Template-Type: ReDIF-Article 1.0
Author-Name: Karel Janda
Author-Name: Oleg Kravtsov
Title: Basel III Leverage and Capital Ratio over the Economic Cycle in the Czech Republic and its Comparison with the CEE Region
Abstract: This paper investigates the implications and effectiveness of Basel III leverage requirements for the banking sector in the Czech Republic and its comparison with the Central and Eastern European (CEE) region. We discuss the relationships between the leverage and capital ratios and analyse their constraining effects and cyclical qualities. The empirical analysis consists of examination of the correlation patterns between the leverage and capital ratio in relation to the changes in the business cycles. We propose an empirical model that allows testing how the leverage ratios and their variables respond to the changes in the economic cycles of the CEE region. The analysis of correlation patterns among the variables suggests that the total assets or exposure in contrast to the Tier 1 capital are the main contributors to the cyclical movements. The regression analysis shows that the leverage ratio in normal times is strongly pro-cyclical to the capital ratio and counter-cyclical in the crisis period. The empirical evidence indicating the active balance sheet management in response to the cyclical changes advocates in favour of constraining regulations on the leverage.
Keywords: Czech Republic, Basel III, Leverage Ratio, Capital Ratio, CEE
Classification-JEL: G21, G30, G32
Pages: 05-24
Volume: 2018
Issue: 4
Year: 2018
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=216.pdf
File-URL: http://www.vse.cz/efaj/216
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2018:y:2018:i:4:id:216:p:05-24
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/216

Template-Type: ReDIF-Article 1.0
Author-Name: Jan Svitlík
Author-Name: Marcela Zárybnická Žárová
Title: Earnings Discontinuity as the Proxy for Earnings Management: Empirical Study from the UK, Germany and the Czech Republic
Abstract: The paper deals with the phenomenon of earnings discontinuity around zero level in the UK, as the common law representative, Germany, as the civil law representative, and the Czech Republic, as the civil law representative where earnings management research has not yet been thoroughly realized. We undertake both cross-sectional and time-series analysis from 2006 to 2013. According to our findings, the UK is a low-earnings-management country with slightly decreasing trend of the earnings management level. On the other hand, earnings management engagement in Germany and the Czech Republic is of a significantly higher level than in the UK. Moreover, Czech companies suggest an increasing trend of the earnings management level. We find significant difference between the common law representative and the civil law ones in terms of the earnings management level.
Keywords: Czech Republic, Earnings Management, Earnings Discontinuity, United Kingdom, Germany
Classification-JEL: M41
Pages: 25-40
Volume: 2018
Issue: 4
Year: 2018
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=217.pdf
File-URL: http://www.vse.cz/efaj/217
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2018:y:2018:i:4:id:217:p:25-40
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/217

Template-Type: ReDIF-Article 1.0
Author-Name: Petra Budská
Title: The Effect of the Media Reporting of Terrorist Attacks on the Czech Travel Insurance Market between 2011-2016
Abstract: Media plays a significant part of our lives and it has the power to provide us with ideas and/or some perspective on the selected topics. Terrorist attacks cause fear which is spread by media. The fact is that during the biggest “terrorist fever” in the Czech Republic between 2015-2016, the number of terrorist attacks was paradoxically declining, and vice versa. The presented paper answers the question of how large is the effect of the media reporting of terrorist attacks on the number of travellers abroad and when - after how many quarters - the travellers´ reaction follows. Based on the quarterly data of the number of travellers abroad and the gross premium written we found out that the media reporting of terrorist attacks is a significant variable and the decline in the number of travellers in some years represents the “loss of one quarter” of travellers. Using the panel data model, we found out that although the number of travellers abroad has declined, the gross premium written has increased. Higher growth as well as significance in terms of the gross premium written was recorded only for the sole specialist on travel insurance in the Czech Republic - the ERV European Insurance Company when compared with the travel insurance market as a whole.
Keywords: Insurance Premium, Panel Data Models, Media, Terrorist Attacks
Classification-JEL: C23, C29, G22, M39
Pages: 41-58
Volume: 2018
Issue: 4
Year: 2018
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=218.pdf
File-URL: http://www.vse.cz/efaj/218
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2018:y:2018:i:4:id:218:p:41-58
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/218

Template-Type: ReDIF-Article 1.0
Author-Name: Hoang Long Pham
Author-Name: Petr Marek
Title: A Review of the European Union Countries on Cross-border Mergers and Acquisitions Market
Abstract: It is a well-known fact that the main objective of every corporation is to generate profits and enhance its shareholders’ wealth. Corporate growth may be achieved either internally (through organic growth) or externally (through mergers and acquisitions). In parallel with global trends, corporate growth is achieved by cross-border mergers and acquisitions (M&As) that have increased dramatically in economies especially over the last few decades. It is also established that mergers and acquisitions come in waves - so far, six waves have been researched. The main aim of the presented paper is to analyse the activity of the European Union countries on the M&As market and to describe the main motives for cross-border M&As and how the performance of cross-merger M&As is measured.
Keywords: Performance Measurement, Foreign Direct Investment, Cross-border Mergers and Acquisitions, Emerging Markets
Classification-JEL: G39
Pages: 59-71
Volume: 2018
Issue: 4
Year: 2018
File-URL: http://www.vse.cz/efaj/download.php?jnl=efaj&pdf=219.pdf
File-URL: http://www.vse.cz/efaj/219
File-Format: text/html
Handle: RePEc:prg:jnlefa:v:2018:y:2018:i:4:id:219:p:59-71
X-File-Ref: http://www.vse.cz/RePEc/prg/jnlefa/references/219