International Journal of Economics and Statistics
E-ISSN: 2309-0685
Volume 1, 2013
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Issue 1, Volume 1, 2013
Title of the Paper: Towards the Verification of Business Process Simulation in a JADE Framework
Authors: D. Vymětal, R. Šperka, K. Slaninová, M. Spišák
Pages: 1-8
Abstract: Globalization and economic recession in part of the world challenge the enterprise managements with a necessity to improve flexibility and new market approaches. For this, effective management decision support is needed. One of the most interesting decision support tools is simulation of business processes and behavioral patterns. The motivation for research field presented in this paper is to investigate some kinds of behavioral patterns from the agent-based simulation of business process outputs point of view. Multi-agent system was implemented which is able to deal with unpredictable phenomena surrounding every company nowadays complemented by investigations of agent behavior. It is difficult to simply observe outputs of agent behavior, using large amount of agents representing real situations on the market. For better visualization, behavioral patterns taking the similarity of agents’ behavior into consideration were identified. The patterns were extracted by means of sequential pattern mining focused to events combined with traditional methods and time warping. Obtained results are presented by complex network and social network analysis tools. For better presentation of large networks, methods of spectral graph partitioning are used. Visualization of behavior patterns is suitable for better understanding of outputs in business process simulation using multi-agent systems. Moreover, the method allows for transparent search upon the network based on the queries meeting specific needs of potential observer. Proposed method is used for the analysis of agent-based system outputs to find the influence while testing various input parameters during the business process modeling and simulation.
Title of the Paper: Exploring the Dynamics of Cross-Level Value Chain Relationships
Authors: Jang-Li Chang, Yu-Chuan Lin
Pages: 9-13
Abstract: Traditional organizational value-chain relationship research focuses on the binary, static and unidirectional organizational relationship. The dynamics of cross-level organizational value-chain relationships, now a characteristic of supply relationships, are not well understood. Drawing on depth analysis of a significant case we present a model explaining how relationships form and dissipate according to the relational benefits they bring to the downstream brand.
Title of the Paper: Management for Motivation and Job Satisfaction in the COOP Banking Industry
Authors: George Papageorgiou, Fotini Giorgalli, Angelos Petrou
Pages: 14-20
Abstract: In the midst of a world financial crisis characterized by bonus cuts and austerity measures, managers should be knowledgeable and inventive enough in order to find new ways to motivate their employees. The purpose of the presented study was to identify the top five factors that employees of COOP banks in Cyprus perceive to be the most important motivators. Primary data were collected from a questionnaire designed for this purpose and distributed to a representative sample of employees of COOP banks at a pan-Cyprian level. After data collection and codification, data analysis was carried out using descriptive statistics. Results indicate that the top five motivational factors are for Cypriot COOP bank employees are: Work environment, Salary, Possibility for Growth, Relationship with Co-workers, and Interesting Work. The above factors could serve as straight forward recommendations for bank managers on how to motivate their employees and as a result increase productivity and job satisfaction, which by its turn would have an influence on the long term prosperity and growth of COOP banks.
Title of the Paper: An Empirical Study of the Corporate Governance Effectiveness in the Czech Republic
Authors: Aleš Kubíček, Ondřej Nowak, Jiří Hnilica
Pages: 21-28
Abstract: This paper aims to investigate the impact of corporate governance on financial performance in the Czech Republic. The relationships between board and ownership demographics and corporate performance were examined on a sample composed of 500 largest joint-stock companies from the processing and the construction industry. Correlation analysis and multivariate regression analysis were employed to test the sample on six hypotheses whose definitionswere based on similar studies from other countries. The results of the analysis demonstrate apositive correlation between the company size and the size of its board. Among ownership demographics, a weak correlation between foreign ownership and firm performance was identified. Otherwise no potential link between any of the corporate governance demographic variables and the company performance was found in the Czech Republic.
Title of the Paper: A Business Strategy and Usage of Chosen Result Indicators as a Tool against Global Crisis Impacts on Companies in Automotive Industry
Authors: Marek Sedláček
Pages: 29-36
Abstract: The aim of this paper was to reply the questions generaly connected with the issues of an accepted and realized concern business strategy. Mainly with their influence on functioning of individual subsidiary companies in the interaction with macroeconomic surrounding represented by chosen indicators not only during the global cisis period but also during the first post-crisis year. The investigation realized in automotive industry was based on the development of performance indicator values of subsidiary companies, concern as the whole and chosen macro indicators when looking for their reciprocal dependency in the period mainly connected with financial and economic cisis. In the contribution an elementary analysis of time line characteristics of chosen Result Indicators was carried out mainly with the emphasis on profit and earning indicators. With the help of regress and correlation analysis there was also researched possible relationships among chosen result indicators of company performance reciprocally with all companies, concern as the whole and chosen macro-indicators representing development of the concern biggest markets. For the following calculation of tested criteria Cohen´s Coefficient was used.
Issue 2, Volume 1, 2013
Title of the Paper: Investigation of Business Angels and Issues with Innovative Entrepreneurship in the Czech Republic
Authors: Marek Zinecker, David Koppitz, Mária Režňáková
Pages: 37-48
Abstract: The paper deals with the findings of a survey in the Czech informal venture capital market. The major issues considered by the project included: Who is a typical business angel in this market? What industries do the BAs invest in? What are their key motives for conducting venture capital investments? What is their perception of legal and institutional conditions for investments in the Czech Republic? What is their experience with partners, i.e. investee enterprises, universities, technology parks, business angels networks, venture capital funds etc.? The results of the survey have provided a number of unique contributions to the field, in particular how to manage and increase the development of this market for supporting innovative entrepreneurs and economic growth.
Title of the Paper: Bibliomining Analysis Method - The Application in Economy of Public Sector
Authors: P. Hájek, J. Stejskal
Pages: 49-58
Abstract: This paper aims to design the solution for the measurement of the public services in theory and is a practical application of clustering methods and methods of extraction of attributes from real public library data in order to uncover similarities in the services provided by public libraries, based on a representative set of behavior patterns of users. The results of this work can then be implemented to achieve more efficient management of the public library.
Title of the Paper: Perception of the Value of Library Services Provided by Municipal Library of Prague
Authors: P. Koťátková Stránská, K. Maťátková
Pages: 59-67
Abstract: Public services, the method of their production and efficient delivery all make up an important part of every economy, since the costs of providing them significantly affect the state of the public budget. The aim of this paper is to assess whether the users of public services can appreciate their contribution and whether users of public libraries are willing to contribute funding for public services. A particular public service was selected to analyze the evaluation of public services i.e. the service provided by public libraries, since the services of public libraries are beneficial for society in terms of cultivating human potential and a resource for the utilization of information. This paper is focused on an evaluation of the library services provided by a selected public library i.e. Municipal Library of Prague”. The outputs of this article can be used for further research of customer valuation of public services and measuring the value of library services.
Title of the Paper: Tax Equity and Tax Literacy as Causality of Tax Incidence
Authors: Jaroslav Kovárník, Eva Hamplová
Pages: 68-76
Abstract: This article is focused on important part of current tax theory and tax policy which explains tax incidence as a phenomenon following the taxes from the very beginning. The factors influencing the opinions on the tax system equity are important for the analysis of the impacts of taxes on the taxpayer. The analysis is based on the quantitative measurement through the tax collection and efficiency of this collection into the state budget. This article is focused on the qualitative analysis where the factors of tax incidence are to find, due to the opinions of the respondents of the questionnaire. The important role for the responses assessment and drawing of the conclusions has the level of economic, precisely tax literacy among the respondents. The analysis of this literacy is second important part of this article. Analyzed issue is part of broader context which is solved within the project of specific research of team from Department of Economics, Faculty of Informatics and Management, University of Hradec Králové, called “The Causalities of Tax Incidence”. The aim of this project is to identify the key factors of tax incidence and their scope according the different groups of inhabitants.
Issue 3, Volume 1, 2013
Title of the Paper: A Proposal for Forecasting Highly Seasonal Products: The Unifrigo Gadus S.P.A Case Study
Authors: Andrea Eminente, Mosè Gallo, Teresa Murino, Giuseppe Naviglio
Pages: 77-88
Abstract: The aim of this paper is to identify the key products for the Unifrigo Gadus SpA turnover and to optimize the stock level in order to reduce costs and enhance efficiency. Unifrigo Gadus SpA is an Italian importer company of salted codfish which trades more than 60 different items. The output of the conducted Cross Analysis allowed to focus only on 17 products. The time series of the salted codfish sales shows a high seasonality. This makes hard the use of classic statistical methods of time series analysis. Hence, it was necessary to develop a new sales forecasting process combining a mathematical analysis and a subjective evaluation. The new sales forecasting process was tested with the 2011 data, and then utilized to forecast sales for 2012. In the end, fixed the required service level, it was possible to plan the supply orders for the whole year 2012.
Title of the Paper: A Model of Small Business Growth
Authors: Martin Machek, Ondrej Machek
Pages: 89-96
Abstract: Small and medium enterprises (SMEs) play an important role in the world economy and its development. In particular, small and medium enterprises generate new jobs, support innovation and stimulation of private ownership and entrepreneurial skills. At the same time, the growth is an important and desirable stage for all for-profit organizations. However, current models of small business growth are rather theoretical and most of them are not suitable for a practical everyday use. In this paper, we present a model of small enterprise sales growth, which is based on two axes: the average bill and the frequency of visits. Consequently, we derive partial factors which affect this growth and propose tools to manage growth – the profitability matrix and segmentation matrix. The use of the model is demonstrated on the example of hairdressing salons, representing businesses providing services. The model may be used in managing small businesses as well as in the education of small business’ owners.
Title of the Paper: Methodology of Industrial Projects Economic Evaluation (M.E.E.P.I.)
Authors: Corneliu Neagu, Marian Andrei Gurau, Elisabeta Turcu, Viorel Alexandru Turcu
Pages: 97-104
Abstract: The article tries to present the contributions on the methodology of industrial projects economic evaluation (step-by-step), called (M.E.E.P.I.). The system of indicators used for the investment efficiency evaluation is the created model V.R.Q.R.R.T., typical of industrial projects in Romania, that shows most clearly the efficiency of the project. Has been made and the chart of evaluation, comparison and selection of industrial projects in accordance with the methodology M.E.E.P.I. The methodology developed is used for comparing several versions and possible alternatives for the allocation of available capital; for ordering of variants of their efficiency level; for setting priorities and allocating the available funds on your optimization projects; to determine the effective policy of the investment firm; for choosing optimal variant of the multitude of possibilities being studied; for the formulation of specific requirements to the projects that are preparing.
Title of the Paper: Multi-attribute Risk Assessment Using Stochastic Dominance
Authors: Aleksandar Janjic, Aleksandar Andjelkovic, Miroslav Docic
Pages: 105-112
Abstract: Risk assessment became a crucial factor in the process of decision making regarding the management of both physical and intangible assets. However, when making these decisions, several aspects have to be considered simultaneously, very often in an uncertain environment, what makes standard risk assessment techniques insufficient. Moreover, for safety critical assets, usual measure of risk – the expected value cannot be the unique quantification measure. This paper introduces a new methodology for the multi-attribute risk assessment of critical assets, seen as the combination of different risk factors. The methodology is based on numerical convolution of probability distribution functions of multi-attribute utilities. After the new, aggregated probability distribution is built for every alternative, the ranking of alternative is performed by the stochastic dominance rules. This method allows the usage of both additive and multiplicative multi-attribute utility function, which enables to incorporate the risk attitude of the decision maker in the initial stage. Finally, numerical example is given to illustrate the proposed methodology.
Title of the Paper: Model Wage Distribution - Mixture Density Functions
Authors: Luboš Marek, Michal Vrabec
Pages: 113-121
Abstract: The authors try to contribute to the discussion of the possibility to predict the trend of the wage distribution in the article. For this purpose data from Czech Republic are used. But computed model is useable for all similar data types. Classical models use the probability distribution such as lognormal, Pareto, etc., but their results are not very good. Authors suggest using a mixture of normal probability distribution (normal mixture) in our model. Authors focus mainly on the possibility of constructing a mixture of normal distributions based on parameter estimation. Parameters are estimated these parameters on the basis of their evolution in time. The data cover last 15 years. The data are divided into groups with respect to sex, age and regions.
Title of the Paper: Changes of Money Supply in European Area Caused by Global Trading with Financial Derivatives
Authors: P. Popek Biškupec, Z. Lešić
Pages: 122-128
Abstract: The intensive use of derivative instruments and massive trading with these derivatives, has affected the monetary policy and the money supply provided by central banks. The large usage of various derivatives has led to an increase in trading with derivatives on financial markets. This means that financial derivatives are no more used only to protect against financial risks, but are used to gain profit from earning by trading on financial markets. The aim of this paper is to analyze the impact of trading with financial derivatives on money supply provided by central banks. The econometric model shows the impact of each group of financial derivatives and the amount of changes of monetary aggregates. The results of analysis indicate that the huge volume of trading with financial derivatives has an effect on money supply and in that way disturbs the aims of monetary policy of central banks.
Title of the Paper: New Trends in Modeling and Simulation in Economic Sciences
Authors: Zuzana Chvátalová, Jiří Hřebíček
Pages: 129-139
Abstract: The aim of this paper is to map selected tools offered the Maple system and user supports provided by the Canadian company Maplesoft Inc. for professional and modern implementation in economics, resp. finances. These are mainly fields of scientific computing, in the quantitative modeling, graphics visualizations and interactive simulations, both the direct using of built-in elements and the communication platform supported by Maplesoft. Maple is an efficient tool for the solving problems of various complexities in these areas. It uses the efficient algorithms and methods of mathematical disciplines and executes the numerical and also symbolic calculations. Interactive tools of Maple as Clickable Math, on-line and interactive statistical or numeric computations and visualizations and inspiration of worksheets and documents from the Application Maplesoft Centre are important for the application of quantitative methods in economics and finance. Selected methods are adjusted to article´s aims, i.e. to present the financial package and means in the example of mortgage loan. We used the last two current versions of Maple (Releases 16 and 17).
Title of the Paper: Green Tourism in the Age of Green Economy
Authors: Mirela Mazilu
Pages: 140-147
Abstract: Tourism has become a major international industry, with many countries all over the world relying on the income it produces. Its economic advantages as a major source of finance and employment leads to its active promotion by governments and other institutions, independent of the consequences on the environment, ecology and social structure of affected regions. Today’s globalised environment calls for greater awareness and spreading and enabling of leisure and tourism practices that generate sensitivity to the environment. As such tourism, a leisure activity, may become a positive factor not only in sustaining environment but making future generations more sensitive to it. Social and economic inequalities that affect the environment differently could, perhaps, be reduced if diverse peoples came together through leisure tourism, which may take many forms. Contemporary tourism is a social and especially a cultural process; it is a way o life of today's man. Up to modern times, the basic social relations represented a function of social proximity. The local communities, with a local cultural environment, sharing fundamental values, have eased the definitions of identity by the individuals and have given a meaning to the social groups, which are generally stable. This paper argues that these measures will not be sufficient to deal with the environmental challenges facing the tourism industry and system, and that without a stronger environmental ethic in the market it will be difficult to impose controls on tourists behaviour designed for environmental conservation. It subsequently analyzes the conceptualization of environmental ethics, the rationale for the evolution of an environmental ethic in society and evaluates its relevance to the tourism market.
Title of the Paper: Malaysian Consumers’ Attitude towards Mobile Advertising and its Impact on Purchase Intention – A Structural Equation Modeling Approach
Authors: Mohd Nazri Mohd Noor, Jayashree Sreenivasan, Hishamuddin Ismail
Pages: 148-155
Abstract: The purpose of this study is to understand the consumers’ attitude towards mobile advertising and its impact on their purchase intention. Prior to that, this study also examined the effect of purchase factors on the consumers’ attitude. The proposed conceptual model was based on the abstract ideas of the Theory of Planned Behavior and the Consumers’ Purchase Decision Model. The model was tested using data collected among the mobile phone users throughout Malaysia. The convenience sampling technique was applied and produced 856 usable responses. Results of the Structural Equation Modeling (SEM) confirmed that there were significant relationships between the proposed predictors and the attitude towards mobile advertising. The analysis also revealed that the consumers’ attitude has a significant relationship with their intention to purchase the advertised products and services. This study validated the importance of each dimensions in purchase factors such as products and services, price, and timing to shape the attitude of the consumers. It also adds to the growing literature of the mobile advertising research in Malaysia. Most importantly, this study portrays several implications for the theory and practice relating to the future development of the mobile advertising industry in this country.
Title of the Paper: Competition between the Internet and Conventional Retailer: A Strategic Analysis of the Effect of Online Channel Efficiency
Authors: Hyung Rae Cho, Sung Moon Bae, Jong Hun Park
Pages: 156-163
Abstract: This study analyses the effect of the online channel efficiency in the context of price competition between the Internet retailer and conventional retailer. Based on the circular spatial market model, it is found that the Internet retailer’s channel efficiency plays a crucial role in determining the equilibrium price, market share, and profit. First, the conventional retailer prefers price-leader position if the Internet retailer’s efficiency is lower than a certain level, while prefers price-follower position if the Internet retailer’s efficiency is higher than the level. On the other hand, the Internet retailer prefers price-follower position regardless of the level of its efficiency. Second, even if the Internet retailer’s efficiency becomes extremely high, it is still possible for conventional retailers to get a certain level of market share and a positive price covering the cost of goods sold. However, the Internet retailer can be thrown out from the market if its efficiency becomes very low. Third, counterintuitively, the Internet retailer can make less profit by improving its efficiency gradually when its efficiency belongs to a certain interval.
Title of the Paper: Permitted Reorganization of the Debtor in Bankruptcy in the Czech Republic
Authors: Monika Randáková, Jiřina Bokšová
Pages: 164-173
Abstract: The research deals with companies in the Czech Republic, which are passing through the procedure of insolvency from 1st January 2008 and which are allowed to follow conservation way to deal with bankruptcy – reorganization. Reorganization was allowed for 33 companies until today. Some of them have already approved their reorganization plan, while others are in the process of its preparation or approval. The research deals with comparison of companies in terms of supervision locality of the insolvency proceedings and in terms of time that elapses from start of insolvency proceedings, through decision of bankruptcy, approval of reorganization to permission of reorganization plan. The research continues with the analysis of approved reorganization plans in the field of individual groups of creditors, which are affected by the plan. The reorganization plan is currently approved in the Czech Republic in 18 companies.
Title of the Paper: European Union Funds for Emerging Economies and Developing Countries – Case Study Poland and Croatia
Authors: Joanna Kizielewicz, Tihomir Luković
Pages: 174-181
Abstract: The European Union (EU) provides financial support for countries on a different level of economic development. Poland, according to the International Monetary Fund, is considered to be an emerging economy, while Croatia - a developing country. Poland is a member of the EU since 2004 and during this period has become the leader in Europe in implementation of projects co-financed by EU funds, and in turn, Croatia became a member of the EU in July 2013 and has only got experience with the implementation of the pre-accession funds, which unfortunately have not been absorbed in a satisfactory way. Poland is now a model to follow, when it comes to the efficiency and effectiveness of the absorption of EU funds and lots of European countries want to learn the methods and solutions, what have been applied in Poland. The Croatian Government, which has just gained great opportunities for the use of the structural funds, also wants to take advantage of the Polish experience. In the article, there have been discussed both Polish and Croatian experience in the absorption of EU funds. In addition, the main objective of the paper is to assess the extent of absorption of EU funds granted to Poland and Croatia.
Issue 4, Volume 1, 2013
Title of the Paper: Comparison of Recursive Factor Analysis and Cluster Analysis: A Marketing Application
Authors: N. S. Ruzgar, F. Unsal
Pages: 183-190
Abstract: Daily price movements for 264 Turkish mutual funds were investigated using two different approaches, recursive factor analysis and cluster analysis. Data for 1952 business days starting from January 1, 2004 until September 30, 2011 were used. With the recursive factor analysis, during stage 1, 2 factors were extracted and during the stage 2, 5 sub-factors were extracted. With the hierarchical cluster analysis using Pearson distance, however, the same data were grouped into 7 significant clusters. When comparing the results of both analyses, we found that the recursive factor analysis provided more meaningful grouping.
Title of the Paper: Investigating Co-Movements between Emerging and Developed Stock Markets and Forecasting Transmission Pattern Dimensions
Authors: Ramona Birău, Jatin Trivedi
Pages: 191-199
Abstract: The aim of this paper is to examine co-movements between emerging and developed stock markets and forecasting transmission pattern dimensions. In recent past, the significant investors' interest in international portofolio diversification was based on the phenomenon of increasing co-movement between developed and emerging stock markets, liberalization of stock markets, integration and financial globalization. The study sample period is relevant to investment decision making process since it covers pre-financial crisis, crisis-period and post-crisis period. The benefits of international portofolio diversification involve a complex investment strategy in order to avoid the inherent risks. ARIMA model is used to follow transmission patterns of time series trend in order to facilitate financial decision process and risk management strategy. The empirical analysis has founded significant relationship between emerging and developed stock markets.
Title of the Paper: Measuring Performance Growth of Agricultural Sector: A Total Factor Productivity Approach
Authors: Ondřej Machek, Jindřich Špička
Pages: 200-208
Abstract: Agriculture is an important sector of the economy whose performance growth is often monitored by bodies at national and international level. However, it is traditionally measured using macroeconomic indicators. Total factor productivity (TFP) indexes represent a tool of performance measurement which takes into multiple inputs and outputs. In this article, we propose a method of agricultural sector performance measurement based on the Fisher index. We use an aggregation of individual firm accounting data from the Czech agricultural sector to determine the productivity growth, partial factor productivities of inputs and compare the development with the TFP growth in the Czech economy. We found that the productivity growth of agricultural companies does not necessarily move in the same direction as the growth of the economy, which supports the idea that agricultural sector performance depends rather on natural and weather conditions, and that the demand for agricultural products can be relatively steady.
Title of the Paper: R&D Efficiency for Pharmaceutical Companies in the EU
Authors: Heri Bezić, Tomislav Galović, Petar Mišević
Pages: 209-215
Abstract: This study constructs research and development (R&D) as a factor of productivity of European pharmaceutical industry. We introduce an empirical model derived from the Data Envelopment Analysis model to calculate R&D and efficiencies for selected European pharmaceutical companies. This research brings a mathematical view with Data Envelopment Analysis which is a mathematical modeling method of calculating relative efficiencies of Decision Making Units (DMUs), based on predetermined inputs and outputs. Performance evaluation of R&D activity is important for continuous improvement of performance of pharmaceutical companies. The model was used to obtain the overall level of exports with input factors of R&D activity. The subject of analysis are efficiency values and rank. After identifying relative efficiencies of the observed countries, the results are discussed.
Title of the Paper: Grey Relational Analysis and Support Vector Regression for Crime Rates Forecasting with Economic Indicators
Authors: Razana Alwee, Siti Mariyam Hj Shamsuddin, Roselina Sallehuddin
Pages: 216-226
Abstract: Crime rates forecasting is an important area in the field of criminology. Linear models, such as regression and econometric models are commonly applied in crime rates forecasting. Due to the complexity of econometric models, time series method has been considered as a promising alternative tool for crime rates forecasting. Crime rates forecasting with economic indicators requires the use of annual data, which is often insufficient for standard time series methods. In addition, the selection of appropriate economic indicators is also important to ensure the accuracy of the forecasting results. Therefore, a forecasting model with features selection that is robust for small training data is needed to improve the performance of the crime rates forecasting. Hence, this study proposes the use of grey relational analysis and support vector regression in crime rates forecasting. Grey relational analysis is used to select the best data series to represent each economic indicator and to rank the economic indicators according to its importance. After that, the support vector regression is used to select the significant economic indicators and forecast the crime rates. Particle swarm optimization is used to estimate the support vector regression parameters. The proposed method is found to produce better forecasting accuracy as compared to multiple linear regression in forecasting property crime rates.
Title of the Paper: Domain-Specific Modelling of the REA Ontology
Authors: Zdenek Melis, Jaroslav Zacek, Frantisek Hunka
Pages: 227-236
Abstract: The REA ontology is a concept for creating design of business infrastructure based on ownership and its exchange. It provides a comprehensive framework to business process modelling. This ontology has four levels of abstraction to cover greater possibility of views on business of usage compared to standard modelling methods. This paper describes creation of modelling tool based on this ontology using the domain-specific modelling. This approach uses domain-specific structure of the ontology to ensure validation of created models. Modelling tool automatically generates the resource flow simulator based on object-valued Petri nets and allows interconnections of models with different level of abstraction.
Title of the Paper: Analyzing Cointegration and International Linkage between Bucharest Stock Exchange and European Developed Stock Markets
Authors: Felicia Ramona Birău, Jatin Trivedi
Pages: 237-246
Abstract: The aim of this paper is to highlight the existence of cointegration and international linkage between Bucharest stock exchange and certain European developed stock markets, namely the French, German and Greek stock markets. In recent past, international stock markets have become increasingly connected among each other. In addition, these issues were exacerbated by the dramatic impact of the global financial crisis, which started with the US subprime mortgage crisis in mid-2007. Further analysis suggests that financial contagion effects triggers a profound significance in terms of international portfolio diversification and risk management. The primary focus is to consider the financial econometrics framework based on Unit Root Test, Augmented Dickey-Fuller stationary test, BDS test and Granger causality test. This empirical research covers the period from January 2003 until December 2012 of daily returns of selected stock markets major indices. The selected time series are divided into two sub-periods in order to examine both pre-crisis and post-crisis effects.
Title of the Paper: The Horizontal Division and Vertical Integration of Business Models and Turnaround Management of Japan’s Electronics Manufactures
Authors: Yousin Park, Yunju Chen
Pages: 247-252
Abstract: This paper discusses the horizontal division and vertical integration of business models and turnaround management of Japan’s electronics manufactures in the view of groups’ interorganizaitonal relationships. We visualize and examine the group structures of Panasonic and Sony by social network analysis before the massive losses in 2011. Our findings will give insights for examining the turnaround possibility of Japanese electronics manufacturers through reorganization of interorganizational relationships.
Title of the Paper: Empirical Analysis of the Phillips Curve in the Czech Republic
Authors: Josef Arlt, Markéta Arltová
Pages: 253-262
Abstract: The information about inflation and unemployment is always impatiently expected, analyzed and commented not only by economists but also by inhabitants of the country. This article goes back to the original idea of the Phillips curve as a tool for empirical verification of the relationship between inflation and unemployment. The question that arises is whether the unemployment rate can be used to explain the changes in the inflation rate and on the contrary, in the Czech Republic. The verification of this relationship will be carried out on the basis of econometric models on the basis of the annual time series from 1995 to 2012. In the multivariate modeling of economic time series it is useful to distinguish between short-term and long-term relationships. It is natural that when examining the relationship between economic time series the cointegrated series are interesting.
Title of the Paper: Changes in Firm’s Market Value and Discretionary Accruals with the Adoption of IFRS in South Korea
Authors: Jeong Yeon Kim
Pages: 263-270
Abstract: This study examined Korean stock market reactions and firms’ financial information changes to the adoption of International Financial Reporting Standards (IFRS) in South Korea. We checked the relationship between firm value and explanatory accounting variables’ change with IFRS adoption. Also we reviewed the changes of discretionary accruals as indicator of financial information transparency. However, we cannot find specific evidence that IFRS adoption generally increases firm’s market value. We cannot see any statically significant changes in accounting information with IFRS adoption. As described in previous researches, it’d be very special cases where convergent benefits of IFRS adoption are clearly identified. We cannot find similar analysis results with financial reports of companies listed in South Korea capital market. Even though our data analysis has limitations of short period of data to generalize it to all companies adopting new accounting standards, it may indicate overall changes in financial information with new accounting standards.
Title of the Paper: The Impact of Market Orientation on the Competitiveness of a Bank
Authors: Jangl Patrik, Mikuláštík Milan
Pages: 271-276
Abstract: The objective of the paper is to measure and compare market orientation of Swiss and Czech banks, as well as examine statistically the degree of influence it has on competitiveness of the institutions. The analysis of market orientation is based on the collecting, analysis and correct interpretation of the data. Descriptive analysis of market orientation describe current situation. Research of relation of competitiveness and market orientation in the sector of big international banks is suggested with the expectation of existence of a strong relationship. Partially, the work served as reconfirmation of suitability of classic methodologies to measurement of banks’ market orientation. Two types of data were gathered. Firstly, by measuring subjectively perceived market orientation of a company and secondly, by quantifying its competitiveness. All data were collected from a sample of small, mid-sized and large banks. We used numerical secondary character data from the international statistical financial Bureau Van Dijk’s BANKSCOPE database. Statistical analysis led to the following results. Assuming classical market orientation measures to be scientifically justified, Czech banks are statistically less market-oriented than Swiss banks. Secondly, among small Swiss banks, which are not broadly internationally active, small relationship exist between market orientation measures and market share based competitiveness measures. Thirdly, among all Swiss banks, a strong relationship exists between market orientation measures and market share based competitiveness measures. Above results imply existence of a strong relation of this measure in sector of big international banks. A strong statistical relationship has been proven to exist between market orientation measures and equity/total assets ratio in Switzerland.
