Prague Economic Papers, 2016 (vol. 25), issue 2

Bank Capital, Risk and Performance in European Banking: A Case Study on Seven Banking Sectors

Irina Raluca Busuioc Witowschi, Florin Alexandru Luca

Prague Economic Papers 2016, 25(2):127-142 | DOI: 10.18267/j.pep.541  

The aim of this paper is to evaluate the way in which capital influences profitability of banks and exposure to risk in seven European countries: Austria, Bulgaria, Greece, Italy, Romania, the Netherlands and Hungary. Based on previous studies, we developed a model of simultaneous equations to analyse the relation between capital, risk and performance. The model includes 68 banks and covers the period between 2006 and 2011. In addition, estimations have been made for the three capital ratios (own capital ratio, tier 1 ratio and capital adequacy ratio) for each country included in this study. The obtained results have revealed the existence of a negative...

Formal Assessments, Teams and Influence of a Project Champion in the Selection of ICT Projects: A Czech Republic and UK Study

Frank Lefley, Josef Hynek, Václav Janeček

Prague Economic Papers 2016, 25(2):143-159 | DOI: 10.18267/j.pep.551  

We present and critically examine the links between the role of formal appraisal procedures, appraisal teams, and project champions and their influence in the selection of information communication technology projects in the Czech Republic and the UK. Our research is empirical and uses comparative analysis and exploratory descriptive analysis to interpret the findings. We draw on the economic, management and consensus-performance literature, and optimism bias theory to support our research. Our findings show significant differences in the practices between the Czech Republic and the UK, which we believe are the result of cultural and economic diversities....

Cooperation Patterns in the Tourism Business: The Case of Poland

Krzysztof Borodako, Ivan Kožić

Prague Economic Papers 2016, 25(2):160-174 | DOI: 10.18267/j.pep.552  

The aim of this paper is to foster discussion on the issue of cooperation patterns typical for the supply side of the tourism market. Poland is used as a case study and an email survey was conducted in order to gather the relevant information from Polish tourist companies, mostly SMEs. The data obtained are analyzed using multivariate statistical techniques: factor analysis and logistic regression. Aside from cooperation between tourism firms, attention is also paid to relations between tourism firms and their partners in other sectors of the economy. The authors argue that there are certain characteristic groups of partners with which companies operating...

Fiscal Sustainability in Central and Eastern European Countries - A Post-Crisis Assessment

Piotr Krajewski, Michał Mackiewicz, Agata Szymańska

Prague Economic Papers 2016, 25(2):175-188 | DOI: 10.18267/j.pep.553  

The aim of this paper is to investigate public finance sustainability for a selected group of ten Central and Eastern European countries. In order to assess the fiscal sustainability of these countries we extend standard analyses typically used for developed countries to our group of ten CEE countries. To assess fiscal sustainability we use panel stationarity and cointegration tests, as well as estimates of certain parameters of fiscal reaction functions. Our research shows that despite the financial turmoil, CEE countries demonstrate the existence of a long-term relationship between revenues and expenditures and they have statistically relevant parameters...

Segmentation of Consumers in the Context of their Space Behaviour: Case Study of Bratislava

Marta Grossmanová, Pavol Kita, Marta Žambochová

Prague Economic Papers 2016, 25(2):189-202 | DOI: 10.18267/j.pep.554  

The paper analyses the evolution of the retail network of the capital city of Slovakia Bratislava affecting buying behaviour and lifestyle of its consumers. From the marketing point of view, it characterizes the space behaviour of the consumers and presents the behaviour of consumers living in single districts of Bratislava. It shows, on the one hand, how the importance of consumer behaviour rises in the declining economic prosperity during last years, while on the other hand, the concentration in retail declines the chances for success of small independent food retail stores during last recent years. The authors used different methods, e.g. GIS, cluster...

Fisher and Mises on Zero Interest: A Reconsideration

Pavel Potužák

Prague Economic Papers 2016, 25(2):203-220 | DOI: 10.18267/j.pep.555  

This article demonstrates that the pure time-preference theory of Ludwig von Mises is inconsistent. A productivity element is studied in the Fisher model, and it is shown that time preference is neither a necessary nor a sufficient condition for the existence of interest. An attempt is also made to reconcile the Austrian theory with the neoclassical theory of interest. It is suggested that the key difference lies in the definition of interest as such, and it is concluded that the Austrian theory is only a special case of a more general neoclassical framework.

The Effect of Inventory Level on Product Availability and Sale

Aleksandar Grubor, Nikola Milićević, Nenad Djokic

Prague Economic Papers 2016, 25(2):221-233 | DOI: 10.18267/j.pep.556  

By increasing inventories, retailers attempt to raise service levels, and thus increase sale. However, in addition to a positive impact on product availability and sale, higher inventory levels may cause problems in performing in-store activities. As poor backroom-to-shelf replenishment process emerges as one of the most common causes of stock-out situations, this article compares store and on-shelf FMCG product availability at SKU level in different stores of a single retailer. In relation to this, besides direct, we have also investigated the indirect effect of inventory level on sale, by using store and shelf out-of-stocks as mediators. The results...

Czech Economist Karel Engliš and his Relation to The Austrian School in the First Half of the 20th Century

Ilona Bažantová

Prague Economic Papers 2016, 25(2):234-246 | DOI: 10.18267/j.pep.557  

This article analyses opinions and teleological approach of Czech economist Karel Engliš (1880-1961) and his relation to the Austrian Economics during the first three decades of the 20th century. He grew out from the Austrian subjective psychological school although he later refused its methodological psychological subjectivism and value theory. Engliš formed an original teleological economic school upon Kant's noetics. This paper describes Engliš's relation to the Austrian school: the polemic approach of Karel Engliš to Austrian Economics, followed by Engliš's agreement with certain postulates of the Austrian School. Engliš supported the conclusions...

Original Bilingual Publication on Banking

Pavla Klepková Vodová

Prague Economic Papers 2016, 25(2):247-249 | DOI: 10.18267/j.pep.580