in the Czech Republic

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Profitability of Agricultural Entities in Countries of Visegrad Group

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The Yield Curve as a Predictor of Economic Activity – the Case of Germany, Great Britain and France

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Investing in Emerging Markets: Contrasted Mean and Median Models in Egyptian Stock Markets

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Key Performance Indicators System for Small and Medium-sized Enterprises in Non-productive Automotive in the Czech Republic: A Research Design

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Stock Price and Investment Decisions – Case of Warsaw Stock Exchange

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Financial Position of the Slovak Spa Companies

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Cultural Diversity in Working Teams

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Foreign Capital Inflows and Domestic Savings in Turkey

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The Role of IFRS 15 in the Evaluation of the Effects of Business Model Innovation

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Methodological Aspects of Evaluating the Efficiency of Public Procurement in order to Improve the Effectiveness of Financial Control in the Regions of Russia

Evaluation of Financial Health of Companies in Slovak Republic Based on Selected Mathematical-statistical Methods

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Bitcoin as a Panacea for the Venezuelan Crisis

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FinTechs as Alternative Financial Market Players

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Analysis of Consumption Tax Dependence on Beer consumption in the Czech Republic

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Does Gender Matter in the Performance of Family Firms? Evidence from the Czech Republic

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Analysis of Migration Processes and Assessment of their Impact on the Development of International Money Transfers of Ukraine

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Regional Differences in the Relation of Flat Prices to Net Disposable Income of Households

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Foreign Trade in Central Europe: The Analysis of Openness

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Contextual Non-financial Information Analysis of Annual Reports

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Lowered VAT Rate Transfer to the Consumer Prices: Selected Medicaments Case Study

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European Financial Systems 2019: Proceedings of the 16th International Scientific Conference
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Time-based Fee for Vehicles in the Czech Republic: New Model and Challenge?
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Financial Bilingualism as a Success Factor for Effective Business Combination Project: The Case of US Investors
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Evaluation of the Policies Supporting Cultural and Creative Industries in the Slovak Republic
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The Divergence between the EU and non-EU Fiscal Councils
(The Divergence between the EU and non-EU Fiscal Councils)

Robust Optimization Methods in Modern Portfolio Theory
(Robust Optimization Methods in Modern Portfolio Theory)

The Impact of the Ways of Agricultural Activity Reporting on Financial Statements under IFRS and Czech Accounting Legislation
(The Impact of the Ways of Agricultural Activity Reporting on Financial Statements under IFRS and Czech Accounting Legislation)

Capital Asset Prices in the V4 Countries
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Statistical Arbitrage Portfolio Selection in the Old and New EU Member States
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Determinant Factors of Fiscal Revenues, under Current Economic Conditions
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Hurst Exponent and the Efficiency of the Czech Electricity Market
(Hurst Exponent and the Efficiency of the Czech Electricity Market)

The Effectiveness of Lower Secondary Education in OECD Countries
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Information Asymmetry in Insurance Market
(Information Asymmetry in Insurance Market)

IFRS 16 Leases: The Result of the IASB and FASB Cooperation with a Focus on Differences Compared to ASC 842
(IFRS 16 Leases: The Result of the IASB and FASB Cooperation with a Focus on Differences Compared to ASC 842)

Robotic Process Automation for Investment Modelling
(Robotic Process Automation for Investment Modelling)

Excessive Debt of Households and Financial Exclusion
(Excessive Debt of Households and Financial Exclusion)

Implications of IFRS 9-based Multi-Year Risk Parameters for Bank Management
(Implications of IFRS 9-based Multi-Year Risk Parameters for Bank Management)

Excise Tax Harmonization in the EU
(Excise Tax Harmonization in the EU)

The CBA Analysis of IFRS Implementation in the Czech Republic
(The CBA Analysis of IFRS Implementation in the Czech Republic)

Profitability of Agricultural Entities in Countries of Visegrad Group
(Profitability of Agricultural Entities in Countries of Visegrad Group)

The Yield Curve as a Predictor of Economic Activity – the Case of Germany, Great Britain and France
(The Yield Curve as a Predictor of Economic Activity – the Case of Germany, Great Britain and France)

Investing in Emerging Markets: Contrasted Mean and Median Models in Egyptian Stock Markets
(Investing in Emerging Markets: Contrasted Mean and Median Models in Egyptian Stock Markets)

Key Performance Indicators System for Small and Medium-sized Enterprises in Non-productive Automotive in the Czech Republic: A Research Design
(Key Performance Indicators System for Small and Medium-sized Enterprises in Non-productive Automotive in the Czech Republic: A Research Design)

Analysis of Financial Market Using Soft Computing Techniques
(Analysis of Financial Market Using Soft Computing Techniques)

Stock Price and Investment Decisions – Case of Warsaw Stock Exchange
(Stock Price and Investment Decisions – Case of Warsaw Stock Exchange)

Financial Position of the Slovak Spa Companies
(Financial Position of the Slovak Spa Companies)

Cultural Diversity in Working Teams
(Cultural Diversity in Working Teams)

Foreign Capital Inflows and Domestic Savings in Turkey
(Foreign Capital Inflows and Domestic Savings in Turkey)

The Role of IFRS 15 in the Evaluation of the Effects of Business Model Innovation
(The Role of IFRS 15 in the Evaluation of the Effects of Business Model Innovation)

Evaluation of Financial Health of Companies in Slovak Republic Based on Selected Mathematical-statistical Methods
(Evaluation of Financial Health of Companies in Slovak Republic Based on Selected Mathematical-statistical Methods)

Bitcoin as a Panacea for the Venezuelan Crisis
(Bitcoin as a Panacea for the Venezuelan Crisis)

FinTechs as Alternative Financial Market Players
(FinTechs as Alternative Financial Market Players)

Analysis of Consumption Tax Dependence on Beer consumption in the Czech Republic
(Analysis of Consumption Tax Dependence on Beer consumption in the Czech Republic)

Does Gender Matter in the Performance of Family Firms? Evidence from the Czech Republic
(Does Gender Matter in the Performance of Family Firms? Evidence from the Czech Republic)

Analysis of Migration Processes and Assessment of their Impact on the Development of International Money Transfers of Ukraine
(Analysis of Migration Processes and Assessment of their Impact on the Development of International Money Transfers of Ukraine)

Regional Differences in the Relation of Flat Prices to Net Disposable Income of Households
(Regional Differences in the Relation of Flat Prices to Net Disposable Income of Households)

Foreign Trade in Central Europe: The Analysis of Openness
(Foreign Trade in Central Europe: The Analysis of Openness)

Contextual Non-financial Information Analysis of Annual Reports
(Contextual Non-financial Information Analysis of Annual Reports)

Lowered VAT Rate Transfer to the Consumer Prices: Selected Medicaments Case Study
(Lowered VAT Rate Transfer to the Consumer Prices: Selected Medicaments Case Study)

Do European Investors React to Extreme Oil Prices? Evidence from Granger Causality in Tails Test
(Do European Investors React to Extreme Oil Prices? Evidence from Granger Causality in Tails Test)

Implementation of IAS/IFRS and Their Impact on Selected Financial Performance Indicators
(Implementation of IAS/IFRS and Their Impact on Selected Financial Performance Indicators)

Impact of Brexit on Volatility Connectedness across ASX’s Subindices
(Impact of Brexit on Volatility Connectedness across ASX’s Subindices)

An Empirical Analysis of the Impact of R&D on Productivity in EU Countries
(An Empirical Analysis of the Impact of R&D on Productivity in EU Countries)

Milestones in the Development of the Modern Insurance Market in the Czech Republic
(Milestones in the Development of the Modern Insurance Market in the Czech Republic)

Transaction Costs in the Czech and Slovak E-procurement: Selected Issues
(Transaction Costs in the Czech and Slovak E-procurement: Selected Issues)

Tax Haven Ties and the Profitability of Foreign Owned Companies
(Tax Haven Ties and the Profitability of Foreign Owned Companies)

The Financial Education among Pupils in the South Moravian Region
(The Financial Education among Pupils in the South Moravian Region)

Evolution of the Financial Stability Reports – Theoretical Approach
(Evolution of the Financial Stability Reports – Theoretical Approach)

Investment in Land – Strategic Decision
(Investment in Land – Strategic Decision)

Implementation of the European Directive on Non-financial Information in the European Economic Area
(Implementation of the European Directive on Non-financial Information in the European Economic Area)

The Expense Ratio Development of Insurance Portfolios in Selected Insurance Companies in the Czech Republic in 2010-2017
(The Expense Ratio Development of Insurance Portfolios in Selected Insurance Companies in the Czech Republic in 2010-2017)

Extreme Tools of World Economy Management and Their Risks
(Extreme Tools of World Economy Management and Their Risks)

Reliability of Investment Recommendations
(Reliability of Investment Recommendations)

Experimental Design: Testing the Zero Yield Bias
(Experimental Design: Testing the Zero Yield Bias)

A Critical Analysis of Too Prominent to Fail in Times of Neymar
(A Critical Analysis of Too Prominent to Fail in Times of Neymar)

Critical Investigation of the Effects of Series Extensions on the Stock Price of the Provider
(Critical Investigation of the Effects of Series Extensions on the Stock Price of the Provider)

Risk Taking and Corporate Governance in the New Bank Regulatory Requirements
(Risk Taking and Corporate Governance in the New Bank Regulatory Requirements)

Prediction of Electricity Prices, Comparison of Germany and the Czech Republic
(Prediction of Electricity Prices, Comparison of Germany and the Czech Republic)

Economic Effects of IFRS 16 Implementation
(Economic Effects of IFRS 16 Implementation)

Record Keeping for Individual Entrepreneurs in the Czech Republic
(Record Keeping for Individual Entrepreneurs in the Czech Republic)

Long-Term Social Care – The Problem of Sustainable Financing in Slovakia
(Long-Term Social Care – The Problem of Sustainable Financing in Slovakia)

Does the Linkage between Agricultural Business Insurance and Use of Debt Exist? Empirical Evidence from Polish Farm Businesses
(Does the Linkage between Agricultural Business Insurance and Use of Debt Exist? Empirical Evidence from Polish Farm Businesses)

Factors of Professional Qualification Test Results of Selected Non-Bank Consumer Credit Providers Employees
(Factors of Professional Qualification Test Results of Selected Non-Bank Consumer Credit Providers Employees)

Prediction of Economic Growth to Determine the Growth Rate of Business Value
(Prediction of Economic Growth to Determine the Growth Rate of Business Value)

Importance of VAT in Government Budgets
(Importance of VAT in Government Budgets)

Strategic Approaches of SMEs in Economic Performance of E-commerce
(Strategic Approaches of SMEs in Economic Performance of E-commerce)

Leasing Companies in the Czech Republic from the Perspective of Basel III Regulation
(Leasing Companies in the Czech Republic from the Perspective of Basel III Regulation)

Structural Breaks in Consumer’s Behavior according to their Demand for Credits and Deposits
(Structural Breaks in Consumer’s Behavior according to their Demand for Credits and Deposits)

Countercyclical Capital Buffer as a Macroprudential Instrument and its Implementation in Selected EU Countries
(Countercyclical Capital Buffer as a Macroprudential Instrument and its Implementation in Selected EU Countries)

Impact of Indebtedness on the Company Performance: Comparison of Merged and Non-Merged Companies
(Impact of Indebtedness on the Company Performance: Comparison of Merged and Non-Merged Companies)

Local Debt Burden at LAU2 Level in the EU countries
(Local Debt Burden at LAU2 Level in the EU countries)

The Changes in the Polish Tax System and their Influence on the Tax Evasion
(The Changes in the Polish Tax System and their Influence on the Tax Evasion)