SciPap, Volume 27, Issue 2 (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-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-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-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-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-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

Open Access Article SciPap-999
Impacts of Emission Trading System in EU28 Countries
by Jarmila Zimmermannová, Vít Pászto, Ondřej Vícha

Abstract: European Union Emission Trading Scheme (EU ETS) was introduced in EU countries in the year 2005. Currently, the EU ETS is in operation for more than a decade; moreover, the European Commission adopted rules for the next 4th trading period in March 2018. The main goal of this article is to evaluate possible environmental impacts of EU ETS, mainly the impact of emission allowance price on the amount of greenhouse gas emissions in the EU28 countries as a whole. For this goal, (geo)visual analysis of spatial data, correlation and regression analysis are used. The results of the analysis show that the EU ETS contributes to the reduction of the amount of greenhouse gas emissions in the EU-28 countries as a whole, due to emission allowances price and period. Nevertheless, the influence of the way of emission allowances distribution is crucial for the desirable environmental impact. The extension of auctioning represents our key recommendation for the EU ETS.
Keywords: EU ETS, Environmental Impact, Carbon Emissions, Economic Indicators, Geovisual Analysis
JEL classification: K32, Q58, R12, H23

Open Access Article SciPap-990
Selected Determinants of Tourism Demand - Panel Cointegration Analysis
by Tomáš Jeřábek

Abstract: The aim of the paper is to investigate the effect of income of tourists, tourism price, trade openness and international outbound tourists in tourism origin countries on the tourism demand to the Czech Republic as well as to South Moravia Tourist Region of the Czech Republic from tourists coming from thirteen different countries is analysed. This paper applies panel co-integration analysis through a common correlation effect model (CCE). According to the obtained estimation results, income and trade openness have a significant positive influence on international arrivals to the Czech Republic, while for tourism price the results indicate that it has a negative influence on inflows, as expected. The effect of international outbound tourists on tourism demand in the Czech Republic is negative, against expectations, but it is not statistically significant. For tourism demand in the SMT region, income has a significant positive influence on international arrivals to the South Moravia tourist region, as it regards relative price, the negative sign of the coefficient is the same as the expected one. The effects of trade openness and international outbound tourists on tourism demand in the SMT region have expected positive signs but they are not statistically significant.
Keywords: Tourism Demand, Panel Cointegration Analysis, Real Exchange Rate, Gross Domestic Product, Trade Openness, International Outbound Tourists
JEL classification: Z3, F14, F47

Open Access Article SciPap-992
Life Satisfaction of Czech Seniors: What Actually Matters?
by Lea Kubíčková, Vladimír Hajko, Naďa Hazuchová, Martina Rašticová

Abstract: We estimate the influence of various factors on life satisfaction of Czech seniors in a large survey sample. We find that good health, more education and awareness of voluntary work participation, employee satisfaction and being currently employed are the main factors that contribute to being satisfied with the current quality of life in the group of Czech seniors. Surprisingly enough, increasing selfreported financial sufficiency is negatively associated with the quality of life. The main factors contributing to the life dissatisfaction are associated with being socially separated. The worst outcomes are recorded for those living in social homes and living alone. Any reported expectations of expected life changes (both positive and negative expectations) are associated with lower probability of life satisfaction.
Keywords: Seniors, Employee Satisfaction, Life Satisfaction, Well-Being, Logit
JEL classification: J26, J28

Open Access Article SciPap-996
Determinants of Innovation Activities and SME Absorption – Case Study of Germany
by Viktor Prokop, Jan Stejskal

Abstract: SME’s are integral pillars in ladder of innovation. Due to their proximity to end users and their flexibility, they are credited with the creation of ground level product and process innovations in their local and world markets. SMEs absorption of innovations is significantly assisted by the entrepreneurial environment, globalization tendencies, rapidly changing technological issues of the environment as well as other determinants. However, depending on the industry, determinants of innovation affects each firm differently depending on the type of innovation considered. The goal of this research is therefore, to analyse what determinants influence the innovation activities of small and medium enterprises across three different German industries, namely, in the Electrical, Chemical and Pharmaceutical and the Metal Industry. Results from the SMEs were compared against themselves as well as SMEs from the three considered industries. This paper used data from the Community Innovation Survey (2010-2012) which employed stratified sampling technique with surveys. Logistic regression tool was used to analyse the impact of certain activities and expenditures, information and competitive strategies on product on process innovation. The research eventually discovered that the determinants influencing product and process innovations in selected enterprises varied according to the size of enterprise analysed. It was proposed that small enterprises should primarily focus on In-house R&D and acquisition of capital assets whilst medium size enterprises would be best served in concentrating on training for innovative activities.
Keywords: Germany, Innovation Activities, Determinant, Innovation Capacity
JEL classification: C33, H50, O38, O47

Open Access Article SciPap-995
The Problem of Different Pairwise Comparisons Scales in the AHP Framework
by Jiří Mazurek

Abstract: In pairwise comparisons, several scales are used to compare objects. Perhaps the most known is Saaty’s fundamental scale for the AHP/ANP from 1 to 9 (with reciprocals), but other scales with 3, 5 or 10 items are also used in practice. Since the AHP/ANP is scale invariant, the following problem arises: for example, a preference of one object over other object expressed by the value 2 means something else for the scale from 1 to 3 (it expresses the medium preference) and the scale from 1 to 100 (in this case the preference is almost negligible). Therefore, the need of a normalization for pairwise comparison scales arises. The aim of the article is to propose a suitable transformation of a general linear scale for pairwise comparisons to a unit real interval that preserves several natural and desirable properties.
Keywords: Ahp, Normalization, Pairwise Comparisons, Comparison Scale
JEL classification: D81, D83