SciPap, Volume 23 (2015)

Open Access Article SciPap-770
Social Entrepreneurship in the Czech Republic: Current Trends in Research on Hybridity
by Gabriela Vaceková, Jana Soukopová, Tereza Křenková

Abstract: The hybridity phenomenon has received increasing attention in the scientific literature worldwide. However, this is largely western literature, which is not perfectly suited to the transitional context of Central and Eastern Europe, respecting its specific features. The lack of relevant research on hybridity in the post-communist countries shows a considerable research gap that strongly indicates the need for deeper insight. The paper contributes to the conversation by rethinking hybridity in the context of transitional economies. The typical hybrid organizations, combining a market orientation with a social mission, are social enterprises. The discourse on social enterprise is quite different across countries, including across (post-) transitional economies. The Czech Republic is a CEE country still lacking legislative regulation on social entrepreneurship. The paper provides a comprehensive picture of the driving forces, challenges, and opportunities for social entrepreneurship in the specific historical, socio-economic, legislative, and political conditions of the Czech Republic. The main results presented in the paper show key historical events explicitly influencing social entrepreneurship and its current state based on up-to-date data, enabling the assessment of current trends in research on hybridity in the Czech Republic.
Keywords: Czech Republic, Social Economy, Hybrid Organizations, Social Entrepreneurship
JEL classification: H44, L31, L33

Open Access Article SciPap-771
Fiscal Decentralisation in Lithuania in the Context of EU Countries
by Teodoras Tamošiūnas, Valda Stanytė

Abstract: The paper analyses the key theoretical and legal aspects of the concept of fiscal decentralisation; on the basis of statistical and legal documents it examines the situation of fiscal decentralisation in Lithuania and compares the key indicators of this situation with corresponding indicators of other European Union states. The present research ascribes EU states to five levels of fiscal decentralisation according to 3 features: local taxes, expenses, and subsidies. Fiscal decentralisation is geared towards increasing financial independence and responsibility of the local self-government. However, it can have such negative consequences as corruption, greater social fragmentation and influence of various interest groups. The level of fiscal decentralisation in the state is indicated by the percentage of municipal expenses of the GDP and percentage of the total expenses of the public sector. The present research has demonstrated that fiscal decentralisation indicators are highest in the old-timer EU states (Sweden, Finland, Germany, France), which have strong local self-government and long-time democratic traditions. Lithuania can be ascribed to the countries with medium fiscal decentralisation.
Keywords: Municipality, Fiscal Decentralisation, Local Tax, Municipal Debt, Subsidy
JEL classification: H61, G38

Open Access Article SciPap-772
Labour Market Modelling in the Czech Republic
by Radmila Stoklasová

Abstract: The article deals with labour market modelling in the Czech Republic using regression model. The regression equation shows the behaviour of the unsatisfied labour supply determined by education and age structure of the unemployed, registered length of unemployment, available jobs average wage. In the second part of article is used prediction by Box-Jenkinson methodology. On the basis of the verified model a prediction for the first quarter year of 2015 is worked out and its success assessed. Population ageing will considerably influence economic and social structure of the population. The labour market will change completely. The future development of labour market will face a challenge of reduction of the negative initial demographic conditions. The main problem of the labour market in the Czech Republic is the exclusion of all groups of population due to the lack of flexible jobs, mainly part-time jobs (for example students, mothers with children and elderly people).
Keywords: Correlation Analysis, Labour Market Modeling, Labour Market Supply, Regression Model, Box-Jenkinson Methodology
JEL classification: C32, C51

Open Access Article SciPap-773
Competition and Municipal Waste Management Expenditure: Evidence From the Czech Republic Olomouc Region
by Jana Soukopová, Gabriela Vaceková

Abstract: Today, the increasing importance of waste management and the question of its efficiency is a broadly discussed topic, both on the theoretical and practical level. The present paper provides the results of a comprehensive analysis of the competitiveness of the environment with regard to waste management in the Czech Republic, Olomouc Region, while focusing on its effects on municipal waste management expenditure. The main goal of the paper is to examine and evaluate the impact of the competitiveness of the environment on cost-effectiveness of municipal waste management expenditure by using the Herfindahl-Hirschman Index (HHI) and a competition index of our own design. We compare expenditure per capita for several municipality size groups. Moreover, the data have also been analysed separately for the each of the five districts of the Olomouc Region in order to identify whether there are any significant differences among the districts within the region. The analysed period covers 5 years - from 2010 to 2014 - and the sample consists of all 399 municipalities of the Olomouc Region. The HHI results confirm that the competitive environment has a significant impact on municipal expenditure, but our competition index results show impact of competition as ambiguous.
Keywords: Efficiency, Competition, Municipality, Costs, Waste Management
JEL classification: C40, H76

Open Access Article SciPap-774
The Evaluation of Impacts of Usage of Subsidies From Regional Operational Programmes
by Lucie Sobotková

Abstract: The paper deals with the estimation of impacts on regional economy. These impacts are linked with providing the subsidies from funds of the European Union especially by means of regional operational programmes within the region of NUTS II Severovýchod in the Czech Republic. From the point of view of a limited scale are impacts evaluated only in the field of tourism. The method of evaluation of mentioned impacts is based on the approach of differences in differences. This method consists in appreciation of trend component of the relevant indicators in the selected subject area. By means of this method it was found whether regional economy meets its goal, brings so called social impacts and supports the development and cohesion of particular regions. The analysis showed significant impacts especially in the areas of soft projects that were associated with the promotion of tourism in particular regions.
Keywords: Tourism, Differences-In-Differences Method, Regional Operational Programmes, Structural Funds Of The Eu, Utilization Of Subsidies
JEL classification: H54, Z32

Open Access Article SciPap-775
The Importance of Interest Rates Under Contemporary Conditions of World Economy Crisis Management
by Oldřich Rejnuš

Abstract: The paper deals with contemporary economic importance of interest rates, with special focus on methods of using as a tool of monetary regulation when solving actual problems of world economy. Firstly, results and impacts, achieved by expedient decreasing of interest rates are analyzed and mechanisms activating this method of use of this tool of monetary regulation are described. Secondly, theoretical aspects of these issues, namely the differences of actual macroeconomic policy of governments and central banks and commonly valid theoretical principles are dealt with. In conclusion, these results are synthesized and, based on final results, future development of world economy is predicted, including risk factors that will probably be influencing it forever and that will finally result in collapse with disastrous impact on the future of mankind.
Keywords: Global Economy, Financial Markets, Interest Rates, Financial Crises, Risk Factors, Public Debt, Quantitative Easing
JEL classification: E4, G01, G17, G18

Open Access Article SciPap-776
A Comparison of the Stock Exchanges of the Central and Eastern Europe Stock Exchange Group
by Josef Novotný, František Sejkora, Michal Hrneček

Abstract: This article deals with an evaluation of the stock exchanges of the Central and Eastern Europe Stock Exchange Group (CEESEG), which comprises four stock exchanges. The individual stock exchanges of the CEESEG are characterized using the main stock indicators and we also compare their development and achievements. The stock exchanges are evaluated in terms of their market capitalization, liquidity and volatility. Correlation coefficients are used to express the dependence of the indices of the monitored stock exchanges with the Dow Jones Euro Stoxx 50, which is an important indicator of the European capital market. The obtained results complement the knowledge of this interesting segment of the European capital market and can be used by both retail and institutional investors.
Keywords: Risk, Securities, Share, Stock Exchange, CEESEG, Market Capitalization, Yield
JEL classification: G12

Open Access Article SciPap-777
Intervention Into the Development of Currency Exchange Rates and Prosperity of Economy
by Jiří Kraft

Abstract: The stagnation in economic growth is a problem of developed market economies. Its cause may be a lack of demand caused by the phenomenon of deflation. In addressing these issues monetary policy instruments are offered to use. The prosperity of a small open economy, however, in today's globalizing world, is strongly influenced by the development of relevant foreign economies. Reducing the exchange rate of the national currency may lead to an increase in the price level, and thus solve the problem. Such a step was taken CNB (Czech National Bank) in November 2013. The aim of this article is to assess whether the CNB intervention to the detriment of the exchange rate of the CZK has contributed to increasing prosperity of the Czech economy. The evolution of the exchange rate CZK/EUR is being analysed on the one hand, and on the other the developments in the GDP, exports and imports, and their relationships, using the sensitivity rate, regression analysis and comparison of standardized values within 20 quarterly periods in 2010-2014. The results show that after CNB intervention, there has been a noticeable growth in GDP, while exports grew with a higher dynamics than imports.
Keywords: Gross Domestic Product, Export, Central Bank Intervention, Exchange Rate, Import, Czech Economy
JEL classification: E58, E61

Open Access Article SciPap-778
Application of Dematel Method in Integrated Framework of Corporate Governance
by Jana Klozíková, Iveta Dočkalíková

Abstract: Corporate governance was created in recent decades and we can say that it is a new field of science. The most famous companies failed from day to day. Their failure and scandals had significant impact on local and international community. Finding of a new effective framework of level of corporate governance can help that the similar negative events wouldn't be repeated never again. The new approach in the corporate governance - an integrated framework, created for corporate governance is one of the ways to improve this area. This article responds to this reality presenting the fact, that not only the approach mentioned above, but it also eliminates shortages of this approach, which were criticized for integrated framework of corporate governance. The present period offers a variety of methods leading to accuracy and improvement of current approaches, but an area of corporate governance is mainly established on qualitative criteria, rather than on quantitative criteria. Corporate governance is a new field of science. Due to this fact it offers the question of the utilization of new techniques and knowledge that lead to the improvement of the level of corporate governance. The method of multi-criteria decision-making method DEMATEL allows removal of the weaknesses of an integrated framework of corporate governance, which can be taken into account in the context of a causal connection, which exists between the different tools of integrated framework.
Keywords: Corporate Governance, Madm – Multiple Attribute Decision Making Methods, Integrated Framework, Dematel, Decision Making
JEL classification: C02, G30, G34

Open Access Article SciPap-779
Age Management in the Czech Enterprise
by Petra Chládková, Zdeněk Brodský, Jaroslav Pakosta

Abstract: There are no doubts that aging of European population means a fundamental transformation of the age structure of people on the labour market. This poses a threat not only to the competitiveness of enterprises. As an ideal and effective tool to solve this situation which seems to be Age management, the management style taking age, abilities and potential of employees into consideration. The article deals with Age management as an important managing tool of age diversity. The main aim is to highlight the advantages and benefits of Age management and demonstrate, that the creation of easily implemented tools of Age management, can lead to increasing workability of older individuals from small and medium-sized Czech companies. For this purpose the study of small Czech enterprise was carried out. The study was focused on finding the major problems of human resource management in mentioned company. The article shows the possible solution through the Age management practice.
Keywords: Human Resource Management, Age Management, Diversity, Work Ability
JEL classification: M10, M12, M14

Open Access Article SciPap-780
Deciding the Selection of External Financing With Dynamic Model
by Irena Honková

Abstract: This article deals with the area of financial management. The main goal is to develop a methodology as a set of guidelines and procedures to increase the efficiency of the decision-making process when selecting the external financing instruments. For this purpose, summarized and comprehensive knowledge of the types of external financing, which are inserted into the dynamic model to simulate the changing conditions. Subsequently verified by empirical data, or clarified their validity. The created model facilitates the modelling of changes in time because it is crucial to know what future consequences lies in decisions made the temporary turbulent world. Each variant features possible negative and positive changes of varying extent. The possibility to simulate these changes can illustrate an optimal variant to a financial manager. This decision-making regarding the selection of a external funding instrument is no longer a random process. On the contrary, it is supported by rational considerations.
Keywords: External Financing, Wacc, Decision-Making Model
JEL classification: M21

Open Access Article SciPap-781
The Concentration and Profitability in the Czech Banking System
by Jan Černohorský

Abstract: The aim of this paper is to assess the degree of concentration in the Czech banking sector and especially its relationship to profitability in the market. The paper is based on contemporary scientific knowledge based on literature research. There is calculated Herfindahl-Hirschman index of banking market in the Czech Republic in the years 2003-2012. The calculation of concentration is made for three variables - total assets, receivables from clients and deposits from clients. Subsequently, these values are compared with the development of profits in the Czech banking sector using correlation and regression analysis. Necessary tests for normality, autocorrelation and homoscedasticity are conducted before performing correlation and regression analyses. We can conclude that in the case of the Czech Republic, there is an inverse relationship between the degree of concentration and the size of the profits of the banking sector, which is not the standard output of previous studies. The results can be beneficial both to further scientific research and findings, as well as for practical pricing policy of banks, and of course for regulating activity of central banks in context to the licensing of banks.
Keywords: Profitability, Bank, Banking Market, Concentration
JEL classification: C20, G21

Open Access Article SciPap-782
Fuzzy Logic to Support of Investments in Research and Development in Small and Medium-Sized Businesses
by Nina Bočková

Abstract: R&D spending is one of key tools to achieve companies' growth. Government support is key factor for R&D activities in manufacturing small and medium enterprises. The uncertainty of the outcome of research and innovation restricts owners and managers decision on strategic planning about production program of the company. Managers solve additional financing research activities from other sources by the impossibility of full funding from its own budget. Here is presented a fuzzy model-objective - option R&D support which maximizes the outcome and optimizes the R&D program in manufacturing small and medium enterprises. The methodology used a two-stage decision making, using 18 variables, of which two are interdependent. The used of fuzzy logic have been taken because some vaguely specified characteristics that cannot be accurately determined. This method of application offers an innovative look at the funding of R & D activities in the company. The methodology was developed on the basis of data of enterprises of electro technical industry and was verified using data from period 2007-2013.
Keywords: Research, Small And Medium Enterprises, Development, R&D Support, Innovation Policy
JEL classification: O31, O39, O32, H25, L25

Open Access Article SciPap-783
Significant Determinants of Business Environment in the Segment of Small and Meduim-Sized Enterprises
by Jaroslav Belás, Přemysl Bartoš, Aleksandr Ključnikov, Ludmila Kozubíková

Abstract: Small and medium enterprises (SME) represent an essential part of an economic system as they positively influence important macroeconomic data. The aim of this article is to define significant determinants of quality of business environment of SME in the Czech Republic and to quantify differences between selected social groups of entrepreneurs. We compare entrepreneurial opinions dividing them by gender, education, age and their companies' size. The data was obtained through own research of business environment. Only 24% of respondents stated they did not experience corruption and cronyism in their entrepreneurial activities. We discovered statistically significant differences in entrepreneurs' opinions according to their gender, education and their companies' size. As much as 71% of respondents opined that the media do not inform sufficiently about the importance of entrepreneurship for society. Moreover, entrepreneurs evaluate the commercial banks' attitude to their financing with caution. As for the intensity of business risks, 62% of businessmen declared it has increased after the crisis of 2008. We also found out statistically significant differences in the perception of business risks by various types of entrepreneurs dividing them by education, their companies' size and age.
Keywords: Gender, Small And Medium-Sized Enterprises, Business Environment Quality, Determinants Of Business Environment Quality, Company Age, Company Size
JEL classification: L26, G32, O16

Open Access Article SciPap-758
Assessing the Degree of Balance Between Staff Dispositions and Their Job Positions Using Fuzzy Logic
by Renata Myskova

Abstract: Management of many Czech enterprises, especially SMEs, is able to respond flexibly to the current changes in their surroundings while using mainly the quality of its employees to gain a competitive advantage. Ever increasing is thus the importance of personal dispositions, skills and knowledge of employees that affect their work performance. It is undisputed that staff of the enterprise strongly influences all business operations, however, the measurement of these impacts is problematic, as they are mostly the so called soft factors. In terms of supporting the overall economic results of the company as well as in terms of ensuring employee satisfaction, it is, inter alia, very important to ensure the balance between the dispositions of a worker and his/her job function. This need not occur only in employee recruitment but also in job redeployment or in determining the cause of unsatisfactory work performance. This paper describes and makes use of an indicator, which in mathematical terms allows companies to evaluate the level of balance between staff dispositions and their job functions, not only by assessing an individual, but also by assessing individuals in relation to a group of workers and a group of jobs. The aim is to achieve an optimal balance between the skills of employees and their job functions. The indicator Degree of balance between the staff dispositions and job positions was constructed using fuzzy logic. Its use is shown in a real example that draws on the practice of a small enterprise engaged in assembling and servicing of hardware devices.
Keywords: Personnel Economics, Fuzzy Sets, Balance Between Staff Dispositions And Their Jobs, Skills Of Staff, Job Performance, Management Of Human Resources
JEL classification: C63, M12, M51

Open Access Article SciPap-759
Macroeconomic and Capital Market Determinants of Initial Public Offerings: A Time-Series Analysis in the Polish Capital Market
by Tomáš Meluzín, Marek Zinecker, Jana Meluzínová

Abstract: The main objective of this study is to indicate the influence of local macroeconomic and capital market factors on the values of IPOs in Poland over the period of 2003 to 2012. Our sample includes 330 local enterprises that conducted an IPO on the Main Market of the Warsaw Stock Exchange after Polish EU accession. The models for which estimation results are presented in this paper reveal that the individual country regression analysis working with untransformed IPO values (Model 1) did not generate significant parameter estimates. On the other hand, a logarithmic transformation of IPO values leads to persistently significant estimates for our regressions. Based on the Model (2) the empirical evidence supported the hypothesis that Polish ten-year government bond yields (indicating the price of competing financing funds) have explanatory power for IPO values. However, our assumption that also other macroeconomic- and capital market indicators have explanatory power for IPO values in the Polish capital market could not be supported by empirical evidence.
Keywords: Macroeconomics, Going Public, Initial Public Offering, IPO, Capital Market, Determinants, Poland
JEL classification: E44, G23, G32

Open Access Article SciPap-760
An Analytical Hierarchy Process Model for the Evaluation of the E-Government Development
by Renata Máchová

Abstract: With the increasing number, variety and effects of modern technologies, e-government needs to define a new evaluation model that fits their requirements and operations. Therefore, this paper presents an example on solving the e-government development evaluation problem using the Analytical Hierarchy Process method. The proposed model consists of criteria identified through the comparison of the selected e-government indices, including the new approaches such as cloud computing, open data, social media, etc. A case study is presented to demonstrate the usefulness of this model to solve multiple criteria decision making problems.
Keywords: Ahp, Decision Making, E-Government Evaluation, E-Government Indices
JEL classification: C43, C44, H11, H83, L86

Open Access Article SciPap-761
E-Government Development Index and Its Comparison in the EU Member States
by Martin Lněnička

Abstract: This paper deals with a comparison of the e-Government development index, which is presented by the United Nations since 2003, usually every two years. It compares and describes the progress of this index between the years 2008 and 2014 in the European Union Member States in the context of the economic decline and the global recession. It also considers factors contributing to successful e-Government implementation, such as unemployment or inflation rate. The purpose of the submitted research study is to identify the influence of the selected macroeconomic indicators on the e-Government development index. The methodology of this research study comprised bibliographic studies, analysis of specialised reports, statistical analyses and evaluations. The main methods used were descriptive, correlation and the cluster analysis, which was in this case represented by the connectivity model (hierarchical clustering) as well as the centroid model (K-means clustering). The findings confirmed that the global recession and the Eurozone crisis have influenced the progress of the e-Government in the evaluated years. This research study provides insights that may be useful in improving the implementation of e-Government services.
Keywords: European Union, Public Sector, Cluster Analysis, E-Government
JEL classification: H83, L86, C38, H11

Open Access Article SciPap-762
Effect of Controlling on the Economic Performance of SMEs in the Czech Republic
by Lukáš Kruml, Pavel Duspiva

Abstract: This paper deals with the use of controlling in the management of small and medium-sized enterprises in the Czech Republic and its influence on their economic performance. Data from primary research are presented, which determined the extent of implementation of controlling activities in the examined enterprises. The aim of the secondary research was to evaluate the economic performance of enterprises with and without controlling and to determine whether it is possible to confirm the hypothesis of better economic (financial) results of the enterprises that apply controlling in their management process. The two groups of enterprises are compared by using calculated arithmetic means and medians of selected economic indicators. The source of data is the corporate database MagnusWeb. The compared data are also subjected to statistical analysis. Nonparametric tests í. e. the Mann-Whitney U test and the Kolmogorov-Smirnov test to determine statistically significant differences between the financial results of the enterprises that use and do not apply controlling.
Keywords: Management, Small And Medium-Sized Enterprises (Sme), Controlling, Economic Performance, Financial Analysis
JEL classification: M21

Open Access Article SciPap-763
Production-Consumption Patterns of Behaviour of European Regions
by Ivana Kraftová, Zdeněk Matěja

Abstract: Cohesion policy belongs among the most important fields of EU interests. Its objectives are achieved by many ways with respect to diversity among the European regions at the level of NUTS 2. The aim of this paper is to analyse relevant indicators, and via the evaluation of EU regional policy effectiveness to rewiev difference in the production-consumption patterns of behaviour of European regions; focussing on convergence and variabiliness of these regions. With defined goal in mind, the regions have been classified. To classify the regions, the relational indicator has been created. The relational indicator has been developed as the relationship between the index of relative performance and index of relative consumption sources. The changes of relational indicator, as well as the GDP per capita criterion, have been evaluated in two periods.
Keywords: Cohesion Policy, Convergence, Variability, Production-Consumption Patterns, Classes Of EU Regions
JEL classification: R58, R12