SciPap, Volume 27, Issue 1 (2019)

Open Access Article SciPap-970

by Gentjan Çera, Bruna Tuzi

Abstract: Financial literacy has become an important issue because many studies have established a connection between financial literacy and financial decision making for people. The aim of this study is to identify the differences in financial literacy based on the gender of young people in Tirana, Albania. A questionnaire was designed, covering financial knowledge, financial attitude and financial behaviour. Principal component analysis was performed to identify the main factors for both genders. Even though similarities were found, evidence reinforced the existence of the differences in gender regarding financial decision making as a consequence of financial literacy. Compared to young females, young males reflected to deal with risk, willingness to act and reading to improve financial knowledge. In contrast to this, young females were more concerned about money management and how to spend money related issues.

Keywords: Financial Literacy: Knowledge, Attitude, Behaviour, Gender

JEL classification: D01, D14, G40

Open Access Article SciPap-971

by Petr Čech, Irena Jindřichovská, Jiří Neubauer

Abstract: Corporate Social Responsibility (CSR) can be understood as an investment that will bring stability and prosperity to a company in the long-term. We investigate the notion that social initiatives will help companies to expand business through an excellent reputation in CSR and, thus, gain the conditions for profitable and sustainable growth. We employed questionnaire survey data and used statistical analysis of the results to identify possible links between social activities and other hotel characteristics, namely, a set code of ethics, hotel independence, hotel class, hotel size and managerial position of the respondent. According to the results, respondents considered socially responsible business practices as the most important. The Cause Promotion initiative was considered as less important than corporate philanthropy and volunteer work by hotel employees. The lowest importance was attributed to Cause-Related Marketing. A set ethical code has an impact on assessing the significance of all social initiatives. We have determined that managers of independent hotels pay less attention to social activities than managers of hotel chains. The hotel class did not affect responses in the categories of Cause Promotion and Social Marketing. Furthermore, hotel size did not affect assessed the significance of socially responsible business practices.

Keywords: Statistical Analysis, Corporate Social Responsibility, Hospitality Industry, Hospitality Management, Sustainable Growth, Prosperity

JEL classification: M14

Open Access Article SciPap-972

by Kamil Dobeš, Zuzana Virglerová, Jan Kramoliš

Abstract: The business environment is the one of the most important cause of successful business. The important role plays macroeconomic and financial environment and entrepreneur’s perceptions of them. The aim of the article is to evaluate and compare the perception of business environment and its impact on entrepreneurship in the Czech Republic and in the Slovak Republic. The article deals with the results of the empirical questionnaire survey, which was completed in 2018 in the Czech Republic. The research works with 641 valid answers. Research focused on small and medium-sized enterprises, as they are a major catalyst for the economic growth of individual economies. Two main research questions were set to compare the perception of macroeconomic environment and financial environment and its impact on business in selected countries. Another 4 research questions were formulated in relation to compare two main research questions in relation to selected factors (length of the business and entrepreneur’s education). In process of solving the formulated research questions tables, descriptive characteristics and Person coefficient of contingency were used. Despite the fact that the macroeconomic environment in the Czech Republic and Slovakia is comparable, perceptions of the business environment differ in several aspects.

Keywords: Slovak Republic, Czech Republic, Business Environment, Smes, Perception, Bank’s Interest Rates

JEL classification: L26, B22, G21

Open Access Article SciPap-973

by Zita Drábková, Martin Pech

Abstract: Accounting records constitute the basic information sources for various groups of users. The quality of information acquired may considerably affect their decision-making based on accounting data and information reported. The focus of this contribution is laid on the CFEBT method of risk detection of accounting records from the view of a risk of accounting errors and frauds, with a result in the reduction in the information asymmetry between their authors and users. The main article objective is to analyze the risk of accounting errors and frauds through CFEBT risk triangle and a case study of selected small entities which operate predominantly in processing industry. The CFEBT risk triangle was designed as a tool for detection, evaluation and management of the risk of accounting errors and frauds in circumstances of the Czech accounting standards and International Financial Reporting Standards (IFRS). The case study results that it was ascertained that the most significant discrepancy between the economic substance of the business activity of the accounting unit and the generation of cash flow is a consequence of reported financial revenues.

Keywords: Creative Accounting, CFEBT, Financial Statements, Risk Of Financial Statements, Fair And True View, Frauds, Accounting Errors

JEL classification: G32, M41

Open Access Article SciPap-974

by Monika Harčariková, Martina Bobriková

Abstract: The paper examines an analysis of leverage certificates (namely turbo certificates), where their value is derived from an underlying asset and barrier options. Turbo certificates are riskier financial instruments that provide much more gains or losses due to leverage effect. There are introduced long turbo (for increasing markets) and short turbo certificates (for markets drop). The replicating portfolios profit is identical to a profit from the combination of an underlying asset and barrier options as it is proved in the paper. Based on theoretical approach, replicating portfolios for long and short turbo certificates on Google and Facebook companies are engineered with various parameters and calculated the certificates prices and financial leverages. Their profitability is disproportionately high what it is proved due to low capital investment and the leverage. The main objective is to demonstrate the nature of the given certificates creation using barrier options in an analytical form. The use of proposed turbo certificates can be one of the alternatives for creating a diversified portfolio for investors to reduce risk in case of unforeseen stock price developments. The results of our analysis help the increasing of the intellectualization of all potential investors. After that they will be able to make the best investment decisions in future according to the expectations of UA’s price development.

Keywords: Long Turbo Certificate, Short Turbo Certificate, Barrier Options, Financial Leverage, Profitability

JEL classification: G11, G13

Open Access Article SciPap-975

by Lucie Hrbáčková, David Tuček

Abstract: This paper is focused on understanding “risk-based thinking” and “context of the organization” in the process approach according to the requirements of the updated norm, ISO 9001: 2015 Quality Management Systems – Requirements. These new trends should increase the effectivity of the quality management system, should improve company results, and should prevent negative effects of processes. This article explains how to understand the context of the organization in order to make correct strategic decisions. The author describes the integration procedure of risk-based thinking into several organizations in the Czech Republic. This article can support organizations in the implementation of the best practice of new requirements of ISO 9001: 2015. This paper is focused on several production organisations from the different industrial area in the Czech Republic. This research is based on the up to date research data of world´s databases. The author used the qualitative method in the form a structured interview.

Keywords: Risk-Based Thinking, Context Of The Organization, Iso 9001: 2015, Quality Management System, Actions To Address Risks And Opportunities

JEL classification: G32, O31, L15

Open Access Article SciPap-976

by Denisa Chlebounová

Abstract: Efficiency belongs among frequently discussed topics of public policy. This paper deals with the measurement of the efficiency of secondary schools established by the Pardubice region. We used the data envelopment analysis (DEA) to measure efficiency. One input - the expenditure on teacher salaries, and three outputs - % of pupils success in Czech language, math, and English language exams were selected. The results of this analysis show that 12 secondary schools from the 36 examined secondary schools are effective. Conducted DEA model also determines the way how inefficient school reaches efficiency (how to reduce input and increase outputs). Furthermore, the optimal utilization of capacities calculated as quotient of actual number of pupils and optimal number of pupils expresses the fact that the examined grammar schools use their capacities on average at 80 %, and examined vocational secondary schools only at 60 %. This situation is mainly caused by a long-term decline in birth rates when the number of secondary school pupils is decreasing.

Keywords: Data Envelopment Analysis, Secondary Schools, Efficiency, Capacity, Pupils Results

JEL classification: H75, I21

Open Access Article SciPap-977

by Ivana Kraftová

Abstract: The aim of this article is both to evaluate the relationship between population density and intensity of crime (in general), as well as the relationship between the expenditure on security and public order per capita, crime rate, and tying funds to a crime (on a sample of municipalities in the Pardubice Region). The relationship between population density and crime intensity is examined in European regions using two Eurostat typologies. Further examining relationships are judged by linear regression analysis, the dispersion and relations among standardized values of selected parameters, i.e. operating expenditures of municipal budgets spent in the area of security and public order per citizen, modified crime rate index, and tying of financial means to one criminal act. Although the direct proportion between population density and crime intensity has been demonstrated, the population of the municipality is not critical to the amount of its security and public order expenditure. Identified relations among the evaluated parameters are not completely analogous, the research has pointed to four different approaches in terms of solving the issues of security and public order.

Keywords: Population Density, Crime Intensity, Expenditure On Security And Public Order, Modified Crime Index, Tying Funds To A Crime, Municipalities Of The Pardubice Region

JEL classification: H72, R53, Z18

Open Access Article SciPap-978

by Radmila Krkošková

Abstract: The paper contributes to the existing literature through analysis of relationship between labour productivity and government spending on research and development in the eurozone countries as a whole. In particular, small and medium enterprises should aim to increase the labour productivity and use the possibilities of funding from the structural funds. The purpose of this paper is to empirically investigate the relationship between labour productivity and government spending on research and development in the eurozone. In particular, its purpose is to investigate this relationship in the case of small and medium enterprises. By utilizing causality tests and error correction models, the results suggest that support of research and development is the cause of labour productivity growth in the long-term period. However, for the short-term period changes in labour productivity precede changes in government spending on research and development. Based on the findings, the study has several theoretical and practical implications. The data sources were the Eurostat database. The data used have the character of annual time series in the period between 2004 and 2016. GRETL software was used for the calculations.

Keywords: Labour Productivity, ECM Model, Eurozone, Granger Causality, R&D, Sme, Solow Model, Var Model

JEL classification: C01, L26

Open Access Article SciPap-979

by Callistar Kidochukwu Obi, Innocent Ifelunini

Abstract: The vagaries of flow of external financing and its negative impact on the sustainable financing of development in developing countries has made it expedient that developing countries look inward to domestic resources as a reliable and sustainable source of financing development as well as achieving sustainable economic growth and development. Nigeria as a developing country has heeded this policy option and has initiated different policies and programmes towards strengthening her domestic resource mobilization through improved taxation and non-taxation revenues. This study seeks to investigate whether tax matters to domestic revenue mobilization for development financing in Nigeria. Using time series data sourced from the Central Bank of Nigeria (CBN) and World Bank data base and applying Autoregressive Distributed Lag Model and Error Correction Model, the study found that lagged values of tax and total export matter in domestic resource mobilization. The study also found that certain lagged values of taxation displayed an inverse relationship with development which suggest some level of tax evasion, weak administrative tax system as well as official corruption. On the strength of the findings, the study recommended that government should intensify her tax drive through rationally expanding the tax base through creation of employment, closing loopholes for tax evasion and official corruption as well as reduced over-reliance on crude oil revenue which engenders resource course. In addition, the government should re-enforce the Freedom of Information (FOI) Bill to promote information sharing that will ensure compliance to tax laws by tax payers.

Keywords: Ardl, Domestic Resource Mobilization, Taxation, Economic Development, Financing

JEL classification: H20, H27, F63

Open Access Article SciPap-980

by Bohuslav Pernica

Abstract: The aim of this article is to evaluate the Programme of Social Crime Prevention, a central government program funded in the Czech Republic since 1995, in the defence sector. Employing correlation analysis, author scrutinizes relationships among extent of military criminality in the All-Volunteer Force, qualities of military labour force, and amount of money spent on the programme after 2005 when compulsory military service was abolished. The evaluation proved that taxpayer money is allocated to the programme with no relationship to development of criminality. The extent of criminality is decreasing only as a consequence of ageing of military labour force. The programme met its aim when compulsory military service was in force. At that time, military power relied on immature young men rotating in one year cycle and not performing their duties willingly. However, this past situation is still supported by bodies of the Parliament responsible for the military.

Keywords: All-Volunteer Force, Criminality, Demographic Ageing, Public Expenditure Programme, Prevention

JEL classification: F52, H59

Open Access Article SciPap-981

by Binal Shah, Aleš Gregar

Abstract: Workplace flexibility is recognized as the application of collective interventions in an organization. It is also known as various supportive technologies and strategies of the Human Resources Department. The purpose of this study is to design workplace flexibility strategies that are essential for organizational leaders and HR managers to sustain and improve organization competitiveness (improved productivity and improved financial performance) along with aging employees’ performance. Data collection from a large-scale survey of 2000 aging employees from a different organization in India. Participants in the survey study were based on employees ‘experience within the organization. The research interviews coded by focusing on the level of flexibility given to aging employees, focusing on managers' influence on the performance of aging employees, examining internal and external sources that impede performance. The study results organization and HR managers’ may increase the performance of aging employees by enhancing flexibility strategies that provide a positive assortment of motivational tools and opportunities. In addition, the findings suggest collaborative decision making between HR managers and aging employees has a positive relationship with work attitudes and the engagement of employees. The results of the study can make organizations more competitive that could improve aging employees’ retention rates.

Keywords: Workplace Flexibility, Flexible Work Arrangements, Employee Engagement, Retention, Human Resource Practices

JEL classification: J22, J28, L10, M54, O15

Open Access Article SciPap-982

by Erika Fecková Škrabuľáková, Elena Grešová

Abstract: The implementation of graph algorithms on diverse tasks of economic problems has reducing costs potential in different areas of business activities. In the present paper we deal with an identification of optimal allocation of guide signs in a large exhibition hall with given spatial organization, when the move of a visitor is allowed only along given corridors. In order to achieve our aim we use modeling by a graph and graph coloring algorithm approach. Although our implementation model concerns distribution of issues in a large exhibition hall, similar algorithm could be utilized in many other navigational situations. Solving these kinds of tasks is relevant from economic point of view, because it reflects in cost saving and business prosperity. The better is the organization of the event, the greater is the satisfaction of clients and exhibitors, the higher is the probability that they will come again and that the business will prosper for each of the parties involved.

Keywords: Cost Saving, Modeling Via Graphs, Optimal Distribution Of Issues, Palette Coloring

JEL classification: C61, C65

Open Access Article SciPap-983

by Otakar Ungerman, Světlana Myslivcová, Jaroslava Dědková

Abstract: The basic prerequisite for the presented research was research of scientific databases. This theoretical basis is for primary two-level research. The first level consists of quality research for which important companies in the Czech Republic were selected, presenting applied personnel marketing. The result was 13 attributes which HR staff view as the way to conduct personnel marketing. The resulting attributes were the basis for quantitative research. For uncovering of potential latent attributes the results were subjected to factor analysis. The result of the research is a targeted overview of how companies perceive personnel marketing as well as how they use it. Research has been carried out in the Czech Republic, but the results are applicable globally, because all enterprises in survey have a parent company in the EU, USA, Japan or China, and apply their corporate culture. The results of the research are applicable both in the theoretical area where they moved to the examined issues forward and in the practical area where they may serve for better work with human capital.

Keywords: Management, Human Resources, Corporate Communication, Personnel Marketing, Factor Analysis

JEL classification: M31, M51

Open Access Article SciPap-984

by Daniel Cardona Valencia, Alejandro Valencia-Arias, Martha Luz Benjumea, Lemy Bran, Jackeline Valencia

Abstract: The adoption of e-commerce by a population requires an analysis of its social, cultural and economic environment, so it is necessary to propose and validate models based on the particularities of each region. From this need arises present research with the objective to examine the factors of the E-Commerce adoption in university students of the Medellin city, through the technology acceptance model, adding the variables of Perceived Security and Trust. The quantitative methodological design consisted of a cross-sectional exploratory research study in order to validate the model. A quantitative self-administered questionnaire was applied to 369 university students from the city of Medellin. To check the validity of the measurement scale used, it was developed to confirmatory factor analysis. Various hypotheses were collected and the degree of association was measured by the statistical Somers' D and Cramer's V. In this study, the attitude is correlated in 0.61 with the intention, being the variable with the greatest impact. Furthermore, the ease of use, perceived usefulness and trust, are antecedent of online shopping intention.

Keywords: E-Commerce, Technological Acceptance Model, Online Shopping Intention, Tam

JEL classification: M10, O33