Záznam přidán/aktualizován: 11. března 2022 v 09.51 hod.
The Effect of Financial Leverage on Operating Performance: Evidence from the Czech Republic
Zdeněk Toušek, Barbora Malinská, Martin Prokop, David Procházka
Prague Economic Papers 2021, 30(4):381-401 | DOI: 10.18267/j.pep.774
The paper investigates the relationship of financial leverage and operating performance in a small open economy. A comprehensive sample consists of panel data from 1,821 Czech firms over the period 2006 to 2017. We find that leverage has a negative effect on the operating performance for the entire sample as well as for subsamples structured according to size or sector. We also find evidence that the relationship between leverage and performance in some sectors and segments is weakened during periods of economic downturn, as well as during the recent foreign exchange interventions of the Czech National Bank. Our study, focusing...
Firm-level Effects of Minimum Wages
Olena Chorna
Prague Economic Papers 2021, 30(4):402-425 | DOI: 10.18267/j.pep.773
We investigate how increases in minimum wage affect various firm-level characteristics. We study firm-level data from Poland, where the minimum wage experienced a large and persistent increase in 2008 and 2009. We show that firms which were more exposed to the minimum wage increase faced higher increases in total labour costs and larger reductions in profitability. Intuitively, higher total labour costs driven by higher minimum wages directly reduce firm profits in the absence of price adjustments. We also show that the sharp increases in the minimum wage increased capital and decreased overall labour productivity and employment. The impact...
Remittances and Inequality: The Post-Communist Region
Azizbek Tokhirov, Jaromír Harmáček, Miroslav Syrovátka
Prague Economic Papers 2021, 30(4):426-448 | DOI: 10.18267/j.pep.776
This study aims to investigate the impact of international remittances on income inequality in the post-communist region. The association between the variables is examined via static and dynamic panel models. Using macroeconomic data from 27 countries over the period 1991-2014, we discover that income inequality progresses along a U-shaped course as a country becomes more dependent on remittances. For most of the countries, the relationship between remittances and inequality is inverse. When remittances account for more than 20% of GDP, they exacerbate economic inequality. This finding challenges the view that remittances should only be viewed as a...
Impact of Implementation of IFRS 9 on Czech Banking Sector
Oľga Pastiranová, Jiří Witzany
Prague Economic Papers 2021, 30(4):449-469 | DOI: 10.18267/j.pep.775
The aim of this study is to provide an overview of the principles of IFRS 9 implementation and to analyse its impact on the Czech banking sector. Unlike the previous IAS 39 standard, valid until the end of 2017, the new accounting rules require banks to estimate forward-looking expected credit losses (ECL) while considering relevant exposure level information as well as available macroeconomic predictions. Due to the increased complexity of the ECL models and changing macroeconomic expectations, we hypothesize that the new standard leads to increased volatility of loan loss allowances. This hypothesis is empirically tested and more...
Conditions for Development of Entrepreneurship in Regions of Visegrad Group Countries
Małgorzata Jabłońska, Joanna Fila
Prague Economic Papers 2021, 30(4):470-488 | DOI: 10.18267/j.pep.777
The aim of this paper is to analyse and evaluate the directions of changes in the development of entrepreneurship in the regions of the Visegrad Group countries, i.e., the Czech Republic, Poland, Slovakia and Hungary, in the period 2004-2018. We carried out research using an entrepreneurship model based on the Global Entrepreneurship Monitor (GEM) methodology. The literature analysis made it possible to formulate the main research hypothesis, which states that the factors of entrepreneurship development in this period had a different impact on the establishment of enterprises at the level of regions in the Visegrad Group...
Military Recruitment and Czech Labour Market
Vladan Holcner, Monika Davidová, Jiří Neubauer, Ľubomír Kubínyi, Aloiz Flachbart
Prague Economic Papers 2021, 30(4):489-505 | DOI: 10.18267/j.pep.778
The article presents an empirical analysis of the relation between recruitment in the all-volunteer Czech Armed Forces and selected economic indicators, including actual economic performance, situation on the domestic labour market and development of defence expenditures based on data for the period 2005-2019. The relation between military recruitment and economic performance was examined using values of GDP and GDP dynamics (GDP index). General unemployment rate, the economic activity index1 and the military-to-general average wage ratio were used to analyse the relation of military recruitment and situation on the domestic...