European Financial and Accounting Journal, 2015 (vol. 10), issue 1

Articles

Informational Content of Open-to-Close Stock Returns

Andrey Kudryavtsev

European Financial and Accounting Journal 2015, 10(1):5-17 | DOI: 10.18267/j.efaj.134  

In the present study, I explore interday correlations between open-to-close and opening stock returns. Employing intraday price data on all the stocks that were S&P 500 Index constituents during the period from 1993 to 2013, I find that stock returns in opening trading sessions systematically tend to be higher following days with relatively low (either negative, or lower than the same day's market) open-to-close returns. Moreover, I explicitly document the tendency of opening stock returns to be reversed (to change their sign) following previous day's open-to-close returns. This kind of price behaviour seems to contradict stock market efficiency,...

Public Sector Innovation Support by European States: Its Characteristics and Impact on Firms

Marta Orviska, Juraj Nemec

European Financial and Accounting Journal 2015, 10(1):19-31 | DOI: 10.18267/j.efaj.135  

In this paper we are concerned with the impact the public sector has on private sector innovation. Perhaps the most important issue is whether public sector innovation, or lack of it, impacts upon private sector firms. But we are also concern the extent perceptions of innovation across jurisdictions and also the characteristics of firms, which benefit from public sector innovation. There is a particular focus on the role of the Internet. In doing this we make use of Eurobarometer data on firms and their attitudes to public sector innovation. We have established that firms benefit from public sector innovation. The factors, which impact on growth, include...

Analysis of the Relation between Macroprudential and Microprudential Policy

Naďa Blahová

European Financial and Accounting Journal 2015, 10(1):33-47 | DOI: 10.18267/j.efaj.136  

The article deals with the analysis of a relationship between macroprudential and microprudential policy on a general level and on an example of regulatorily required structure and volume of bank capital. Regulatory requirements and supervisory methods are described in connection with the institutional structure of regulation and supervision within the European economic area. An attention is paid to the development of supervision on an individual basis through consolidated supervision to supplementary supervision of financial conglomerates, which corresponds with the activity and structure of the financial sector, high rate of integration and transboundary...

Price Determination in Public Procurement: A Game Theory Approach

Martin Schmidt

European Financial and Accounting Journal 2015, 10(1):49-62 | DOI: 10.18267/j.efaj.137  

The article examines mechanism of bid price determination in public procurement by individual tenderers. A game theory approach is used to analyse this process. Firstly, a simple model with two firms illustrates the influence of expected opponent's decision in bid price setting. Assumptions are released subsequently and a game theory based model describes price determination under assumption of expected profit maximization. It is shown that the bid price depends on the costs associated with the performance of the contract and the expected number of bidders. The relationship between the amount of the bid price and the number of bids is also confirmed...