Template-Type: ReDIF-Article 1.0 Author-Name: Danuše Nerudová Author-Name: Veronika Solilová Title: The Impact of the CCCTB Introduction on the Distribution of the Group Tax Bases Across the EU: The Study for the Czech Republic Abstract: The introduction of the CCCTB system in the European Union will have the impact on the redistribution of the group tax bases between the Member States and therefore also on the national budgets. The aim of the paper is to quantify the diff erences in the division of the MNEs group tax bases between the individual Member States in current situation - i.e. when applying separate entity approach and situation when CCCTB will be introduced - i.e. applying the allocation formula for sharing the tax base. The results show that the Czech Republic could gain in situation when CCCTB would be introduced in all EU Members States - the share in the group tax base would increase by 1.22%. A very slight increase was also indicated in the case of the Slovak Republic, Slovenia and Spain. On the contrary, the share in the group tax base was decreased in the case of Germany (by 1.36%), Estonia, Hungary and Poland. The results also indicate that there might be connection between the size of the country and the impact on the share of the tax base. Keywords: Czech Republic, CCCTB, group, tax base, sharing mechanism Classification-JEL: H25, K22 Pages: 621-637 Volume: 2015 Issue: 6 Year: 2015 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=514.pdf File-URL: http://www.vse.cz/pep/514 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:6:id:514:p:621-637 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/514 Template-Type: ReDIF-Article 1.0 Author-Name: Růčková Petra Author-Name: Heryán Tomáš Title: The Capital Structure Management in Companies of Selected Business Branches of Building in Conditions of the Czech Republic Abstract: Current paper has focused on the capital structure management theories. The theoretical part of the study firstly highlights the diff erences between trade-off theories and pecking order theories. In the empirical part there are then proved some significant relationships between fi nancial indicators (debt/equity ratio and return on equity) of homogenous data sample from the Czech branch of building area. The aim of the study is to prove the differences between the capital structure development that are based on the type of the Czech companies’ ownership in the selected NACE industrial branch and to point out some other particularities. The contribution of the paper is a comparison of the theory as well as practice of this issue in the Czech Republic. For pooled sample there are used selected financial indicators of 57 building companies, all with turnover of more than CZK 1.5 billion. The choice of this criterion was a result of a change in efficiency in Czech economy observed in the selected period. We can assume that this factor will have low influence on the selection of financial resources of large corporations. We may even say that for large companies the availability of financial resources remain unchanged. We have obtained annual data from 2004 to 2011. Due to such short estimation period, but the width of pooled sample on the other hand, it is used generalized method of moments (GMM) panel regression. There are also arguments of motivation to analyse business branch of building specifi cally. Moreover, an analysis is split according to ownership of companies into two categories, for the Czech and foreign owners. Based on the recent literature there has been made and tested three hypotheses. Results of the article have clearly proved the separation of managers from owner’s positions. On the top of that, domestic companies are not pushed to distribute the realized profi t so much as foreign owners that prefer the return of their means invested into business. There is also a suggestion of future interests in research focused on other Czech business branches, too. Keywords: capital structure, return on equity, debt/equity ratio, domestic and foreign owners, GMM panel regression Classification-JEL: C58, G32 Pages: 699-714 Volume: 2015 Issue: 6 Year: 2015 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=515.pdf File-URL: http://www.vse.cz/pep/515 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:6:id:515:p:699-714 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/515 Template-Type: ReDIF-Article 1.0 Author-Name: Antonio Cerqueira Author-Name: Claudia Pereira Title: Accounting Accruals and Information Asymmetry in Europe Abstract: We investigate whether the positive relation between accounting accruals and information asymmetry documented for U.S. stock markets also holds for European markets, considered as a whole and at the country level. This research is relevant because this relation is likely to be affected by differences in accounting standards used by companies for financial reporting, in the traditional use of the banking system or capital markets for firm financing, in legal systems and cultural environment. We find that in European stock markets discretionary accruals are positively related with the Corwin and Schultz high-low spread estimator used as a proxy for information asymmetry. Our results suggest that the earnings management component of accruals outweighs the informational component, but the significance of the relation varies across countries. Further, such association tends to be stronger for firms with the highest levels of positive discretionary accruals. Consistent with the evidence provided by the authors, our results also suggest that the high-low spread estimator is more efficient than the closing bid-ask spread when analysing the impact of information quality on information asymmetry. Keywords: Information quality, information asymmetry, discretionary accruals, high-low spread estimator Classification-JEL: D80, G14, M41 Pages: 638-661 Volume: 2015 Issue: 6 Year: 2015 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=528.pdf File-URL: http://www.vse.cz/pep/528 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:6:id:528:p:638-661 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/528 Template-Type: ReDIF-Article 1.0 Author-Name: Pavla Vodová Title: To Lend or to Borrow on the Interbank Market: What Matters for Commercial Banks in the Visegrad Countries Abstract: The aim of this paper is to find out determinants which affect the commercial banks´ decision to lend on the interbank market in the Visegrad countries. The data cover the period from 2000 to 2011. The net interbank position of individual banking sectors significantly differs. Results of the probit model showed that banks´ decision to lend in interbank market is determined both by bank-specific and macroeconomic factors. Bank liquidity, capital adequacy and quality of the loan portfolio are important bank-specific factors. Growth rate of the gross domestic products, unemployment rate, financial crisis and level of interest rates matter among macroeconomic factors. Although the Visegrad countries have a lot in common, different factors determined the banks´ decision in individual countries. Moreover, the direction of influence of some factors may also differ. Keywords: Visegrad countries, probit model, interbank market, commercial banks, liquidity risk, liquidity hoarding Classification-JEL: C25, G01, G21 Pages: 662-677 Volume: 2015 Issue: 6 Year: 2015 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=529.pdf File-URL: http://www.vse.cz/pep/529 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:6:id:529:p:662-677 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/529 Template-Type: ReDIF-Article 1.0 Author-Name: Gábor Dávid Kiss Author-Name: Tamás Schuszter Title: The Euro Crisis and Contagion among Central and Eastern European Currencies: Recommendations for Avoiding Lending in a Safe Haven Currency such as CHF Abstract: This study analyses the Czech, Hungarian, and Polish currencies by examining the statistical characteristics of the Swiss franc as well as the ECB monetary policy in order to indicate shocks in these markets between 2002 and 2013. The abundance of monetary easing decisions can be used as a viable sign of market misbehaviour in addition to the low probability of extreme exchange rate fluctuations. Indeed, the temporal distribution of extreme currency fluctuations provides vital information about the nature of the recent crisis. Contagions can be defined as increased correlations during periods of crisis, while divergence means a significant decrease in this regard. Methodologically, common movements in this study were calculated by using DCC-GARCH modelling. The findings of this study underline the special features of the Swiss franc exchange rate, notably that its extreme fluctuations can be managed by using swap agreements and that it tended towards divergences during the crisis era. These results support the idea of avoiding lending in reserve currencies. Keywords: currency market, CEE, DCC-GARCH, extreme interval, contagion Classification-JEL: C32, E44, E58, G01, G15 Pages: 678-698 Volume: 2015 Issue: 6 Year: 2015 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=530.pdf File-URL: http://www.vse.cz/pep/530 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:6:id:530:p:678-698 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/530 Template-Type: ReDIF-Article 1.0 Author-Name: Anna Buriak Author-Name: Serhiy Lyeonov Author-Name: Tetiana Vasylieva Title: Systematically Important Domestic Banks: An Indicator-Based Measurement Approach for the Ukrainian Banking System Abstract: This study offers a scientific and methodical approach to identifying systemically important domestic banks based on the indicator-based measurement approach recommended by the Basel Committee on Banking Supervision. By improving both a set of criteria and indicators of a bank´s systemic importance it is offered to distinguish its five levels - low, moderate, medium, significant and high. The approach was tested on 26 Ukrainian banks representing different groups (depending on the size of assets) according to the classification of the National Bank of Ukraine. We have discovered the absence of banks with high systemic importance in the period 2007-2011 - the majority of banks are characterized by their moderate or low level. In our opinion, the best solution for systemic risk regulation would be the introduction of a differentiated regime of supervision over banks depending on their level of systemic importance and risk profile. Keywords: systemic risk, risk-based bank supervision, systemic importance indicator, size, interconnectedness Classification-JEL: E58, G18, G21 Pages: 715-728 Volume: 2015 Issue: 6 Year: 2015 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=531.pdf File-URL: http://www.vse.cz/pep/531 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:6:id:531:p:715-728 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/531 Template-Type: ReDIF-Article 1.0 Author-Name: Serkan Y. Kandir Author-Name: Ahmet Erismis Author-Name: Ilhan Ozturk Title: Investigating Exchange Rate Exposure of Energy Firms: Evidence from Turkey Abstract: This study investigates the exchange rate exposure of Turkish energy firms from 2002 to 2010. We employed a regression model that is constructed by adding exchange rate and oil price factors to Fama-French Three Factor Model. Empirical results suggest that exchange rate risk appears to impact energy firms diversely. Among the 9 energy firms in our sample, only 2 firms seem to be exposed to exchange rate risk. These two energy firms appear to have larger open foreign currency positions and do not use any hedging methods. On the contrary, rest of the energy firms that are not found to be affected by exchange rate risk either seem to have smaller open foreign currency positions or employ hedging methods to manage exchange rate risk. Overall, our results provide evidence that energy firms exposed to exchange rate risk share similar characteristics. Keywords: stock returns, energy firms, exchange rate exposure Classification-JEL: G12, G32 Pages: 729-743 Volume: 2015 Issue: 6 Year: 2015 File-URL: http://www.vse.cz/pep/download.php?jnl=pep&pdf=532.pdf File-URL: http://www.vse.cz/pep/532 File-Format: text/html Handle: RePEc:prg:jnlpep:v:2015:y:2015:i:6:id:532:p:729-743 X-File-Ref: http://www.vse.cz/RePEc/prg/jnlpep/references/532