New Trends in Finance and Accounting (eBook)

Contents 6
1 The Euro Marriage 13
Abstract 13
1.1 Introduction 13
1.2 Broad Definition of Price Competition 14
1.3 Possibilities and Limitations on Calculating REERs 15
1.4 Price Competition in the Economy of the Czech Republic 19
1.5 Price Competitiveness of the Czech Industry 21
1.6 An International Comparison 22
1.7 Theory and Recommendations for Economic Policymakers 23
1.8 A Proposal for Rethinking the EMU Entry Criteria 24
1.9 Conclusion 25
Acknowledgments 26
References 26
2 Does Euro Introduction Ensure Lower Vulnerability of the New Euro Area Members to the External Shocks? The Case of the Central and Eastern European Countries 28
Abstract 28
2.1 Introduction 29
2.2 Literature Review 30
2.3 Research Methodology and Data 31
2.4 Research Results 33
2.5 Conclusion 37
Acknowledgments 37
References 38
3 Does Strong Employment Support Strong National Currency? An Empirical Analysis for the US Economy 39
Abstract 39
3.1 Introduction 39
3.2 Framework 40
3.3 Literature Review 41
3.4 Empirical Analysis 42
3.4.1 Data 42
3.4.2 Econometric Model 43
3.4.3 Method 43
3.4.4 Unit Root Tests 43
3.4.5 Causality Tests 44
3.4.6 Cointegration Test 45
3.4.7 Long-Term Analysis 45
3.4.8 Short-Term Analysis 46
3.5 Conclusion 47
Appendix 47
References 48
4 The Theory of Debt-Deflation: A Possibility of Incompatibility of Goals of Monetary Policy 50
Abstract 50
4.1 Introduction 50
4.2 Theoretical Exposition 51
4.3 Hayek’s Hypothesis of Two Rates of Interest 55
4.4 Conclusion 56
Acknowledgments 56
References 56
5 Gold Versus Stocks as an Inflationary Hedge: The Case of Spain 58
Abstract 58
5.1 Introduction 58
5.2 Literature Review 59
5.2.1 Stocks and Inflation 60
5.2.2 Gold and Inflation 60
5.3 Data and Methodology 61
5.3.1 Data 61
5.3.2 Methodology 62
5.3.2.1 Unit Root 62
5.3.2.2 Cointegration and Vector Error Correction Models (VECMs) 62
5.4 Empirical Results 63
5.4.1 Unit Root Test Results 63
5.4.2 Cointegration 64
5.4.2.1 Maki Cointegration 64
5.4.2.2 Vector Error Correction Model Results 64
5.5 Conclusion 65
References 66
6 Is There a Relation Between HDI and Economic Performances? 69
Abstract 69
6.1 Introduction 69
6.2 Literature Review 70
6.3 Methodology 71
6.3.1 Analytic Hierarchical Process (AHP) 71
6.3.2 TOPSIS 72
6.4 Implementation and Results 73
6.5 Conclusion 77
References 78
7 Foreign Capital Inflows and Stock Market Development in Turkey 79
Abstract 79
7.1 Introduction 79
7.2 Literature Review 81
7.3 Data and Econometric Methodology 83
7.3.1 Data 83
7.3.2 Econometric Methodology 84
7.4 Empirical Analysis 85
7.4.1 Unit Root Test 85
7.4.2 Hacker and Hatemi-J (2006) Bootstrap Causality Test 85
7.5 Conclusion 87
References 87
8 Count Data Modeling About Relationship Between Dubai Housing Sales Transactions and Financial Indicators 90
Abstract 90
8.1 Introduction 90
8.2 Methods 91
8.2.1 Poisson Regression Model 92
8.2.2 Negative Binomial Regression Model 92
8.2.3 Zero-Inflated Regression Models 93
8.2.4 Hurdle Regression Models 94
8.2.5 Model Comparison 94
8.3 Application 94
8.3.1 Data 94
8.3.2 Data Analysis 95
8.4 Conclusion 97
References 98
9 Predictive Bankruptcy of European e-Commerce: Credit Underwriters Inexperience and Self-assessment 99
Abstract 99
9.1 Introduction 100
9.2 Literature Review 101
9.3 Data, Results, and Discussion 102
9.3.1 Decision Tree 104
9.3.2 Logistic Model 105
9.3.3 Discriminant Analysis 106
9.4 Conclusion 108
Acknowledgments 109
References 109
10 Cost Efficiency of European Cooperative Banks: Are Small Institutions Predestined to Fail? 111
Abstract 111
10.1 Introduction 111
10.2 History and Principles of Cooperative Banking in a Nutshell 112
10.3 Theoretical Explanation of (Dis)Economies of Scale in Cooperative Banks 113
10.4 Empirical Literature Overview 114
10.5 Analysis of European Cooperative Banks Cost Efficiency 115
10.6 Conclusion 118
Acknowledgments 118
References 118
11 The Banking Union: A View of the New Regulatory Rules 120
Abstract 120
11.1 Introduction 120
11.2 The Banking Union and Regulatory Rules 121
11.2.1 Status Quo 121
11.2.2 The Five Chairmen Report 123
11.3 Bank Recovery and Resolution Directive (BRRD): Bail-In Mechanism and MREL 124
11.3.1 Bail-In Mechanism 124
11.3.2 MREL 125
11.4 The Czech National Bank’s Stance to Regulatory Changes 127
11.5 Conclusion 127
Acknowledgments 129
References 129
12 Forecasting Jumps in the Intraday Foreign Exchange Rate Time Series with Hawkes Processes and Logistic Regression 130
Abstract 130
12.1 Introduction 130
12.2 Nonparametric Jump Identification 132
12.3 Forecasting Jumps 134
12.3.1 Hawkes Process-Based Model 134
12.3.2 Using Logistic Regression to Model Jumps 135
12.4 Predicting Jumps in the EUR/USD Exchange Rate 136
12.4.1 Model of the Intraday Jump Seasonality 136
12.4.2 Modelling Jump Intensity with Hawkes Process Models 138
12.4.3 Modelling Jump Intensity with Logistic Regression 139
12.4.4 Assessing the Predictive Accuracy of the Models 140
12.5 Conclusion 141
Acknowledgments 141
References 141
13 Influence of Selected Factors on Hedge Fund Return 143
Abstract 143
13.1 Introduction 143
13.2 Hedge Funds 144
13.3 Data 146
13.4 Hypotheses 146
13.4.1 Does Hedge Fund Inclusion into Index Bring Enhanced Yield? 147
13.4.2 Does Optimum Hedge Fund Size Bring Additional Yield? 148
13.4.3 Does Higher Fee Bring Higher Return? 149
13.4.4 Does Hedge Fund Returns Diminish in Time? 150
13.5 Conclusion 151
References 151
14 Interest Rate Sensitivity of Non-maturing Bank Products 153
Abstract 153
14.1 Introduction 153
14.2 Interest Rate Sensitivity of Non-maturing Products—Motivation 154
14.2.1 Interest Rate Sensitivity of Non-maturing Liabilities 154
14.2.2 Interest Rate Sensitivity of Non-maturing Assets 156
14.3 Interest Rate Sensitivity of Non-maturing Products—Empirical Analysis 156
14.3.1 Empirical Analysis of Interest Rate Sensitivity of Non-maturing Liabilities 158
14.3.2 Empirical Analysis of Interest Rate Sensitivity of Non-maturing Assets 162
14.4 Conclusion 163
Acknowledgments 163
References 163
15 Examining the Interdependencies Between Leverage and Capital Ratios in the Banking Sector of the Czech Republic 165
Abstract 165
15.1 Introduction 166
15.2 Literature Review 166
15.3 Data, Results, and Discussion 167
15.4 Conclusion 174
Acknowledgments 175
References 175
16 Alternative Approaches to Insurance of Extreme Flood Risk 177
Abstract 177
16.1 Introduction 177
16.2 Extreme Flood Risk 178
16.3 Alternatives in Uninsurable Flood Risk Cover 180
16.3.1 Pool System of Cooperation 180
16.3.2 Alternative Risk Transfer Methods 180
16.4 Foreign Approaches to Extreme Flood Risk 181
16.4.1 National Flood Insurance Program 182
16.4.2 Flood Re 183
16.4.3 Natural Catastrophe Compensation System 184
16.5 Conclusion 185
Acknowledgments 185
References 185
17 Non-life Insurance Purchases of Polish Households: A Study of Leading Trends 187
Abstract 187
17.1 Introduction 187
17.2 Polish Non-life Insurance Market—Introductory Considerations 189
17.3 Contribution of Households to the Non-life Market in Poland 191
17.4 The Products’ Structure of Non-life Purchases by Polish Households 192
17.4.1 General Preferences 192
17.4.2 Volatility of the Products’ Structure 193
17.5 Conclusion 195
Annex 195
References 198
18 Ukrainian Exchange Returns: The Day-of-the-Week Effect 200
Abstract 200
18.1 Introduction 201
18.2 The Day-of-the-Week Effect: Theoretical Analysis 203
18.3 Literature Review 203
18.4 Analysis of the Ukrainian Stock Exchange Index 205
18.4.1 The Methodology 205
18.5 Results 206
18.6 Conclusion 209
Acknowledgments 210
References 210
19 Selected Passages from the Development History of Hungarian Banking Supervision in the Turn of Twentieth Century’s Period 212
Abstract 212
19.1 Introduction 212
19.2 Initiatives for the Establishment of Supervisory Bodies 214
19.3 Debates Concerning the Organisation of Supervisory Bodies 215
19.4 Conclusion 218
Acknowledgments 219
References 219
20 State Aid for Rescuing and Restructuring Firms in Difficulty and Its Impact on the State of Public Finances in the European Union in the Years 1999–2014 221
Abstract 221
20.1 Introduction 221
20.2 Methodology of the Research 222
20.3 Admissibility of State Aid for Rescuing and Restructuring Undertakings in Difficulty 224
20.4 Does the Provision of State Aid by the EU Member States for Rescuing and Restructuring Enterprises in Difficulty Affect Their General Government Sector Debt? 225
20.5 Conclusion 230
References 232
21 Dependence of VAT Revenues on Other Macroeconomic Indicators 233
Abstract 233
21.1 Introduction 233
21.2 Features of VAT 234
21.3 Literature Review 235
21.4 Analysis of Factors Affecting Value Added Tax Revenues 236
21.5 Conclusion 239
Acknowledgments 239
References 240
22 Shares in Central Government Income Taxes as a Revenues Source of Urban Municipalities in Poland 241
Abstract 241
22.1 Introduction 241
22.2 Research Methods, Scope, and Purpose of Work 243
22.3 Literature Review 243
22.4 Data Analysis Results 246
22.5 Conclusion 251
References 252
23 Can the Charitable Tax Deduction Stimulate Corporate Giving? Evidence from the Russian Banking System 253
Abstract 253
23.1 Introduction 254
23.2 Literature Review 255
23.3 Modeling of Corporate Giving in Russian Banking System 256
23.4 Results 260
23.5 Conclusion 262
Acknowledgments 263
References 263
24 The Impact of Taxation on Unemployment of University Absolvents 265
Abstract 265
24.1 Introduction 265
24.2 Data and Methodology 267
24.2.1 Selected Data 267
24.2.2 Analysis Methodology 268
24.3 Analysis Results 269
24.4 Conclusion 271
Acknowledgments 271
References 271
25 Analysis of Tax Burden in the Slovak Republic with Emphasis on Depreciation 273
Abstract 273
25.1 Introduction 273
25.2 Literature Review 274
25.3 Data, Results and Discussion 275
25.4 Conclusion 280
Acknowledgments 280
References 280
26 Fees or Taxes? The Question for the Czech Municipality 282
Abstract 282
26.1 Introduction 282
26.2 Financing Municipal Services—Theoretical Background 283
26.2.1 Financing Municipal Services—Legislative Perspective 284
26.3 Methodology and Data 285
26.4 Results and Discussion 286
26.5 Conclusions 290
Acknowledgments 291
References 291
27 Game-Theoretic Model of Principal–Agent Relationship Application in Corporate Tax Policy Design 292
Abstract 292
27.1 Introduction 292
27.2 Problem Statement 293
27.2.1 Concept Core 294
27.2.2 Model Framework 294
27.3 Computation 297
27.4 Conclusion 301
References 301
28 Shadow Economy in the Regions of the Russian Federation and the Ukraine 302
Abstract 302
28.1 Introduction 303
28.2 Measurement of Shadow Economy in Regions: Literature Review 304
28.3 The Model of Shadow Economy in the Regions 305
28.3.1 Selection of Model Indicators on the Basis of Factor Analysis 305
28.3.2 MIMIC Model 307
28.4 Results 310
28.5 Conclusion 311
Acknowledgments 312
References 312
29 Availability of Healthcare Services in Rural Areas: The Analysis of Spatial Differentiation 314
Abstract 314
29.1 Introduction 315
29.2 Data and Methods 317
29.3 Results and Discussion 319
29.4 Conclusions 321
References 322
30 Spatial Analysis of Turkish Voter Behaviours: Does Regional Distribution of Public Expenditures Affect Voting Rate? 324
Abstract 324
30.1 Introduction 324
30.2 Data and Methodology 326
30.2.1 Spatial Analysis 327
30.2.2 Spatial Weight Matrix 328
30.2.3 Moran’s I for Global Spatial Autocorrelation 328
30.3 Findings and Regional Comparisons 329
30.4 Conclusion 333
Acknowledgments 334
References 334
31 Does Privatization Affect Airports Performance? A Comparative Analysis with AHP-TOPSIS and DEA 336
Abstract 336
31.1 Introduction 336
31.2 Methodology 338
31.3 Implementation 340
31.3.1 TOPSIS 340
31.3.2 Data Envelopment Analysis 344
31.4 Conclusion 345
References 346
32 An Empirical Analysis of Post-contractual Behaviour Regarding Public Contracts for Construction Work in the Czech Republic 347
Abstract 347
32.1 Introduction 348
32.2 Basis of the Analysis 349
32.3 Data and Methods 350
32.3.1 Response Variables 350
32.3.2 Explanatory Variables 351
32.4 Results 352
32.5 Discussion 353
32.6 Conclusion 354
References 354
33 Reasons for Differences in European Financial Reporting 355
Abstract 355
33.1 Introduction 355
33.2 Literature Review 356
33.3 Results and Discussion 357
33.4 Conclusion 360
Acknowledgments 360
References 360
34 Forced IFRS Adoption: Direction of the “EU-15 Parents—CEE Subsidiaries” Links 361
Abstract 361
34.1 Introduction 361
34.2 Literature Review 362
34.3 Data, Results, and Discussion 364
34.4 Conclusion 369
Acknowledgments 370
References 370
35 The IFRS Adoption by BRICS Countries: A Comparative Analysis 372
Abstract 372
35.1 Introduction 372
35.2 Literature Review 373
35.3 Data, Results, and Discussion 374
35.3.1 Modern Accounting in Russia 376
35.3.2 Modern Accounting in Brazil 378
35.3.3 Modern Accounting in India 379
35.4 Conclusion 381
Acknowledgments 381
References 382
36 Intangibles Disclosure: Evidence from Annual Reports of the Jordanian Industrial Public Listed Companies 383
Abstract 383
36.1 Introduction 384
36.2 Literature Review 385
36.3 Research Design, Sample and Data 386
36.4 Results and Discussion 387
36.5 Conclusion 392
Acknowledgments 392
References 393
37 Specifics of Accounting in the Agricultural Sector 395
Abstract 395
37.1 Introduction 396
37.2 Literature Review 396
37.2.1 Forms of Accounting 396
37.2.2 Workers in Accounting 397
37.2.3 Functions of Accounting 398
37.2.4 Individual Areas of Accounting 399
37.3 Methods 400
37.3.1 Determining the Basic and Sample Sets 400
37.3.2 Data Collection Methods 401
37.4 Results and Discussion 401
37.5 Conclusion 402
References 404
38 New Legislation Concerning Cash Accounting in the Czech Republic and Comments on the Application of the Cash Flow Principle 405
Abstract 405
38.1 Introduction 405
38.2 Basic Premises and Literature Review 406
38.3 Legislation Concerning Cash Accounting in the Czech Republic 407
38.3.1 Historic Context 407
38.3.2 Basic Principles of Legislation Concerning Cash Accounting as of 1 January 2016 408
38.3.2.1 Accounting Entities that May Use Cash-Basis Accounting 409
38.3.2.2 Accounting Books, Accounting Methods and Statements 410
38.4 Assessment of the New Legislation Concerning Cash Accounting in Relation to the Principle of Cash Flows 412
38.5 Conclusion 415
Acknowledgments 415
References 415
39 Comparison of Accounting for Mergers in the Czech Republic and Poland 417
Abstract 417
39.1 Introduction and Literature Review 418
39.2 Accounting for Mergers in the Czech Republic 418
39.2.1 Accounting Methods for Mergers Based on Czech Regulation 419
39.2.2 Treatment of the Acquisition Difference and Merger Date in Czech Republic 421
39.3 Accounting for Mergers in Poland 422
39.3.1 Accounting Methods for Mergers Based on Acc. Act 424
39.3.2 Goodwill 425
39.4 Conclusion 426
Acknowledgments 428
References 428
40 The Revised Control Concept in the Consolidated Financial Statements of Czech Companies 430
Abstract 430
40.1 Introduction 430
40.2 Revised Control Concept 432
40.3 Literature Review 433
40.4 Data, Results and Discussion 434
40.5 Conclusion 436
Acknowledgments 437
References 437
41 Audit Market Concentration Analysis Focusing on Auditors of Public Interest Entities 439
Abstract 439
41.1 Introduction 439
41.2 Literature Review and Research Hypotheses Formulation 441
41.3 Data and Methodology 442
41.3.1 Data 442
41.3.2 Methodology 443
41.4 Discussion 444
41.5 Conclusion 446
Acknowledgments 447
References 447
42 Audit Committees in Corporate Governance: Selected Issues in the Czech Environment 449
Abstract 449
42.1 Introduction 449
42.2 Literature Review 450
42.3 Audit Committee 451
42.4 Tax Aspects of Remuneration of the Members of Audit Committees 453
42.4.1 Taxation of Remuneration of a Member of Audit Committee 454
42.4.2 Assessment of Tax Deductibility of the Remuneration of a Member of the Audit Committee 454
42.5 Conclusion 455
Acknowledgments 455
References 455
43 The Municipality Economic Review by Auditor or by Regional Authority? 457
Abstract 457
43.1 Introduction 457
43.2 Literature Review 458
43.3 Economic Review 459
43.3.1 Term 459
43.3.2 Legislation 459
43.3.3 The Economic Review by a Regional Authority 460
43.3.4 Economic Review by an Auditor 461
43.4 Statistics 461
43.4.1 Frequency of the Economic Review 461
43.4.2 Number of Errors 462
43.4.3 Imperfections by Acts (Regularity Audit) 463
43.5 Conclusion 466
Acknowledgments 467
References 467
44 All for One and One for All: A Cross-Sector Analysis of Reporting Standards 468
Abstract 468
44.1 Introduction 468
44.2 Research Methodology 469
44.3 A Conceptual Comparison Between Sectors 470
44.4 Reporting Standardization for Both Sectors: A Never-Ending Story? 472
44.5 Connecting the Dots: Insights and Discussion on Reporting Standards and Principles 475
44.6 Conclusion, Limits and Perspectives 477
Acknowledgments 478
References 478
45 Disclosure of Financial Information About the General Government Sector by IPSAS 480
Abstract 480
45.1 Introduction 480
45.2 Literature Review 482
45.3 Data and Methodology 482
45.4 Results and Discussion 483
45.5 Conclusion 489
Acknowledgments 490
References 490
46 The Comparative Analysis of CAS and IPSAS Requirements on Tangible Fixed Assets 491
Abstract 491
46.1 Introduction 491
46.2 Review of Literature and Background of the Paper 492
46.3 The Development of Public Sector Accounting Standards 499
46.4 Differential Analysis 500
46.5 Conclusion 503
Acknowledgments 503
References 503
47 Sustainability Reporting Versus Integrated Reporting: BIST Sustainability Index 505
Abstract 505
47.1 Introduction 505
47.2 Sustainability Reporting 507
47.3 Integrated Reporting 507
47.4 BIST Sustainability Index 510
47.4.1 BIST Sustainability Index Ground Rules 512
47.5 BIST Sustainability Index Inclusion Rules 513
47.5.1 Expected Contribution from Index 514
47.6 Conclusion 515
References 515
48 Management Control Systems Through the Lens of the Agency Theory 516
Abstract 516
48.1 Introduction 516
48.2 The Agency Theory 518
48.3 MCSs Through the Lens of the Agency Theory 521
48.4 MCS Functions Derived from the Agency Theory 525
48.5 Conclusion 527
Acknowledgments 528
References 528
49 Sustainable Controlling: Measuring Method Based on the Catalogue of Controller Tasks 530
Abstract 530
49.1 Introduction 531
49.2 Tasks of Modern Controlling 531
49.3 Sustainable Controlling 533
49.4 Sustainable Controlling Measures 535
49.5 Conclusion 538
References 539
50 Empirical Study of Approach to Sustainability Management and Reporting in the Czech and Slovak Republic 540
Abstract 540
50.1 Introduction 540
50.2 Literature Review 541
50.3 Methodology 542
50.4 Results 543
50.5 Conclusion 550
Acknowledgments 550
References 550
51 Adoption of Strategic Management Accounting Techniques in Czech and Slovak Companies 552
Abstract 552
51.1 Introduction 553
51.2 Strategic Management Accounting (SMA) Techniques 554
51.3 Methodology of Empirical Study 555
51.3.1 Data Collection and Sample of Responses 556
51.4 Findings 558
51.5 Conclusions 560
Acknowledgments 561
References 561
52 The Use of Assessment of Work Performance of Human Resources as a Tool of Management Accounting to Result Controls in Slovak Companies 563
Abstract 563
52.1 Introduction 563
52.2 Theoretical Background 564
52.2.1 Management Control System 564
52.2.2 Result (Output) Controls Versus Management Accounting Versus Personnel Management 565
52.2.3 Assessment of Work Performance of Human Resources 565
52.2.4 The Methods of Assessment 566
52.3 Paper Objective and Methodology 566
52.4 Results and Discussion 567
52.4.1 Formal Systems of Assessment 567
52.4.2 Dividing of Systems of Assessment According to Categories of Employees 568
52.4.3 An Option to React to Results of Assessment 568
52.4.4 Use of Gained Information from Assessment 569
52.5 Conclusion 570
Acknowledgments 571
References 571
53 Use of Management Accounting Information for the Formation of the Business Model of a Public Company 572
Abstract 572
53.1 Introduction 572
53.2 Methods 573
53.3 Data, Results, and Discussion 573
53.4 Conclusion 576
References 576
54 How Demands of Donors Influence the Design of the Management Control System of Not-for-Profit Nongovernmental Organizations 577
Abstract 577
54.1 Introduction 577
54.2 Typology of Donors 578
54.3 Key Management Control Parameters of Projects 582
54.4 Donor’s Contractual Framework 583
54.5 Conclusion 587
Acknowledgments 588
References 588
55 Actual Problems of Accounting Ensuring Asset Management at the Enterprises of Ukraine 589
Abstract 589
55.1 Introduction 589
55.2 The Place of Assets in an Enterprise Management System 591
55.3 The Accounting Valuation of Assets in the Theory and Normative Regulation 591
55.4 Theoretical Aspects of Estimation of Cost of Assets 592
55.5 Standard Regulation of Estimation of Cost of Assets 593
55.6 Current State of Display of Information on Assets in the Report on a Financial State 595
55.7 Conclusion 597
References 598
56 Direct and Indirect Influence of Information and Communication Technology on Corporate Performance 599
Abstract 599
56.1 Introduction 599
56.2 Methods 600
56.3 Results 601
56.4 Discussion 605
56.5 Conclusion 607
Acknowledgments 609
References 609
57 Facility Management as a Partner of Cost Controlling at Costs Optimization in the Selected Enterprise 610
Abstract 610
57.1 Introduction 610
57.2 Theoretical Background 611
57.3 Paper Aim and Methodology 612
57.4 Process of Reducing Heating Costs 612
57.5 Conclusion 618
Acknowledgments 618
References 618
58 Pecking Order Theory and Innovativeness of Companies 619
Abstract 619
58.1 Introduction 620
58.2 Literature Review 620
58.3 Data and Methodology 622
58.4 Results 624
58.5 Conclusion 628
Acknowledgments 629
References 629
59 A Compulsory Corporate Finance: Reflections on the Scope and Method 631
Abstract 631
59.1 Introduction 631
59.2 The Origin of the Economics of Corporate Finance Within Limits 632
59.3 The Roots and Fruits: The Scope of Compulsory Corporate Finance 633
59.4 Many Questions but One Answer: The Method of Compulsory Corporate Finance 636
59.5 Conclusion 638
Acknowledgments 639
References 639
60 Socially Responsible Investment Market Size in Poland: The Content Analysis 641
Abstract 641
60.1 Introduction 641
60.2 Socially Responsible Investment Market Size—Literature Review 642
60.3 Research Design 643
60.4 Results and Discussion 646
60.5 Conclusion 649
References 649
61 The Role of Convertible Bonds in the Corporate Financing: Polish Experience 652
Abstract 652
61.1 Introduction 652
61.2 Convertible Bonds as a Corporate Financing Instrument (Opportunities and Threats) 653
61.3 The Issuance of Convertible Debt: The Experience of Polish Companies 657
61.4 Conclusion 661
References 662
62 Evaluation of Investment Attractiveness of Commonwealth of Independent States 663
Abstract 663
62.1 Introduction 663
62.2 Literature Review 664
62.3 Methodology, Data and Results 667
62.4 Conclusion 671
Acknowledgments 672
References 672
63 Using Rating for Credit Risk Measurement 674
Abstract 674
63.1 Introduction 674
63.2 Literature Review 675
63.3 Data, Results and Discussion 677
63.4 Conclusion 681
Acknowledgments 681
References 681
64 Applicability of Selected Predictive Models in the Slovak Companies 683
Abstract 683
64.1 Introduction 683
64.2 Theoretical Background and Methodology 684
64.3 Data Analysis and Results 686
64.3.1 Results of Predictive Models 686
64.3.2 Results of Economic Value Added 689
64.3.3 Verification of Predictive Models with EVA 690
64.4 Conclusion 691
Acknowledgments 691
References 691
65 Model of Hospitals’ Financial Distress Forecasting: Comparative Study 693
Abstract 693
65.1 Introduction 694
65.2 Methodology and Data 696
65.3 Results and Discussion 699
65.4 Conclusions 702
References 702
66 Determinants of Long-Term and Short-Term Debt Financing: Evidence from Poland 706
Abstract 706
66.1 Introduction 707
66.2 Literature Review 707
66.2.1 Size of a Company 708
66.2.2 Profitability 708
66.2.3 Tangibility 709
66.2.4 Growth 709
66.3 Research Methodology 710
66.4 Results—Analysis of Long-Term and Short-Term Debt Financing Determinants 711
66.5 Conclusions 713
References 714
67 A Working Capital and Liquidity 716
Abstract 716
67.1 Introduction 716
67.2 Working Capital 717
67.3 Liquidity 718
67.4 Conclusion 720
Acknowledgments 720
References 720
68 Determinant Factors of Economic Value Added: Case of Ukrainian Wineries 721
Abstract 721
68.1 Introduction 721
68.2 Wine-Making Industry in Ukraine 722
68.2.1 Literature Review and Hypotheses Development 723
68.2.2 Results and Discussion 726
68.3 Conclusion 728
References 729
69 Dividend Policy of State-Owned Companies: Evidence from the Russian Federation 730
Abstract 730
69.1 Introduction 730
69.2 Literature Review 731
69.3 Emerging Capital Markets Dividend Policy 732
69.3.1 Dividends in Emerging Markets on the Worldwide Scale 733
69.3.2 The Dividend Policy of the Russian State-Owned Joint Stock Companies 733
69.3.3 On the Standard Dividend Payout Ratio for Russian State-Owned Joint Stock Companies 737
69.3.4 The Background for the Development of the Dividend Policy of Russian Joint Stock Companies 737
69.4 Conclusion 739
References 739
70 Personal Bankruptcy in Královéhradecký and Pardubický Regions 741
Abstract 741
70.1 Introduction 741
70.2 Debt Relief 742
70.3 Methodology 742
70.4 Results 743
70.5 Conclusion 748
Acknowledgments 748
References 749
71 Existence of Size Premium: A Review of Literature and Suggestions for Future Research 750
Abstract 750
71.1 Introduction 750
71.2 Current Knowledge and Findings 751
71.3 Conclusion 757
Acknowledgments 758
References 758
72 Invested Capital, Its Importance, and Interpretability Within Income-Based Methods for Determining the Value of the Company 761
Abstract 761
72.1 Introduction 761
72.2 The Volume of Capital Invested in Income-Based Valuation Methods 763
72.2.1 Discounted Free Cash Flow Method 763
72.2.2 Economic Value-Added Method 763
72.2.3 The Importance of the Volume of Invested Capital in Terms of Economic Meaningfulness and Interpretability of Parameters and Valuation Results 764
72.3 Methodology of the Problem Solving in Relation to IFRS 3 766
72.4 Conclusion 766
Acknowledgments 767
References 767
73 Constructing Czech Risk-Free Yield Curve by Nelson-Siegel and Svensson Method and Their Comparison 768
Abstract 768
73.1 Introduction 768
73.2 Usage of Nelson-Siegel and Svensson Methods in Foreign Praxis 769
73.3 Theoretical Fundamentals of the Methods 770
73.3.1 Nelson-Siegel Method 770
73.3.2 Svensson Method 771
73.4 Construction Czech Risk-Free Yield Curve by Nelson-Siegel and Svensson Method 772
73.4.1 Estimation Technique of Nelson-Siegel and Svensson Method 772
73.4.2 Estimation Results of Nelson-Siegel and Svensson Method 774
73.5 Conclusion 777
Acknowledgments 777
References 777
74 Discount Rate for Human Life-Related Decisions 779
Abstract 779
74.1 Introduction 779
74.2 Legislation 780
74.2.1 Cost of Sustenance of Close Persons § 2966, § 2967, § 2968 780
74.2.2 Compensation for Mental Harm § 2959 781
74.2.3 Costs of Funeral § 2961 781
74.2.4 Costs of Health Damage and Death § 2958 781
74.2.5 Methodology of the Highest Court of Czech Republic 781
74.2.6 Ogden Tables 782
74.3 Theoretical Approaches to Value of Human Life 782
74.3.1 Human Capital 782
74.3.2 Willingness to Pay 783
74.4 Risk-Free Discount Rate 783
74.5 Indicative Calculation of Discount Rate 784
74.6 Discount Rate Based on Risk of Death 785
74.7 Discussion 787
74.8 Conclusion 788
Acknowledgments 788
References 788
75 Discount Rate in Business Damage Cases 790
Abstract 790
75.1 Introduction 790
75.2 Basic Methodologies Used for Damage Calculation 791
75.3 Discounting in Business Damage Cases 792
75.4 Conclusion 795
Acknowledgments 795
References 796
76 Medical Device Price and Valuation 797
Abstract 797
76.1 Introduction 797
76.2 Literature Review 798
76.3 Data, Results, and Discussion 799
76.3.1 Reimbursement and Early-Stage Development Decisions: Bayesian Approach 799
76.3.2 Health Technology Assessment (HTA) 800
76.3.3 Options Valuation and Pay-for-Performance 800
76.3.4 Specificities of the Medical Device Market 801
76.4 Conclusion 802
Acknowledgments 802
References 802
77 Specification of Net Operating Assets for Economic Value Added Calculation from Balance Sheets Reported According to IAS/IFRS 804
Abstract 804
77.1 Introduction 804
77.2 EVA and Net Operating Assets 805
77.3 Annual Accounts of Business Companies’ Survey Results 806
77.3.1 Investment Property 807
77.4 Companies Using Fair Value Model 809
77.5 Companies Using Cost Model 809
77.5.1 Non-current Assets Held for Sale and Discontinued Operations 810
77.5.2 Finance Leases 811
77.5.3 Goodwill 812
77.6 Conclusion 814
Acknowledgments 815
References 815
78 Agricultural Land Valuation and Capitalization Ratio 816
Abstract 816
78.1 Introduction 816
78.2 Basic Three Methods for Land Valuation 817
78.3 Agricultural Land Valuation 818
78.4 Problems on Determination of the Agricultural Land Values by Using Income Approach 820
78.5 Conclusion 822
References 823