Journal of Economics - Obsahy ročníkov

This paper aims to analyse the stability of the global systemically important banks located in European countries between the 2008 and 2017, to find out whether the changing competitive environment affects the stability of these banks, and to determine variables with a significant impact on their stability. The stability is estimated by two proxies, Z-score and loan loss provisions, while the level of competition is estimated inversely by two indexes (market share and the Lerner index) expressing the market power of specified bank. We obtained the four main results. First: we provide evidence in line with the competition-fragility paradigm when we use Z-score as a proxy of overall bank stability. Second: we provide evidence in line with the competition-stability paradigm when loan loss provisions measured loan stability. Third: our nonlinear investigation shows that around a specific turning point, the level of market power is likely to exacerbate the individual-risk-taking behaviour, and could be detrimental to the stability of the banking sector. Fourth: we showed that the increasing share of fixed assets on total assets, increasing bank liquidity, economic growth, and lagged stability measure had a positive impact on bank stability. Keywords: bank competition, bank stability, global systemically important banks; JEL Classification: G21, G32

This paper measures the contribution of opportunity inequality to inequality of income and earnings in the Russian Federation, using a parametric approach. The paper uses the data from the 20-th round of the Russian Longitudinal Monitoring Survey – Higher School of Economics, which is a series of annual nation-wide representative surveys. The calculations were made for each of the three age cohorts in order to assess the contribution of opportunity inequality to inequality of income and earnings and their changes over time. According to the results obtained by our research team, the contribution of opportunity inequality to income inequality in Russia is 11.51%, and it quite significantly varies across different age cohorts. The contribution of opportunity inequality to inequality of earnings is somewhat greater – 16.32%, but is almost the same for all age cohorts. The results also reveal that throughout all age cohorts, the influence of inequality of opportunity upon inequality of income and earnings is mostly due to the direct impact of circumstance-factors upon an individual’s income and earnings, and not due to their influence upon an individual’s education level. Keywords: inequality of opportunity, inequality of individual achievements, effort-factors, circumstance-factors; JEL Classification: D63, D31, E24

The aim of this paper was to develop a model that can forecast the bankruptcy of the companies using logistic regression model. The sample consists of 23 bankrupts and 30 healthy companies selected from the initial sample of all large active companies (1740 companies). The companies operate in the trade industry, sector wholesale in Western Europe, in the time period from 2010 to 2018. The logit model was based on the choice between 23 financial indicators. The obtained results with high accuracy showed that the most important bankruptcy predictors were the following five indicators: return on equity, current assets/ total assets, solvency, working capital turnover, stocks/current assets. The developed model provides an opportunity for all external stakeholders to easily identify companies that are facing the risk of bankruptcy. The possibility of the company’s bankruptcy prediction, the assessment of risk and threatened circumstances to continue business is crucial information for making all future business decisions with the company. Keywords: forecasting, bankruptcy, logistic regression, trade industry; JEL Classification: G33, M40

The aim of this study is the assessment of the applicability of the Austrian School theory in explaining products’ price volatility at particular stages of structure of production. This assessment was based on the authorial model and the usage of statistical tests. Empirical verification of Austrian School theories is rare in economic literature. The test method used in this study fills the gap in the price volatility research. Proposed approach was not used in regards to the Austrian School theory before. The data analysis of the years between 2010 – 2017 indicated an existence of statistically significant differences in price volatility within various stages of production structure in all analyzed economies, including the euro area, Germany and France. In the analyzed years price volatility of goods was higher at stages of production structure more distant to final consumer goods. The exception was lower price volatility on capital goods stage compared to consumer goods in euro area and French economy. Keywords: prices, price volatility, production structure, Austrian school; JEL Classification: C46, E31, E51

Various new organizational approaches have been applied to provide public services on the local level. It includes municipally owned enterprises, which can be regarded as a form of hybrid organizations – standing at the crossroads of the state, market and civil society. In that context several scholars indicate the risk of party patronage in inter-organizational public appointments of hybrid organizations’ CEOs. The article investigates whether conducting a prior formalized selection procedure for positions of CEOs of local hybrid companies constrains political power and whether formalized selection procedures are tools of good governance rather than a tool of party patronage. This topic is under researched not only within Central European countries but in wider European context. Our article thus focuses on 139 CEOs of 139 municipally owned enterprises in 88 municipalities. We found that the outcomes of selections indicate an emerging pattern in relation to who manages local enterprises. Although CEOs’ political affiliations to certain extent are still present when selection procedures are formalized, the outcomes of selection indicate an emerging professionalization and meritocratic approach rather than strong party patronage when selecting CEOs in those enterprises. This outcome is not greatly determined by the chosen selection procedure. The article thus provides implications for research and policy in the given area. Keywords: hybrid organizations, municipally owned enterprises, CEOs, politicization; JEL Classification: H70, D74