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Current Issues of Accounting for Intangibles in Various Reporting Systems

Author(s): Zuzana Křížová / Language(s): English / Publication Year: 0

Keywords: accounting; intangibles; measurement; reporting standards;

In today’s economy value is often created by intangible assets that represent intellectual capital. The accounting standard setters try to meet the challenge of recognition and reporting the results of knowledge-based entities. The problems relating to the accounting for intangibles are international in scope. This paper briefly reviews existing IFRS, US, UK and Czech accounting standards relating to Intangibles. Inconsistencies are highlighted, and evidence is provided that suggests that recognition of Intangible Assets is in accordance with existing accounting principles. This article is based on analysis and comparisons of relevant literature resources, mainly articles and conference papers, but also legislative acts and monographs.

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Analysis of Financial Statements Focusing on Detection of Ponzi Schemes Using XBRL

Author(s): Zuzana Kubaščíková,Zuzana Juhászová / Language(s): English / Publication Year: 0

Keywords: financial statements; Ponzi scheme; XBRL; financial analysis; fraud;

A number of companies are asked to provide the relevant financial information in electronic form for the needs of national and international regulators of trading with securities and for the purposes of supervisors of financial institutions. To fulfill these requirements there is also a need to ensure effective electronic communication that allows grouping, organizing, and analyzing data according to the requirements of the user. This paper deals with the possibilities of using XBRL (eXtensible Business Reporting Language) for this purpose with a focus on tracking features of a Ponzi scheme. Typical characteristics of a Ponzi scheme are often found in a high-risk type of investment companies called HYIP (High-yield Investment Programs) many of which belong to bankrupt non-bank entities investigated since 2000.

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The Success of Business Failure Prediction Using Financial Creditworthy Models

Author(s): Michal Kuběnka / Language(s): English / Publication Year: 0

Keywords: credibility index; Rudolf Doucha's Balance analysis; Kralicek´s Q-test; failure; predictive power;

Financial creditworthy models are popular for their simplicity and fast applications. Above all, quantitative evaluation of financial health guarantees an unbiased assessment of company. On the other hand, these models do not take into account the soft factors. Probably, the most famous Czech financial models known as creditworthy are Credibility Index, Rudolf Doucha´s Balance analysis, and Kralicek´s Q-test. They were created for the purpose of assessing the creditworthiness usually without using statistical methods. Can they be used for prediction of business failure despite this drawback? What is their success rate? Which of these classic financial models achieves the highest accuracy? To find answers a dataset of financial statements of 92 companies in manufacturing industry was analysed. These companies went bankrupt between 2010-2014.

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Friendship of Stock Indices

Author(s): László Nagy,Mihály Ormos / Language(s): English / Publication Year: 0

Keywords: cluster analysis; equity index networks; machine learning;

The aim of this study is to cluster different stock indices based on historical time series data. The current research shows that tail events have minor effect on the equity index structure. It also turns out that major part of the total variance can be explained by clusters. In addition, cluster wise regressions are reliable, hence CAPM with clusters gives real information about risk and reward.

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CCTB and CCCTB Implementation and its Impact on the Tax Bases Allocated in the Slovak Republic

Author(s): Danuše Nerudova,Veronika Solilova / Language(s): English / Publication Year: 0

Keywords: CCCTB; CCTB; allocation; corporate tax base; European Union;

On 17th June 2015 the European Commission has introduced an action plan for fairer taxation of corporates within the EU. Very important part of the action plan represents the re-launching of CCCTB in the EU through two steps. Firstly, only common rules for tax base construction (CCTB) should be introduced with the possibility of crossborder loss-offsetting instead of consolidation regime. Common consolidated corporate tax base should be introduced only in the second step. The paper deals with the impacts of both implementation stages on the tax bases allocated in the Slovak Republic. The research shows that in case of cross-border loss offsetting, Slovak Republic would be facing the decrease of the allocated corporate tax bases by 0.27 %. On the other hand, the implementation of full CCCTB would result into the increase of the corporate tax bases allocated in the Slovak Republic by 3.02 %.

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Study of Financial Literacy in the Field of Insurance Products

Author(s): Josef Nešleha,Karel Urbanovský / Language(s): English / Publication Year: 0

Keywords: insurance; financial literacy; customer; protection;

The protection of customers who take out life insurance becomes to be more important, as there is an increasing number of such products. Therefore, it is more likely that customers do not have all decisive information they need to deal with an insured event. The goal of this article is to verify the level of financial literacy in the field of life insurance products. Consequently, the goal is to investigate whether customers of insurance companies are provided with sufficient amount of information related to the products they look for, or whether some important information is missing, and such clients have to search for it on their own. The research is based on an electronic questionnaire. The target audience of this research is limited to those who have already taken out life insurance, since this group of people should be more familiar with conditions, restrictions and other features of such products. In terms of used methods, Pearson chi-squared test is employed in order to reveal a link between financial literacy of insurance products and between different criteria. Other methods are descriptive statistics and basic statistical data processes.

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Local Economic Impact of Domestic and International Students: Case of University of Economics in Bratislava

Author(s): Tetyana Nestorenko,Nadiya Dubrovina,Jana Péliová / Language(s): English / Publication Year: 0

Keywords: university; international students; domestic students; economic impact; Bratislava;

The economic role of universities should be considered not only in terms of their contribution to the creation of human capital as a key factor of economic growth. By teaching of international students, universities thus impact on city's economy and contribute to increase of service exports. In their turn, international students have the economic impact on a host city. The study examines the University of Economics in Bratislava (EUBA) as an exporter of education, and employs survey data for calculating direct economic effects of international students for Bratislava. The calculations of this impact are conducted on the basis of the survey data of international students of University of Economics in Bratislava (2015/2016 academic year). The main areas of local expenditure by international students of EUBA are defined. The direct effect of economic impact of EUBA international students is calculated. We compare this economic with the direct economic impact of domestic students of EUBA on the local economy.

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The Performance Ranking of Chosen Manufacturing Division

Author(s): Inka Neumaierová,Ivan Neumaier / Language(s): English / Publication Year: 0

Keywords: ranking; performance; other manufacturing; Economic Value Added; spread;

The goal of the article is to create the performance ranking of production groups within manufacturing division CZ-NACE 32 - Other manufacturing. We would like to know, which group was the most powerful driver of this heterogeneous division in course of 2008 – 2014. For determination of order is used criterion of Economic Value Added, which is considered as a crucial indicator of competitiveness. It facilitate to view on the behaviour of the chosen group in the chronological order. Further we are taking in account the “Relative Economic Value Added“, which enable to make comparisons among groups. The results show, that the best performing productive group is CZ-NACE 32.4 – Production of toys, followed by group 32.5 – Production of medical and dental tools and equipment.

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The Impact of Demographic Characteristics on Financial Literacy: An Empirical Study in Commercial Banks’ Customers

Author(s): Thi Anh Nhu Nguyen / Language(s): English / Publication Year: 0

Keywords: financial literacy; basic financial knowledge; general investment knowledge; demographic characteristics and Vietnam;

This study was conducted with the aim of assessing and analyzing financial literacy against the demographic characteristics of customers of commercial banks in emerging financial market in Vietnam. Primary data was collected by a structured questionnaire from 240 respondents in 12 branches of four commercial banks in Ho Chi Minh City. The results of descriptive statistics indicated that the average of basic financial and general investment knowledge of commercial banks' customers in Vietnam is moderated. Regression analyses revealed that levels of education, gender, and age scale (age over 55) are significant factors which enhance the basic financial knowledge and general investment knowledge while income, job status and marital status are insignificant to financial literacy. The results of this study assist to improve the level of personal financial knowledge by creating a wide range of education programs related to financial knowledge as well as implementing further research into this field in Vietnam.

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Private Health Insurance and Medical Subscriptions – Two Faces of the Private Pre-paid Funding of Health Care in Poland

Author(s): Magdalena Osak / Language(s): English / Publication Year: 0

Keywords: private health insurance; medical subscriptions; pre-paid plans; health care financing; Poland;

Health care in Poland is financed from mixed sources, both private and public. Similarly to the majority of developed countries, public funds are the main source of financing. However, since the 1990s private expenditure has constituted a significant proportion of the total expenditure on health. Apart from out-of-pocket payments, which are the main source of generating private resources, pre-paid plans are used. The paper presents the legal and market coexistence of private health insurance (PHI) and other pre-paid schemes in the form of the so-called “medical subscriptions”. The analysis will be focused, inter alia, on: the value of collected funds, the number of operating providers, and the percentage of the population covered. One of the leading goals will be to stress the specific character of the Polish legal state of affairs among private pre-paid plans. This is especially important when making international comparisons devoted to PHI schemes as a different legal status can influence the findings of the market analysis. The need to draw public attention to legal differences is critically important if they are not rooted in the functional aspect of different mechanisms of funding, which is the case in Poland.

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Payment Card Frauds with a Hidden Camera, Touch Sensors and a Counterfeit Payment Card and Protection Techniques against these Types of Frauds

Author(s): Gabriela Oškrdalová / Language(s): English / Publication Year: 0

Keywords: e-banking; payment card; security; risk; fraud;

rauds with a hidden camera, touch sensors and a counterfeit payment card belong to the basic types of frauds in the e-banking and e-shopping field. The principle of frauds with a hidden camera and touch sensors is the same - by installing of a special equipment to obtain the PIN code. The knowledge of user’s PIN code is not sufficient to abuse the payment card. Therefore these frauds are often combined with a Lebanese loop, a theft of a payment card or with skimming and producing of a counterfeit payment card. Recommendations to reduce security risks are variable. The aim of this paper is to describe payment card frauds with a hidden camera, touch sensors and a counterfeit payment card, identify the usual ways for realizing these types of frauds and its warning signs, create a scheme of the usual ways for these types of payment card frauds, introduce and interpret results of own quantitative research focused on knowledge of these frauds and define the basic recommendations for payment card users, banks and other subjects to reduce security risks connected with using of payment cards.

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Comparison of Health Care Results in Public Health Systems of European Countries

Author(s): Viera Pacáková,Pavla Jindrová,David Zapletal / Language(s): English / Publication Year: 0

Keywords: public health systems; health status; comparison; multivariate methods;

Health of citizens is a precondition for economic prosperity. Ensuring optimal functioning of health systems at limited financial resources of countries and regions is a difficult task. Its solution requires a lot of information that can be obtained only by appropriate analysis of data collected by authorized world, European and national institutions. About the state of public health systems there are collected and published a number of data on the regional, national, EU or OECD countries, continental and the world level. These databases can be used for comparative analyses on health status, risk factors to health, health care resources and utilization, as well as health expenditure and financing. Huge differences in health and healthcare exist between and within countries and regions. The aim of this article is to present the results of application of multivariate comparison statistical methods, regression analysis, factor analysis and cluster analysis, which provide an overview of the health care status and public health systems expenditures, various causal relations and regional differences or similarities. This information is essential to the development of national and international health policies for treatment and financial budget of public health systems.

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The Policy of Monetary Easing of Central Banks

Author(s): Dalibor Pánek / Language(s): English / Publication Year: 0

Keywords: central bank; policy of monetary easing; macroeconomic goal; affectiveness of instrument;

The text explains the essence of the concept of the policy of monetary easing. Contains the reasons, methods and objectives of the policy of monetary easing carried out in the selected central banks. Compares the effects and the connection of the policy of monetary easing with the selected macroeconomic variables and evaluate the achieved goals in this area of activity of the central bank. Selected macro-economic trends are monitored in the period of the last seven years. The text covers the comparison of the development of the macroeconomic values. In the conclusion the author evaluates the success of the policy of monetary easing of central banks and summarizes the fulfillment of macroeconomic goals.

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Examination of Stock Market “Temperature” Using Price-Dividend Dependence for European Shares

Author(s): Sergey Petrov,Oksana Kashina,Roman Murashkin / Language(s): English / Publication Year: 0

Keywords: heterogeneous expectations of investors; overvalued and undervalued shares; dividend discount model for common stock pricing; price-dividend dependence analysis; overheated stock market;

The paper aims to investigate some European stock markets (whether they are overheated or undervalued) on the basis of price-dividend dependence analysis for a number of liquid shares. Our approach applies the procedure of revealing of shareholders’ expectations through econometric analysis of share price movement compared to changes in the dividend payments. As a result one may comprehend whether speculative motive of shareholders is responsible for market evaluating of the share or, on the contrary, shareholders are predominantly attracted by dividend payments on it. In such a way analysis of changes in price-dividend dependence for representative group of assets makes it possible to monitor when stock market overheats and generates a bubble. Moreover, the model developed permits to investigate how the company's industry is related to predominant motive of the representative shareholder when investors’ expectations are substantially heterogeneous.

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Personal Finance in Terms of Income and Expenditure Aspects

Author(s): Marlena Piekut / Language(s): English / Publication Year: 0

Keywords: consumption; households; expenditures;

The aim of this paper was to emerge the groups of households having similar level of both incomes and expenditures per equivalent unit and to give their in socioeconomic, demographic characteristic as well as the characteristic connected with the household localization. The data came from unpublished CSO data for household budget investigations. The applied testing methods were both k-means cluster analysis and discriminant function analysis. Five groups of households were distinguished, they differ with respect to their incomes and expenditures. The determinant most seriously affecting both incomes and expenditures of the households turned out the following: household head education level, household size and its socio-economic situation. Households with the lowest incomes and expenditures were connected with variables such as lower household head education level, larger number of family members and the location in rural areas. On the other side, the households with the best financial situation were the ones in which household head had university degree, was employed at white-collar position and the household was placed in a city.

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Willingness of Polish Households to Save for Retirement

Author(s): Sylwia Pieńkowska-Kamieniecka,Damian Walczak / Language(s): English / Publication Year: 0

Keywords: savings; household; income; financial behaviour; pension;

Savings are an essential element of planning the future, in particular this objective is attained by saving for old age. The saved amount depends on numerous factors. Additionally, each of them can have the effect of a stimulant or destimulant. This article determines the influence of particular factors, which allowed to formulate specific recommendations for the future. Recommendations, which by influencing e.g. the level of the citizens’ education or certainly their income, can result in the future in an increase of the savings amount. The objective of this article is to present the scale of and the determining characteristics of saving, in particular the tendency to save money with the intention to financially secure the old age period. This article uses a representative, nationwide research, namely Diagnoza Społeczna 2015 (Social Diagnosis 2015), conducted with a test group of 11,740 households with 35,279 members.

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Application of DEA Methods for Evaluating Efficiency in Museums, Galleries, and Monuments in the Czech Republic

Author(s): Michal Plaček,Milan Půček,František Ochrana,Milan Křápek / Language(s): English / Publication Year: 0

Keywords: museums; DEA; relative efficiency; Czech Republic;

The article analyzes the efficiency of a specific section of Czech culture; specifically, in the areas of museums, galleries, and monuments. Based on a literature review we can state that apart from one project on performance indicators designed for benchmarking, evaluations of efficiency and effectiveness in this area have not been fully exploited. Our pilot study focuses on the use of the method of data envelopment analysis for evaluating the efficiency of museums, galleries, and monuments in the Czech Republic. This analysis is applied to entities established by the central government. We draw the necessary data from the annual reports of individual entities for the years 2011-2013. The evaluation criterion is the result of an objective function, where if the value is equal to one, we consider the institution to be efficient, but if the value is 0, the institutions are deemed inefficient. An analysis showed relatively large differences in the efficiency among the individual institutions. There is therefore room for increased efficiency which can be achieved by implementing appropriately structured performance indicators.

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The Impact of Using an External Authority on the Quality of Public Procurement

Author(s): Michal Plaček,Martin Schmidt,František Ochrana,Milan Půček / Language(s): English / Publication Year: 0

Keywords: public contracts; outsourcing; Office for Protection of Competition;

The article deals with the empirical verification part of the hypothesis of "bureaucratic safety" applied to the example of public procurement in the years 2010-2014. We presume that the contracting authorities are trying to minimize the risk of conflict and therefore are entrusting the administration of contracts to external authorities, or perhaps it is their view that these external authorities would administer them in a higher quality fashion. For the purposes of this article, we consider quality to be represented as the odds ratio that the Office for Protection of Competition will conclude that a public contract was managed improperly. The aim of this article is to compare in-house and external administration of public contracts in terms of the probability of an appeal, the initiation of an investigation, and the finding of any violations by the Office for Protection of Competition. For the purposes of our analysis, we used data on 69,959 public contracts, which we paired with 1965 first instance decisions of the Office for the Protection of Competition. We then applied logistic regression to this data. The achieved results are very surprising because we were unable to demonstrate a statistically significant difference between in-house and external administration, which should affect the decisions of the Office for the Protection of Competition. The results are very challenging for public policy since the current size of the procurement market is around 577 billion CZK. Additionally, the amount of transaction costs associated with procurement is very important. Each partial streamlining of public procurement can bring significant savings of public funds.

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Forecasting Exchange Rate Volatility: Suggestions for Further Research

Author(s): Tomáš Plíhal / Language(s): English / Publication Year: 0

Keywords: exchange rate volatility; forecasting volatility; GARCH model; HAR-RV model;

The market volatility plays an important role in the world of finance and it is essential part of risk management, asset management and valuation of derivatives. Several models for volatility forecasting exist. The aim of this paper is to provide a theoretical background for further research in forecasting exchange rate volatility. The first part describes essential information about market volatility and its importance. Analysis of commonly used methods for volatility forecasting follows along with a comparison of individual econometric models. Empirical literature, which measures predicting abilities of different models on the real data from the foreign exchange market, is also examined. According to our results, one of the best model for forecasting exchange rate volatility is simple GARCH(1,1) model. However, the latest empirical evidence highlights relatively new HAR-RV model which is able to provide even better results.

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Functioning of Bancassurance in Selected Countries in Which the Financial Group Erste Group Bank Operates

Author(s): Lenka Přečková / Language(s): English / Publication Year: 0

Keywords: financial group; insurance group; bancassurance; assurfinance;

This paper shall evaluate the level of internal integration among bancassurance products and financial institutions belonging to the financial group Erste Group Bank AG in selected countries of Europe. There shall be selected six countries which are located in Central and Eastern Europe: the Czech Republic, Slovak Republic, Hungary, Romania, Croatia and Serbia. These are the countries in which a strategic partnership agreement between the Vienna Insurance Group and the Erste Group Bank was concluded in 2008 which shall be taken into consideration in the evaluation. The research was conducted as of February 1, 2016. This paper aims at determining whether similarities in how the financial group Erste Group Bank is organized also mean similarities in how bancassurance in the selected countries functions. To make this possible, a critical analysis of bancassurance-related literature shall be conducted and a hypothetical basis for the practical evaluation shall be formulated. Characteristics for evaluation of the level of integration inside the financial group and also a banc-assurance product shall be also set. To evaluate how bancassurance functions in practice, a qualitative research based on data available on web sites and also financial and annual reports shall be used. The qualitative research shall contain a detailed analysis, sorting and a comparison of the set characteristics. Finally, it will be determined which attributes are identical and which are different in the integration of financial groups and bancassurance products.

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