Template-Type: ReDIF-Article 1.0 Author-Name: Marie KUBÁŇKOVÁ Author-Name: Jaroslava HYRŠLOVÁ Title: Life Cycle Perspective of R&D Investment Management: Case Study Approach Abstract: The management of R&D activities has become popular among researchers. The need for changes in R&D organization and financial support brings new decision-making issues for the R&D manager. Life cycle concepts help to manage R&D in the whole perspective. The aim of this paper was to examine the life cycle costing for R&D investment appraisal. A case study was realised in a private SME company for the R&D project of the bumblebee laboratory production. The analysis showed the possibility of using life cycle product perspective to control R&D investment. The expenditure was compared to the net income generated during the whole life cycle of the product. This complex evaluation allows to meet the requirements of the R&D management and to support the decision-making process. Using the life cycle perspective the company will gain a tool that will give an evaluation of the R&D’s effectiveness and provides an opportunity to manage R&D projects and compare them with others investments. Keywords: Strategic Management Accounting, Life Cycle Costing, R&D investment Classification-JEL: M21 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=122.pdf File-URL: http://www.vse.cz/efaj/122 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2014:y:2014:i:3:id:122 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/122 Template-Type: ReDIF-Article 1.0 Author-Name: Marcela Žárová Author-Name: Jana Skálová Title: Tax Aspects of Mergers and Cross-Border Mergers Abstract: The paper concentrates on tax aspects of merger with a special attention to cross-border ones. Despite the fact that Directive, which set the conditions for mergers, business investment and exchange rate of shares, was issued 24 years ago, unified treatment of tax aspects hasn´t been reached yet. This paper is based on research of tax rules transposed from Tax Merger Directive, 83 into law systems of EU member states. This Directive was used for tax treatment of domestic mergers as for cross-border ones. Although the Directive has been transposed, there are differences in tax treatment among member states. The paper shows inability of solving the problem by Directive as coordination of the tax and legal regime of several jurisdictions are usually not adapted to each other and examples when the European Court of Justice is asked for treatment. Different approaches to discussed issues are presented in the paper. Keywords: Cross-border mergers, Tax aspects, Take over losses Classification-JEL: H25, H32 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=123.pdf File-URL: http://www.vse.cz/efaj/123 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2014:y:2014:i:3:id:123 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/123 Template-Type: ReDIF-Article 1.0 Author-Name: Jana ŠIMÁKOVÁ Title: The Effects of Exchange Rate Change on the Trade Balance of Slovakia Abstract: This paper empirically investigates the impact of change in exchange rate on export and import flows between Slovakia and its major trading partners. Devaluation or depreciation of a currency worsens the trade balance before improving it, resulting in a J-curve pattern. For the purpose of this paper, aggregated and disaggregated approaches are used. This paper investigates J-curve phenomenon using quarterly time series data over the period 1997:1 to 2013:4. The results provide evidence that the classical J-curve effect does not exist in Slovakia on the aggregated level. Instead, currency depreciation (increase in real effective exchange rate) is accompanied only by positive change in trade balance with no deterioration under initial value. On the bilateral level, there exists J- curve in trade with Hungary. Keywords: Cointegration, J-curve, Trade balance, Exchange rate, International trade Classification-JEL: F10, F14, F31 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=124.pdf File-URL: http://www.vse.cz/efaj/124 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2014:y:2014:i:3:id:124 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/124 Template-Type: ReDIF-Article 1.0 Author-Name: Jacek WELC Title: Impact of Earnings Smoothness on Stock Prices, Stock Returns and Future Earnings Changes - the Polish Experience Abstract: Capital markets appreciate stability. It means that companies reporting smooth earnings patterns tend to be priced relatively high. However, the empirical issue is whether such valuation premiums for earnings smoothness are justified. We examine the relationships between past five-year earnings smoothness and relative stock prices of companies listed on the Warsaw Stock Exchange. The empirical investigation confirmed that on the Polish market the smooth historical earnings are rewarded with valuation premiums and the erratic earnings are penalized with valuation discounts. However, stocks with smooth past earnings tend to bring sub-par future stock returns while stocks with relatively erratic earnings seem to generate above-average returns. Furthermore, the scope of past earnings smoothness does not show any discernible relationships to realized investment risk measures. Finally, companies with smooth earnings tend to report “negative earnings surprises” and relatively slow earnings growth rates in the following year. All in all, our research suggests that there is not any empirically observable justification for the valuation premiums observed in the case of stocks with smooth past earnings because such smoothness translate neither into relatively low future investment risks nor relatively fast future earnings growth. Keywords: Stock valuation, Stock returns, Earnings smoothness, Valuation multiples Classification-JEL: C21, G11 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=125.pdf File-URL: http://www.vse.cz/efaj/125 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2014:y:2014:i:3:id:125 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/125 Template-Type: ReDIF-Article 1.0 Author-Name: Samy METRAH Title: A Discussion of the Main Tenets of Austrian Business Cycle Theory Abstract: The aim of this paper is to critically assess Austrian Business Cycle (ABC) theory. Its foundation was laid in Theory of Money and Credit (1912) by Ludwig von Mises, which F. A. Hayek elaborated in more detail later on in his Prices and Production (1935). We argue that assumed coordination between consumers and producers, that is, the case, in which the time preference of consumers and investment plans of producers would be in unison, does not guarantee that the structure of production will be in equilibrium; even in an economy with a constant money supply, i.e. an economy with one hundred per cent reserve banking. We show there may be real factors that might prevent the structure of production from being in equilibrium even though the time preference of consumers might have been in unison, in some point in time, with investment plans of producers. Finally, we shall argue the Hayek´s condition, which states that increases in the money supply have to increase at “a constantly increasing rate”, does not hold if one should take into account the technological progress. Keywords: Austrian business cycle theory, Stability of consumers´ time preference, Technical progress Classification-JEL: E32 Volume: 2014 Issue: 3 Year: 2014 File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=126.pdf File-URL: http://www.vse.cz/efaj/126 File-Format: text/html Handle: RePEc:prg:jnlefa:v:2014:y:2014:i:3:id:126 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/126