SciPap, Volume 27 (2019)

Open Access Article SciPap-991
Solution of Socio-Economic Efficiency of Public Projects Under the Conditions of Variable Amount of Subsidy
by Petr Jiříček, Stanislava Dvořáková

Abstract: The paper will deal with modelling cash-flows of public investment projects under the conditions of variable amount of subsidy from public funds. A deterministic model based on a rational fractional function will be used to assessment of socioeconomic efficiency of public projects subsidized from the European funds. In the model, we will examine the influence of the amount of the subsidy and critical changes of socio-economic cash-flows generated by a project on assessing public investments. We will use the European Union methodology for assessing socio-economic evaluation of project utility by means of cost-benefit analysis. The results of the crisis scenario analysis of the model in the Maple program created on the basis of the concept of Economic net present value (ENPV) and Economic internal rate of return (ERR) will be presented in 2D projection and evaluated by means of the ENPV function depending on the project parameters. The paper will also present using the model for stress test of socio-economic efficiency of innovation project from sphere digitalization of public government, and broadens so far published research.
Keywords: Public Projects, Socio-Economic Efficiency, The Enpv Function, Err, Subsidy From European Funds, Cost-Benefit Analysis
JEL classification: C20, H43

Open Access Article SciPap-1003
Does the Monetary Aggregate M3 the Affect on the Inflation? A Case Study of the Czech Republic, Switzerland and Israel
by Liběna Černohorská, Petr Maléř

Abstract: The aim of the paper is to analyse the influence of monetary aggregate M3 on inflation in the Czech Republic, Switzerland and Israel between the years 2000 and 2017. The central banks in selected countries have not been able to fulfill their stated goal of achieving price stability. During the period under review, the selected central banks chose foreign exchange intervention as an instrument of unconventional monetary policy to achieve the set inflation target. The analysis of monetary policy in the selected countries will be determined by the long-term relationships between the M3 monetary aggregate and the inflation. Selected indicators were analyzed on quarterly data in the Czech Republic, Switzerland and Israel using the Engle - Granger cointegration test. We have found, based on the tests performed, that monetary policy in the monitored countries was not quite effective in the years 2000- 2017 because we did not confirm in our empirical analyzes the long-term relationship between the monetary aggregate M3 in relation to inflation.
Keywords: Engle-Granger Test, Foreign Exchange Intervention, Inflation, Monetary Policy, M3
JEL classification: C32, E47, E51, O24

Open Access Article SciPap-1009
The Influence of Customer´s Personal and Demographic Characteristics on Their Loyalty
by Petr Suchánek, Simona Činčalová, Martin Prokop

Abstract: The paper deals with the influence of several personal factors on customer loyalty, which is one of the main tools of the company´s competitiveness. The aim of the article is to find out whether there is a relationship between selected personality and demographic characteristics and customer loyalty. The research was conducted on a sample of 1530 customers (final consumers) from 102 food industry companies in the Czech Republic. The research was conducted using a cross-comparison method with relevant statistical tests. Research results show that customer loyalty is related to the demographic characteristics examined (especially gender, income and education) and some personality traits (especially the approach to buying cheap things and optimism). Research shows that women are more loyal than men, then optimists and people who are not so rich that they can buy cheap things. On the contrary, with increasing income and education loyalty is rather falling.
Keywords: Customer´s Loyalty, Demographic Characteristics, Personal Characteristics, Food Industry
JEL classification: L66, M31

Open Access Article SciPap-1000
Does Extreme Poverty Occur in EU Countries?
by Irena Antošová

Abstract: Poverty as a result of income inequality is a concern for governments in all countries, including the European Union. The question is how serious the poverty is and in which households it occurs. This paper offers the identification of households at risk of extreme poverty based on the construction of the Extreme Poverty Index. This Index combines three dimensions of poverty, reflecting trends in measuring multidimensional poverty. The first component of the index is income poverty, the second is material deprivation of households, which complements the index by a non-income perspective and reflects the real living conditions of households. The third component of the index is the low work intensity of the household. Segments of households at risk of extreme poverty are identified in a cluster analysis using primary data from EU-SILC survey. These identified households should be the target groups of the social policy activities in order to make social policy and assistance to endangered households as effective as possible. The paper provides a comparison of extreme poverty in households in the Czech Republic, Germany, Poland and Slovakia. The most vulnerable segment in all countries is an unemployed pre-retirement consumer living alone, but also other household groups.
Keywords: Unemployment, Extreme Poverty, Income, Material Deprivation, Social Transfers, EU-SILC
JEL classification: I31, I32, P46, D31

Open Access Article SciPap-998
Factors Affecting Choice of Employment by University Graduates
by Markéta Šnýdrová, Lucie Vnoučková, Ivana Šnýdrová

Abstract: The article focuses on factors influencing employer selection from the perspective of graduates of the University of Economics and Management. The aim of the article is to identify factors affecting attractiveness of organization and to determine the impact of these factors on the choice of employer in terms of the different focus of the applicants. Primary research included a questionnaire (n = 238 respondents), 4 focus groups and two individual interviews. The results of primary research have shown that the most important areas are: a prestigious and respected company, a purely Czech company, a stable established company with tradition, TOP employer, a socially responsible company, possibility of career growth, possibility of further development, the opportunity to participate in corporate goals, participation in decision making and management of the company, the possibility to apply creativity, innovation and ideas, individual work, interesting work, challenge work, ambitious project, financial remuneration, corporate benefits and geographic availability of the organization. The research also showed that preferences can be divided into factors that indicate whether an organization becomes a selected (attractive) employer based on the candidate's specific focus. Factor analysis has shown that different factors are important for identified types of candidates. The output of the article is a recommendation on what factors organization should focus on to address a particular type of candidate.
Keywords: Employer Attractiveness, Factors Influencing Employer Selection, Organization, Applicant, Employee, University Graduate
JEL classification: J20, M51

Open Access Article SciPap-1007
Fiscal Decentralization and Regional Disparities in Czechia and Slovakia: Regression Analysis at the NUTS2 and NUTS3 Level
by Lenka Maličká

Abstract: Connection between fiscal decentralization and regional disparities is usually explained in two different manners. Fiscal decentralization might enhance the economic growth and optimal public good provision (and by this way might reduce regional disparities) or it can contribute to the deepening of differences among poor and rich regions. However, there is a wide empirical research of this connection in the economic literature. Despite it, in Czech and Slovak related research, there is an absence of such a literature. This paper focuses on revealing the character of relationship between fiscal decentralization and regional disparities in Czechia and Slovakia on both NUTS2 and NUTS3 levels. Regional disparities increase within both countries. Additionally, estimations results are about supporting the undesirable effect of fiscal decentralization. Statistical significant positive relationship between expenditure and revenue decentralization and regional disparities is observed in both countries, while this relationship using the measurement of tax decentralization is significant and negative only in the case of Slovakia. Unfortunately, even if the inverse estimated relationship support the hypothesis about reduction of regional disparities by tax decentralization, analysis of input data shows the trend toward decreasing the tax decentralization. It contributes to higher regional disparities, too.
Keywords: Regional Disparities, Fiscal Decentralization, NUTS 2, NUTS 3
JEL classification: H71, H73, R12

Open Access Article SciPap-1010
Threshold Effects in Interactions Between Government Budget Imbalances, Current Account Imbalances and Business Cycle Synchronization
by Veronika Šuliková

Abstract: The paper focuses on interactions between fiscal dynamics and current account imbalances, and their impact on business cycle synchronization in the euro area over the years 2001-2017. To join these two effects, we used panel data threshold model, which determined three intervals of current account differences and estimated separate relation between fiscal disparities and output gap disparities in each interval. If current account differences are small (1st interval), the threshold model concluded for strong positive effect of smaller budget balance differences on business cycle synchronization. Nevertheless, higher current account differences (2nd and 3rd interval) are accompanied by not significant or negative effect of budget balance differences on output gap differences, i.e. there is no effect of fiscal convergence on business cycle synchronization. As far as policy implications, if economic policies try to achieve tighter business cycles by a fiscal convergence, they need to take into account possible tools how to decrease current account imbalances as well.
Keywords: Current Account, Budget Balance, Fiscal Convergence, Business Cycle Synchronization, Euro Area, Threshold Model
JEL classification: E32, F32, F41, F44, H62

Open Access Article SciPap-989
Working Capital and Its Impact on Business Performance
by Irena Honková

Abstract: A number of studies indicate that the decision on the level of working capital affects business performance. Managing optimal working capital brings businesses sustained reduction of working capital, improves liquidity and increases profitability through effectively managed capital. The aim of this paper is to conduct empirical research of Czech companies on the relationship between working capital and the performance of a company. An OLS model is used that can calculate quadratic regression for calculating the optimum amount of working capital. Models are created that describe the dependency of earnings on the components that determine working capital. By deriving the quadratic function of performance, an inflection point is found, indicating a theoretical net trade cycle of 134 days for Czech companies with inventory and 70 days for Czech companies with no inventory. However, there is a level of working capital at which a higher working capital begins to be negative in terms of profitability due to the additional interest expenses and, hence, the higher probability of bankruptcy and credit risk of firms. Thus, firm managers should aim to keep as close to the optimal level as possible and try to avoid deviations from it that destroy profitability.
Keywords: Working Capital, Net Trade Cycle, Ordinary Least Squares (Ols) Method
JEL classification: M21

Open Access Article SciPap-994
Classical Management Biases and Behavioral Approach Comprehension
by Ivana Mandysová

Abstract: The article at the outset conducted on the theoretical basis, incorporating relevant authors and theories, has pointed to a number of weaknesses of neoclassical theory, which would be hardly compatible with real management practice and manager behavior. Article critically evaluated theoretical background in management sciences and examined manager in behavioral and heuristic theories. Analysis offered an interpretation of managerial decision-making as a product of personal preferences and characteristics, limited rationality, lack of information, mental shortcut, and imitation. Analysis described practical behavior of managers and then correlated these to each other and to explanatory factors as well. The re-orientation towards recognition of managerial behavior is developed and illustrated. Conclusions were derived from the generalization of empirical observations. Empirical research is based on in-depth qualitative study and subsequently it derives from established theoretical patterns. It explores and explains the way managers make economic decisions. The emerging theory strongly emphasizes the strengthening of the human potential inside a manager.
Keywords: Management, Behavioral Management, Manager´s Decision-Making, Heuristics, Qualitative Research
JEL classification: D81, D91, L2, M1

Open Access Article SciPap-1008
Identifying Key Determinants of Poverty in Slovakia
by Alena Mojsejová

Abstract: The article deals with identifying key determinants of poverty in Slovakia. The two main goals of this article are to examine which factors have a significant effect on poverty and to determine the influence of relevant factors on poverty of Slovak households. A logistic regression model was used to quantify the impact of selected factors on the risk of the poverty and for probability modelling. We compared two models, using data from EU SILC 2013 and EU SILC 2016. Statistically significant differences are by the region and also by the degree of urbanization. We found that variables such as gender, age, household type, households' economic activity, marital status, education, health, and tenure status significantly affected the occurrence of poverty. According to contingency coefficients, the rate of poverty was at most influenced by the economic activity, on the other hand, the lowest rate was obtained for general health of the person at the head of the household. The obtained results are compared with the known researches in this field.
Keywords: EU SILC − European Union Statistics On Income And Living Conditions, Europe 2020, Poverty, Logistic Regression
JEL classification: R1, C31, I32

Open Access Article SciPap-1006
Interval Type-2 Fuzzy Logic Expert System for Investment Analysis
by Zuzana Janková, Petr Dostál

Abstract: In this paper, a higher degree of fuzzy logic type-2 fuzzy logic is presented as decision making process of investment. There is a key difference between type-2 and type-1 fuzzy logic. The application is made on the Czech stock market and is used to decide on investing in PX index stocks. The proposed type 2 fuzzy model uses the return and risk of investment instruments as input variables. The system created is able to generate aggregate models from a certain number of language rules, allowing the investor to understand the generated financial model. The use of T2FLS can lead to more realistic and accurate results than T1FLS.
Keywords: Artificial Neural Networks, Czech Stock Market, Fuzzy Logic, Interval Type-2 Fuzzy Logic, Investment Analysis, Soft Computing
JEL classification: C45, G11, G12

Open Access Article SciPap-985
On the Conseptual Model of Oil and Gas Business Transformation in the Transitional Conditions to the Industry 4.0
by Tatyana V. Alexandrova, Vladimir G. Prudsky

Abstract: Digital transformation of business centers in the transition period to the Industry 4.0 is becoming a key competitiveness growth factor for Russian oil and gas factories. It is characterized by a wide range of potential effects, which often do not show themselves fully in reality due to dominant fragmentary approach to the introduction of the Industry 4.0 innovation technologies; as well as the fact that companies’ managers do not have an integral view on the business digital transformation. The aim of the research consists in developing a conceptual model of oil and gas business digital transformation, allowing to make more reasonable managerial decisions on the implementation of digital technologies at enterprises. The research used the method of information statistical analysis about the state of the oil and gas industry and the methodology of conceptual approach to ensuring the transition of these companies to the Industry 4.0. The authors made the conclusion that the developed conceptual model improves the coordination and planning of works implementing digital transformation of oil and gas business, defines strategic priorities of the company’s digital development, promotes the development of corporate knowledge about business processes digitalization and formation of positive social and economic effect.
Keywords: Oil And Gas Business, Digital Transformation, Conceptual Model, Industry 4.0 Technologies, Potential Effects
JEL classification: L71, M15, O32

Open Access Article SciPap-986
Black Friday Shopping in Hungary
by András Kovács, Sikos T. Tamás

Abstract: The central question of our study is to examine what features the Black Friday phenomenon has in Hungary, how it resembles to or differs from the international Black Friday trends. To answer this question we provide an overview of the main ideas on the topic discussed in international literature. Then with the help of answers of a questionnaire research from 2016 and one from 2017 we will highlight the most important similarities and differences. As we will see, in Hungary the buyers’ intent to participate is similar to other countries, but retailer behavior shows considerable differences compared to international examples. Descriptive methods, cross-tabulation, cluster analysis applied in our research.
Keywords: Black Friday, Retail, Customer Behavior
JEL classification: M31, A13

Open Access Article SciPap-997
Stakeholder Power, Sustainability Reporting, and Corporate Governance: A Case Study of Manufacturing Industry at Indonesia’s Stock Exchange
by Yulita Setiawanta, Agus Purwanto

Abstract: This research explains about the way the stakeholder power can affect the implementation of sustainability reporting and the corporate governance at a manufacturing industry in Indonesia listed on Indonesia’s Stock Exchange. The results of this study are expected to provide an overview to prospective foreign investors who are interested in investing in Indonesia public companies which related to organizational behavior and governance style. However, there was less company that reported sustainability reporting continuously from 2007 up to 2016. This becomes a special and interesting concern to be investigated as the awareness phenomenon for the industries in Indonesia. With specified criteria found 60 observation data for 10 years and used multiple linear regression. The result showed that Government Control and Audit Control affected the implementation of Sustainability Reporting while the Internal control and shareholder control had no effect. The special note for shareholder control had a negative coefficient and it became a phenomenon for future research. Another finding was that the implementation of Sustainability Reporting and Government Control had an effect on good corporate governance.
Keywords: Stakeholder Power, Sustainability Reporting, Corporate Governance, Government Control, Audit Control
JEL classification: M14, M42, G30, G34

Open Access Article SciPap-1004
Management structure in the performance of Polish mutual funds: Does team spirit matter?
by Filip Dariusz

Abstract: This paper focuses on finding answers to two questions. The first one asks if there are any significant differences in performance between solo-managed and teammanaged funds. The second one is supposed to establish whether a management structure can be treated as a determinant of returns generated by mutual funds operating in Poland. The study was conducted on the basis of 835 annual observations, 388 of which concerned solo-managed funds and 447 – team-managed funds, in the period 2000-2017. The returns were calculated by means of a few popular measures of abnormal returns regarding the stock picking ability of fund managers. The methodological procedure consisted of four research tools which ensured a greater certainty of the statistical inference. The findings show that there are insignificant discrepancies in the performance of funds characterized by a different number of managers, yet they are noticeable in very few annual periods. The results obtained as an effect of determining the influence of a management structure on performance are statistically insignificant, which means that the examined variable is not a determinant of performance, at least as far as Polish circumstances are concerned.
Keywords: Performance, Managers, Team-Managed Funds, Solo-Managed Funds
JEL classification: G20, G23, G40

Open Access Article SciPap-1005
Companies Attitudes Toward Key Positions and Employees Management
by Petra Horváthová, Šárka Velčovská, Lenka Kauerová

Abstract: An essential role in achieving or maintaining the competitiveness of any company is played by key employees. Therefore, businesses should pay attention to them. The article aims to identify the attitudes of companies operating in the manufacturing industry of the Moravian-Silesian region to management key positions and employees in the business environment and to present a proposal for a procedure for its effective and practical implementation and application. Data were collected on a sample of 105 enterprises. The current situation of using the management system of key positions and employees as well as the attitudes of the companies towards the implementation of the new system was evaluated, based on the results of the research. There was a low rate of use of given system in these businesses, with two thirds of companies showing an interest in implementing the new system. In order to verify the existence of statistically significant differences between the variables, Fisher's exact test was used, and the Phi and Cramer's V coefficients were also calculated. The output of the article also includes a proposal for a procedure for the implementation and application of the management of key positions and employees in practice.
Keywords: Management, Key Position, Key Employee, Process, System, Manufacturing Industry
JEL classification: M12, M50

Open Access Article SciPap-987
Designing an Advanced PPE Model to Measure Performance and Efficiency of Slovak Spa Enterprises
by Veronika Čabinová, Erika Onuferová

Abstract: Each model for measuring performance and prediction is different as it uses different mathematical approaches and works with different indicators. In the era of rapidly changing economic environment, the standard methods for measuring financial performance and assessing financial health are less adequate. Most authors focus on enhancing the predictive ability of original models by responding appropriately to the existing changed economic environment as the identification, increasing and managing enterprise performance and efficiency represent a key tool of today's competitive struggle. The objective of the paper is to create and then apply in practice a new innovative 3D model (PPE model) evaluating the current financial position of Slovak spa companies (P – positon), their future development prognosis (P – prognosis) as well as their efficiency (E – efficiency). The aim of the paper is to identify and implement traditional key indicators, predictive models and efficiency indicators within each of the model dimensions while respecting sectoral characteristics and financial particularities of Slovak spa enterprises. Creating a PPE model will help to better identify the current financial position of the sampled enterprises and, in this way, it will be able to reveal the causes hindering the development of their financial performance to a more accurate extent.
Keywords: Ppe Model, Financial Health, Bankruptcy Models, Enterprise Efficiency, Spa Health Sector
JEL classification: C0, C53, M21, M31

Open Access Article SciPap-1001
Ethics and Integrity of the Public Administration of the Czech Republic
by Marie Bohatá

Abstract: The aim of the article is threefold: to open an academic debate in the area of public ethics and integrity in the Czech Republic, to briefly explain an effective framework inspired by the OECD work on public governance, anti-corruption initiatives and the most recent integrity strategy which underpins the governance of globalisation, and to present main features of the current situation in the Czech public administration from the ethics perspective. Public integrity aligning shared values, principles and ethical norms for upholding the public interest over private interests in the public sector is considered essential to the economic and social well-being of individuals and societies. The current situation in the Czech public administration is illustrated using results of an empirical research conducted within a research project aiming at developing a comprehensive training programme on ethics and integrity for civil servants and officials of self-administration. A survey among the civil servants and employees of self-administration is at the core of this research. Findings are interpreted in the context of the OECD integrity system and represent a basis for the design of tailor-made ethics courses and training tools.
Keywords: Ethics, Integrity, Public Administration, Ethical Codes
JEL classification: A13, D72, D73, D91, H83

Open Access Article SciPap-993
Electronization of Public Administration as a Tool for the Corruption Reduction
by Veronika Linhartová, Veronika Tvrdíková

Abstract: The paper deals with the influence of electronization on the reduction of corruption in public administration. According to a number of studies, corruption in public administration has an impact on a wide range of taxpayers. They may feel the consequences of corrupt behaviour, for example in the form of tax and price increases or poor quality of service. For this reason, corruption is considered one of the most serious problems as it affects a large part of society. A number of empirical studies have shown that one of the ways to limit corruption is the electronization of public administration. For analysis, a group of 113 countries from all over the world were used, regardless of their geographical jurisdiction or political establishment. The time period is from 2003 to 2017. In order to fulfil the goal, the graphical interpretation of Bag plots and linear regression analysis is used to assess the impact of selected variables on the level of corruption. The multidimensional regression model has confirmed the positive effect of electronization. However, the most significant effect on the level of corruption in the country had the performance of the economy in the examined period and selected set of countries.
Keywords: Corruption, Electronization, Bag Plots, Regression Analysis, CPI, EGDI
JEL classification: D73, E6, H11

Open Access Article SciPap-988
Model for Determination of Natural Rate of Unemployment From GDP Gap
by Jiří Dobrylovský

Abstract: Since the moment when Milton Friedman introduced a natural rate of unemployment into economic theory, this indicator has been one of the most important quantities in macroeconomics. However, in contrast to other key macroeconomic indicators, the natural rate of unemployment is very difficult to be accurately quantified. The following paper suggests a simple mathematic model, on whose base the natural rate of unemployment can be determined. This model was used to set the natural rate of unemployment in the Czech Republic and its development over time period of the last 23 years based on the Macroeconomic Forecast by the Ministry of Finance of the Czech Republic and compared with Okun´s Law. When calculating the natural rate of unemployment the suggested model eliminates the differences resulting from different utilization of production capacities and the changing rate of economic activity of population in the course of time. As all other models, this model also works with certain simplified assumptions; however, its advantage is the possibility of gradual implementation of more and more difficult parameters of real economy as new variables. Nevertheless, even in its basic form, the model provides good results, which coincide with theoretic basis and monitored facts.
Keywords: Okun's Law, Natural Unemployment Rate, Participation Rate, Potential Product, Labor Market
JEL classification: J64, A12, C29, E32