Journal of Economics - Obsahy ročníkov

This paper uses quantitative modeling methods to assess the potential impact of the new capital requirements defined in Basel III and Capital Requirements Directive IV (CRD IV) on European banks. In our analysis we explore the impact of the higher capital requirements on the level of profitability of European banks. More specifically, we try to pinpoint which of the variables will have the most significance. Based on the results of our analysis which employs a simultaneous equations model on 594 banks operating in the European Union in the 2006 – 2011 period, we conclude that higher capital requirements under the CRD IV proposal would cause a decrease in banks’ profitability accompanied by a drop in their risk taking. Additionally, we show that a higher level of capital held by banks would cause them to decrease their risky assets held relative to total assets. Keywords: bank, Basel III, capital, CRD IV, European Union, profitability, risk JEL Classification: G18, G21, G32, G33

The choice between buying and renting house is usually referred to as tenure choice. Existing literature defines several typical factors (patterns) which influence this key decision every household has to make. In our analysis we propose one more factor which might be of interest. Based on the data covering last phase of the rent deregulation process in the Czech Republic (CR) in 2005 – 2011 we assess to what extent rent deregulation in the CR has influenced the tenure choice patterns. Our analysis using logit model did prove that regulated rents were an important factor affecting tenure choice. After deregulation households living in apartments with regulated rent preferred to buy house rather than stay in rental sector. The results show that also in the CR was tenure choice influenced by household income, education, marital status. By contrast, gender, age, number of children or retired persons in the household turned out to be insignificant. Keywords: housing, tenure, choice, factors, logistic regression JEL Classification: D12, P36, R21

In this research we economically explain the observed shape of financial market distributions as this question has still not been fully answered. We suggest the explanation using market price directional dependence which can be also used as an additional one to the nowadays popular volatility dependence solutions. Volatility dependence is based on volatility clustering and does not cover observations of the departures without volatility clusters behind but in this research we also do explain such cases. The whole methodology is based on the financial system internal description therefore we eliminate the internal structure uncertainty which results from just the output/input system description. We try to identify the processes containing the direction dependence within universal model, discuss their contribution to the measured shape of the distributions, make their complex simulation based on the theory of dynamical systems, try to measure them empirically and outline appropriate mathematical description based on Markov chains. Keywords: Dynamic Financial Market Model, departures from normality, leptokurtic distribution of returns, sharpness, skewness, feedbacks on financial market, price inertia feedback, directional dependence, Markov chain JEL Classification: G10, G11, G12

The article deals with the assessment of enterprise life cycle based on the annual turnover as the parameter of size, growth and success. Its aim is to propose a general lifecycle model using fractal analogy, to describe three pivotal lifecycle phases and to verify the model in selected companies with the use of test hypotheses and correlations. The research was conducted by means of structured interviews on the sample of 677 randomly selected Czech and Slovak enterprises of various types and sizes located mostly in Moravia Silesia region in Czech Republic and partly also in Slovak Republic. The obtained results show that older enterprises tend to be larger and tend to exhibit a greater average annual turnover than younger businesses, the younger and smaller enterprises have stronger tendency to grow and there are general age maxima (stability thresholds) for most size groups of enterprises within the specified reported period. Keywords: enterprise lifecycle, annual turnover, fractal analogy JEL Classification: D22, D58, E32, L25

The paper deals with the explanation of the stock general value's determination of the undertakings participating in an acquisition or merger of undertakings for the purpose of establishing of an appropriate consideration value on the basis of the theory and legal regulations and with the proposal of the solutions applicable in practice of problematic areas and difficulties of the methods valid in the Slovak Republic at the present time. Keywords: merger, acquisition, cost of equity, general value of property, shareholder JEL Classification: G32, G34