European Financial Systems 2014

Sovereign Credit Rating in Ordered Response Model Framework – Case of Visegrad Four Countries

Sovereign Credit Rating in Ordered Response Model Framework – Case of Visegrad Four Countries
(Sovereign Credit Rating in Ordered Response Model Framework – Case of Visegrad Four Countries)

Author(s):Marek Káčer, Martin Alexy
Language:English
Subject(s):Government/Political systems, Methodology and research technology, EU-Accession / EU-DEvelopment
Page Range:11-17
No. of Pages:7
Keywords:sovereign rating; Visegrad Four countries; panel data; ordered probit;
Summary/Abstract:The aim of this paper is to study the determinants of sovereign credit rating from the four major agencies – Moody’s, S&P, Fitch and R&I. The data set is formed by the Visegrad Four countries in the period 1993-2012. The influence of EU and Eurozone membership is analysed in addition to the macroeconomic and the socio-political explanatory variables. Ordered probit model is used to estimate the parameters and to identify the relevant determinants of sovereign rating.

Prediction of Agricultural Enterprises Distress Using Data Envelopment Analysis

Prediction of Agricultural Enterprises Distress Using Data Envelopment Analysis
(Prediction of Agricultural Enterprises Distress Using Data Envelopment Analysis)

Author(s):Tatiana Bányiová, Tatiana Bieliková, Andrea Piterková
Language:English
Subject(s):Business Economy / Management, Agriculture
Page Range:18-25
No. of Pages:8
Keywords:agricultural enterprises; corporate distress; DEA; prediction;
Summary/Abstract:The question of predicting the corporate financial distress has critical importance for all stakeholders. It is one of reasons, why the wide spread attention infinancial disciplines for this topic has been paid. Uncertainty and specificity of the current business environment in agriculture sector, as well as the rising criticism of well-known techniques, caused a tendency to test new approaches in corporate failure prediction. This paper focuses on a relatively new approach Data Envelopment Analysis (DEA), which is typically used to assess the efficiency of decision-making units.

Applications of Grey Models in the Analysis of Financial Time Series. The Forex Market Example.

Applications of Grey Models in the Analysis of Financial Time Series. The Forex Market Example.
(Applications of Grey Models in the Analysis of Financial Time Series. The Forex Market Example.)

Author(s):Stanisław Barczak
Language:English
Subject(s):Methodology and research technology, Financial Markets
Page Range:26-33
No. of Pages:8
Keywords:econometrics; grey models; time series; smoothing;
Summary/Abstract:Gray models represent a class of models that allows forecasting processes using incomplete information. This article will present a gray model GM (1,1) and its modification in the form of a rolling model GM (1,1). For the lower level advantages of the gray models is the possibility of their use for very short time series for which it is impossible to estimate the basic parameters as well as the identification of the probability distribution.

Health System's Financing Inequalities in Selected European Countries

Health System's Financing Inequalities in Selected European Countries
(Health System's Financing Inequalities in Selected European Countries)

Author(s):Agnieszka Bem, Katarzyna Prędkiewicz, Paweł Prędkiewicz, Paulina Ucieklak-Jeż
Language:English
Subject(s):Economic policy, Health and medicine and law
Page Range:34-40
No. of Pages:7
Keywords:health system; inequality;
Summary/Abstract:The most commonly used indicators of health status (e.g. life expectancy) generally measure only the average values, without taking into account the variability between sub-populations. The aim of the research is to examine the level of inequality in the distribution of the financial burden during the process of funds’ collection and inaccess to benefits and health effects in the population.

Hospital’s Size as the Determinant of Financial Liquidity

Hospital’s Size as the Determinant of Financial Liquidity
(Hospital’s Size as the Determinant of Financial Liquidity)

Author(s):Agnieszka Bem, Katarzyna Prędkiewicz, Paweł Prędkiewicz, Paulina Ucieklak-Jeż
Language:English
Subject(s):Business Economy / Management, Economic policy, Evaluation research, Health and medicine and law
Page Range:41-48
No. of Pages:8
Keywords:financial liquidity; hospital; financial management;
Summary/Abstract:The purpose of the research is to identify the relationship between the size of the hospital, measured by annual revenue or number of beds, and current liquidity ratio. We’ve posed two research hypotheses, assuming, that financial liquidity should be lower for smaller hospitals that for larger ones. We have also hypothesized, that for the largest hospital this correlation should be negative.

The Classical and Stochastic Approach to Option Pricing

The Classical and Stochastic Approach to Option Pricing
(The Classical and Stochastic Approach to Option Pricing)

Author(s):Martin Cupal, Luděk Benada
Language:English
Subject(s):Methodology and research technology, Financial Markets
Page Range:49-55
No. of Pages:7
Keywords:option pricing; lattices; Black-Scholes model; volatility; Geometric Brownian motion;
Summary/Abstract:Black-Scholes model (BS) and lattices are well-known methodologies applied to option pricing, with their own specific features and properties. Briefly, lattices are discrete in the inner computing process and stochastically based, while BS is represented by a continuous functional form without single steps, but deterministic only. The strong assumption of constant volatility and the inability of application in valuing “American”options represent major disadvantages of the BS model. Its main advantage is its simplicity and ease of application. The use of Monte Carlo simulations constitutes an alternative to this model.

Combination of Multifactor APT Model and CAPM: An Empirical Analysis of the Prague Stock Exchange

Combination of Multifactor APT Model and CAPM: An Empirical Analysis of the Prague Stock Exchange
(Combination of Multifactor APT Model and CAPM: An Empirical Analysis of the Prague Stock Exchange)

Author(s):Luděk Benada, Juraj Hruška
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:56-63
No. of Pages:8
Keywords:capital markets; portfolio; CAPM; APT; PSE;
Summary/Abstract:The goal of the paper is to investigate possibilities of utilizing multi factor APT models in constructing portfolios of securities under circumstances of Czech capital market. Authors are focusing on using several econometrical models like multifactor regression, regression including lags of explaining variables, Cochran Orcutts procedure with and without lags of explanatory variables, ARDL models and sequential F-tests for identifying factors that are crucial for explaining development of Czech market represented by index of Prague Stock Exchange.

Change in Technical Efficiency of Slovak Banks over Time under the Intermediation Approach

Change in Technical Efficiency of Slovak Banks over Time under the Intermediation Approach
(Change in Technical Efficiency of Slovak Banks over Time under the Intermediation Approach)

Author(s):Martin Boďa, Vlastimil Farkašovský, Emília Zimková
Language:English
Subject(s):Evaluation research, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
Page Range:64-72
No. of Pages:9
Keywords:technical efficiency; Slovak banking industry; non-radial SBM model; Malmquist index; intermediation approach;
Summary/Abstract:The goal of the paper is to investigate into technical efficiency exhibited by Slovak commercial banks and its changes over the period from 2000 to 2012. Under the premise of the intermediation approach to evaluating technical efficiency in banking and by dint of the decomposition based the Malmquist index, both efficiency changes and productivity changes are analysed and commented in order to draw conclusions relevant for managerial purposes and to macro-regulation of commercial banks.

Factors behind the Pricing of Eastern and Western European Oil and Gas Companies

Factors behind the Pricing of Eastern and Western European Oil and Gas Companies
(Factors behind the Pricing of Eastern and Western European Oil and Gas Companies)

Author(s):Gábor Bóta, Mihály Ormos, Dániel Tunkli
Language:English
Subject(s):Business Economy / Management, Energy and Environmental Studies, Financial Markets
Page Range:73-80
No. of Pages:8
Keywords:asset pricing; oil price; time varying beta;
Summary/Abstract:We investigate the factors influencing returns of European oil and gas companies. Our data set consist of 60 European oil and gas firms: 39 representing developed Western European countries and 21 from Central and Eastern Europe. We run regressions for the following market equilibrium models: standard CAPM, Fama-French three-factor model, Carhart four-factor model and Pastor-Stambaugh five-factor model using different variables as a market proxy, furthermore we extend all the models with the oil price as well. We also distinct different situations regarding the movement of general market prices, and oil price as well to examine regime dependency of the applied model.

Cointegration-Based Active Portfolio Selection in the European Stock Markets

Cointegration-Based Active Portfolio Selection in the European Stock Markets
(Cointegration-Based Active Portfolio Selection in the European Stock Markets)

Author(s):Bálint Botos, László Nagy, Mihály Ormos
Language:English
Subject(s):International relations/trade, Evaluation research, Financial Markets
Page Range:81-89
No. of Pages:9
Keywords:pairs trading; asset pricing; cointegration; statistical arbitrage; market neutral strategy;
Summary/Abstract:We analyze the return gained by cointegration-based pairs trading arbitrage strategy in Western and Eastern European capital markets. We find contrarian evidence to the weak form of market efficiency. The aim of the paper is to explore the mean reversion nature of the highly cointegrated stock pairs and create a trading strategy with predefined entry and exit points. We create portfolios by using 250 day long test periods based on the cointegration selection of the pairs and then traded for 125 days.

The Importance of Financial Literacy in Consumer's Optimal Choice of Insurance

The Importance of Financial Literacy in Consumer's Optimal Choice of Insurance
(The Importance of Financial Literacy in Consumer's Optimal Choice of Insurance)

Author(s):Zuzana Brokešova, Monika Jurkovičová, Erika Pastoráková
Language:English
Subject(s):Business Economy / Management, Socio-Economic Research
Page Range:90-97
No. of Pages:8
Keywords:financial literacy; insurance literacy; optimal purchase of insurance;
Summary/Abstract:Current research evidence suggests that one of the causes of insufficient use of options provided by the single market for financial services is a very low level of financial literacy in the population. In case of insurance market, the situation is even more difficult because the specifics of insurance further complicate the ability of individuals to understand the wide range of risk coverage supply, for example compared to conventional banking products.

Market Structure and Performance of the Life Insurance Industry in the Slovak Republic

Market Structure and Performance of the Life Insurance Industry in the Slovak Republic
(Market Structure and Performance of the Life Insurance Industry in the Slovak Republic)

Author(s):Erika Pastoráková, Tomáš Ondruška, Zuzana Brokešova
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:98-104
No. of Pages:7
Keywords:life insurance; industry performance; market structure;
Summary/Abstract:Life insurance industry represents an integral part of the financial market in all developed economies. In the Slovak Republic, its importance begun to increase during the first decade of new millennium, when the life insurance exceeded the non-life insurance measured by the amount of gross written premium. This newly elicited demand also flew into the changes on the supply side of life insurance and the structure of the Slovak insurance market varied significantly during this period.

Management and Criteria for Selecting Commercial Insurance Company for Small and Medium-Sized Enterprises

Management and Criteria for Selecting Commercial Insurance Company for Small and Medium-Sized Enterprises
(Management and Criteria for Selecting Commercial Insurance Company for Small and Medium-Sized Enterprises)

Author(s):Michal Fabuš, Viktória Čejková
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:105-110
No. of Pages:6
Keywords:insurance; commercial insurance company; risks; small and medium-sized enterprises; decision-making criteria;
Summary/Abstract:The paper shows the characteristic of risks of small and medium-sized enterprises (SMEs), which represent a significant market economy element. Insurance is comprehended as a type of business entities protection in case of the occurrence of business risks. Decision-making criteria of a company upon the selection of a commercial insurance company to insure the given company are an up-to-date issue nowadays. Commercial insurance companies provide insurance protection and company management decide what criteria they choose selecting a commercial insurance company.

The Single Supervisory Mechanism and the Czech Republic

The Single Supervisory Mechanism and the Czech Republic
(The Single Supervisory Mechanism and the Czech Republic)

Author(s):Hynek Černý
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:111-117
No. of Pages:7
Keywords:authority; banks; supervision; regulation;
Summary/Abstract:From November 4th, 2014 the ECB, acting on its responsibility as regional supervisor will be launching the Single Supervisory Mechanism (SSM). The Mechanism puts in place a system of community banks supervision that involves national supervisors and the ECB. Participation in the SSM is not mandatory for the countries outside the euro area. They have the option to participate in the system by entering into close cooperation agreement with ECB. For this purpose, the ECB will have to issue and adopt many rules and operating procedures before the commencement of the SSM.

Comparison of Assessment of Capital Adequacy for Czech Commercial Bank

Comparison of Assessment of Capital Adequacy for Czech Commercial Bank
(Comparison of Assessment of Capital Adequacy for Czech Commercial Bank)

Author(s):Miroslav Červenka, Eva Cipovová, Angelika Stupková, Roman Hlawiczka
Language:English
Subject(s):Business Economy / Management, Economic policy, Evaluation research
Page Range:118-126
No. of Pages:9
Keywords:Basel III; Standardized Based Approach without external rating; Foundation Internal Rating Based Approach; Probability of default; credit risk management;
Summary/Abstract:The contribution is dealing with selected assessments of the most important risk in the banking sector in the Czech Republic. The aim of this article is calculate, compare capital requirements and calibrate effective portfolio of business loans regarding to the optimal amount of the final capital adequacy of the given commercial bank in the Czech Republic. Paper is focused on the credit risk management where the evaluation of the capital adequacy with using Standardized Based Approach (STA approach) with external rating and Foundation Internal Rating Based Approach (IRB approach) methodology of legislative framework of Basel III is used.

Inflation versus Deflation and their Impact on Stock Markets

Inflation versus Deflation and their Impact on Stock Markets
(Inflation versus Deflation and their Impact on Stock Markets)

Author(s):Jana Kováčová, Katarína Gachová, Božena Chovancová
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:127-133
No. of Pages:7
Keywords:market; inflation; interest rate; quantitative easing;
Summary/Abstract:Many previous studies associated with long-term monitoring of equity returns data and inflation led to the conclusion that, historically, stock prices failed to keep up with inflation and the rate of return on shares was negatively correlated with the rate of inflation. When examining the impact of inflation on stock prices, several aspects can be applied, being an important element the different levels of expected inflation.

Modeling Financial Surplus of the Housing Projects Developer

Modeling Financial Surplus of the Housing Projects Developer
(Modeling Financial Surplus of the Housing Projects Developer)

Author(s):Daniel Iskra, Tadeusz Czernik
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:134-142
No. of Pages:9
Keywords:housing projects development; financial surplus; stochastic modeling; simulations;
Summary/Abstract:Recent events taking place on the housing project market provide a strong impetus to the study of risk in housing projects development. This issue is important not only from the point of view of the developer but also his client. This paper proposes a dynamic model of the financial surplus process. The model takes into account structure of the credit payments, the random nature of the real estate sale process (compound Poisson process: the moment of sale and sale price), predictable and unpredictable expenses.

The Nexus between Sovereign Default Risk and Bank Fragility: Evidence from China

The Nexus between Sovereign Default Risk and Bank Fragility: Evidence from China
(The Nexus between Sovereign Default Risk and Bank Fragility: Evidence from China)

Author(s):Oleg Deev, Martin Hodula
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:143-150
No. of Pages:8
Keywords:sovereign default risk; bank default risk; CDS; China; risk transfer;
Summary/Abstract:In this paper we investigate the interdependence of the sovereign default risk and its domestic banks on the example of China during the time period of 2003-2011using credit default swaps as a proxy for default risk. China’s banking industry has predominantly remained state-owned, even after a series of significant reforms in the last two decades. We employ bivariate vector autoregressive (VAR) and vector error correction (VECM) framework to analyze the short- and long-run dynamics of the chosen data series. To

Financial Literacy of Masaryk University Students in "Financial Literacy" Course

Financial Literacy of Masaryk University Students in "Financial Literacy" Course
(Financial Literacy of Masaryk University Students in "Financial Literacy" Course)

Author(s):Bohuslava Doláková
Language:English
Subject(s):Business Economy / Management, Higher Education , Fiscal Politics / Budgeting
Page Range:151-158
No. of Pages:8
Keywords:financial literacy; education; personal and family budget; money;
Summary/Abstract:The aim of the contribution “Financial Literacy of Masaryk University Students in “Financial Literacy” Course” is to analyse the state of financial literacy among the students who enrolled the very new course “Financial Literacy”. This course is intended to be an introduction to the components of financial literacy (literacy monetary, price and budget). My contribution focuses on the level of financial literacy in the time when students were just being enrolled into the course.

Options of Modern Tools in Cyberspace's Management of E-banking

Options of Modern Tools in Cyberspace's Management of E-banking
(Options of Modern Tools in Cyberspace's Management of E-banking)

Author(s):Jiří Dvořák, Karel Urbanovský, Martina Jankova
Language:English
Subject(s):Business Economy / Management, Security and defense, ICT Information and Communications Technologies
Page Range:159-165
No. of Pages:7
Keywords:economic cybernetics; electronic banking; information and communication technology;
Summary/Abstract:The aim of the article is to inform experts about the potential usage of selected modern tools for models of electronic banking management from the perspective of Applied Cybernetics. The article’s content is based on general systems theory and cybernetics with a projection of these theories to the new environment of information and communication technologies and their possible applications in modern information and knowledge society.

Yield Curve Fitting and Forecasting with Parametric Models – Empirical Evaluation Based on Polish Money Market

Yield Curve Fitting and Forecasting with Parametric Models – Empirical Evaluation Based on Polish Money Market
(Yield Curve Fitting and Forecasting with Parametric Models – Empirical Evaluation Based on Polish Money Market)

Author(s):Ewa Dziwok
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:166-172
No. of Pages:7
Keywords:yield curve estimation; multiple criteria decision making;
Summary/Abstract:Among a range of yield curve models are parsimonious methods that become the most popular in countries with well developed debt markets. Since these models let receive the implied forward rate directly they play a crucial role in modern monetary policy. The questions that arise during the modeling process reflect a choice of the best estimation method (the objective function). The solution provided in this paper implements a multiple criteria decision making which through its methodology allows to create an aggregated rating based on different evaluation criteria.

Firm Default Prediction Model for Slovak Companies

Firm Default Prediction Model for Slovak Companies
(Firm Default Prediction Model for Slovak Companies)

Author(s):Slavomir Faltus
Language:English
Subject(s):Business Economy / Management, Evaluation research, Accounting - Business Administration
Page Range:173-177
No. of Pages:5
Keywords:default prediction; default indicators; logistic regression; area under ROC;
Summary/Abstract:The study is aimed at finding the optimal default prediction model for Slovak companies. As partial goals, the accuracy of 49 individual ratios as well as 17 most established comprehensive default prediction models used through the history of predicting default was compared. The dataset for comparing and creating own model consists of more than 300,000 individual observations for each variable within years 2003 - 2012. Methodology used for comparing ratios and models include Receiver Operating Curves (ROCs) and from them derived Area Under Curve (AUC) indicator.

Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment

Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment
(Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment)

Author(s):Eric Frère, Martin Svoboda, Alexander Zureck
Language:English
Subject(s):Evaluation research, Financial Markets, Sports Studies
Page Range:178-183
No. of Pages:6
Keywords:change in coach; event study; information efficiency; STOXX Europe Football Index;
Summary/Abstract:The appointment of a new coach is often a turning point for the development of a football club’s game. But apart from the development of its game, the change affects the club’s economic prospects as well. The coach has a position similar to that of a leading manager in “classic” firms. Other studies have intensively investigated reactions in share prices to results of specific games (see, instead of many, Ashton et al. 2011).The relationship between a change in a club’s coach and the reaction of share prices has rarely been investigated.

Satisfaction of the Czech Bank Customers

Satisfaction of the Czech Bank Customers
(Satisfaction of the Czech Bank Customers)

Author(s):Lenka Gabčová, Valér Demjan, Anna Chocholáková, Maroš Mikuš
Language:English
Subject(s):Business Economy / Management, Socio-Economic Research
Page Range:184-190
No. of Pages:7
Keywords:commercial bank; bank customer’s satisfaction; satisfaction factors; factors of dissatisfaction;
Summary/Abstract:The aim of the article was to quantify and compare the overall level of satisfaction of the Czech banking customers, the most important factors of satisfaction and dissatisfaction of these customers and number of used banking products and banks in 2014 compared to 2012. Research on the satisfaction of retail customers in the Czech Republic was conducted through a questionnaire survey in 2012 on a sample of 323 respondents, and in 2014 on a sample of 292 survey participants. The research results are evaluated through Pearson statistics. Our research confirmed that the Czech Republic remains on a relatively low position with satisfying its bank customers with provided services.

Applying P-splines for Mortality Rates in the Czech Republic

Applying P-splines for Mortality Rates in the Czech Republic
(Applying P-splines for Mortality Rates in the Czech Republic)

Author(s):Ján Gogola
Language:English
Subject(s):Business Economy / Management, Evaluation research, Demography and human biology
Page Range:191-199
No. of Pages:9
Keywords:mortality; forecasting; R language; smoothing; P-splines;
Summary/Abstract:Many important classes of liability in life insurance business are sensitive to the direction of future mortality trends. Therefore the prediction of future mortality rates is an issue of fundamental importance for insurance companies. The Lee-Carter model became one of the most applied models and it is used in different countries around the world to forecast age-specific death rates. The main goal of this paper is to apply the method of P-splines to the smoothing and forecasting of two-dimensional mortality tables for the population in the Czech Republic.

Design Principles of Modified Discount Certificates

Design Principles of Modified Discount Certificates
(Design Principles of Modified Discount Certificates)

Author(s):Zuzana GORDIAKOVÁ, Monika Harčariková
Language:English
Subject(s):Business Economy / Management, Financial Markets
Page Range:200-207
No. of Pages:8
Keywords:structured products; investment certificates; modifications of discount certificates; option pricing;
Summary/Abstract:The paper analyses the structured financial products known as discount certificates and its modifications involving the particular conditions – expected rise/fall of underlying asset’s price and barrier. By assuming this Discount Plus certificate, Reverse Discount certificate and Reverse Discount Plus certificate are presented in analytical form.

Efficiency of Insurance Lines in the Slovak Republic

Efficiency of Insurance Lines in the Slovak Republic
(Efficiency of Insurance Lines in the Slovak Republic)

Author(s):Eva Grmanová
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:208-214
No. of Pages:7
Keywords:insurance; non-life insurance lines; life insurance lines; efficiency; data envelopment analysis;
Summary/Abstract:The study is focused on the efficiency of non-life insurance lines and life insurance lines of commercial insurance companies in the Slovak Republic in the times of global financial and economic crisis. It compares the efficiency scores of insurance lines on the Slovak insurance market. Data envelopment analysis (DEA) was used in order to reflect the efficiency scores. The following characteristics are taking into account in our analysis − premium, claims and administrative costs. The analysis will also review the differences in relative efficiency in different years and relative differences of specific subgroups of insurance lines.

Cartel Formation in the Financial Sector during Different Stages of Business Cycle

Cartel Formation in the Financial Sector during Different Stages of Business Cycle
(Cartel Formation in the Financial Sector during Different Stages of Business Cycle)

Author(s):Andrius Guzavičius
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:215-221
No. of Pages:7
Keywords:cartel; business cycle; behavioral finance;
Summary/Abstract:Today's research on cyclical fluctuation in economy is one of the main topic in scientific debate in the field of many different approaches. The current stage of business cycle affects both the financial institution and consumer behavior, so the established cartel stability within the changing business cycle phases depends on the members’ flexibility and speed of reaction to changes within the market. Financial institutions, having collusive agreement, are more orientated to gain benefit from collective action when there is economic boom.

The Assessment of Impact of Value Added Tax on the Cash Flow of Chosen Business Entities

The Assessment of Impact of Value Added Tax on the Cash Flow of Chosen Business Entities
(The Assessment of Impact of Value Added Tax on the Cash Flow of Chosen Business Entities)

Author(s):Angelika Kútna, Norbert Gyurian
Language:English
Subject(s):National Economy, Business Economy / Management, Fiscal Politics / Budgeting
Page Range:222-229
No. of Pages:8
Keywords:value added tax; cash flow; business entity;
Summary/Abstract:Taxes are an important part of income of each country’s budget. Their administration and collecting conditions should be also taken into consideration as factor affecting the business environment. In this context, the value added tax is one of the taxes that directly do not affect the economic situation of business entities. On the other hand, it affects in significant extent to their cash flow. The paper is focused on the impact assessment of value added tax to the cash flows of chosen business entities. The analysisis based on the given terms by the law for settling of the assessed taxes, which are subsequently reflected to the influence of cash flow figures of those entities.

The Issue of Indebtedness of Czech Hospitals

The Issue of Indebtedness of Czech Hospitals
(The Issue of Indebtedness of Czech Hospitals)

Author(s):Tana Hajdikova, Lenka Komárková, Petr Pirožek
Language:English
Subject(s):Economic policy, Evaluation research, Health and medicine and law
Page Range:230-235
No. of Pages:6
Keywords:hospitals; revenues; subsidies; indebtedness; personnel costs;
Summary/Abstract:The paper represents the current state of indebtedness of Czech hospitals independence on the selected financial indicators and parameters. It responds to the current challenges related to adjustments of the health care financing system which not only EU countries are facing. It also points to the problem of financial reporting and accounting processes of organizations providing health care. The research was based on analysis of secondary data, which were selected from annual reports and internal documents of hospitals in the year 2012.

Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction

Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction
(Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction)

Author(s):Lubor Homolka, Jiří Doležal, Petr Novák
Language:English
Subject(s):Business Economy / Management, Economic policy, Financial Markets
Page Range:236-243
No. of Pages:8
Keywords:longitudinal design; GLMM; bankruptcy;
Summary/Abstract:Financial distress modelling used for loan-approval decision making has received a lot of attention from both practitioners in commercial banks and academics over the last decades. Several modelling techniques accepted by both sides have emerged from the literature review. Surprisingly, such models are usually developed on cross-sectional data with lagged variables. This study extends traditional cross-sectional framework by employing longitudinal design in connection with generalised linear mixed models (logistic regression).

Impact of Interest Rates and Credit Structure on Liquidity and Stability of Banking Sector of the Euro Area

Impact of Interest Rates and Credit Structure on Liquidity and Stability of Banking Sector of the Euro Area
(Impact of Interest Rates and Credit Structure on Liquidity and Stability of Banking Sector of the Euro Area)

Author(s):Ján Horvát, Eva Horvátová
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:244-251
No. of Pages:8
Keywords:bank liquidity; portfolio of loans; interest rates; optimal structure of loans in euro area;
Summary/Abstract:Analysis of bank liquidity has several aspects of the investigation. The problems of bank liquidity reflect the major internal factors of the Bank, as well as external conditions of economic development, in particular interest rates and the state of the economic cycle. Therefore, possible effects on liquidity are varied. The Bank's liquidity is a pillar of stability in the banking sector and at this context is very closely linked with the issue of solvency and regulation of the banking sector.

Impact of High Frequency Trading on Volatilities of Securities on German Market

Impact of High Frequency Trading on Volatilities of Securities on German Market
(Impact of High Frequency Trading on Volatilities of Securities on German Market)

Author(s):Juraj Hruška
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:252-257
No. of Pages:6
Keywords:high frequency trading; volatility; linear regression; algorithmic trading; trading volume;
Summary/Abstract:Abstract: Algorithmic trading has become the crucial part of trading on world equity markets. Almost every big stock exchange undertook process of hybridization and allowed automated order submission. This led to many manipulative strategies which could have impact on market volatility. This paper is focused on these strategies and their impact on volatility. Furthermore, the reduction of the volatility is tested as a result of implemented regulations. Econometrical methods are used to determine relationship between high-frequency trading activity and volatility of chosen securities.

Selected Determinants of Lifelong Learning of Population in the Slovak Republic

Selected Determinants of Lifelong Learning of Population in the Slovak Republic
(Selected Determinants of Lifelong Learning of Population in the Slovak Republic)

Author(s):Kristína Hudoková, Anna Schultzová, Marcela Rabatinová
Language:English
Subject(s):Adult Education, Socio-Economic Research
Page Range:258-265
No. of Pages:8
Keywords:determinants of further adult education; regression analysis; lifelong learning;
Summary/Abstract:The contribution is focused on the analysis of lifelong learning and training programs aimed at the residents of the Slovak Republic. The main reason for the examination of this issue is the fact that sustainable development, competitiveness and dynamically developing economy is nowadays almost unachievable without increasing the educational level of human capital. The aim of this paper is to explore dependencies and the impact of selected determinants of lifelong learning at higher population's ability to assert themselves in the labor market.

The Utilization of Sovereign Bond Spreads: The Case of V4 Countries

The Utilization of Sovereign Bond Spreads: The Case of V4 Countries
(The Utilization of Sovereign Bond Spreads: The Case of V4 Countries)

Author(s):Jana Hvozdenská, Petr Červinek
Language:English
Subject(s):National Economy, Supranational / Global Economy, Evaluation research, Economic development
Page Range:266-271
No. of Pages:6
Keywords:GDP prediction; yield curve; slope; spread;
Summary/Abstract:The yield curve – specifically the spread between long term and short term interest rates is a valuable forecasting tool. It is simple to use and significantly outperforms other financial and macroeconomic indicators in predicting recessions two to six quarters ahead. The steepness of the yield curve should be an excellent indicator of apossible future economic activity. A rise in the short rate tends to flatten the yield curve as well as to slow real growth the near term. This paper aims to analyze the dependence between slope of the yield curve and an economic activity of V4 countries (Czech Republic, Hungary, Poland, Slovakia) between the years 2000 and 2013.

The Issue of Dividend Policies of Companies Listed on Warsaw Stock Exchange - Results of the Research

The Issue of Dividend Policies of Companies Listed on Warsaw Stock Exchange - Results of the Research
(The Issue of Dividend Policies of Companies Listed on Warsaw Stock Exchange - Results of the Research)

Author(s):Jacek Kuczowic, Bartłomiej Jabłoński
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:272-279
No. of Pages:8
Keywords:dividend policy; dividend companies; investor relations;
Summary/Abstract:The article describes the problem of dividend policies of the companies quoted on Warsaw Stock Exchange. The objective of the article is to present the result of the research carried out on the information provided by 118 stock exchange companies in the period 2006-2012. The research aimed at the description of the types of dividend policies applied by the companies and the analysis of investor relations from the point of view of the regularity of passing the information about the dividend policy to investors, its principles, possible changes or stopping the dividend payout.

Disability Benefits for Victims of Traffic Accidents – Size of Compensations Offered by the Current Amount of Coverage in MTPL Insurance

Disability Benefits for Victims of Traffic Accidents – Size of Compensations Offered by the Current Amount of Coverage in MTPL Insurance
(Disability Benefits for Victims of Traffic Accidents – Size of Compensations Offered by the Current Amount of Coverage in MTPL Insurance)

Author(s):Anna Jędrzychowska, Ewa Poprawska
Language:English
Subject(s):Evaluation research, Demography and human biology, Victimology
Page Range:280-287
No. of Pages:8
Keywords:MTPL insurance; personal injuries; provision for capitalized value of pensions;
Summary/Abstract:Liability insurance protect the insured against the financial consequences of the potential claims of persons or entities to whom the insured causes injury and, according to law, is obliged to repair. At the same time liability insurance protects third parties who are injured as a result of the events for which the insurance holder is responsible. They give a sense of security and greater certainty of receipt of future benefits. It should be remembered that the responsibility of the insurer in the liability insurance is limited by amount of cover defined in the contract, representing mostly the limit of liability for one and / or all of the events.

Statistical Tools for Modeling Claim Severity

Statistical Tools for Modeling Claim Severity
(Statistical Tools for Modeling Claim Severity)

Author(s):Pavla Jindrová, Ľubica Sipková
Language:English
Subject(s):Methodology and research technology
Page Range:288-304
No. of Pages:7
Keywords:claims severity model; quantile function; lognormal distribution; Pareto distribution;
Summary/Abstract:The main aim of the paper is point out on a new approach to statistical modelling of claims severity by using quantile functions. In addition to explain the theoretical principles and present the application of claims severity models that based function. Claims severity in non-life insurance refers to the monetary loss of an insurance claim and is usually modeled as a non-negative continuous random variable. The conditions under which claims are performed and data are collected allow considering the claims severity to be samples from specific heavy-tailed probability distribution.

Relative Premium in Vehicle Insurance

Relative Premium in Vehicle Insurance
(Relative Premium in Vehicle Insurance)

Author(s):Silvie Kafková
Language:English
Subject(s):Business Economy / Management, Evaluation research
Page Range:295-306
No. of Pages:12
Keywords:Markov chain; premium; bonus-malus system;
Summary/Abstract:Very important task of the actuary is to create a fair tariff structure. This structure has to fairly divide the burden of claims among policy holders. The subject of this paper is bonus-malus system in vehicle insurance. This system penalizes drivers responsible for accidents and rewards the drivers for claim-free years. First the long term behavior of BM system is examined.

The Impact of Discount Rate on Commercial Rates in the Czech Republic: The Cybernetic Approach

The Impact of Discount Rate on Commercial Rates in the Czech Republic: The Cybernetic Approach
(The Impact of Discount Rate on Commercial Rates in the Czech Republic: The Cybernetic Approach)

Author(s):František Kalouda
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:307-313
No. of Pages:7
Keywords:banking system; cybernetics; cost of capital;
Summary/Abstract:The paper is devoted to the Czech banking system identification as a cybernetic system. The behaviour of banking system defined in this way is analysed herein the branch of capital cost management (bank loan). The aim of the paper is analysis of the managing system relations (regulator – central bank) to managed system (regulated cadre – commercial banks) as relationships between operational indicator (discount rate) and regulated indicator (commercial rates).

Influence of Political System on Merger Legislation

Influence of Political System on Merger Legislation
(Influence of Political System on Merger Legislation)

Author(s):Alois Konečný
Language:English
Subject(s):Political history, Politics and law, Post-War period (1950 - 1989)
Page Range:314-321
No. of Pages:8
Keywords:merger; legislation; Czech countries;
Summary/Abstract:In the article “Influence of Political System on Merger Legislation” there are analysed, compared and upon this comparison found differences in the legal regulations ruling mergers according to the changes in socio-economic and political conditions. Subsequently the reasons which led to the creation of the various concepts of the valid legal framework are caught up. The topic is highly up-to-date because the financial markets and financial systems are widely dependent on the legislation in countries of (mainly) continental law. In this paper the dependence is studied from the view of merger legislation.

Changes in the Holding of Liquidity during the Present Financial Crisis

Changes in the Holding of Liquidity during the Present Financial Crisis
(Changes in the Holding of Liquidity during the Present Financial Crisis)

Author(s):Jana Kotlebová
Language:English
Subject(s):National Economy, Political economy, Financial Markets
Page Range:322-329
No. of Pages:8
Keywords:liquidity holding; monetary policy; flow of funds; financial crisis;
Summary/Abstract:Uncertainty on financial markets during the financial crisis brings the changes in the holding of liquidity of all economic agents. The main goal of this contribution is to assess the nature of these movements in liquidity structure and on this basis to determine potential risks for meeting monetary goals of central banks. Methodologically, flow of funds analysis is used. Special attention is paid to portfolio and credit shifts in the holding of liquidity.

Analysis of Differences of Current Liquidity Indicators across Sectors

Analysis of Differences of Current Liquidity Indicators across Sectors
(Analysis of Differences of Current Liquidity Indicators across Sectors)

Author(s):Petra Kozakova
Language:English
Subject(s):National Economy, Business Economy / Management, Evaluation research, Financial Markets
Page Range:330-336
No. of Pages:7
Keywords:current liquidity; sector; crisis; analysis of differences;
Summary/Abstract:This paper processes values from the database of the corporate data Albertina from which calculates the current liquidity indicator for companies representing individual sectors of the national economy in 2004 – 2011. The goal of the paper is to introduce the development of current liquidity in monitored period and sectors, to point to differences among represented sectors and especially to analyse differences in development of current liquidity.

Modern Products in Corporate Banking

Modern Products in Corporate Banking
(Modern Products in Corporate Banking)

Author(s):Jan Krajíček
Language:English
Subject(s):Business Economy / Management, Economic policy
Page Range:337-342
No. of Pages:6
Keywords:bank; cash management; cash pooling; client; profit;
Summary/Abstract:The paper is devoted to the Cash Management and the conditions of its creation. Banks to retain significant clients create new, sophisticated banking products that provide the bank at the cost of lower profits, if these clients to remain with her, she will make a profit through economies of scale and creating competition with other banks. Behind them are considered especially Cash Management, Cash Pooling and Cash Collection.

Notes to the Methods of the Medieval Numismatics

Notes to the Methods of the Medieval Numismatics
(Notes to the Methods of the Medieval Numismatics)

Author(s):Tomáš Krejčík, Petr Valouch
Language:English
Subject(s):Economic history, Middle Ages, Evaluation research
Page Range:343-350
No. of Pages:8
Keywords:numismatics; money; Middle Ages; methods;
Summary/Abstract:The paper focuses on the assessment of the problems and the usual methods of medieval numismatics (analysis of coin hoards, analysis of coin dies, style criticism and monetary geography). Furthermore, short attention is dedicated to the position within the medieval numismatics, especially in relation to other auxiliary historical sciences. The relationship between numismatics and economic history as a possible starting point for further interdisciplinary study is examined in the final part of the paper.

Mergers and Acquisitions in the Selected Countries of Central and Eastern Europe

Mergers and Acquisitions in the Selected Countries of Central and Eastern Europe
(Mergers and Acquisitions in the Selected Countries of Central and Eastern Europe)

Author(s):Zuzana Křížová, Jaroslav Sedláček, Eva Hýblová
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:351-358
No. of Pages:8
Keywords:company transformations; merger development; legal factors;
Summary/Abstract:This paper presents results of a research project which has the aims to identify the problems appearing during the preparation of mergers in compliance with valid Czech regulations and to analyze economic causes and consequences of mergers. The analysis of the development of mergers and acquisitions focuses on legal conditions in the selected countries CEE in the field of company combinations.

Applying Benford's Law

Applying Benford's Law
(Applying Benford's Law)

Author(s):Renáta Pakšiová, Zuzana Kubaščíková
Language:English
Subject(s):Methodology and research technology
Page Range:359-363
No. of Pages:5
Keywords:fraud; Benford's law; journal entries analysis;
Summary/Abstract:Benford's Law is used not only to detect electoral fraud but also to detect manipulation of numbers especially in accounting. Benford’s Law can recognize the probabilities of highly likely or highly unlikely frequencies of numbers in a data set. The probabilities are based on mathematical logarithms of the occurrence of digits in randomly generated numbers in large data sets. The objective of this paper is to describe and interpret the results applying Benford´s Law on a set of accounting records – journal entries in several companies.

The Factors Affecting the Accuracy of Business Failure Prediction Models

The Factors Affecting the Accuracy of Business Failure Prediction Models
(The Factors Affecting the Accuracy of Business Failure Prediction Models)

Author(s):Michal Kuběnka
Language:English
Subject(s):Business Economy / Management, Evaluation research
Page Range:364-373
No. of Pages:8
Keywords:financial prediction models; accuracy of prediction; factors of accuracy;
Summary/Abstract:A variety of methods can be used for evaluation of a firm financial health. Business failure prediction models have gained popularity for their objectivity and simultaneously a relative simplicity and a short time for conducting analyses. The firm rating inaccuracy caused by selected prediction model may be due to natural error of every particular business failure model (also called “financial prediction model”). Hypothetically, there are a lot of factors that could be eliminated in order to improve the prediction of a specific model, but practically their influence has not been statistically proven.

Determinants of Mutual Fund Industry Development in Countries of Central and Eastern Europe

Determinants of Mutual Fund Industry Development in Countries of Central and Eastern Europe
(Determinants of Mutual Fund Industry Development in Countries of Central and Eastern Europe)

Author(s):Oldřich Rejnuš, Oleksandra Lemeshko
Language:English
Subject(s):Micro-Economics, Governance, Evaluation research, Economic development, Financial Markets
Page Range:372-379
No. of Pages:8
Keywords:determinants; economic and financial system development; governance;
Summary/Abstract:The rapid growth and development of mutual fund industry throughout the world stimulated vast contemporary studies focusing on wide range of issues predominantly of microeconomic character, such as fund performance, timing ability, fees and fund flows, thus leaving determinants and attributes of mutual fund industry development beyond their research. The rare relevant studies predict that development of mutual fund industry depends on a number of factors among which the predominant role belongs to development of economic and financial system, and quality of governanc eand regulatory basis. One essential condition of validity of this prediction is that it isbased upon a sample of developed economies, thus leaving a space for the likelyhood that under condition of developing or middle-income economies some expectations may substantially deviate from the predication.

Using Correlation Structure to Analyse Relation between ETFs with Particular Index as an Underlying and These Indices

Using Correlation Structure to Analyse Relation between ETFs with Particular Index as an Underlying and These Indices
(Using Correlation Structure to Analyse Relation between ETFs with Particular Index as an Underlying and These Indices)

Author(s):Dagmar Linnertová
Language:English
Subject(s):Methodology and research technology, Financial Markets
Page Range:380-387
No. of Pages:8
Keywords:ETF; network structure; index; correlation; graph theory;
Summary/Abstract:The paper examines dependability and connectedness in the world ETFs market. Respectively, what are similarities and differences between world indices and particular index ETFs. The usage of network structure helps to fully identify relation between particular ETFs and indices that represent the underlying assets of these ETFs.

Optimal Decision for Convertible Debt Financing - Some Observations from the American Mark

Optimal Decision for Convertible Debt Financing - Some Observations from the American Mark
(Optimal Decision for Convertible Debt Financing - Some Observations from the American Mark)

Author(s):Jakub Marszałek
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:388-395
No. of Pages:8
Keywords:capital structure; financing; convertible bond; American company; assets substitution theory;
Summary/Abstract:Choosing an appropriate proportion between debt and equity is one of the most important decisions in a financial management. A convertible bond may be an attractive financial instrument that helps to achieve the optimal capital structure of a company. In this paper, we analyze 562 issues of the bonds from the American market between 2002-2013. The financial sector companies were excluded from the sample due to a different financial statement structure and different motives of the hybrid debt issuance.

Investments Allocation Tax Factors in Pre-crisis Time

Investments Allocation Tax Factors in Pre-crisis Time
(Investments Allocation Tax Factors in Pre-crisis Time)

Author(s):Gabriela Kukalová, Lukáš Moravec
Language:English
Subject(s):Business Economy / Management, Economic policy, Fiscal Politics / Budgeting
Page Range:396-402
No. of Pages:7
Keywords:foreign direct investments; double tax treaties; consumption taxes burden; direct taxes burden; econometric modeling;
Summary/Abstract:This study sets as its target to verify the influence of tax environment on the foreign direct investments allocation (hereinafter mentioned only as “FDI”) and identify the specific tax factors having significant impact on the FDI geographical structure and quantify the factors power applying the correlate and regression functions on the 2006 OECD data. The study analyzes influence of direct taxes burden and consumer taxes burden on investments. Special stress is put on the double tax treaties as a factor influencing cross-border investments tax burden in the time of growing globalization process.

Cross-Sectional Examination of Classic Asset Pricing Models on the Russian Stock Market

Cross-Sectional Examination of Classic Asset Pricing Models on the Russian Stock Market
(Cross-Sectional Examination of Classic Asset Pricing Models on the Russian Stock Market)

Author(s):Oleg Deev, Galina Mukhacheva
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:403-408
No. of Pages:6
Keywords:CAPM; multi-factor asset pricing models; time-varying beta; emerging market;
Summary/Abstract:Emerging stock markets are generally considered the highly profitable opportunity for global investors. However, their relative instability, especially disclosed in high volatility and lower trading volumes, makes the forecast of returns on these markets extremely difficult. In this paper, we test the forecast accuracy of classic asset pricing models, namely capital asset pricing model (CAPM) and several specifications of multifactor asset pricing models with time-varying risk factor measurements to predict returns of Russian stocks.

The Impact of Indicators of Capital Structure on Profit of Viticulture and Viniculture Enterprises

The Impact of Indicators of Capital Structure on Profit of Viticulture and Viniculture Enterprises
(The Impact of Indicators of Capital Structure on Profit of Viticulture and Viniculture Enterprises)

Author(s):Marta Gryčová, Martin Gürtler, Eliška Vlašicová, Zdeňka Náglová
Language:English
Subject(s):Business Economy / Management, Evaluation research
Page Range:409-416
No. of Pages:8
Keywords:capital structure; results of operations; linear regression model; viticulture; viniculture;
Summary/Abstract:This paper examines the influence of particular aspects of capital structure on profit or loss of a company. The aim of this paper is to identify an impact of selected indicators on profit, resp. on EBIT and EAT of viticulture and viniculturae companies in the Czech Republic. A regression and correlation analysis is used to identify the influence of the selected indicators. The paper works with accounting data of wine and viticulture businesses during the time period of 2005 - 2011. Data were obtained from a database of companies and institutions Albertina.

Non-life Insurance Market in the Czech Republic and Slovakia

Non-life Insurance Market in the Czech Republic and Slovakia
(Non-life Insurance Market in the Czech Republic and Slovakia)

Author(s):Svatopluk Nečas, Viktória Čejková
Language:English
Subject(s):Economic history, Evaluation research, Transformation Period (1990 - 2010), Financial Markets
Page Range:417-424
No. of Pages:8
Keywords:insurance; non-life insurance; insurance market; evaluation indicators of insurance market;
Summary/Abstract:The paper shows the characteristics of the Czech and Slovak non-life insurance market and its comparison. The aim of the article is to compare the non-life insurance in the Czech Republic and Slovakia and to find out which market is more developed.

Fiscal Imbalances: How Should Public Finance React?

Fiscal Imbalances: How Should Public Finance React?
(Fiscal Imbalances: How Should Public Finance React?)

Author(s):Juraj Nemec, Markéta Šumpíková, Stanislav Klazar, Beáta Mikušová Meričková, Matúš GREGA
Language:English
Subject(s):National Economy, Public Finances, Fiscal Politics / Budgeting
Page Range:425-432
No. of Pages:8
Keywords:crisis; public finance; efficiency; effectiveness; public procurement;
Summary/Abstract:After 2008, one of the main issue in EU countries became growing deficit of public finances. This paper argues, that the most feasible way how to improve growing fiscal imbalances in Czech Republic and Slovakia is to focused on efficiency improvements, especially in contracting of public services and public procurement. Our ten year long research in contracting of public services shows, that low level of competition, lack of motivation and poor contract management skills are the main issues.

Influence of International Trade on Economic Growth

Influence of International Trade on Economic Growth
(Influence of International Trade on Economic Growth)

Author(s):Pavol Skalák, Marcel Novák
Language:English
Subject(s):Economic policy, International relations/trade, Economic development
Page Range:433-440
No. of Pages:8
Keywords:international trade; economic growth; openness; Slovakia;
Summary/Abstract:International trade significantly affects our standard of living. It allows us to access goods and services that we don’t produce in our country or we can’t produce because we don’t have resources to do so. Thereby imported good widened our consumer choices. The benefit of international trade is also in increased productivity, which has its origin in the specialization of production and competitive pressure from foreign producers and markets. Economic performance is not only determined by national production factors, but also by international factors and so interdependence of countries becomes more and more intense.

Hedging against a Price Rice Using Vertical Ratio Call Back Spread Strategy Formed by Barrier Options

Hedging against a Price Rice Using Vertical Ratio Call Back Spread Strategy Formed by Barrier Options
(Hedging against a Price Rice Using Vertical Ratio Call Back Spread Strategy Formed by Barrier Options)

Author(s):Bibiána Nováková, Pavol Baran
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:441-448
No. of Pages:8
Keywords:barrier options; vertical ratio call back spread strategy; SPDR gold shares;
Summary/Abstract:This paper presents hedging analysis against an underlying price rise by using Vertical Ratio Call Back Spread strategy formed with barrier options. The main theoretical contribution is to specify profit functions for this strategy which can be applied in practice for a variety of underlying assets. In this paper the strategy is applied to real option data for SPDR Gold Shares, which are traded on the stock exchange.

Overconfidence as a Cognitive Bias and its Implications for Insurance Industry

Overconfidence as a Cognitive Bias and its Implications for Insurance Industry
(Overconfidence as a Cognitive Bias and its Implications for Insurance Industry)

Author(s):Tomáš Ondruška
Language:English
Subject(s):Business Economy / Management, Behaviorism, Socio-Economic Research
Page Range:449-454
No. of Pages:6
Keywords:bias; consumer; financial literacy; insurance; overconfidence;
Summary/Abstract:The behavior of individuals is influenced by many biases that cause their deviation from the rationality. One of them, discussed extensively in the financial industry is cognitive bias - overconfidence. It is a firmly established feature of an individual behavior in the psychological point of view. On the other hand in the economics it is extensively explained by inefficient market outcomes connected to a biased sense of self-confidence. In short, the bias is shown for numerous real-world situations and cause changes in consumers’ behavior.

Pharming in the E-banking Field and Protection Techniques against this Type of Fraud

Pharming in the E-banking Field and Protection Techniques against this Type of Fraud
(Pharming in the E-banking Field and Protection Techniques against this Type of Fraud)

Author(s):Gabriela Oškrdalová
Language:English
Subject(s):Business Economy / Management, Security and defense, ICT Information and Communications Technologies
Page Range:455-461
No. of Pages:7
Keywords:e-banking; security; risk; fraud; pharming;
Summary/Abstract:The subject of the paper “Pharming in the e-banking field and protection techniques against this type of fraud” is a description of pharming in the e-banking field, identification of warning signs of pharming, creating of models of this type of fraud, interpretation of results of own quantitative research (focused on knowledge of pharming) and an identification of the basic recommendations for users of e-banking services (especially for users of internet banking services) to reduce security risks connected with using of e-banking services.

Bayesian Estimation of Event Probability in Accident Insurance

Bayesian Estimation of Event Probability in Accident Insurance
(Bayesian Estimation of Event Probability in Accident Insurance)

Author(s):Eva Kotlebová, Viera Pacáková
Language:English
Subject(s):Methodology and research technology
Page Range:462-468
No. of Pages:7
Keywords:event probability; Bayesian estimation; prior distribution; posterior distribution; binomial/beta model;
Summary/Abstract:Knowledge of the probability of an insured event is the basis for the valuation of the products in life and non-life insurance companies. For estimation of event probability in insurance practice the most often use the historical data from a large portfolio of insurance policies. The classical approach to point estimation of the event probability is by proportion of occurrence of the event in large portfolio of policies. The objective of this paper is to present Bayesian estimation of selected binomial proportions in accident insurance. The classical approach to point estimation treats parameters as something fixed but unknown.

How Do Risk Free Investment Options Change our Decisions under Risk?

How Do Risk Free Investment Options Change our Decisions under Risk?
(How Do Risk Free Investment Options Change our Decisions under Risk?)

Author(s):Jana Péliová
Language:English
Subject(s):Business Economy / Management, Economic policy, Evaluation research
Page Range:469-474
No. of Pages:6
Keywords:decision; risk; investment;
Summary/Abstract:Financial decisions of investors do not essentially depend only on the amount of expected reward and it´s probability but as well as on the probability and amount of potential loss. Appropriate presentation of investment options may influence investors' decisions. The article aims to test the sensitivity of perception of economic subjects to the probability and amount of potential losses in decisions under risk.

The Establishment of VIG Group as a Marketing Strategy on the Insurance Market in the Czech Republic

The Establishment of VIG Group as a Marketing Strategy on the Insurance Market in the Czech Republic
(The Establishment of VIG Group as a Marketing Strategy on the Insurance Market in the Czech Republic)

Author(s):Lenka Přečková
Language:English
Subject(s):Business Economy / Management, Marketing / Advertising
Page Range:475-483
No. of Pages:9
Keywords:insurance group; life insurance; non-life insurance; written premium;
Summary/Abstract:The issue of the establishment of insurance groups relates to up-to-date trends on the present insurance market. The VIG group is a major insurance group on the Czech insurance market. The insurance companies Kooperativa Pojišťovna, ČPP Pojišťovna and Pojišťovna ČS are its three subsidiaries. The aim of this paper is to determine the influence of the establishment of the insurance group VIG on selected indicators of the insurance market.

IFRS as a Tax Base in a Small Open Economy

IFRS as a Tax Base in a Small Open Economy
(IFRS as a Tax Base in a Small Open Economy)

Author(s):Jan Molina, David Procházka
Language:English
Subject(s):Micro-Economics, Economic policy, Fiscal Politics / Budgeting
Page Range:484-491
No. of Pages:8
Keywords:IFRS; tax base; small open economy; comparative advantages;
Summary/Abstract:The IFRS adoption has improved the quality of accounting information significantly. However, huge costs are incurred by all subjects involved. The process has significant consequences for tax systems, too. State authorities are solving how to ensure the control over tax duty fulfilment under a new financial reporting system. As corporate income tax systems in code law countries are tightly bound up with accounting regulation, governments are forced to decide whether and in which way companies preparing financial statements under the IFRS shall reflect the IFRS based figures in their income tax returns.

Funding Social Services in the Czech Republic in the Light of EU Legislation

Funding Social Services in the Czech Republic in the Light of EU Legislation
(Funding Social Services in the Czech Republic in the Light of EU Legislation)

Author(s):Ladislav Průša, Mirka Wildmannova
Language:English
Subject(s):Welfare systems, Politics and society, EU-Accession / EU-DEvelopment, EU-Legislation
Page Range:492-498
No. of Pages:7
Keywords:social services; subsidies from the state budget; care allowance; social services funding;
Summary/Abstract:The Czech Republic joined the European Union in May 2004 and one of the conditions for membership was to reconcile the legal environment in the Czech Republic so that it would be in synergy with the single market of the EU. Since then, the legal environment has evolved in response to newly arising changes. In 2006, the Directive on services in the internal market was adopted, which among other things specifies the rules governing fair competition.

Malaysia and Taiwan Acquiring Firms’ Short-run Performance in Cross Border Mergers and Acquisitions

Malaysia and Taiwan Acquiring Firms’ Short-run Performance in Cross Border Mergers and Acquisitions
(Malaysia and Taiwan Acquiring Firms’ Short-run Performance in Cross Border Mergers and Acquisitions)

Author(s):Kamal Fahrulrazy Rahim, Ahmad Noryati, Ismail Ahmad, Fahmi Abdul Rahim
Language:English
Subject(s):Business Economy / Management, Evaluation research, Transformation Period (1990 - 2010)
Page Range:499-506
No. of Pages:8
Keywords:cross border mergers and acquisitions; shareholder value creation; determinants; event study;
Summary/Abstract:Economic of Asian countries are growing faster than other region of the world and the emerging of new market has creating a cross border mergers and acquisitions (CBMA) opportunity toward international trade, global investment and overseas expansion. Malaysia and Taiwan are categorised as two advanced emerging market in Asian by FTSE. Malaysian and Taiwanese firms have been reported involve aggressively in CBMA deals as early 1990s.

Price vs. Performance Index – Comparison of the Czech PX with the DAX 30 and the EuroStoxx 50

Price vs. Performance Index – Comparison of the Czech PX with the DAX 30 and the EuroStoxx 50
(Price vs. Performance Index – Comparison of the Czech PX with the DAX 30 and the EuroStoxx 50)

Author(s):Svend Reuse, Martin Svoboda
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:507-514
No. of Pages:8
Keywords:price index; risk; return; correlations; asset allocation;
Summary/Abstract:The Czech PX is – as most of the indices – a price index. Nevertheless, a performance index of the PX is developed as well. This articles analyses risk/return of the PX in comparison to the German DAX 30 and the EuroStoxx 50. Diversification effects as well as the tests onto normal distribution are analyzed.

Mergers of Business Corporations at the Czech Acquisition and Merger Market

Mergers of Business Corporations at the Czech Acquisition and Merger Market
(Mergers of Business Corporations at the Czech Acquisition and Merger Market)

Author(s):Alois Konečný
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:515-523
No. of Pages:9
Keywords:company transformations; development of mergers and acquisitions; mergers on the Czech market;
Summary/Abstract:This paper monitors development trends at the global merger and acquisition (M&A) market and analyses the development of the Czech merger market in detail. The aim of this paper is to compare mergers implemented in 2010-2013 as regards the types of the Czech mergers, the legal forms of the participating companies, and their combinations. Attention is devoted to the changes in timing of mergers within the calendar year.

Evaluation of the Use of Mediation to Resolve Disputes in Financial Services in the Czech Republic

Evaluation of the Use of Mediation to Resolve Disputes in Financial Services in the Czech Republic
(Evaluation of the Use of Mediation to Resolve Disputes in Financial Services in the Czech Republic)

Author(s):Jindřiška Šedová
Language:English
Subject(s):Financial Markets, Socio-Economic Research
Page Range:524-532
No. of Pages:9
Keywords:mediation; arbitration proceedings; judicial proceedings; contract enforceability;
Summary/Abstract:The aim of this paper is to present the results of an analysis of contract enforceability and suitable methods of resolving disputes in the Czech Republic both in general terms and also focusing on the area of financial services. From this point of view, the main reasons of the low efficiency of dispute resolution from agreements are considered. In the Czech Republic most often a dispute resolution in court proceedings isused. In comparison with other countries, alternative dispute resolutions have been used rarely.

Topological Properties of European Banking Network in Light of the Single Supervisory Mechanism

Topological Properties of European Banking Network in Light of the Single Supervisory Mechanism
(Topological Properties of European Banking Network in Light of the Single Supervisory Mechanism)

Author(s):Maria Siranova
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:533-541
No. of Pages:9
Keywords:Single Supervisory Mechanism; network analysis; directed weighted network;
Summary/Abstract:In this paper we discuss the topological properties of the European banking network and its evolution over time based on the BIS consolidated banking statistics data exploiting information from complex network analysis. This method allows us to detect the key nodes of the system in a weighted network environment.

Relation of CSR and Market Measures of Financial Performance: International Evidence

Relation of CSR and Market Measures of Financial Performance: International Evidence
(Relation of CSR and Market Measures of Financial Performance: International Evidence)

Author(s):Tomasz Słoński, Karolina Daszyńska-Żygadło, Bartosz Zawadzki
Language:English
Subject(s):Business Economy / Management, Governance, Evaluation research, Financial Markets
Page Range:542-549
No. of Pages:8
Keywords:CSR; Tobin’s q;
Summary/Abstract:This study assesses the relationship between corporate social performance and financial performance. We measure CSR practices through a reliable, complete and worldwide database, ASSET4 provided by Thomson Reuters. We use Tobin’s q as a proxy of financial performance and introduce numerous control variables such as size, sales growth, year, industry and region. We find different levels of sensitivity among investorsto different CSR dimensions.

Macroeconomic Factors and Commodity Price Volatility

Macroeconomic Factors and Commodity Price Volatility
(Macroeconomic Factors and Commodity Price Volatility)

Author(s):Kamil Smolik, Oldřich Rejnuš
Language:English
Subject(s):Supranational / Global Economy, Economic history, Transformation Period (1990 - 2010), Financial Markets
Page Range:550-556
No. of Pages:7
Keywords:commodity markets; macroeconomic determinants;
Summary/Abstract:In this paper, the relation between prices of individual sectors of commodity markets and values of selected macroeconomic determinants from January 2000 to September 2013 is analysed. This period is characteristic for its fast growth of investments into commodity assets by non-commercial market participants. To describe mutual dependence of development of individual classes of commodities assets and macroeconomic determinants, Spearman correlation coefficient is used. The results of the research refer to relatively high dependence between prices of commodity assets and Nominal Effective Exchange Rate of ISD or World Bank Inflation Rate.

Lease Type B and Possible Duplicate Recognition of Assets

Lease Type B and Possible Duplicate Recognition of Assets
(Lease Type B and Possible Duplicate Recognition of Assets)

Author(s):Hana Bohušová, Alžběta Srnova, Veronika Blašková
Language:English
Subject(s):Evaluation research, Financial Markets, Accounting - Business Administration
Page Range:557-564
No. of Pages:8
Keywords:lease reporting; lessee; right-of-use;
Summary/Abstract:According to the revised draft of financial reporting standard Leases (Re-ED2013), all lease agreements with duration of over 12 months are classified into two groups A and B. The basic criterion for classification is the consumption of significance of proportion of the economic benefits associated with the leased asset. The main problem of this methodology can be considered the possibility of duplicate reporting of assets in both statements of financial position, lessor and lessee. It could lead to an over statement of assets arising from the relevant lease agreement.

The Analysis of the Threshold of Obligatory Offer Based on the Theory of Games for Companies from Index WIG30 in Poland

The Analysis of the Threshold of Obligatory Offer Based on the Theory of Games for Companies from Index WIG30 in Poland
(The Analysis of the Threshold of Obligatory Offer Based on the Theory of Games for Companies from Index WIG30 in Poland)

Author(s):Anna Sroczyńska-Baron
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:565-571
No. of Pages:7
Keywords:takeover; obligatory bid; cooperative games; Banzhaf index; shareholders;
Summary/Abstract:Nowadays, taking over companies are becoming increasingly common in Europe. Of course, one cannot buy every number of shares without any limitations. There are legal regulations relating to takeover bids and securities sale in each Member State. They should be according to European Parliament and Council Directive 2004/25/EC of 21 April on takeover bids. The Directive establishes a framework of general requirements which Member States are to implement through more detailed rules in accordance withtheir national systems and cultural contexts.

External Imbalances in the European Union Before and After the Financial Crisis

External Imbalances in the European Union Before and After the Financial Crisis
(External Imbalances in the European Union Before and After the Financial Crisis)

Author(s):Daniel Stavarek
Language:English
Subject(s):Government/Political systems, Economic development, EU-Accession / EU-DEvelopment, Financial Markets
Page Range:572-580
No. of Pages:9
Keywords:current account; savings-investment; international competitiveness; demand; government bonds;
Summary/Abstract:Economic development in the EU during the pre-crisis period was typical of substantial macroeconomic and financial imbalances. Since the start of the crisis the size of imbalances has reduced rapidly, creating severe adjustment pressures. The aim of thepaper is to quantify the effect of the crisis on the size of external imbalances and to demonstrate the adjustment process in the EU.

Capital Structure and Capital Disparity across the Economic Subjects in the Agricultural Sector in the Czech Republic Before and After the Financial Crisis

Capital Structure and Capital Disparity across the Economic Subjects in the Agricultural Sector in the Czech Republic Before and After the Financial Crisis
(Capital Structure and Capital Disparity across the Economic Subjects in the Agricultural Sector in the Czech Republic Before and After the Financial Crisis)

Author(s):Jana Steklá, Marta Gryčová
Language:English
Subject(s):Business Economy / Management, Agriculture, Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
Page Range:580-587
No. of Pages:8
Keywords:capital structure; agricultural sector; financial crisis; capital disparity;
Summary/Abstract:The financial crisis of 2008 had an impact on the entire economy of the Czech Republic, and especially for the Czech agriculture. The problem of the Czech agrarian sector lies mainly in its under-capitalization, which was amplified by the financial crisis. For this reason, the paper will focus on the capital structure. The aim of this paper will evaluate the development of the capital structure of agricultural subjects in the Czech Republic with respect to the legal form before and after the financial crisis.

The Effect of Ownership Structure on the Performance of Manufacturing Companies

The Effect of Ownership Structure on the Performance of Manufacturing Companies
(The Effect of Ownership Structure on the Performance of Manufacturing Companies)

Author(s):Michal Karas, Michala Strnadová
Language:English
Subject(s):Business Economy / Management, Evaluation research
Page Range:588-595
No. of Pages:8
Keywords:ownership structure; firm performance; value drivers;
Summary/Abstract:The article deals with the analysis of the influence of the distribution of property on company´s productivity. The distribution of property is understood here in the sense of company´s control by the domestic, respectively external, subject. The aim of this article is to identify the areas of financial productivity that are statistically significantly different in the companies which are controlled by the domestic or external proprietor.

Corporate Non-life Insurance Claims: Empirical Evidence from the Polish Market

Corporate Non-life Insurance Claims: Empirical Evidence from the Polish Market
(Corporate Non-life Insurance Claims: Empirical Evidence from the Polish Market)

Author(s):Grzegorz Strupczewski
Language:English
Subject(s):Business Economy / Management, Evaluation research, Financial Markets
Page Range:596-604
No. of Pages:9
Keywords:insurance; loss experience analysis; deductible; risk retention;
Summary/Abstract:The aim of the article is to analyze non-life insurance claims reported by corporations. Most publication in the field of insurance losses concentrates on aggregate loss data for the whole industry presented by a domestic insurance supervision authority. Sometimes there are papers presenting claims statistics given by one particular insurance company or focusing on one particular type of losses (e.g. motor insurance losses).

Product Quality and Performance of the Enterprise

Product Quality and Performance of the Enterprise
(Product Quality and Performance of the Enterprise)

Author(s):Maria Králová, Petr Suchánek
Language:English
Subject(s):Business Economy / Management, Evaluation research
Page Range:605-612
No. of Pages:8
Keywords:performance; product quality; ratios;
Summary/Abstract:The subject of this paper is the relationship between product quality and the performance of an enterprise. The aim of this paper is to analyze the affect of product quality on the performance of the enterprise. The paper is based on research into product quality (which includes six parameters) and the performance of enterprises in the food industry in the CR. The research was conducted by questionnaire and as certained bothqualitative and quantitative data. The evaluation was performed using standard statistical methods.

Financial Literacy of Masaryk University Students with Focus on Socially Disadvantages Citizens

Financial Literacy of Masaryk University Students with Focus on Socially Disadvantages Citizens
(Financial Literacy of Masaryk University Students with Focus on Socially Disadvantages Citizens)

Author(s):Martin Svoboda
Language:English
Subject(s):Higher Education , Socio-Economic Research
Page Range:613-620
No. of Pages:8
Keywords:financial literacy; university students; personal budget; money; education; socially disadvantages citizens;
Summary/Abstract:The aim of this paper is to analyze the current level of financial literacy of Masaryk University (MU) students. The empirical survey was conducted among students of the Faculty of Economics and Administration MU. It included both full-time and combined-study students who enrolled in the courses “Basic Finance”, taught in the Bachelor study program, and “Financial investment”, which is offered to university students in the master’s degree study program. The questionnaire survey was conducted within the Citi Foundation program and it was based on the project of “Empirical verification of university students’ literacy”, whose aim was to test the financial literacy of individual respondents, i.e. university students.

The Uncertainty Associated with the Estimated Lease Term and its Impact on the Financial Analysis Ratios

The Uncertainty Associated with the Estimated Lease Term and its Impact on the Financial Analysis Ratios
(The Uncertainty Associated with the Estimated Lease Term and its Impact on the Financial Analysis Ratios)

Author(s):Hana Bohušová, Patrik Svoboda
Language:Danish
Subject(s):Evaluation research, Financial Markets
Page Range:621-628
No. of Pages:8
Keywords:uncertainty; lease reporting; lessee; option to extend the lease term;
Summary/Abstract:The main aim of the paper is focused on the impact of the possibility of reviewing the expected lease term after the initial recognition of the leased subject on the financial analysis ration on lessee´s side. The authors´ approach to the right to use measurement is based on the IASB´s and FASB´s possible approaches to the uncertainty taking into account and its quantification in the case of the option to extend the lease term.

Do Fiscal Drivers Matter for Sovereign Risk Spread in EU15?

Do Fiscal Drivers Matter for Sovereign Risk Spread in EU15?
(Do Fiscal Drivers Matter for Sovereign Risk Spread in EU15?)

Author(s):Irena Szarowská
Language:English
Subject(s):National Economy, Economic history, Government/Political systems, Transformation Period (1990 - 2010), Present Times (2010 - today), EU-Accession / EU-DEvelopment, Financial Markets, Fiscal Politics / Budgeting
Page Range:629-637
No. of Pages:9
Keywords:debt; budget deficit; sovereign risk spreads; fiscal discipline;
Summary/Abstract:The price of government bonds reflects among other market confidence in governments' commitment towards sustainable fiscal policies. The aim of the paper is to examine the importance of fiscal fundamentals for sovereign risk spread in selected European Union member states in a period 1990-2012 and test if stronger fiscal discipline reduces sovereign risk premium. The empirical evidence is performed on unbalanced panel containing 15 EU countries and panel regression is a basic method of research.

World Financial Frictions and the Czech Economy

World Financial Frictions and the Czech Economy
(World Financial Frictions and the Czech Economy)

Author(s):Adriana Lukáčiková, Martin Lukáčik, Karol Szomolányi
Language:English
Subject(s):National Economy, Evaluation research, Financial Markets
Page Range:638-645
No. of Pages:8
Keywords:VAR model; world financial frictions; interest rate shocks; interest spread;
Summary/Abstract:According to Uribe and Schmitt-Grohé (2014) business cycles in emerging market economies are correlated with the interest rate that these countries face in international financial markets. From this statement follows a question: what fraction of business cycle fluctuations is due to movements in country interest rate? Uribe and Yue (2006) offer the vector auto-regression model specification to quantify the macroeconomic effects of world interest rate shocks and country’s interest spread shocks.

Using Modern Quality Management Tools to Improve Finance and Business University Courses

Using Modern Quality Management Tools to Improve Finance and Business University Courses
(Using Modern Quality Management Tools to Improve Finance and Business University Courses)

Author(s):Tamás Jónás, Zsuzsanna Tóth
Language:English
Subject(s):Business Economy / Management, Higher Education , Evaluation research
Page Range:646-654
No. of Pages:9
Keywords:higher education; student satisfaction; PDCA; quality improvement actions; self-organizing map;
Summary/Abstract:The Institute of Business of the Budapest University of Technology and Economics is one of the largest financial and business higher education centers in Hungary both in terms of total student numbers and the number of undergraduate and graduate majors and courses. In this paper we report a project aimed at improving some of the core undergraduate finance and business courses. The specialty of this project is that the opinion of students is taken into consideration in a way that not only the given course but the whole survey and feedback process can be improved. Self-organizing maps (a hexagonal topologic structure with 5x5 neurons with the survey results considered as 22 dimensional vectors containing 11 importance and performance pairs) and statistical techniques were used to analyze the survey results.

Cost and Benefit of Accounting Information in Slovakia: Do We Need to Redefine Relevance?

Cost and Benefit of Accounting Information in Slovakia: Do We Need to Redefine Relevance?
(Cost and Benefit of Accounting Information in Slovakia: Do We Need to Redefine Relevance?)

Author(s):Miloš Tumpach, Anna Baštincová
Language:English
Subject(s):Business Economy / Management, Accounting - Business Administration
Page Range:655-661
No. of Pages:7
Keywords:financial reporting; relevance; Slovakia;
Summary/Abstract:There are different groups of users of business information, whose interests are more often than not in mutual contradiction. As a result, it is almost impossible for general purpose financial statements to serve the best the interests of all stakeholders considered. Since the end of WWII, the accounting rules in Slovakia has been prescribed in a very detailed way by the government which on its own is one of the interested parties. In our paper we have examined whether, after 50 years, the current system of national financial reporting framework for businesses is not unnecessary context and if itis able to provide at least some information considered to be relevant by its apparent key users.

Tax Considerations and Merger Activity in National and International Context: Empirical Evidence from the Czech Republic

Tax Considerations and Merger Activity in National and International Context: Empirical Evidence from the Czech Republic
(Tax Considerations and Merger Activity in National and International Context: Empirical Evidence from the Czech Republic)

Author(s):Oleksandra Lemeshko, Petr Valouch
Language:English
Subject(s):Evaluation research, Public Finances, Fiscal Politics / Budgeting
Page Range:662-668
No. of Pages:7
Keywords:tax policy; merger; double taxation; tax savings; tax costs;
Summary/Abstract:Being closely interconnected with method of payment and structure of the deal, tax policies determine the scope of financial synergies from mergers. Majority of current tax regimes impose a significant burden on domestic firms earning foreign income. One of its major components is double taxation, which in combination with other tax issues significantly distorts ownership patterns and reduces cross-border and domestic investment flows. An exemption of foreign income and shareholder income from taxation helps to promote social welfare, although not to the global optimum. There is positive significant correlation between international tax rates and the probability of choosing a location for an affiliate of a multinational firm for both green field investment cross-border mergers. The latter react less strongly to high tax rates than greenfield investments.

The Development of Profitability of Merged Czech Companies

The Development of Profitability of Merged Czech Companies
(The Development of Profitability of Merged Czech Companies)

Author(s):Petr Valouch, Daniel Němec
Language:English
Subject(s):Supranational / Global Economy, Business Economy / Management, Evaluation research, Economic development
Page Range:669-676
No. of Pages:8
Keywords:mergers; profitability; macroeconomic development; panel data model;
Summary/Abstract:The aim of this paper is to analyse the development of profitability of merged Czech companies realizing the merger in the period of years 2001 – 2010. The analysis is based on the sample of more than 300 companies realizing and completing successfully the process of merger during the above mentioned period.

Assessing the Consequences of Global Financial Crisis in the System of Credit Risks Insurance

Assessing the Consequences of Global Financial Crisis in the System of Credit Risks Insurance
(Assessing the Consequences of Global Financial Crisis in the System of Credit Risks Insurance)

Author(s):Eva Vávrová
Language:English
Subject(s):Evaluation research, Financial Markets
Page Range:677-683
No. of Pages:7
Keywords:credit risks insurance; export credit agency (ECA); market share; risk exposure; financial crisis;
Summary/Abstract:Considering the global financial crisis, the paper highlights the importance of the export credit insurance provided both on a commercial basis and with the state support. The main scientific objective of this paper is to analyse the export credit insurance on the Czech insurance market including the assessment of ECA's activities for the selected time period with respect to the changes in the territorial structure and the volume of insurance exposure.

Performance Measurement in the Public Sector

Performance Measurement in the Public Sector
(Performance Measurement in the Public Sector)

Author(s):Jana Vodáková
Language:English
Subject(s):Public Administration, Economic policy, Government/Political systems
Page Range:684-691
No. of Pages:8
Keywords:performance; performance measurement; state administration; public sector;
Summary/Abstract:This paper deals with performance measurement in the area of the public sector. Performance management is an important part of the public finance reforms and it is also referred as a crucial assumption of the stable public finances and effectiveness of the budget spending. The paper summarizes a current state of performance measurement in OECD countries. The main accent is put on government and the state administration. Preliminary findings suggest that OECD countries use various tools for performance evaluation. It also seems there exist significant differences among specific countries as to extent and methods of performance evaluation.

Profitability Ratios in the Stock Selection Process on the Warsaw Stock Exchange. Analysis between 2001 and 2011.

Profitability Ratios in the Stock Selection Process on the Warsaw Stock Exchange. Analysis between 2001 and 2011.
(Profitability Ratios in the Stock Selection Process on the Warsaw Stock Exchange. Analysis between 2001 and 2011.)

Author(s):Tomasz Węgrzyn
Language:English
Subject(s):Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Financial Markets
Page Range:692-698
No. of Pages:7
Keywords:financial ratios; stock selection; synthetic measure of development;
Summary/Abstract:The process of a portfolio optimisation is preceded by a stock selection. The article is concentrated on using the synthetic measure of development in the stock selection process. The synthetic measure of development proposed by Hellwig (Hellwig,1968) is one of the methods of linear arrangement. It enables the classification of companies in relation to the set variables. In case of the paper the set variables are financial ratios.

European Financial Systems 2014 European Financial Systems 2014

Sovereign Credit Rating in Ordered Response Model Framework – Case of Visegrad Four Countries

Sovereign Credit Rating in Ordered Response Model Framework – Case of Visegrad Four Countries (Sovereign Credit Rating in Ordered Response Model Framework – Case of Visegrad Four Countries)

Prediction of Agricultural Enterprises Distress Using Data Envelopment Analysis

Prediction of Agricultural Enterprises Distress Using Data Envelopment Analysis (Prediction of Agricultural Enterprises Distress Using Data Envelopment Analysis)

Applications of Grey Models in the Analysis of Financial Time Series. The Forex Market Example.

Applications of Grey Models in the Analysis of Financial Time Series. The Forex Market Example. (Applications of Grey Models in the Analysis of Financial Time Series. The Forex Market Example.)

Health System's Financing Inequalities in Selected European Countries

Health System's Financing Inequalities in Selected European Countries (Health System's Financing Inequalities in Selected European Countries)

Hospital’s Size as the Determinant of Financial Liquidity

Hospital’s Size as the Determinant of Financial Liquidity (Hospital’s Size as the Determinant of Financial Liquidity)

The Classical and Stochastic Approach to Option Pricing

The Classical and Stochastic Approach to Option Pricing (The Classical and Stochastic Approach to Option Pricing)

Combination of Multifactor APT Model and CAPM: An Empirical Analysis of the Prague Stock Exchange

Combination of Multifactor APT Model and CAPM: An Empirical Analysis of the Prague Stock Exchange (Combination of Multifactor APT Model and CAPM: An Empirical Analysis of the Prague Stock Exchange)

Change in Technical Efficiency of Slovak Banks over Time under the Intermediation Approach

Change in Technical Efficiency of Slovak Banks over Time under the Intermediation Approach (Change in Technical Efficiency of Slovak Banks over Time under the Intermediation Approach)

Factors behind the Pricing of Eastern and Western European Oil and Gas Companies

Factors behind the Pricing of Eastern and Western European Oil and Gas Companies (Factors behind the Pricing of Eastern and Western European Oil and Gas Companies)

Cointegration-Based Active Portfolio Selection in the European Stock Markets

Cointegration-Based Active Portfolio Selection in the European Stock Markets (Cointegration-Based Active Portfolio Selection in the European Stock Markets)

The Importance of Financial Literacy in Consumer's Optimal Choice of Insurance

The Importance of Financial Literacy in Consumer's Optimal Choice of Insurance (The Importance of Financial Literacy in Consumer's Optimal Choice of Insurance)

Market Structure and Performance of the Life Insurance Industry in the Slovak Republic

Market Structure and Performance of the Life Insurance Industry in the Slovak Republic (Market Structure and Performance of the Life Insurance Industry in the Slovak Republic)

Management and Criteria for Selecting Commercial Insurance Company for Small and Medium-Sized Enterprises

Management and Criteria for Selecting Commercial Insurance Company for Small and Medium-Sized Enterprises (Management and Criteria for Selecting Commercial Insurance Company for Small and Medium-Sized Enterprises)

The Single Supervisory Mechanism and the Czech Republic

The Single Supervisory Mechanism and the Czech Republic (The Single Supervisory Mechanism and the Czech Republic)

Comparison of Assessment of Capital Adequacy for Czech Commercial Bank

Comparison of Assessment of Capital Adequacy for Czech Commercial Bank (Comparison of Assessment of Capital Adequacy for Czech Commercial Bank)

Inflation versus Deflation and their Impact on Stock Markets

Inflation versus Deflation and their Impact on Stock Markets (Inflation versus Deflation and their Impact on Stock Markets)

Modeling Financial Surplus of the Housing Projects Developer

Modeling Financial Surplus of the Housing Projects Developer (Modeling Financial Surplus of the Housing Projects Developer)

The Nexus between Sovereign Default Risk and Bank Fragility: Evidence from China

The Nexus between Sovereign Default Risk and Bank Fragility: Evidence from China (The Nexus between Sovereign Default Risk and Bank Fragility: Evidence from China)

Financial Literacy of Masaryk University Students in "Financial Literacy" Course

Financial Literacy of Masaryk University Students in "Financial Literacy" Course (Financial Literacy of Masaryk University Students in "Financial Literacy" Course)

Options of Modern Tools in Cyberspace's Management of E-banking

Options of Modern Tools in Cyberspace's Management of E-banking (Options of Modern Tools in Cyberspace's Management of E-banking)

Yield Curve Fitting and Forecasting with Parametric Models – Empirical Evaluation Based on Polish Money Market

Yield Curve Fitting and Forecasting with Parametric Models – Empirical Evaluation Based on Polish Money Market (Yield Curve Fitting and Forecasting with Parametric Models – Empirical Evaluation Based on Polish Money Market)

Firm Default Prediction Model for Slovak Companies

Firm Default Prediction Model for Slovak Companies (Firm Default Prediction Model for Slovak Companies)

Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment

Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment (Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment)

Satisfaction of the Czech Bank Customers

Satisfaction of the Czech Bank Customers (Satisfaction of the Czech Bank Customers)

Applying P-splines for Mortality Rates in the Czech Republic

Applying P-splines for Mortality Rates in the Czech Republic (Applying P-splines for Mortality Rates in the Czech Republic)

Design Principles of Modified Discount Certificates

Design Principles of Modified Discount Certificates (Design Principles of Modified Discount Certificates)

Efficiency of Insurance Lines in the Slovak Republic

Efficiency of Insurance Lines in the Slovak Republic (Efficiency of Insurance Lines in the Slovak Republic)

Cartel Formation in the Financial Sector during Different Stages of Business Cycle

Cartel Formation in the Financial Sector during Different Stages of Business Cycle (Cartel Formation in the Financial Sector during Different Stages of Business Cycle)

The Assessment of Impact of Value Added Tax on the Cash Flow of Chosen Business Entities

The Assessment of Impact of Value Added Tax on the Cash Flow of Chosen Business Entities (The Assessment of Impact of Value Added Tax on the Cash Flow of Chosen Business Entities)

The Issue of Indebtedness of Czech Hospitals

The Issue of Indebtedness of Czech Hospitals (The Issue of Indebtedness of Czech Hospitals)

Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction

Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction (Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction)

Impact of Interest Rates and Credit Structure on Liquidity and Stability of Banking Sector of the Euro Area

Impact of Interest Rates and Credit Structure on Liquidity and Stability of Banking Sector of the Euro Area (Impact of Interest Rates and Credit Structure on Liquidity and Stability of Banking Sector of the Euro Area)

Impact of High Frequency Trading on Volatilities of Securities on German Market

Impact of High Frequency Trading on Volatilities of Securities on German Market (Impact of High Frequency Trading on Volatilities of Securities on German Market)

Selected Determinants of Lifelong Learning of Population in the Slovak Republic

Selected Determinants of Lifelong Learning of Population in the Slovak Republic (Selected Determinants of Lifelong Learning of Population in the Slovak Republic)

The Utilization of Sovereign Bond Spreads: The Case of V4 Countries

The Utilization of Sovereign Bond Spreads: The Case of V4 Countries (The Utilization of Sovereign Bond Spreads: The Case of V4 Countries)

The Issue of Dividend Policies of Companies Listed on Warsaw Stock Exchange - Results of the Research

The Issue of Dividend Policies of Companies Listed on Warsaw Stock Exchange - Results of the Research (The Issue of Dividend Policies of Companies Listed on Warsaw Stock Exchange - Results of the Research)

Disability Benefits for Victims of Traffic Accidents – Size of Compensations Offered by the Current Amount of Coverage in MTPL Insurance

Disability Benefits for Victims of Traffic Accidents – Size of Compensations Offered by the Current Amount of Coverage in MTPL Insurance (Disability Benefits for Victims of Traffic Accidents – Size of Compensations Offered by the Current Amount of Coverage in MTPL Insurance)

Statistical Tools for Modeling Claim Severity

Statistical Tools for Modeling Claim Severity (Statistical Tools for Modeling Claim Severity)

Relative Premium in Vehicle Insurance

Relative Premium in Vehicle Insurance (Relative Premium in Vehicle Insurance)

The Impact of Discount Rate on Commercial Rates in the Czech Republic: The Cybernetic Approach

European Financial Systems 2014
European Financial Systems 2014

Sovereign Credit Rating in Ordered Response Model Framework – Case of Visegrad Four Countries
(Sovereign Credit Rating in Ordered Response Model Framework – Case of Visegrad Four Countries)

Prediction of Agricultural Enterprises Distress Using Data Envelopment Analysis
(Prediction of Agricultural Enterprises Distress Using Data Envelopment Analysis)

Applications of Grey Models in the Analysis of Financial Time Series. The Forex Market Example.
(Applications of Grey Models in the Analysis of Financial Time Series. The Forex Market Example.)

Health System's Financing Inequalities in Selected European Countries
(Health System's Financing Inequalities in Selected European Countries)

Hospital’s Size as the Determinant of Financial Liquidity
(Hospital’s Size as the Determinant of Financial Liquidity)

The Classical and Stochastic Approach to Option Pricing
(The Classical and Stochastic Approach to Option Pricing)

Combination of Multifactor APT Model and CAPM: An Empirical Analysis of the Prague Stock Exchange
(Combination of Multifactor APT Model and CAPM: An Empirical Analysis of the Prague Stock Exchange)

Change in Technical Efficiency of Slovak Banks over Time under the Intermediation Approach
(Change in Technical Efficiency of Slovak Banks over Time under the Intermediation Approach)

Factors behind the Pricing of Eastern and Western European Oil and Gas Companies
(Factors behind the Pricing of Eastern and Western European Oil and Gas Companies)

Cointegration-Based Active Portfolio Selection in the European Stock Markets
(Cointegration-Based Active Portfolio Selection in the European Stock Markets)

The Importance of Financial Literacy in Consumer's Optimal Choice of Insurance
(The Importance of Financial Literacy in Consumer's Optimal Choice of Insurance)

Market Structure and Performance of the Life Insurance Industry in the Slovak Republic
(Market Structure and Performance of the Life Insurance Industry in the Slovak Republic)

Management and Criteria for Selecting Commercial Insurance Company for Small and Medium-Sized Enterprises
(Management and Criteria for Selecting Commercial Insurance Company for Small and Medium-Sized Enterprises)

The Single Supervisory Mechanism and the Czech Republic
(The Single Supervisory Mechanism and the Czech Republic)

Comparison of Assessment of Capital Adequacy for Czech Commercial Bank
(Comparison of Assessment of Capital Adequacy for Czech Commercial Bank)

Inflation versus Deflation and their Impact on Stock Markets
(Inflation versus Deflation and their Impact on Stock Markets)

Modeling Financial Surplus of the Housing Projects Developer
(Modeling Financial Surplus of the Housing Projects Developer)

The Nexus between Sovereign Default Risk and Bank Fragility: Evidence from China
(The Nexus between Sovereign Default Risk and Bank Fragility: Evidence from China)

Financial Literacy of Masaryk University Students in "Financial Literacy" Course
(Financial Literacy of Masaryk University Students in "Financial Literacy" Course)

Options of Modern Tools in Cyberspace's Management of E-banking
(Options of Modern Tools in Cyberspace's Management of E-banking)

Yield Curve Fitting and Forecasting with Parametric Models – Empirical Evaluation Based on Polish Money Market
(Yield Curve Fitting and Forecasting with Parametric Models – Empirical Evaluation Based on Polish Money Market)

Firm Default Prediction Model for Slovak Companies
(Firm Default Prediction Model for Slovak Companies)

Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment
(Rationality and Emotion in European Football: How Share Prices React to a New Coach’s Appointment)

Satisfaction of the Czech Bank Customers
(Satisfaction of the Czech Bank Customers)

Applying P-splines for Mortality Rates in the Czech Republic
(Applying P-splines for Mortality Rates in the Czech Republic)

Design Principles of Modified Discount Certificates
(Design Principles of Modified Discount Certificates)

Efficiency of Insurance Lines in the Slovak Republic
(Efficiency of Insurance Lines in the Slovak Republic)

Cartel Formation in the Financial Sector during Different Stages of Business Cycle
(Cartel Formation in the Financial Sector during Different Stages of Business Cycle)

The Assessment of Impact of Value Added Tax on the Cash Flow of Chosen Business Entities
(The Assessment of Impact of Value Added Tax on the Cash Flow of Chosen Business Entities)

The Issue of Indebtedness of Czech Hospitals
(The Issue of Indebtedness of Czech Hospitals)

Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction
(Longitudinal Design as an Extension to Standard Banking Approaches to Companies' Financial Performance Assessment and Prediction)

Impact of Interest Rates and Credit Structure on Liquidity and Stability of Banking Sector of the Euro Area
(Impact of Interest Rates and Credit Structure on Liquidity and Stability of Banking Sector of the Euro Area)

Impact of High Frequency Trading on Volatilities of Securities on German Market
(Impact of High Frequency Trading on Volatilities of Securities on German Market)

Selected Determinants of Lifelong Learning of Population in the Slovak Republic
(Selected Determinants of Lifelong Learning of Population in the Slovak Republic)

The Utilization of Sovereign Bond Spreads: The Case of V4 Countries
(The Utilization of Sovereign Bond Spreads: The Case of V4 Countries)

The Issue of Dividend Policies of Companies Listed on Warsaw Stock Exchange - Results of the Research
(The Issue of Dividend Policies of Companies Listed on Warsaw Stock Exchange - Results of the Research)

Disability Benefits for Victims of Traffic Accidents – Size of Compensations Offered by the Current Amount of Coverage in MTPL Insurance
(Disability Benefits for Victims of Traffic Accidents – Size of Compensations Offered by the Current Amount of Coverage in MTPL Insurance)

Statistical Tools for Modeling Claim Severity
(Statistical Tools for Modeling Claim Severity)

Relative Premium in Vehicle Insurance
(Relative Premium in Vehicle Insurance)

The Impact of Discount Rate on Commercial Rates in the Czech Republic: The Cybernetic Approach
(The Impact of Discount Rate on Commercial Rates in the Czech Republic: The Cybernetic Approach)

Influence of Political System on Merger Legislation
(Influence of Political System on Merger Legislation)

Changes in the Holding of Liquidity during the Present Financial Crisis
(Changes in the Holding of Liquidity during the Present Financial Crisis)

Analysis of Differences of Current Liquidity Indicators across Sectors
(Analysis of Differences of Current Liquidity Indicators across Sectors)

Modern Products in Corporate Banking
(Modern Products in Corporate Banking)

Notes to the Methods of the Medieval Numismatics
(Notes to the Methods of the Medieval Numismatics)

Mergers and Acquisitions in the Selected Countries of Central and Eastern Europe
(Mergers and Acquisitions in the Selected Countries of Central and Eastern Europe)

Applying Benford's Law
(Applying Benford's Law)

The Factors Affecting the Accuracy of Business Failure Prediction Models
(The Factors Affecting the Accuracy of Business Failure Prediction Models)

Determinants of Mutual Fund Industry Development in Countries of Central and Eastern Europe
(Determinants of Mutual Fund Industry Development in Countries of Central and Eastern Europe)

Using Correlation Structure to Analyse Relation between ETFs with Particular Index as an Underlying and These Indices
(Using Correlation Structure to Analyse Relation between ETFs with Particular Index as an Underlying and These Indices)

Optimal Decision for Convertible Debt Financing - Some Observations from the American Mark
(Optimal Decision for Convertible Debt Financing - Some Observations from the American Mark)

Investments Allocation Tax Factors in Pre-crisis Time
(Investments Allocation Tax Factors in Pre-crisis Time)

Cross-Sectional Examination of Classic Asset Pricing Models on the Russian Stock Market
(Cross-Sectional Examination of Classic Asset Pricing Models on the Russian Stock Market)

The Impact of Indicators of Capital Structure on Profit of Viticulture and Viniculture Enterprises
(The Impact of Indicators of Capital Structure on Profit of Viticulture and Viniculture Enterprises)

Non-life Insurance Market in the Czech Republic and Slovakia
(Non-life Insurance Market in the Czech Republic and Slovakia)

Fiscal Imbalances: How Should Public Finance React?
(Fiscal Imbalances: How Should Public Finance React?)

Influence of International Trade on Economic Growth
(Influence of International Trade on Economic Growth)

Hedging against a Price Rice Using Vertical Ratio Call Back Spread Strategy Formed by Barrier Options
(Hedging against a Price Rice Using Vertical Ratio Call Back Spread Strategy Formed by Barrier Options)

Overconfidence as a Cognitive Bias and its Implications for Insurance Industry
(Overconfidence as a Cognitive Bias and its Implications for Insurance Industry)

Pharming in the E-banking Field and Protection Techniques against this Type of Fraud
(Pharming in the E-banking Field and Protection Techniques against this Type of Fraud)

Bayesian Estimation of Event Probability in Accident Insurance
(Bayesian Estimation of Event Probability in Accident Insurance)

How Do Risk Free Investment Options Change our Decisions under Risk?
(How Do Risk Free Investment Options Change our Decisions under Risk?)

The Establishment of VIG Group as a Marketing Strategy on the Insurance Market in the Czech Republic
(The Establishment of VIG Group as a Marketing Strategy on the Insurance Market in the Czech Republic)

IFRS as a Tax Base in a Small Open Economy
(IFRS as a Tax Base in a Small Open Economy)

Funding Social Services in the Czech Republic in the Light of EU Legislation
(Funding Social Services in the Czech Republic in the Light of EU Legislation)

Malaysia and Taiwan Acquiring Firms’ Short-run Performance in Cross Border Mergers and Acquisitions
(Malaysia and Taiwan Acquiring Firms’ Short-run Performance in Cross Border Mergers and Acquisitions)

Price vs. Performance Index – Comparison of the Czech PX with the DAX 30 and the EuroStoxx 50
(Price vs. Performance Index – Comparison of the Czech PX with the DAX 30 and the EuroStoxx 50)

Mergers of Business Corporations at the Czech Acquisition and Merger Market
(Mergers of Business Corporations at the Czech Acquisition and Merger Market)

Evaluation of the Use of Mediation to Resolve Disputes in Financial Services in the Czech Republic
(Evaluation of the Use of Mediation to Resolve Disputes in Financial Services in the Czech Republic)

Topological Properties of European Banking Network in Light of the Single Supervisory Mechanism
(Topological Properties of European Banking Network in Light of the Single Supervisory Mechanism)

Relation of CSR and Market Measures of Financial Performance: International Evidence
(Relation of CSR and Market Measures of Financial Performance: International Evidence)

Macroeconomic Factors and Commodity Price Volatility
(Macroeconomic Factors and Commodity Price Volatility)

Lease Type B and Possible Duplicate Recognition of Assets
(Lease Type B and Possible Duplicate Recognition of Assets)

The Analysis of the Threshold of Obligatory Offer Based on the Theory of Games for Companies from Index WIG30 in Poland
(The Analysis of the Threshold of Obligatory Offer Based on the Theory of Games for Companies from Index WIG30 in Poland)