Template-Type: ReDIF-Article 1.0
Author-Name: Petr Marek
Title: Quo Vadis? Quo Vadimus?
Abstract: Dear readers, present situation in European higher education brings a wide range of issues. New laws and new rules often burden us with superfluous administration. Therefore, it is worth asking the question from time to time, where we are heading for and what is the sense of our activity. Quo Vadis, financial and accounting science? To formal fullness or to real creativity? What brings financial and accounting science really new? Does it discover and invent or does it simply talk and talk? When did it actually help to mankind? Did it manage to prevent any financial and economic crisis, or has it in fact contributed to the emergence of these crises? At present, our social science often focuses only on interpretation of legal rules and contributes little to make these laws and other rules better. Instead of creating new things, we are just studying what new came from above and what effect it is going to have on us as patients. Empirical studies are a popular methodical tool. To the success of such studies, as every good explorer knows, it is necessary to choose a representative sample, which leads to the fulfilment of his wishes. And because different authors choose different samples and use slightly different methods, individual authors may argue almost to infinity, which one of them is right. Questionnaires create perhaps an even better illusion. Some researchers work with just a small number of respondents, others increase it with a computer. The biggest joke is that these respondents usually answer differently from what they actually think, if they understand the meaning of the question at all. When did new ideas and models emerge for the last time? Let’s ask ourselves the question whether it was in the days of Miller, Modigliani, Markowitz and Sharpe and whether today’s models are not just all sorts of modifications of the original models. We are competing for the better value of beta coefficient, and we care less about what it is actually good for. Janusz Zajdel describes in his science fiction book Limes Inferior1 the planet Argoland, a fictional world in which an electronic system of biometric identification keys plays an important role. These keys are used as a national identity card, a passport, a working book or a credit card. There is the Research Institute which deals with the issue of functioning of keys. However, this Institute does surprisingly not deal with how to improve the key, but it delves into how this key works. No one knows who actually invented this key. The author gives it away eventually. It was aliens who verify experimentally their social and economic ideas using humans first. And I am afraid, that I sometimes feel as if I am on the planet Argoland, living in a similar lab, where unknown persons test their social and economic experiments on people. Successful scientist is a person not by inventing something, but by writing about what he or she invented somewhere, where someone else reads it and cites it in own publication. This is why I do not know if we write books and scientific articles today, because we enjoy it, or just multiply our old articles to meet the publication quota someone has established. Sometimes it seems to me that we only write and write, but we do not read what others have written, so we often come to same bland conclusions like other authors before us. This often leads to clientelism in large journals. New authors push their work through with great difficulties, while friends of members of editorial boards can come with any nonsense. Quo Vadis, finance and accounting education? To production of thousands of new students or to the upbringing of new economically thinking experts? What do present students want? Knowledge and skills or just academic titles? There are of course different students, some yearn for knowledge and other just not to be bothered too much. The advantage of the system we have today lies in the fact that students can choose their own path, either the less demanding with less skills earned or much more difficult with higher benefits. Less and less prepared students are coming to us from secondary schools. Contemporary college student has trouble with keeping attention for longer than 15 minutes. I'm afraid that in Kim’s memory game, most of them would not succeed today.2 What do political representatives want? Political representatives are eager for the satisfaction of voters (the government coalition) or for the dissatisfaction of voters (the opposition). And let's face it - there are far more voters on the part of students and their relatives than voters on the part of teachers. Therefore, the education of the nation is measured by quantity, the more graduates the better, but it proves unfortunately nothing about quality of education. Problems of public universities are beneficial to private universities, and even in this can be found motivation of our politicians. What does a practice want? Requirements vary from employer to employer. Some employers want students who do not need further training, others, by contrast, want only students learned to think economically, teaching them everything else with a few exceptions. But do we really manage to learn students to think economically? When students actually think independently during the tuition? What do actually students remember from classes? What is the point of lessons? The responsibility lies mainly with teachers - how they give lectures, whether they just jabber or give students food for thought. However, it is of course necessary for the student to at least go to the lecture. What do students remember from classes in fact? Do they not forget five minutes after the test everything previously learned (or mugged up)? I dare say that I am optimist, because it is still not so bad that it could not be worse.
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=102.pdf
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Template-Type: ReDIF-Article 1.0
Author-Name: Petr Musílek
Title: Nobel Price for Father of the Efficient Market Hypothesis
Abstract: Dear readers, Followers of the efficient market hypothesis finally lived to see and me among them when Eugene F. Fama, of the University of Chicago, has earned on 14th October 2013 the Nobel Prize in economics. To be more precise: the Sweden's Central Bank's prize in economic sciences for the development of economics in memory of A. Nobel. The father of the efficient market hypothesis, E. F. Fama assumes that stock prices are influenced by both fundamental and non-fundamental information. A liquid stock market is considered by Fama as efficient when it absorbs very quickly and accurately all important unexpected information. The market price of stocks on the liquid market is of the correct value, stocks are usually correctly priced and it is practically impossible to find undervalued or overvalued stock titles on the market. The term efficient is used in the sense of ability to handle the unexpected information. The Fama’s work from 1965,1 in which he concluded that the prices on the American stock market with blue chips behave randomly, was of tremendous importance for the efficient market hypothesis. This work has become a watershed from which very often dates the formation of efficient market hypothesis in American literature. Fama’s empirical research on the University of Chicago primarily focused on testing the hypothesis of efficient behavior of stock markets in the following decades.2 The efficient market hypothesis looks, at first glance, very logically, conclusively, and can explain the behavior of the stock prices in elegant manner. Fama’s concept of the efficient markets does not anticipate that investors are able to identify the future market price faultlessly. It only claims that the current market price is the objective price, because it includes all available ratemaking information. The stock market prices then behave randomly because investors constantly analyze the stock market, reflecting new information in their investment decisions, trying to achieve maximum yield in view of the risk and the liquidity. Investors do therefore behave rationally, which then also means that even the stock market shows signs of rational behavior. Stock markets can have different degrees of efficiency. The weakform efficiency means that current stock price contains all the information that can be obtained from historical data. Therefore the investor cannot predict the future using data from past translations and a movement and change of the stock price is random. If the past trend cannot be used for the prediction of the future development, then neither the Charles Dow’s theory (constituting the theoretical basis of technical analysis) can clarify the nature of the behavior of stock prices. The semi-strong efficiency is a situation in which current stock price includes not only historical data, but responds also very quickly and accurately to the publication of the new public information. If the stock market behaves efficiently in semi-strong form, then it is impossible to find incorrectly priced investment instruments on the stock market. In the semi-strong form of stock markets makes sense neither technical analysis, nor the theory of intrinsic value, which forms the core of fundamental analysis. Strong-form efficiency signifies that the current stock price reflects both public and private pricemaking information. In this form, not only an analytical activity in the form of a technical or fundamental analysis loses its importance, but also non-public information is becoming worthless, because they are absorbed in the stock exchange as well. Efficient market hypothesis stands for an explanation of the behavior of stock prices and represents the mainstream of modern investment economics, which, however, has picked for its "laboratory" mainly the American stock market as the largest, the most liquid and the most advanced stock market of the world. The vast majority of the world's eminent investment economists agree that the most liquid stocks on the US stock market behave relatively economically efficiently.3 However, it should also be realized that the efficiency of stock markets is not constant, but may change over time, because not only stock market liquidity does varies, but also occasionally a significant and groundbreaking change in the investment environment occurs, which may complicate fast and accurate absorption of completely new ratemaking information for some time. Testing of the efficient market hypothesis has gradually begun to focus on less liquid stock markets. It has also become a favorite theme of empirical research in the Central European area. Tests which examined the efficiency of those markets in the 1990s came to the conclusion that stock markets behave in most cases in an inefficient way. By contrast, the tests from the new millennium bring more and more evidence that the inefficiency of the most liquid stocks on the Central European markets has decreased significantly and that they behave even efficiently in the weak-form in some periods, which means that technical analysis does not bring benefit in framing stock strategy even on the underdeveloped Central European equity markets. Supporters of the theory of efficient markets may, however, rejoice only partially, because this year's Nobel Prize for Economics acquired along with Fama also significant critics of Fama’s explanation of the stock market behavior at the same time, both a representative of the theory of behavioral finance Robert J. Shiller (Yale University), and Lars Peter Hansen (University of Chicago), specializing in the econometric models of the behavior of equity instruments’ prices.
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=103.pdf
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Template-Type: ReDIF-Article 1.0
Author-Name: Libor VAŠEK
Author-Name: Marek FILINGER
Title: Influence of Internally Generated Intangible Assets on Financial Statements Prepared in Accordance with IFRS#
Abstract: This article looks at the very intricate and highly contentious issue of internally generated intangible assets as presented in the financial statements prepared under IFRS, with a special focus on research and development. In the first section, intangible assets are defined and then further classified as either purchased or internally generated; crucial distinction when choosing the right approach. The second section deals with research and development in a greater detail and provides not only a number of answers, but also raises several key questions, e.g. the question of objectivity and possible earnings management. Third section is devoted to measurement issues and in the last section, the reader finds excerpts from financial statements of different companies from various industries which illustrate the fact that some useful information is clearly missing. The conclusion suggest an easy, yet very efficien solution in tune with the ongoing convergence process between IFRS and U.S. GAAP, namely to move IAS 38 in the direction of U.S. GAAP and to forbid any capitalisation of development costs.
Keywords: IFRS, Financial reporting, Research, Development
Classification-JEL: M41
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=104.pdf
File-URL: http://www.vse.cz/efaj/104
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Template-Type: ReDIF-Article 1.0
Author-Name: Pavla VODOVÁ
Title: Liquidity Ratios of Polish Commercial Banks
Abstract: As liquidity problems of some banks during global financial crisis reemphasized, liquidity is very important for functioning of financial markets and the banking sector. The aim of this paper is therefore to evaluate comprehensively the liquidity positions of Polish commercial banks via five different liquidity ratios in the period of 2001- 2011 and to find out whether the strategy for liquidity management differs by the size of the bank. The results enable us to conclude that liquidity of Polish banks has decreased in recent years, partly as a result of higher lending activity but mainly due to the financial crisis. Almost all Polish banks are sensitive to potential massive deposit withdrawals. Only some banks finance their lending activity by deposits; most banks are dependent on other sources of finance. Large and medium sized banks rely on the interbank market or on a liquidity assistance of the Lender of Last Resort, small banks hold buffer of liquid assets.
Keywords: Liquidity ratio, Liquidity risk, Commercial banks.
Classification-JEL: G01, G21
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=105.pdf
File-URL: http://www.vse.cz/efaj/105
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Template-Type: ReDIF-Article 1.0
Author-Name: Hana BÁRTOVÁ
Author-Name: Karel HANZLÍK
Title: Uninsurable Risks of Floods, Deluges, Overflows and the System of Solution
Abstract: Uninsurable risks have significant impact on expenses of private and public sectors of economy. In spite of several commercial insurance products and high quality of insurance services current trend of insurance industry is set to define exceptions of insurance protection. The highest losses caused by realization of uninsurable risks in the Czech Republic are constituted by consequences of floods, deluges and overflows. Recent history of flood occurrence emphasizes insufficiency of prevention, protection and loss solution. Due to these risk factors we have focused our research on issues of uninsurable risks in conditions of the Czech insurance market. The system solution is based on fund approach to ensure commercial insurance protection. Multi-Source System Solution of Uninsurable Risks is purposed in the form of fund with participation of the state authority. Our solution depends on pool creation and primarily should cover enormous claims development. Assumption of fund profitability encourages insurer motivation to become a pool member. Important part of research represents calculation of gross premium. Assessment of input data and calculation of premium are based on real published data and conform to real market development in the Czech Republic. Calculations are also based on our estimations of risk development. This research highlights the importance of uninsurable risks solution. Effective instrument able to protect lives and property is an innovative commercial insurance product. Our commercial solution is a way to strengthen the role of insurance in a field of uninsurable risks. The system solution is designed to conditions of the Czech insurance market and takes into account special domestic factors. We suppose that our solution is possible to be adopted in conditions of any insurance market in case of relevant data and risk factors using.
Keywords: Flood, Flood fund, Gross premium, Insurance pool, Uninsurable risk.
Classification-JEL: G22, G28, P11, R11
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=106.pdf
File-URL: http://www.vse.cz/efaj/106
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Template-Type: ReDIF-Article 1.0
Author-Name: Ondřej BAYER
Title: Research of Estimates of Tax Revenue: An Overview
Abstract: The paper deals with a summary of findings in the area of tax forecasts. It describes the basic methodology for predicting tax revenues, both in terms of the macroeconomic approach and from a microeconomic perspective. The microeconomic approach used microsimulation methods with methods based on tax elasticities. The macroeconomic approach explains the basic characteristics of regression analysis and time series analysis. It also describes methods for assessing the quality of predictions, together with the distribution of basic statistical error estimate.
Keywords: Regression analysis, Tax revenue, Forecasting, Microsimulations
Classification-JEL: H29
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=107.pdf
File-URL: http://www.vse.cz/efaj/107
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Template-Type: ReDIF-Article 1.0
Author-Name: Alena DUGOVÁ
Title: Changes in the Value Added Tax as the Tool against the Global Crisis
Abstract: As a result of the global economic crisis the governments of the states has been forced to present various proceedings especially in field of taxation to maintain or increase the tax revenues and to safe economy. Majority of the states decided to make changes inter alia in indirect taxation as the tool against the crisis. Some of the actions planned the short term effects and some of them are rather as the long term arrangement to fight against crisis. The states usually increased the VAT rates to maintain or increase the public revenues. However, states also launched the proceedings against the tax frauds especially in VAT area where the tax frauds are very frequent. Results of this research might be useful as the inspiration for other states in the global economy.
Keywords: VAT rates, Tax frauds, Anti-fraud tool
Classification-JEL: H200, H26
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=108.pdf
File-URL: http://www.vse.cz/efaj/108
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Template-Type: ReDIF-Article 1.0
Author-Name: Bohumil Král
Author-Name: Libuše Šoljaková
Title: Business Environment Changes and its Influence on Managerial Accountants´ and Controllers´ Professional Competence: Empirical Study
Abstract: The article describes the outcomes of the project whose purpose is - on the base of “Draft for a common statement” - to state generally accepted requirements for professional competence of managerial accountants and controllers. The important part of the project is empirical research focused on changing requirements on managers and controllers and mapping actual situation in the Czech Republic in this area. The research compares opinions of two groups of respondents - experts who are responsible for professional competence development of controllers on one hand and managers and controllers operating in business environment on the other hand. Paper provides results relating to following areas: general content of the controllers´ activities, controllers´ authority and responsibility, requirements for controllers´ education, professional skills and practical experience, ethical aspects of management accounting as well as quality assurance of the controllers´ work.
Keywords: Management Accountant, Controller, Professional Competence, Developmental tendencies
Classification-JEL: M41
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=109.pdf
File-URL: http://www.vse.cz/efaj/109
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Template-Type: ReDIF-Article 1.0
Author-Name: Barbora JANASOVÁ
Title: Motivation of Czech Employees by the Balanced Scorecard of the Multinational Company - an Empirical Study
Abstract: The aim of this paper is to review if the implemented balanced scorecard is an efficient way to motivate people and increase their work effort. The empirical research had been conducted in one of the big multinational companies. Balanced scorecards for such companies are mainly driven by global, strategic measures. It is questionable, if employees of the Czech local branch are interested and motivated by the global results. Perhaps, it would make more sense to put emphasis on the individual performance measures in this case. Such questions and answers are part of the empirical study conducted for this paper.
Keywords: Balanced scorecard, Employee motivation, Incentives
Classification-JEL: M40, M52
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=110.pdf
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Template-Type: ReDIF-Article 1.0
Author-Name: Jiřina Bokšová
Author-Name: Monika RANDÁKOVÁ
Title: Reporting of Gross Written Premium in the Selected European Countries
Abstract: The goal of this article is to compare the content of gross written premium in the selected European countries. The subject of insurance companies is to provide insurance protection based on commercial principles. All changes in the society are directly reflected in the insurance activity. New risks appear and therefore new insurance products appear as well. Insurance activities are divided into non-life insurance, life insurance, and in recent years increase also a share of life unit linked insurance. Yield in the form of gross written premium arises to the insurance company under insurance contracts and then must be adjusted about so called unearned premiums. The article deals with outputs of research of gross written premium in particular insurance companies in different states of Central and Eastern Europe.
Keywords: Insurance, Gross written premium, Non-life insurance, Life insurance, Unit linked
Classification-JEL: M41
Volume: 2013
Issue: 3
Year: 2013
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=111.pdf
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