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European Financial Systems 2013: Proceedings of the 10th International Scientific Conference. 10-11 June 2013, Telč, Czech Republic Cover Image

European Financial Systems 2013: Proceedings of the 10th International Scientific Conference. 10-11 June 2013, Telč, Czech Republic
European Financial Systems 2013: Proceedings of the 10th International Scientific Conference. 10-11 June 2013, Telč, Czech Republic

Contributor(s): Oleg Deev (Editor), Veronika Kajurová (Editor), Jan Krajíček (Editor)
Subject(s): Politics / Political Sciences, Politics, Social Sciences, Economy, Essay|Book Review |Scientific Life, National Economy, Supranational / Global Economy, Business Economy / Management, Agriculture, Political Theory, Sociology, Economic policy, Government/Political systems, Political economy, Economic development, Conference Report, Public Finances, Accounting - Business Administration, Socio-Economic Research
Published by: Masarykova univerzita nakladatelství
Keywords: Czech Republic; Slovakia; Banking system; DEA application; Financial crisis; SME; European Debt Crisis; Investment models; Stock prices; Electronic Banking; Agriculture; Business Economy; Macroeconomic Data; EU; Tax policy;
Summary/Abstract: It is my pleasure to introduce you a collection of papers from the 10th International Scientific Conference European Financial Systems 2013, organized annually by the Department of Finance at the Faculty of Economics and Administration, Masaryk University. We can now say that our conference has a long history starting in 2003 in Brno, Czech Republic and thereafter continuing as an annual event. To celebrate our first anniversary the conference was organized at a very distinctive and special place – the city of Telč, a UNESCO World Heritage Site. This year's conference was focused on the current issues related to the financial crisis inthe European Union, specifically in financial markets, banking and insurance industries and corporate finance. Because the collection of papers presents the latest scientific knowledge in this area, I believe you will get a number of new insights useful for yours cientific enquires as well as your educational or practical activities.

  • E-ISBN-13: 978-80-210-8696-8
  • Page Count: 374
  • Publication Year: 2013
  • Language: English
The System Solution of Uninsurable Risks with Focus on Floods in the Czech Republic

The System Solution of Uninsurable Risks with Focus on Floods in the Czech Republic
(The System Solution of Uninsurable Risks with Focus on Floods in the Czech Republic)

  • Author(s):Karel Hanzlik, Hana Bártová
  • Language:English
  • Subject(s):Energy and Environmental Studies, Environmental and Energy policy, Evaluation research, Environmental interactions
  • Page Range:8-14
  • No. of Pages:7
  • Keywords:flood; gross premium calculation; insurance pool; uninsurable risk;
  • Summary/Abstract:Uninsurable risks influence negatively lives and value of property. Flood risk and risk realization have broad impact on public and private finance with the most significant consequences in the riskiest flood zones. Current trend in the insurance industry is to make exceptions from insurance protection.
Verification of a linear dependence between the risk premium and the systematic risk: Empirical testing based on data from PSE

Verification of a linear dependence between the risk premium and the systematic risk: Empirical testing based on data from PSE
(Verification of a linear dependence between the risk premium and the systematic risk: Empirical testing based on data from PSE)

  • Author(s):Juraj Hruška, Luděk Benada
  • Language:English
  • Subject(s):Business Economy / Management, Methodology and research technology, Financial Markets
  • Page Range:15-21
  • No. of Pages:7
  • Keywords:Risk premium; systematic risk; linearity; CAPM;
  • Summary/Abstract:In our article we focus on an empirical research of the Capital Asset Pricing Model. The equilibrium model is tested on the data from the Prague Stock Exchange. Our research is focused on the relationship of a systematic risk with an individual market premium. We verify, whether it is possible to identify an explanatory power of the market beta on an excessive return. We are dealing with the hypothesis whether it is possible to use a non-diversifiable risk as a crucial part of the explanatory factor for investment decisions. For the study the Black-Jensen-Scholes methodology will be used. We apply only the one factor model and its modified version.
Efficiency in the Slovak banking industry: a DEA application of the profit approach

Efficiency in the Slovak banking industry: a DEA application of the profit approach
(Efficiency in the Slovak banking industry: a DEA application of the profit approach)

  • Author(s):Martin Boďa, Emília Zimková
  • Language:English
  • Subject(s):Business Economy / Management, Evaluation research, Financial Markets
  • Page Range:22-30
  • No. of Pages:9
  • Keywords:efficiency; the Slovak banking industry; SBM model; the profit approach;
  • Summary/Abstract:The paper investigates into the efficiency of the Slovak banking industry over the years 2000 – 2011 through the prism of the profit approach to the perception of efficiency of commercial banks. The aim of the paper is to benchmark individual commercial banks with respect to their efficiency status under the profit definition of efficiency.
Is the asset-liability approach a significant change to revenue recognition?

Is the asset-liability approach a significant change to revenue recognition?
(Is the asset-liability approach a significant change to revenue recognition?)

  • Author(s):Hana Bohušová, Patrik Svoboda
  • Language:English
  • Subject(s):Business Economy / Management, Accounting - Business Administration
  • Page Range:31-39
  • No. of Pages:9
  • Keywords:revenues; asset-liability approach; contracts with customers;
  • Summary/Abstract:In November 2011, the exposure draft of a new common standard regarding the revenue recognition from contracts with customers was published. The main objective is to unify the principles for revenue recognition and the possibility of its consistent application across sectors. This paper is focused on the identification of areas where we can assume that there will be the most significant differences in reported revenue compared to the current treatment.
Performance of Hungarian Mutual Funds and the Financial Crisis

Performance of Hungarian Mutual Funds and the Financial Crisis
(Performance of Hungarian Mutual Funds and the Financial Crisis)

  • Author(s):Mihály Ormos, Gábor Botár
  • Language:English
  • Subject(s):National Economy, Economic policy, Financial Markets
  • Page Range:40-46
  • No. of Pages:7
  • Keywords:mutual funds; asset pricing; financial crisis; time varying beta;
  • Summary/Abstract:We investigate the performance and time varying risk behavior of Hungarian equity mutual funds by applying the modified version of the four-factor model using the Central Eastern European index as a market proxy. We classify the funds according to their target markets (Hungary, Central and Eastern Europe, developed markets) and separate bullish and bearish periods.
Insurance of Risks of Small and Medium-sized Enterprises

Insurance of Risks of Small and Medium-sized Enterprises
(Insurance of Risks of Small and Medium-sized Enterprises)

  • Author(s):Viktória Čejková, Svatopluk Nečas
  • Language:English
  • Subject(s):Business Economy / Management, Evaluation research, Financial Markets
  • Page Range:47-54
  • No. of Pages:8
  • Keywords:insurance; business risks insurance; small enterprises; medium-sized enterprises;
  • Summary/Abstract:Insurance of risks of enterprises belongs to the most important parts of every insurance market with developed market economy. It helps to stabilize the operation of the business entity and its economy as well. The damages suffered by the company are covered by insurance benefit and the company can use its available funds for development activities, instead of having to spend them on renewal of its assets or processes.
Country Risk as a Phenomenon of the Current European Debt Crisis

Country Risk as a Phenomenon of the Current European Debt Crisis
(Country Risk as a Phenomenon of the Current European Debt Crisis)

  • Author(s):Božena Chovancová, Peter Árendáš
  • Language:English
  • Subject(s):Micro-Economics, Political economy, Financial Markets
  • Page Range:55-60
  • No. of Pages:6
  • Keywords:country risk; risk margins; risk rating; financial markets; debt crisis;
  • Summary/Abstract:Current European debt crisis leads to new roles for economic theory that should try to find solutions of actual problems. There are a couple of new problems in the financial markets as well. The risk attitude of investors has changed significantly, especially the perception of sovereign risks. Issues of securities and trading with bonds and shares are among the most affected.
Rate of Investments as a Parameter of the VIM Model for Appraising Trademarks of Unlisted Companies

Rate of Investments as a Parameter of the VIM Model for Appraising Trademarks of Unlisted Companies
(Rate of Investments as a Parameter of the VIM Model for Appraising Trademarks of Unlisted Companies)

  • Author(s):Romana Čižinska, Tomáš Krabec
  • Language:English
  • Subject(s):Business Economy / Management, Marketing / Advertising
  • Page Range:61-69
  • No. of Pages:9
  • Keywords:brand value; intangible assets; costs of branding; investments;
  • Summary/Abstract:The value of a trademark is based on its economic benefit to its owner or the economic entity owning/using the trademark. All methods of appraising the fair value of a brand are based on three approaches - comparability, cost and income approach. In appraising intangible assets of unlisted (private) companies operating in developing markets, appraisers have to face the problem of the lack of empirical data, or their low quality. This makes the application of standard appraising methodology disputable. Therefore we suggest the VIM (Verifiable Interdependent Model) model, which has been designed specifically for the conditions of use in this environment.
Co-movements of bank stocks’ prices as signs of interdependence and contagion

Co-movements of bank stocks’ prices as signs of interdependence and contagion
(Co-movements of bank stocks’ prices as signs of interdependence and contagion)

  • Author(s):Oleg Deev
  • Language:English
  • Subject(s):Economic policy, Financial Markets
  • Page Range:70-78
  • No. of Pages:9
  • Keywords:bank stock; cointegration analysis; interdependence; contagion;
  • Summary/Abstract:This paper examines the interrelations between six bank stock indices, illustrating world's biggest banking systems, to test the directions of market integration and possible contagion. Employing cointegration analysis methodology, we find evidence of cross-border banking sector interdependence, apparently formed separately by investment and commercial banks, and contagion, which in our case follow the timing convention in business activities of the chosen countries.
Resolving the consequences of work-related injuries in the conditions of the Czech Republic

Resolving the consequences of work-related injuries in the conditions of the Czech Republic
(Resolving the consequences of work-related injuries in the conditions of the Czech Republic)

  • Author(s):Eva Ducháčková
  • Language:English
  • Subject(s):Labor relations, Human Resources in Economy
  • Page Range:79-86
  • No. of Pages:8
  • Keywords:work-related injuries; commercial insurance; social insurance;
  • Summary/Abstract:Work-related injuries can have serious consequences for employees, often long-term. Currently, in the Czech Republic is the current issue of the future shape of financial instrument to deal with the consequences of work-related injuries. Insurance required by law, which is at present in connection with claims of work-related injuries isnot relevant, from an economic perspective and from the perspective of prevention of work-related injuries. Therefore, it is considered for solving two basic solutions: in clusionin social insurance or use of commercial principles (compulsory contractual insurance). The aim of this paper is to analyze the various possible solutions.
Trends in Integration of the Electronic Banking

Trends in Integration of the Electronic Banking
(Trends in Integration of the Electronic Banking)

  • Author(s):Jiří Dvořák, Martina Jankova
  • Language:English
  • Subject(s):Business Economy / Management, Financial Markets, ICT Information and Communications Technologies
  • Page Range:87-98
  • No. of Pages:12
  • Keywords:e-banking; e-business; new economy; system integration; integration process; system; model;
  • Summary/Abstract:A summarization of the current state of electronic banking (e-banking) from the perspective of the general e-business in the new economy is presented. It is an expression of system integration in the technical and economic models. It is a description of the dynamics of the structure and behaviour of systems in the integration process of the system concept of contemporary reality for the new economy.
Factors influencing the microeconomic and fiscal effects of the reduced VAT on books

Factors influencing the microeconomic and fiscal effects of the reduced VAT on books
(Factors influencing the microeconomic and fiscal effects of the reduced VAT on books)

  • Author(s):Martin Geško
  • Language:English
  • Subject(s):Micro-Economics, Public Finances, Fiscal Politics / Budgeting
  • Page Range:99-106
  • No. of Pages:8
  • Keywords:indirect tax; VAT; microeconomic effects; demand elasticity;
  • Summary/Abstract:Value added tax as the general tax on consumption has a significant influence on the consumer behaviour and is a significant source of public revenues. Many tax policies in response to the current financial and public finance crisis employ the increase of the VAT rate on previously exempted or tax-favoured goods. On the other hand, in previous years some countries adapted decreased VAT rates on specific goods, e.g. books among others, in order to achieve certain non-economic goals.
Value at Risk estimation using a Monte Carlo simulation

Value at Risk estimation using a Monte Carlo simulation
(Value at Risk estimation using a Monte Carlo simulation)

  • Author(s):Ján Gogola
  • Language:English
  • Subject(s):Methodology and research technology
  • Page Range:107-113
  • No. of Pages:7
  • Keywords:VaR; Monte Carlo Simulation; Back testing;
  • Summary/Abstract:In this paper we deal with a value at risk (VaR) based on simulation approach, known as Monte Carlo method and its predictive performance is evaluated with respect to a given portfolio of 4 equities. The aim of this paper is to apply Monte Carlo simulation for value at risk (VaR) estimation and other goal is to check our results with empirical obtained values.
Nowcasting business cycles using transportation index

Nowcasting business cycles using transportation index
(Nowcasting business cycles using transportation index)

  • Author(s):Andrius Guzavičius, Vytas Barkauskas, Vidas Tamulis
  • Language:English
  • Subject(s):Business Economy / Management, Economic policy, Financial Markets
  • Page Range:114-119
  • No. of Pages:6
  • Keywords:market driven economy; business cycle; nowcasting; transportation sector;
  • Summary/Abstract:Today's relationship between financial market and real economy is one of the main topic in scientific debate in the field of many different approaches. It is practically impossible separate economics science from others disciplines, like psychology, human behavior, philosophy, ethic and etc. Financial markets after losing the Gold standard in 1970 exploited to enormous amount, very active monetary policy in USA, EU and Japan last few years made the situation even more complicated. Some economist see current situation in financial markets as normal, their argument is that expansive monetary policy increasing liquidity in financial market and provide efficient recourse allocation in real economy.
Financial and operational performance of hospitals in the Czech Republic

Financial and operational performance of hospitals in the Czech Republic
(Financial and operational performance of hospitals in the Czech Republic)

  • Author(s):Tana Hajdikova, Lenka Komárková, Petr Pirožek
  • Language:English
  • Subject(s):Business Economy / Management, Health and medicine and law
  • Page Range:120-125
  • No. of Pages:6
  • Keywords:hospitals; non-profit hospitals; net income; economics; performance; subsidies;
  • Summary/Abstract:Article aims to describe and analyze the performance of hospitals in times of economic instability. It describes the important dimensions of financial and operational performance in both profit and non-profit hospitals in the Czech Republic during selected period. Years 2008 and 2011 were chosen quite intentionally, because of the differences in findings between the time of the very beginning of the global economic crisis that started in 2008 and last possible researchable year.
Analysis of the problem of pro-cyclicality in the Eurozone and pro-cyclicality solutions in Basel III

Analysis of the problem of pro-cyclicality in the Eurozone and pro-cyclicality solutions in Basel III
(Analysis of the problem of pro-cyclicality in the Eurozone and pro-cyclicality solutions in Basel III)

  • Author(s):Eva Horvátová
  • Language:English
  • Subject(s):Supranational / Global Economy, Micro-Economics, Evaluation research, Financial Markets
  • Page Range:126-133
  • No. of Pages:8
  • Keywords:Basle III; pro-cyclicality of the regulation; quality of capital;
  • Summary/Abstract:The main causes of changes in banking regulation were in negative impacts of the financial crisis, which has shown the weaknesses of Basel II. Basel Committee on Banking Supervision adopted in September 2009 the basic principles of international regulatory framework for banks under Basel III designation. In December 2009 has been published consultative documents Basel III.
The yield curve as a predictor of economic activity – the case of the Visegrad group

The yield curve as a predictor of economic activity – the case of the Visegrad group
(The yield curve as a predictor of economic activity – the case of the Visegrad group)

  • Author(s):Veronika Kajurová, Jana Hvozdenská
  • Language:English
  • Subject(s):National Economy, Business Economy / Management, Economic policy, Comparative politics
  • Page Range:134-139
  • No. of Pages:6
  • Keywords:yield curve; slope; Visegrad; GDP; spread;
  • Summary/Abstract:In this paper we study the ability of the yield curve to predict GDP activity in four countries of the Visegrad group – Czech Republic, Slovakia, Poland and Hungary. The dataset contains the spread between 10-year and 3-month sovereign bonds and real GDP of the countries mentioned above between the years 2002 and 2012.
Mergers in Czech Agricultural Companies

Mergers in Czech Agricultural Companies
(Mergers in Czech Agricultural Companies)

  • Author(s):Eva Hýblová, Zuzana Křížová, Jaroslav Sedláček
  • Language:English
  • Subject(s):Business Economy / Management, Agriculture, Economic development
  • Page Range:140-146
  • No. of Pages:7
  • Keywords:mergers; financial position; performance; agriculture; economic development of a company;
  • Summary/Abstract:Mergers of trading companies are significant trading transactions that represent a combination of companies from an economic as well as legal perspective. The aim of mergers is usually a further development of a company. One of the factors that influence the number of mergers and their results is the field of business of relevant companies.
The calculation of the output gap in the machinery sector of the Slovak Republic

The calculation of the output gap in the machinery sector of the Slovak Republic
(The calculation of the output gap in the machinery sector of the Slovak Republic)

  • Author(s):Eva Kafkova, Igor Hudak
  • Language:English
  • Subject(s):National Economy, Economic history, Economic development, Transformation Period (1990 - 2010), Present Times (2010 - today)
  • Page Range:147-152
  • No. of Pages:6
  • Keywords:output gap; Cobb-Douglas function; sectorial growth; economy performance;
  • Summary/Abstract:The aim of this paper is the calculation and evaluation of the output gap by Cobb-Douglas function in the terms of the Slovak economy with focus on the mechanical sector as an important part of the national economy during the period 2000 – 2012. The advantage of the chosen calculation of the output gap is the possibility to use it for the part of economy. The output gap is an important economic indicator determining the difference between actual and potential output of the economy, respectively of its part.
Credibility Theory and Its Using In Insurance Practice

Credibility Theory and Its Using In Insurance Practice
(Credibility Theory and Its Using In Insurance Practice)

  • Author(s):Silvie Kafková
  • Language:English
  • Subject(s):Methodology and research technology
  • Page Range:153-157
  • No. of Pages:5
  • Keywords:Bühlmann model; premium; theory of credibility;
  • Summary/Abstract:The subject of this paper is to introduce the theory of credibility. Credibility theory is a set of quantitative tools that allows an insurer to estimate future premiums based on past experience of policy holder. First, risk factor for policyholders is defined. Then sorts of premium are described and the credibility premium is introduced as a linear function of the past data.
Linkages between bonds and credit default swaps of the European financial institutions

Linkages between bonds and credit default swaps of the European financial institutions
(Linkages between bonds and credit default swaps of the European financial institutions)

  • Author(s):Veronika Kajurová, Jana Hvozdenská
  • Language:English
  • Subject(s):Evaluation research, Financial Markets
  • Page Range:158-163
  • No. of Pages:6
  • Keywords:credit default swap market; bond market; causality;
  • Summary/Abstract:Credit default swap markets have been considered as a leading indicator of the future development of credit worthiness, which can point out the potential situation in economy. The aim of the study is to find out whether the role of credit default swap markets and bond markets has been changed by the financial crisis and the debt crisis. The attention is paid to the credit default swaps and bonds of 22 financial institutions, which are included in Markit iTraxx Europe Senior Financial index.
Alternative bankruptcy models – first results

Alternative bankruptcy models – first results
(Alternative bankruptcy models – first results)

  • Author(s):František Kalouda, Roman Vaníček
  • Language:English
  • Subject(s):Evaluation research, Financial Markets
  • Page Range:164-168
  • No. of Pages:5
  • Keywords:discriminant function; alternative bankruptcy models; standard models;
  • Summary/Abstract:The article is focused on showing first results of two newly created (alternative) bankruptcy models. The used database contains available data of Czech companies (Credit Info database). Based on result comparison with standardized bankruptcy models (IN 05, Z-fce) the two new models are equivalent in one case and significantly better in the second case.
Crisis Management of Banks in the Context of Financial Crisis

Crisis Management of Banks in the Context of Financial Crisis
(Crisis Management of Banks in the Context of Financial Crisis)

  • Author(s):Mária Klímková, Martin Vovk
  • Language:English
  • Subject(s):Business Economy / Management, Evaluation research, Financial Markets
  • Page Range:169-175
  • No. of Pages:7
  • Keywords:management of commercial bank; crisis management of bank; financial crisis; EU supervision;
  • Summary/Abstract:The aim of the paper is an analysis of impacts of the existing financial crisis on the management of a commercial bank. The present financial crisis has drawn attention to the fact that there was not created a system of management of financial institutions for the crisis period and only few rules and measures which should be applied in the case of emergency of a bank crisis were made. The absence of effective instruments to manage institutions in the period of crisis often resulted in the necessity of using public means to restore confidence in the banking sector to prevent even higher negative impacts on the real economy.
Cash Management in Practice

Cash Management in Practice
(Cash Management in Practice)

  • Author(s):Jan Krajíček
  • Language:English
  • Subject(s):Business Economy / Management
  • Page Range:176-180
  • No. of Pages:5
  • Keywords:Bank; Client; Cash Management; Cash Poolin; Profit;
  • Summary/Abstract:One of the major components of banking is commercial banking and innovation of its products. Banks in an effort to retain significant clients create new, sophisticated banking products that safeguard the bank even at the cost of lower profits, if these clients remain with her, it will make a profit through the economies of scale and creating competition to other banks.
Polluter Pays Principle in the Czech Republic in the Context of Public Environmental Protection Expenditures

Polluter Pays Principle in the Czech Republic in the Context of Public Environmental Protection Expenditures
(Polluter Pays Principle in the Czech Republic in the Context of Public Environmental Protection Expenditures)

  • Author(s):Pavla Kubová, Karina Mužáková
  • Language:English
  • Subject(s):Business Economy / Management, Energy and Environmental Studies
  • Page Range:181-188
  • No. of Pages:8
  • Keywords:Polluter Pays Principle; environmental risks; environmental damage; public environmental proteciton expenditures;
  • Summary/Abstract:In light of the significant economic, technical, and technological growths are increasingly being implemented environmental risks. In practice, there are situations where the polluter does not have enough funds to repair and implementation of financial responsibility, which then passes to the state. Remediation of damage implemented within the environmental risks are not only time consuming but also particularly expensive.
The fundamentals of accounting for business combinations

The fundamentals of accounting for business combinations
(The fundamentals of accounting for business combinations)

  • Author(s):Oleksandra Lemeshko
  • Language:English
  • Subject(s):Business Economy / Management, Accounting - Business Administration
  • Page Range:189-195
  • No. of Pages:7
  • Keywords:accounting for business combinations; US GAAP; IAS/IFRS; acquisition method;
  • Summary/Abstract:Currently international accounting for business combinations is considered to be the one of the predominant features of the 21st century economy. In response to such current challenges the aim of the paper consists in an attempt to introduce the fundamentals of US GAAP and IAS/IFRS accounting for business combinations and perform their qualitative comparison. The applied methodology is based on multidisciplinary approach designed for accounting for business combinations. The conducted research indicates that for today the accounting amounts reported under USGAAP and IAS/IFRS in context of accounting for business combinations are considered to be highly relevant and comparable.
Investigation of factors affecting short interest in the Australian Stock Exchange

Investigation of factors affecting short interest in the Australian Stock Exchange
(Investigation of factors affecting short interest in the Australian Stock Exchange)

  • Author(s):Dagmar Linnertová, Oleg Deev, Martin Cupal
  • Language:English
  • Subject(s):Evaluation research, Financial Markets
  • Page Range:196-200
  • No. of Pages:5
  • Keywords:short interest; Australian Stock Exchange; short sell; ETFs; determinants;
  • Summary/Abstract:ETFs (Exchange Traded Funds) represent financial innovation that combines characteristics of mutual funds with advantages provided by continual exchange trading. ETFs shares can be also used for specific operations such as short selling or trading on margin. Because of minimal regulation the short sell interest (SI) with ETFs is several times higher than short sell interest with common stocks.
Public Contracts in Czech Teaching Hospitals - efficiency issues

Public Contracts in Czech Teaching Hospitals - efficiency issues
(Public Contracts in Czech Teaching Hospitals - efficiency issues)

  • Author(s):Alena Maaytová, Stanislav Klazar
  • Language:English
  • Subject(s):National Economy, Health and medicine and law, Public Finances
  • Page Range:201-206
  • No. of Pages:6
  • Keywords:teaching hospitals; efficiency; public expenditures; public procurement;
  • Summary/Abstract:The average overall expenses spent on health-care services in the Czech Republic is 7.5% of the GDP. The estimated degree of inefficiency of these expenses is the serious issue in context of public finance. The goal of the text was to verify whether the efficiency can be increased in the area of public procurements in teaching hospitals by using the specific kind of public procurement procedures.
Contemporary crisis and strategic management of the private banking sector in the Czech Republic

Contemporary crisis and strategic management of the private banking sector in the Czech Republic
(Contemporary crisis and strategic management of the private banking sector in the Czech Republic)

  • Author(s):Jan Matoušek, Miroslav Mareš
  • Language:English
  • Subject(s):Business Economy / Management, Financial Markets
  • Page Range:207-212
  • No. of Pages:6
  • Keywords:financial crisis; banking;
  • Summary/Abstract:This paper analyses reaction of the Czech private banking sector to the financial crisis. The change of management strategies towards external as well as internal financial market threats is described. Specific attention is paid to the role of the Czech Banking Association, including its communication strategies with individual private banks, with the governmental sector and with foreign partners. The impact of the CBA on the stability of the finance market in the Czech Republic is assessed.
Financial consequences linked with investments in current assets: Polish firms case

Financial consequences linked with investments in current assets: Polish firms case
(Financial consequences linked with investments in current assets: Polish firms case)

  • Author(s):Grzegorz Michalski
  • Language:English
  • Subject(s):Business Economy / Management, Economic policy, Financial Markets
  • Page Range:213-220
  • No. of Pages:8
  • Keywords:current assets; financial liquidity; risk management;
  • Summary/Abstract:Investments in financial liquidity of the firm are done thru investing money incurrent assets. The goal of the paper is to find if efficiency measure ROA is linked with current ratio, liquidity ratio and collection period. Paper presents a classification of financial consequences of managerial decisions in current assets investments level. There are two kinds of current assets investment influences: positive, linked with cash revenues stimulation and decreasing level of risk, and negative, linked with increasing cash expenses.
Influence of volatility on the value of the modern structured products

Influence of volatility on the value of the modern structured products
(Influence of volatility on the value of the modern structured products)

  • Author(s):Peter Mokrička
  • Language:English
  • Subject(s):Business Economy / Management, Financial Markets
  • Page Range:221-225
  • No. of Pages:5
  • Keywords:volatility; certificates; structured products;
  • Summary/Abstract:For investors, volatility may be one of the investment criteria. Changes in implied volatility along with the changes in the value of the underlying assets have cardinal influence on the value development of modern structured products during their duration. This paper therefore examines the influence of volatility on the value of modern structured products and his result is a systematization of this group of investment instruments according to mentioned criteria.
History of Financial Crises and its impact to current regulatory development of Basel Committee

History of Financial Crises and its impact to current regulatory development of Basel Committee
(History of Financial Crises and its impact to current regulatory development of Basel Committee)

  • Author(s):Vladimir Novotny
  • Language:English
  • Subject(s):Economic history, Financial Markets
  • Page Range:226-231
  • No. of Pages:6
  • Keywords:financial crises; regulation; Basel 3;
  • Summary/Abstract:This paper is summarizing all major crises and is trying to give an answer to few questions: a) what are possible mitigants of financial crises if any; b) does the new regulation help us to do that; c) what is potential impact of new regulation to the sector. In more detail this paper is summarizing the history of financial crises from 17th century to the present.
Asset Pricing with Conditional Value at Risk

Asset Pricing with Conditional Value at Risk
(Asset Pricing with Conditional Value at Risk)

  • Author(s):Mihály Ormos, Dusán Timotity
  • Language:English
  • Subject(s):Business Economy / Management, Methodology and research technology
  • Page Range:232-240
  • No. of Pages:9
  • Keywords:Behavioral Finance; Asset Pricing; Prospect Theory; Anchoring; Conditional Value-at-Risk;
  • Summary/Abstract:We introduce a novel equilibrium asset-pricing model, which we build on the relationship between Conditional Value-at-Risk (CVaR) and the expected return. This approach of risk measure allows us to get rid of the normality condition of returns. Combining the CVaR risk measure method with our regression model, nonrealistic assumptions – such as rational and risk–averse investors, unlimited leverage opportunity and price-taker investors – of the most commonly used models can be almost entirely omitted.
Asset Pricing and Entropy

Asset Pricing and Entropy
(Asset Pricing and Entropy)

  • Author(s):Mihály Ormos, Dávid Zibriczky
  • Language:English
  • Subject(s):Business Economy / Management, Evaluation research
  • Page Range:241-248
  • No. of Pages:8
  • Keywords:Asset Pricing; Entropy; Risk measure;
  • Summary/Abstract:We investigate entropy as a novel risk measure which explains the equity premium of securities and portfolios in a simpler way and at the same time with higher explanatory power than the beta parameter of the capital asset pricing. To measure therisk of an investment opportunity the portfolio theory applies the variance of the return, and show that the risk can be reduced by diversification and the systematic risk (beta) isapplied as the risk measure. Entropy represents a measure of the uncertainty of aprobability variable.
Analysis of phishing in the e-banking field and protection techniques against this type of fraud

Analysis of phishing in the e-banking field and protection techniques against this type of fraud
(Analysis of phishing in the e-banking field and protection techniques against this type of fraud)

  • Author(s):Gabriela Oškrdalová
  • Language:English
  • Subject(s):Business Economy / Management, Security and defense, ICT Information and Communications Technologies
  • Page Range:249-254
  • No. of Pages:6
  • Keywords:e-banking; security; risk; fraud; phishing;
  • Summary/Abstract:The subject of the paper “Analysis of phishing in the e-banking field and protection techniques against this type of fraud” is an analysis of phishing in thee-banking (internet banking, phone banking, payment cards etc.) field, an identification of warning signs of phishing, a creating of models of this type of fraud and an identification of the basic recommendations for users of e-banking services to reduce security risks connected with using of e-banking services.
Single supervisory mechanism bank as a first step to the banking union

Single supervisory mechanism bank as a first step to the banking union
(Single supervisory mechanism bank as a first step to the banking union)

  • Author(s):Dalibor Pánek
  • Language:English
  • Subject(s):Evaluation research, Financial Markets
  • Page Range:255-257
  • No. of Pages:3
  • Keywords:Regulation and supervision; banking sector; union bank; single supervisory mechanism;
  • Summary/Abstract:The text focuses on the reasons for the establishment, structure, and issues with banking union in the European Union. Describes the basic element and the first step of implementation, a single supervisory mechanism bank. Includes banking entities under the direct supervision of the European Central Bank and supervision of national supervisors. Contain some problems when creating a banking union and a single bank supervisory mechanism. In final assessment provides selected for successful implementation of the project and its benefits.
Utilization of Benford’s Law by Testing Government Macroeconomics Data

Utilization of Benford’s Law by Testing Government Macroeconomics Data
(Utilization of Benford’s Law by Testing Government Macroeconomics Data)

  • Author(s):Michal Plaček
  • Language:English
  • Subject(s):Supranational / Global Economy, Economic policy, Government/Political systems, Evaluation research
  • Page Range:258-263
  • No. of Pages:6
  • Keywords:Benford´s law, Z test; Government data; manipulation;
  • Summary/Abstract:This article builds on research published in the article "Fact and Fiction in EU Govermnental Economics Data" (Rauch, Göttsche, Brähler, 2011). By exploring the possibilities of applying Benford´s Law as a useful instrument for detecting data manipulation, this instrument is applied to the Czech Republic, especially on monthly data of exports and imports for the period 1996-2012, which make up the trade balance. We use the Z test as the test criterion and the first and second digits are tested.
Availability of Information about the Company Insurance against Natural Hazards on the Czech Insurance Market

Availability of Information about the Company Insurance against Natural Hazards on the Czech Insurance Market
(Availability of Information about the Company Insurance against Natural Hazards on the Czech Insurance Market)

  • Author(s):Lenka Přečková
  • Language:English
  • Subject(s):Business Economy / Management, Financial Markets
  • Page Range:264-273
  • No. of Pages:8
  • Keywords:asymmetry of information; information unawareness risk; insurance market supply;
  • Summary/Abstract:The paper deals with on one of the possible event of information a symmetry on the insurance market in the Czech Republic. The event is the comprehensiveness of information about an insurance product. The information about the company insurance against natural hazards on the insurers´ website is the subject of the research. The valuation was carried out till the date 1. 3. 2013. The valuation is focused on the possibility of looking up the insurance conditions on the website and on the formale laboration of insurance conditions by the criterion the number of the extrinsic information of the insurance product and by the criterion the number of insurance conditions documents.
Commodity Markets Financialization and its Impact on the World Economy

Commodity Markets Financialization and its Impact on the World Economy
(Commodity Markets Financialization and its Impact on the World Economy)

  • Author(s):Oldřich Rejnuš, Kamil Smolik
  • Language:English
  • Subject(s):Supranational / Global Economy, Financial Markets
  • Page Range:272-278
  • No. of Pages:7
  • Keywords:financialization; commodity markets; world economy;
  • Summary/Abstract:This paper deals with the financialization of contemporary world commodity markets and its influence on the economy. Firstly, it defines the ways in which this current trend shows itself and then analyzes its impact on the economy. Concurrently the paper tries to find out in what way is the effect positive for the economy as well as in what is negative.
The Impacts of Basel III onto the European Banking Sector

The Impacts of Basel III onto the European Banking Sector
(The Impacts of Basel III onto the European Banking Sector)

  • Author(s):Svend Reuse, Martin Svoboda
  • Language:English
  • Subject(s):Evaluation research, Financial Markets
  • Page Range:279-284
  • No. of Pages:6
  • Keywords:Basel III; LCR; NSFR; Solvency;
  • Summary/Abstract:The European Commission and the European Parliament finalized the implementation of Basel III. From 01.01.2014, the relevant rules of CRR and CRD have to be fulfilled. But what effects do these rules have onto the banks, their strategies and profitability? This article discusses the main new aspects, their impacts onto the banks –and offers a strategy, how banks should deal with Basel III.
Outsourcing in Insurance

Outsourcing in Insurance
(Outsourcing in Insurance)

  • Author(s):František Řezáč, Martin Řezáč
  • Language:English
  • Subject(s):Business Economy / Management, Financial Markets
  • Page Range:285-291
  • No. of Pages:7
  • Keywords:outsourcing; insurance industry; insurance market; commercial insurance company; costs;
  • Summary/Abstract:In relation to the impact of the financial and debt crisis, commercial insurance companies operating not only at the insurance market of the Czech Republic but also in global market conditions are looking for possible ways to make their activities more efficient as well as the ways to decrease the costs of insurance service provision. One of the effective ways to increase efficiency and decrease costs is outsourcing.
Restructuring of the Czech Banking Sector – Influence of Mergers on Selected Financial Indicators

Restructuring of the Czech Banking Sector – Influence of Mergers on Selected Financial Indicators
(Restructuring of the Czech Banking Sector – Influence of Mergers on Selected Financial Indicators)

  • Author(s):Jaroslav Sedláček, Petr Valouch, Zuzana Křížová, Eva Hýblová, Alois Konečný
  • Language:English
  • Subject(s):Business Economy / Management, Economic policy, Financial Markets
  • Page Range:292-298
  • No. of Pages:7
  • Keywords:banking sector; restructuring; mergers and acquisition; regression and correlation analyses;
  • Summary/Abstract:Transformation of the Czech banking sector to market conditions was finished by a privatization of large banks in years 1998–2001. Banks with problems stopped their activities and new banks quickly adapted to the new conditions. The banking sector stabilized and a gradual restructuring of the sector followed, adequate to the needs of the developing economy. A typical feature of the restructuring was the increasing share of foreign companies in the Czech banking market by means of acquisitions and mergers.
The choice of portfolio based on the theory of cooperative games

The choice of portfolio based on the theory of cooperative games
(The choice of portfolio based on the theory of cooperative games)

  • Author(s):Anna Sroczyńska-Baron
  • Language:English
  • Subject(s):Methodology and research technology, Financial Markets
  • Page Range:305-311
  • No. of Pages:7
  • Keywords:portfolio; cooperative games; player;
  • Summary/Abstract:The theory of games as a domain of mathematics is one of the methods proper for making decisions in the world of economics when we do not know how the other subjects are going to act. It seems to be a suitable tool for gambling on the stock exchange. During gambling on the stock exchange the problem of the choice of proper portfolio appears. The player wants both great profit and low risk. It is reasonable to limitthe choice only to portfolios which belong to the effective set.
Lessons Learned from the 2013 Banking Crisis in Cyprus

Lessons Learned from the 2013 Banking Crisis in Cyprus
(Lessons Learned from the 2013 Banking Crisis in Cyprus)

  • Author(s):Daniel Stavárek
  • Language:English
  • Subject(s):Economic policy, Government/Political systems, Political economy, Financial Markets
  • Page Range:312-319
  • No. of Pages:8
  • Keywords:banking crisis; Cyprus; bailing-in; crisis resolution;
  • Summary/Abstract:The Cypriot banking crisis in 2013 led to closing commercial banks, capital controls and economic as well as political instability. The Troika has agreed with the Cypriot government on a plan that should resolve the problems in banking sector and stabilize the economic and financial environment. This paper overviews the specifics of the Cypriot banking system and puts them into relation with the crisis. The rescue program and its individual components are examined and adequacy of the bail-in approach is discussed.
Microeconomic factors influencing impaired loans and credit derivatives prices

Microeconomic factors influencing impaired loans and credit derivatives prices
(Microeconomic factors influencing impaired loans and credit derivatives prices)

  • Author(s):Boris Šturc, Natália Žoldáková
  • Language:English
  • Subject(s):Micro-Economics, Economic policy, Financial Markets
  • Page Range:320-322
  • No. of Pages:3
  • Keywords:microeconomic factors; impaired loans; multiple regression; derivatives;
  • Summary/Abstract:The article analyses relationship of microeconomic factors with the portion of impaired loans in selected commercial banks. There is multiple regression used for quantification of relationship. For the analysis have been used banks of key euro area countries. Our first hypothesis is based on the presumption of strong correlation among main microeconomic indicators in EU17.
Can tax policy co-cause the crisis?

Can tax policy co-cause the crisis?
(Can tax policy co-cause the crisis?)

  • Author(s):Irena Szarowská
  • Language:English
  • Subject(s):Financial Markets, Public Finances, Fiscal Politics / Budgeting
  • Page Range:323-330
  • No. of Pages:8
  • Keywords:crisis; corporate debt financing; housing; taxation of financial institutions;
  • Summary/Abstract:Although taxes have not generated the crisis, some aspects of tax policy may have led to increased risk-taking and indebtedness of banks, households and companies. Tax incentives may indeed the behavior of economic agents, leading them to wrong economic decisions. The aim of the paper is to review main channels through which the tax policy can affect financial markets and financial stability.
Stress testing in relation to the financial crisis

Stress testing in relation to the financial crisis
(Stress testing in relation to the financial crisis)

  • Author(s):Zuzana Töröková, Boris Šturc
  • Language:English
  • Subject(s):Supranational / Global Economy, Evaluation research, Financial Markets
  • Page Range:331-335
  • No. of Pages:5
  • Keywords:stress testing; stress test scenarios; crisis scenarious;
  • Summary/Abstract:According to experts, the causes of the global financial crisis can be found on the poor management of banks and other institutions of financial intermediation, also on failure of credit rating agencies in the assigning credit ratings as well as misunderstanding or their poor interpretations. The cause lies in the absence of crisis scenarios and inadequate risk assessment by using stress testing.
Influence of a merger on the EBIT of merged companies in the Czech Republic

Influence of a merger on the EBIT of merged companies in the Czech Republic
(Influence of a merger on the EBIT of merged companies in the Czech Republic)

  • Author(s):Petr Valouch, Alois Konečný, Maria Králová
  • Language:English
  • Subject(s):Business Economy / Management, Evaluation research
  • Page Range:336-342
  • No. of Pages:7
  • Keywords:Mergers; EBIT; sample; companies;
  • Summary/Abstract:The aim of this paper is to assess whether mergers of companies in the Czech Republic influence the value of the EBIT of merged companies in the period of three years after the merger. The effect of the merger on the value of EBIT of merged company within 3 years after the merger compared with the sum of EBIT of merging companies at the date of the merger is analyzed on the sample of 309 merged companies in the Czech Republic in the years 2001–2010.
Assessing the progress of the implementation of the Solvency II regulation

Assessing the progress of the implementation of the Solvency II regulation
(Assessing the progress of the implementation of the Solvency II regulation)

  • Author(s):Eva Vávrová
  • Language:English
  • Subject(s):Business Economy / Management, Evaluation research, Financial Markets
  • Page Range:343-348
  • No. of Pages:6
  • Keywords:insurance industry; Solvency II; regulation; quantitative impact study; capital requirement;
  • Summary/Abstract:The main aim of the paper is to present the findings of the analysis of some aspects in relation with the implementation of the Solvency II, the coming regulatory regime for insurance industry of the European Union within the commercial insurance companies in the insurance market of the Czech Republic. In accordance with its design, the presented scientific paper focuses on methodological aspects in relation to the realization of the fifth quantitative impact study (QIS5) and its importance for the Czech insurance market.
Some specifics of the valuation of bank stocks

Some specifics of the valuation of bank stocks
(Some specifics of the valuation of bank stocks)

  • Author(s):Jitka Veselá
  • Language:English
  • Subject(s):Business Economy / Management, Evaluation research, Financial Markets
  • Page Range:349-355
  • No. of Pages:7
  • Keywords:stock; valuation; dividend discount model; excess return model; required rate of return;
  • Summary/Abstract:There are three main reasons that cause difficulties in the valuation of bank stocks. The first reason is the nature of the business activities of banks, in consequence of which it is hard to define debt and reinvestment, and therefore it is difficult to make an estimation of future cash flows and it is inappropriate to use valuation models with the weighted average cost of capital. The second reason is the fact that banks are strictly regulated and changes in the regulatory requirements and rules can significantly affect the stock value.
Stock selection based on financial ratios on the Warsaw Stock Exchange. Analysis between 2001 and 2010

Stock selection based on financial ratios on the Warsaw Stock Exchange. Analysis between 2001 and 2010
(Stock selection based on financial ratios on the Warsaw Stock Exchange. Analysis between 2001 and 2010)

  • Author(s):Tomasz Węgrzyn
  • Language:English
  • Subject(s):Economic history, Transformation Period (1990 - 2010), Financial Markets
  • Page Range:356-361
  • No. of Pages:6
  • Keywords:financial ratios; stock selection; synthetic measure of development;
  • Summary/Abstract:The process of a portfolio optimisation is preceded by a stock selection. The article is concentrated on using the synthetic measure of development in the stock selection. The synthetic measure of development proposed by Hellwig (Hellwig, 1968) is one of the methods of linear arrangement. It enables the classification of companies in relation to the set variables, that are financial ratios. The purpose of the article is to study if one of five quantile portfolios is systematically giving higher rate of return than the benchmark portfolio.
Decoupling hypothesis and the financial crisis

Decoupling hypothesis and the financial crisis
(Decoupling hypothesis and the financial crisis)

  • Author(s):Joanna Wyrobek
  • Language:English
  • Subject(s):Business Economy / Management, Evaluation research, Financial Markets
  • Page Range:362-371
  • No. of Pages:10
  • Keywords:decoupling; business cycle synchronization; spectral analysis; emerging economies;
  • Summary/Abstract:The purpose of the paper was to present the decoupling hypothesis which says that the performance of the emerging economies becomes relatively independent from the changes in advanced economies, and to empirically verify this hypothesis. The Christiano-Fitzgerald band-pass filter and spectral analyses have been applied to examine the hypothesis. On the basis of obtained results, if one compares the deviations of GDPs from their long-term trend, it seems that the synchronization of cycles between emerging and advanced economies was already high before the crisis.
Perspectives of the Monetary Development of EU

Perspectives of the Monetary Development of EU
(Perspectives of the Monetary Development of EU)

  • Author(s):Miroslav Sponer
  • Language:English
  • Subject(s):Economic policy, EU-Accession / EU-DEvelopment
  • Page Range:299-304
  • No. of Pages:6
  • Keywords:Monetary integration; Convergence; Divergence; Economic and Monetary Union (EMU); Monetary policy;
  • Summary/Abstract:The article analyses the consequences of the monetary integration project especially from the perspectives of convergence and divergence within the EMU countries. The development background in EMU, present arrangements of the ECB and governments of EU countries are assessed. The main aims of this article are to estimate the possible monetary development in the future and to propose arrangements in the area of monetary policy and other EU policies.
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