Template-Type: ReDIF-Article 1.0
Author-Name: Jan Svitlík
Author-Name: Lukáš Poutník
Title: Relationship between Liquidity and Profitability: Empirical Study from the Czech Republic
Abstract: The paper deals with relationship between liquidity and profitability ratios in the Czech Republic to investigate whether there exists correlation (a) within selected liquidity ratios and (b) selected liquidity ratios and selected profitability ratio in the Czech Republic during the period 2003-2013. Empirical data from Bureau van Dijk, Amadeus database were analysed from the point of both time-series and cross-sectional analysis. The main findings of the paper are that correlation within selected liquidity ratios is fairly strong while correlation between selected liquidity ratios and selected profitability ratio is relatively weak.
Keywords: Czech Republic, Liquidity, Profitability, Empirical study
Classification-JEL: G30, M41
Pages: 7-24
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=159.pdf
File-URL: http://www.vse.cz/efaj/159
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Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:159:p:7-24
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Template-Type: ReDIF-Article 1.0
Author-Name: Levent Ataünal
Author-Name: Ali Osman Gürbüz
Author-Name: Asli Aybars
Title: Does High Growth Create Value for Shareholders? Evidence from S&P500 Firms
Abstract: This paper investigates the relationship between growth rate and shareholder value creation, using a sample of 243 non-financial Standard and Poor’s 500 (S&P500) companies, which have 22 years of consecutive data available (1993-2014). Sustainable Growth Rate Model (SGR) is used to divide the sample into two groups as high growth firms and moderate growth firms. Using Panel data approach, it is shown that sales growth below sustainable growth rate (SGR) enhance shareholder value at a significantly higher rate compared to growth above sustainable growth rate. The findings suggest that shareholder value creation maximizes around sustainable growth rate and decreases sharply once SGR exceeded.
Keywords: Shareholder value creation, Firm growth, Sustainable growth rate, Sales growth, Panel data analysis
Classification-JEL: G30, G32
Pages: 25-38
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=160.pdf
File-URL: http://www.vse.cz/efaj/160
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:160:p:25-38
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Template-Type: ReDIF-Article 1.0
Author-Name: Jacek WELC
Title: Empirical Safety Thresholds for Liquidity and Indebtedness Ratios on the Polish Capital Market
Abstract: One of the elements of company’s evaluation is ratio analysis. It includes computation of bankruptcy risk metrics. There are multiple such measures, of which two seem to be quite universal and commonly applied. These are current ratio and indebtedness ratio. In this study, the accuracy of bankruptcy predictions based on these two ratios is evaluated within a sample of data from the Polish market. Also, the safety thresholds (meant as values at which the probability of bankruptcy exceeds fifty percent) are estimated. The study is based on a sample of 84 companies, in which case a bankruptcy filing was announced in a period between the beginning of 2009 and the end of the first half of 2015. This sample of bankrupt firms is compared to the counter-sample of companies in which case no any bankruptcy filing occurred. The statistical analysis has confirmed the usefulness of both ratios. Even though the sample covers wide variety of businesses, the logit models with only one ratio used as an explanatory variable are capable of identifying bankrupt firms in about 70-73% of cases. Our research has also shown that the estimated safety thresholds lie near the typically assumed “rules of thumb”.
Keywords: Current ratio, Bankruptcy prediction, Ratio analysis, Fundamental analysis, Financial liquidity, Indebtedness ratio
Classification-JEL: G32, G33
Pages: 39-52
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=161.pdf
File-URL: http://www.vse.cz/efaj/161
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Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:161:p:39-52
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Template-Type: ReDIF-Article 1.0
Author-Name: Lucie Kureková
Author-Name: Pavlína Hejduková
Title: Construction Industry and Payment Discipline in the Czech Republic
Abstract: The paper deals with payment discipline in the building industry in the Czech Republic. The aim of this paper is to identify, compare and evaluate the financial situation of building companies with different payment practices in the Czech Republic in the period 2010 - 2014. The paper uses enterprise and statistical methods.  The payment discipline of companies is expressed by a payment index, which is constructed by Bisnode. The results are based on analysis of 1374 companies which are operated in the building industry. The analysis shows that payment habits increase with higher index IN05, Taffler´s model, index IN99 and with larger size of the firms. Payment habits of building companies are very good. However, about 2 % of solvent companies have poor payments habits.
Keywords: Construction industry, Payment discipline, Payment index, Bankruptcy models, Companies
Classification-JEL: G31, G32, G33, L74, M21
Pages: 53-68
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=162.pdf
File-URL: http://www.vse.cz/efaj/162
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:162:p:53-68
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Template-Type: ReDIF-Article 1.0
Author-Name: Kateřina Knorová
Title: Do Czech Companies Disclose Revenue in Accordance with IFRS Requirements?
Abstract: Revenue is one of the key indicators informing users of financial statements about company´s performance. The different approaches to revenue recognition are analysed in the first part of this paper. The second part addresses the convergence of US GAAP and IFRS in the area of revenue recognition and examines the new converged revenue standard IFRS 15. The third part focuses on the IFRS disclosure requirements set by the current standard IAS 18 and compare to the new ones defined by IFRS 15. The empirical study analyses consolidated financial statements of Czech listed companies and assesses the compliance with current revenue disclosure IFRS requirements.
Keywords: Revenue recognition, Revenue disclosure, IAS 18, IFRS 15
Classification-JEL: M41
Pages: 69-84
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=163.pdf
File-URL: http://www.vse.cz/efaj/163
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:163:p:69-84
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/163

Template-Type: ReDIF-Article 1.0
Author-Name: Petra Ašenbrenerová
Title: Disclosure of Joint Ventures and Associates  in Financial Statement under IFRS
Abstract: This article deals with disclosure of associates and joint venture in financial statement. In May 2011 the IASB issued new standard IFRS 12 Disclosure of interest in other entities. This standard, compared with IAS 28 and IAS 31, requires to disclose more detail information about joint ventures and associates. The reason is elimination of proportionate consolidation for joint ventures and also users of financial statements requested improvements to the disclosure of a reporting entity’s interests in other entities. The introductory section discusses the equity method and proportionate consolidation, which is followed by a chapter dealing with the disclosure of information relating to joint ventures and associates in the financial statements. The last part is devoted to an analysis of disclosed information relating to joint ventures associates in the financial statements of companies that are listed on the Prague Stock Exchange.
Keywords: IFRS 12, Associates, Joint Ventures, Financial Statement
Classification-JEL: M41
Pages: 85-94
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=164.pdf
File-URL: http://www.vse.cz/efaj/164
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:164:p:85-94
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Template-Type: ReDIF-Article 1.0
Author-Name: Beata Gavurova
Author-Name: Samuel Korony
Title: Application of Malmquist Indices in Valuation Process of Adult Day Surgery System  in Slovakia
Abstract: In developed countries, day surgery has been used as a significant tool of efficiency increase in the health care system over the last few decades. However, its development is not sufficient in the Slovak conditions in spite of the support of the Ministry of Health of the Slovak Republic. Its use in the unstable conditions of the Slovak health system represents the main reason. The paper presents a partial output of the research that focuses on day surgery development in order to increase an efficiency of the health system in Slovakia. Its primary aim is to highlight a significance of Malmquist indices’ application in evaluation of day surgery processes of adult patients. The outputs represent a valuable platform for health and social policies’ creators.
Keywords: Day Surgery, Health System Efficiency, Day Surgery Efficiency, Malmquist Indices
Classification-JEL: C61, H51
Pages: 95-105
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=165.pdf
File-URL: http://www.vse.cz/efaj/165
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:165:p:95-105
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/165

Template-Type: ReDIF-Article 1.0
Author-Name: Octavian Moldovan
Title: Local Revenue Mobilization in Romania
Abstract: As public institutions are faced with more diverse and increased community needs, significant concern arises (both in academia and practice) for the dwindling resources available at the local level and the factors which can influence local revenue mobilization. Using data for 3,227 Romanian territorial-administrative (all Romanian territorial administrative units except Bucharest - the capital city), this research compares local revenue mobilization (calculated as: effectively collected revenues, as a share of what was predicted at the beginning of the budgetary year) for the 2008 - 2011 period, trying to determine if the type of a territorial administrative unit influences its public revenue mobilization.  The post hoc ANOVA showed that the type of a local institution (be it commune, city, municipality, county or sector) does not affect the level of revenue collection (proxied by collected/predicted revenues); where such relationships between these two variables were found, they were rather spurious and did not surfaced across the entire dataset.
Keywords: Local public revenue collection/mobilization, Post Hoc ANOVA, Financial Decentralization, Collected vs. predicted public revenues
Classification-JEL: H71, H72
Pages: 107-124
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=166.pdf
File-URL: http://www.vse.cz/efaj/166
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:166:p:107-124
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Template-Type: ReDIF-Article 1.0
Author-Name: Michael Princ
Title: Structural Distress Index: Structural Break Analysis of the Czech and Polish Stock Markets
Abstract: The estimation of multiple structural break models is usually associated with identification of spurious break points, which are identified by universal algorithms. This leads to overvaluation of structural distress in financial markets represented by data series. The paper is focused on an estimation of the new index, which incorporates results of Student, Bartlett, GLR, Mann-Whitney, Mood, Lepage, Kolmogorov-Smirnov and finally Cramer-von-Mises tests statistics together. The new measure is named Structural Distress Index and evaluates a probability of structural break occurrence based on estimations of proposed models.  SDI values show that Czech and Polish stock markets went through more instable period in 1990s than at the beginning of the global financial crisis in 2007. SDI measure is straightforward and can be easily explained, the highest values of SDI can identify the most important break points of the research period, which starts in year 1993 and ends in year 2014. Universality of SDI offers its further extension and application to further research of financial markets.
Keywords: Structural break analysis, Stability, Aggregation, Central Europe, Stock markets
Classification-JEL: C13, C51, G14, G15
Pages: 125-137
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=167.pdf
File-URL: http://www.vse.cz/efaj/167
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:167:p:125-137
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Template-Type: ReDIF-Article 1.0
Author-Name: Dušan Staniek
Title: The Czech Crown Money Market as the Source for Pricing Customer Cash Products
Abstract: The paper examines the Czech crown money market in terms of products and volumes traded. The interest rate time series for the last 10 years are surveyed, and a parsimonious model is used to investigate to what extent the marketplace serves as the starting point for pricing customer cash products. Although satisfactory long-term relationships are observed, market disruptions are breaking up the assumed coherence. Special attention has to be paid to the decoupling of official fixing rates (PRIBOR) and real market rates in the current low interest rate environment.
Keywords: Money market, Interest rate pass-through, PRIBOR
Classification-JEL: C20, E43, E50, G21
Pages: 139-154
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=168.pdf
File-URL: http://www.vse.cz/efaj/168
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:168:p:139-154
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/168

Template-Type: ReDIF-Article 1.0
Author-Name: Eva Ducháčková
Title: Commercial Insurance as a Tool of Consumer Protection in the Czech Republic
Abstract: Guarantee insurance is used by the state to solve some questions of consumer protection. To be specific it is insurance of tour operators against bankruptcy and insurance of employment agencies against bankruptcy. In both cases the insurance covers business risks of businesses and legal entities and that is the reason why the use of guarantee insurance in this context brings about several problems. On the one hand there are theoretical problems which deal with interpretation and explanation of the nature and principles of insurance and their application to insurance products and also problems concerning risk assessment of these products. On the other hand there are problems which deal with practical application and which are connected with the fact that there is no big interest in this kind of guarantee insurance among insurers with regard to their nature. Issues which approach the problem of consumer protection by means of commercial insurance are also related to the perception and understanding of insurance. Consumers demand full insurance coverage, however, taking into account the regulation of insurance market and the nature of insurance it is not possible to guarantee full insurance cover of losses which are caused by bankruptcy of a tour operator or an employment agency.
Keywords: Tour operator, Employment agency, Guarantee insurance, Obligatory insurance
Classification-JEL: G22, G29, G30
Pages: 155-168
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=169.pdf
File-URL: http://www.vse.cz/efaj/169
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:169:p:155-168
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Template-Type: ReDIF-Article 1.0
Author-Name: Marianna Sávai
Title: Short-term Fiscal Sustainability of V4 Countries
Abstract: The financial crisis placed budget and fiscal policy sustainability on the centre stage of researches. Recently, a number of studies have suggested that the researcher should take use of the simplest models, because they provide accurate forecasting results. This present study falls in line with this new research direction, follows a simple intertemporal budget constraint, calculates primary gap in some selected years (2004, 2009, 2014) and tests assumptions for short-term in Visegrad Group Countries. Results indicate that the fiscal stance of V4 countries was varied. In most of the examined years, the fiscal policy of the countries have seemed to be unsustainable, which pointed out the fact that the fiscal controls are need to be strengthened in short- and long-term too.
Keywords: Public debt, Fiscal sustainability, Primary gap, V4 countries
Classification-JEL: E620
Pages: 169-182
Volume: 2016
Issue: 3
Year: 2016
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=170.pdf
File-URL: http://www.vse.cz/efaj/170
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:170:p:169-182
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/170