Template-Type: ReDIF-Article 1.0
Author-Name: Diana Bílková
Title: Higher earnings in large firms? Employer size-wage relation in the Czech Republic
Abstract: Current research is primarily focused on the wage issue in the Czech Republic in relation to the size of the enterprise. This paper examines the development of wage rates in companies classified by the number of employees from the 2008 economic crisis onwards. Since the analysis and estimation of current trends in wage differentiation based exclusively on average and median wages are insufficient, moving from level characteristics to the entire frequency distribution appears justifiable. Wage distribution models based on three-parameter lognormal curves and broken down by the number of company employees were constructed to trace wage developments from the onset of the recession; the starting points of the curves represent the minimum wage in the respective year. The remaining two parameters were estimated utilising the maximum likelihood method. Having applied the curves, the proportions of employees with wages not exceeding a certain threshold were calculated. With the gross monthly wage dependence on the company size having been verified via one-way analysis of variance, the research has confirmed that large foreign firms provide the highest possible paying jobs. The average wage difference between the very large and the smallest organizations was calculated to reach almost 15,500 CZK; average wages in the latter firms representing only 55% of those earned in the former companies. As for the median wage, the difference amounts to almost 14,000 CZK. It has also been proven that an estimated 91.40% of employees in the smallest firms do not achieve the average wage, whereas in large and very large companies this share is estimated at 47.10% and 51.56%, respectively.
Keywords: wage distribution models, wage development, three-parameter lognormal curves, maximum likelihood method, Gini coefficient of diversification, company size
Classification-JEL: C46, C51, D31, E24, J31
Pages: 3-20
Volume: 2019
Issue: 2
Year: 2019
File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=618.pdf
File-URL: http://www.vse.cz/aop/618
File-Format: text/html
Handle: RePEc:prg:jnlaop:v:2019:y:2019:i:2:id:618:p:3-20
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Template-Type: ReDIF-Article 1.0
Author-Name: Miloslava Hiršová
Author-Name: Lenka Komárková
Author-Name: Petr Pirožek
Title: Hybrid orientation of organizational identity and its relation to particular organizational components
Abstract: In coping with organizational changes in the current turbulent environment, focus is primarily placed on structural, “hard” factors, while socio-dynamic processes, which are related to them, are somewhat overlooked. Organizational identity represents the output of processes of staff identification with the organization. We focus on four types of organizational identity orientation: team, working groups, individual and especially hybrid. The goal of this paper is to detect whether the presumed heritage of identity of the socialist organization − in the form of hybrid orientation − persists in the period of transition, and how this orientation relates to selected characteristics of organizations today. Our study is based on the questionnaire survey among 219 organizations and shows that hybrid orientation of identity is still present either directly or can be hidden behind the form of working groups. Results of multiple ordinal regression analysis demonstrate that hybrid orientation of identity prevails in organizations with weak organizational culture that can provide an environment for the manipulative enforcement of individual interests. Our study is an attempt to understand how differences in organizational design may be associated with the arrangement of social relations and be reflected in the form of organizational identity orientations.  A better understanding of these processes can improve managerial decision-making in situations when the change of external conditions raises the change of internal settings.
Keywords: social identity theory, social cognitive theory, organizational identity, Organizational culture, identity orientation, hybrid orientation of identity, contingency theory
Classification-JEL: D23, L20
Pages: 21-37
Volume: 2019
Issue: 2
Year: 2019
File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=619.pdf
File-URL: http://www.vse.cz/aop/619
File-Format: text/html
Handle: RePEc:prg:jnlaop:v:2019:y:2019:i:2:id:619:p:21-37
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Template-Type: ReDIF-Article 1.0
Author-Name: Ondřej Machek
Author-Name: Martin Machek
Author-Name: Michele Stasa
Title: Financial performance of eponymous firms in the Czech Republic
Abstract: Past literature suggests that firms that bear the name of the owners, also known as eponymous firms, have superior profitability. The goal of this paper is to test the differences in the financial performance indicators between eponymous and other Czech firms. In a sample of 17,833 privately held firms operating in the Czech Republic, owned by Czech individuals or families and having complete financial data for 2014-2017, we find that eponymous firms have a significantly higher return on assets. However, no difference in return on equity has been found. We also show that eponymous firms have lower asset turnover and labour productivity, use less debt financing and have greater liquidity. In this sense, their financial characteristics are close to those of family businesses. Overall, eponymous firms are younger than other firms, but there are no significant differences in the size of the firms. The results suggest that firms named after the founder are more likely to perform well.
Keywords: financial performance, eponymous firms, Czech Republic
Classification-JEL: M30, M31
Pages: 38-48
Volume: 2019
Issue: 2
Year: 2019
File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=620.pdf
File-URL: http://www.vse.cz/aop/620
File-Format: text/html
Handle: RePEc:prg:jnlaop:v:2019:y:2019:i:2:id:620:p:38-48
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Template-Type: ReDIF-Article 1.0
Author-Name: Cenap Ilter
Title: Inflation and devaluation effects on financial statements: The case of Turkey in 2018
Abstract: Turkey has had another year of high inflation and high devaluation in its economic history. This has had negative consequences on growth and the future prospects of the country. This paper analyses the consequences of high inflation and the devaluation rates on financial statements. Inflation and devaluation create difficulties for both local companies and foreign subsidiaries in terms of financial reporting. A model company’s transactions have been used to show the effects of inflation and devaluation on financial statements. The application of different IAS based reporting methods will create discrepancies for companies and especially foreign subsidiaries will be the ones most affected. Those who apply IAS 29 will have less loss and pay local taxes compared to companies who apply IAS 21 based reporting where no taxes are paid due to the considerable amount of losses. On the other hand, local companies not applying any of these rules will pay the highest amount of taxes, since the government did not request the restatement of financials based on IAS 29. The unclear rules create discrepancies on financial reporting and unbalanced competition. This paper purports that IAS 29 application will lead the financial statements to be presented fairly both for local and foreign subsidiaries in Turkey for the year of 2018.
Keywords: tax reporting, inflation, financial reporting, devaluation
Classification-JEL: M41
Pages: 49-61
Volume: 2019
Issue: 2
Year: 2019
File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=621.pdf
File-URL: http://www.vse.cz/aop/621
File-Format: text/html
Handle: RePEc:prg:jnlaop:v:2019:y:2019:i:2:id:621:p:49-61
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Template-Type: ReDIF-Article 1.0
Author-Name: Aija Staškeviča
Title: The importance of competency model development
Abstract: Personal competencies are significant predictors of employee outcome. Nowadays, due to the rapid development of technologies and increased automation level, competency requirements have changed. Therefore, experts develop and make regular updates in the general competencies and in the specific competency models for each industry. In 2018, the European Commission developed the Council Recommendation on Key Competencies for Lifelong Learning, which defines the core competencies necessary to improve performance, to sustain current standards of living and to adapt to market changes. Competency models are particularly significant in order to produce innovations where the educational level and knowledge and the skills and attitude of employees are essential. The purpose of the research is to define the basic concepts of actual competency models and to determine the advantages of their development. This research is a literature review for building a literature background for the next stage of the investigation, which will be empirical research. The outputs of this research are four hypotheses on the influence of the practical application of competency models, including the use of competency models in the development and implementation of training programmes as a positive impact on learners’ results and attitude. Use of general competency models does not ensure the implementation of fully-fledged competency-based training programmes in a specific area. The literature review has identified that the major advantages of the development and use of competency models are improved performance and evaluation system optimisation. It is essential for each industry to identify its own competency requirements although there are still specific industries in which competency models have not yet been fully developed. It is concluded that most of the research evidence on competencies is, nevertheless, related to medium and large sized companies and industrial plants. Different approaches are required to analyse and develop competency models depending on the company size.
Keywords: employee development, competency model, competencies
Classification-JEL: J24, M12
Pages: 62-71
Volume: 2019
Issue: 2
Year: 2019
File-URL: http://www.vse.cz/aop/download.php?jnl=aop&pdf=622.pdf
File-URL: http://www.vse.cz/aop/622
File-Format: text/html
Handle: RePEc:prg:jnlaop:v:2019:y:2019:i:2:id:622:p:62-71
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