European Financial and Accounting Journal, 2014 (vol. 9), issue 3
Articles
Life Cycle Perspective of R&D Investment Management: Case Study Approach
Marie Kubáňková, Jaroslava Hyršlová
European Financial and Accounting Journal 2014, 9(3):4-24 | DOI: 10.18267/j.efaj.122 
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...
Tax Aspects of Mergers and Cross-Border Mergers
Marcela Žárová, Jana Skálová
European Financial and Accounting Journal 2014, 9(3):25-49 | DOI: 10.18267/j.efaj.123
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...
The Effects of Exchange Rate Change on the Trade Balance of Slovakia
Jana Šimáková
European Financial and Accounting Journal 2014, 9(3):50-66 | DOI: 10.18267/j.efaj.124
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...
Impact of Earnings Smoothness on Stock Prices, Stock Returns and Future Earnings Changes - the Polish Experience
Jacek Welc
European Financial and Accounting Journal 2014, 9(3):67-94 | DOI: 10.18267/j.efaj.125
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...
A Discussion of the Main Tenets of Austrian Business Cycle Theory
Samy Metrah
European Financial and Accounting Journal 2014, 9(3):95-114 | DOI: 10.18267/j.efaj.126
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...