European Financial and Accounting Journal, 2018 (vol. 13), issue 4

Articles

Basel III Leverage and Capital Ratio over the Economic Cycle in the Czech Republic and its Comparison with the CEE Region

Karel Janda, Oleg Kravtsov

European Financial and Accounting Journal 2018, 13(4):5-23 | DOI: 10.18267/j.efaj.216  

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...

Earnings Discontinuity as the Proxy for Earnings Management: Empirical Study from the UK, Germany and the Czech Republic

Jan Svitlík, Marcela Zárybnická Žárová

European Financial and Accounting Journal 2018, 13(4):25-40 | DOI: 10.18267/j.efaj.217  

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...

The Effect of the Media Reporting of Terrorist Attacks on the Czech Travel Insurance Market between 2011-2016

Petra Budská

European Financial and Accounting Journal 2018, 13(4):41-58 | DOI: 10.18267/j.efaj.218  

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...

A Review of the European Union Countries on Cross-border Mergers and Acquisitions Market

Hoang Long Pham, Petr Marek

European Financial and Accounting Journal 2018, 13(4):59-71 | DOI: 10.18267/j.efaj.219  

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...