Prague Economic Papers, 2015 (vol. 24), issue 6

Original contributions, Original article, Research article

The Impact of the CCCTB Introduction on the Distribution of the Group Tax Bases Across the EU: The Study for the Czech Republic

Danuše Nerudová, Veronika Solilová

Prague Economic Papers 2015, 24(6):621-637 | DOI: 10.18267/j.pep.514  

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 differences 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...

Accounting Accruals and Information Asymmetry in Europe

Antonio Cerqueira, Claudia Pereira

Prague Economic Papers 2015, 24(6):638-661 | DOI: 10.18267/j.pep.528  

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...

To Lend or to Borrow on the Interbank Market: What Matters for Commercial Banks in the Visegrad Countries

Pavla Vodová

Prague Economic Papers 2015, 24(6):662-677 | DOI: 10.18267/j.pep.529  

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...

The Euro Crisis and Contagion among Central and Eastern European Currencies: Recommendations for Avoiding Lending in a Safe Haven Currency such as CHF

Gábor Dávid Kiss, Tamás Schuszter

Prague Economic Papers 2015, 24(6):678-698 | DOI: 10.18267/j.pep.530  

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...

The Capital Structure Management in Companies of Selected Business Branches of Building in Conditions of the Czech Republic

Růčková Petra, Heryán Tomáš

Prague Economic Papers 2015, 24(6):699-714 | DOI: 10.18267/j.pep.515  

Current paper has focused on the capital structure management theories. The theoretical part of the study firstly highlights the differences between trade-off theories and pecking order theories. In the empirical part there are then proved some significant relationships between financial 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...

Systematically Important Domestic Banks: An Indicator-Based Measurement Approach for the Ukrainian Banking System

Anna Buriak, Serhiy Lyeonov, Tetiana Vasylieva

Prague Economic Papers 2015, 24(6):715-728 | DOI: 10.18267/j.pep.531  

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...

Investigating Exchange Rate Exposure of Energy Firms: Evidence from Turkey

Serkan Yılmaz Kandir, Ahmet Erismis, Ilhan Ozturk

Prague Economic Papers 2015, 24(6):729-743 | DOI: 10.18267/j.pep.532  

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...