Investment Activity and its Postponing in the Czech Republic in the Crisis Period

2011 ◽  
Author(s):  
Dagmar Čámská ◽  
David Kula
Keyword(s):  
Czech Republic ◽  
Investment Activity ◽  
The Czech Republic ◽  
Crisis Period

scholarly journals Loose Monetary Policy and Corporate Investment of Manufacturing Firms in the Czech Republic

2018 ◽  
Vol 18 (4) ◽  
pp. 371-385
Author(s):  
Veronika Kajurová ◽  
Dagmar Linnertová
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Interest Rates ◽  
Corporate Investment ◽  
Manufacturing Firms ◽  
Investment Activity ◽  
The Czech Republic ◽  
Low Interest Rates ◽  
Negative Effect

Abstract The aim of the paper is to evaluate the effects of loose monetary policy on corporate investment of manufacturing firms in the Czech Republic during the period between 2006 and 2015. The main focus of the paper is on the effect of low interest rates on investment activity of Czech firms; additionally, the effects of interactions between interest rate and other firm-specific variables are investigated. The results indicate that corporate investment is positively associated with firm size, investment opportunities, and long term debt. Also, a negative effect of the cash position is found. Further, the findings show that monetary policy is a significant determinant of firm investment activity: when the monetary policy is loose, investment is positively affected. Furthermore, differences in the determinants of investment between highly and low leveraged firms were revealed.

scholarly journals Interest rates and prices causality in the Czech Republic – Granger approach

2009 ◽  
Vol 55 (No. 7) ◽  
pp. 347-356 ◽  
Author(s):  
J. Poměnková ◽  
S. Kapounek
Keyword(s):  
Monetary Policy ◽  
Czech Republic ◽  
Interest Rate ◽  
Interest Rates ◽  
Inflation Rate ◽  
Aggregate Demand ◽  
Real Economy ◽  
Investment Activity ◽  
The Czech Republic ◽  
The Interest Rate

Monetary policy analysis concerns both the assumptions of the transmission mechanism and the direction of causality between the nominal (i.e. the money) and real economy. The traditional channel of monetary policy implementation works via the interest rate changes and their impact on the investment activity and the aggregate demand. Altering the relationship between the aggregate demand and supply then impacts the general price level and hence inflation. Alternatively, the Post-Keynesians postulate money as a residual. In their approach, banks credit in response to the movements in investment activities and demand for money. In this paper, the authors use the VAR (i.e. the vector autoregressive) approach applied to the “Taylor Rule” concept to identify the mechanism and impact of the monetary policy in the small open post-transformation economy of the Czech Republic. The causality (in the Granger sense) between the interest rate and prices in the Czech Republic is then identified. The two alternative modelling approaches are tested. First, there is the standard VAR analysis with the lagged values of interest rate, inflation and economic growth as explanatory variables. This model shows one way causality (in the Granger sense) between the inflation rate and interest rate (i.e. the inflation rate is (Granger) caused by the lagged interest rate). Secondly, the lead (instead of lagged) values of the interest rate, inflation rate and real exchange rate are used. This estimate shows one way causality between the inflation rate and interest rate in the sense that interest rate is caused by the lead (i.e. the expected future) inflation rate. The assumptions based on money as a residual of the economic process were rejected in both models.

scholarly journals Analysis of distribution impact of subsidies within the Common Agricultural Policy on field production businesses in the Czech Republic

2012 ◽  
Vol 60 (7) ◽  
pp. 415-424 ◽  
Author(s):  
Gabriela Trnková ◽  
Z. Malá
Keyword(s):  
Czech Republic ◽  
Investment Activity ◽  
Equal Distribution ◽  
The Czech Republic ◽  
Economic Result ◽  
Management Quality ◽  
The Common ◽  
The Individual ◽  
The Impact ◽  
Field Production

The article deals with the analysis of inequality in the distribution of the economic result in businesses engaging in field production in the Czech Republic, by way of the assessment of the impact of subsidies on the said inequality and by defining the effect of the size of the business on the economic result as well as inequality. The methodical tool is the quantification of the Gini coefficient and its elasticity. The data basis consists of panel data of 140 agricultural businesses focusing on field production for the period of the years 2005–2010.The main results of the submitted article substantiate a high inequality in the distribution of the economic result for the accounting period among field production businesses. The said inequality is not generally caused by the differing size of the analyzed businesses, and the associated volume of subsidies obtained, but is affected by other factors, such as the management quality, the investment activity of the business, or exceptional events. Subsidies do contribute to the more equal distribution of the economic result, but their impact is very small. Out of the individual categories of subsidies, the ones with the main redistribution effect are direct payments, as a result of the high proportion of total subsidies that they comprise.

scholarly journals Is There a Credit Crunch in the Czech Republic?

2015 ◽  
Vol 63 (3) ◽  
pp. 995-1003
Author(s):  
Lucie Režňáková ◽  
Svatopluk Kapounek
Keyword(s):  
Czech Republic ◽  
Likelihood Function ◽  
Demand Curve ◽  
Credit Rationing ◽  
Bank Loans ◽  
Credit Crunch ◽  
Investment Activity ◽  
The Czech Republic ◽  
Disequilibrium Model ◽  
Credit Demand

We apply a disequilibrium model of credit demand and supply to test the credit crunch hypothesis. We suppose that firms face credit rationing and a realised outstanding loan will be the minimum desired level of commercial bank loans and bank limit for the firm. We adopted the disequilibrium model which consists of credit supply and credit demand equations. We suggest that actual observed credit growth rate at time t lies on the supply curve (excess demand), or on the demand curve (excess supply), or on both (equilibrium). Our model is estimated by the full-information maximum likelihood approach with a numerical maximization of the likelihood function. Our basic findings show that significant decrease in credits after the financial crisis in the year 2007 was caused by low economic and investment activity and reject the hypothesis that there is a credit crunch in the Czech Republic.

Spillover Effects Between Stock Prices and Exchange Rates for the Central and Eastern European Countries

2019 ◽  
pp. 097215091986977 ◽  
Author(s):  
Ngo Thai Hung
Keyword(s):  
Czech Republic ◽  
Stock Market ◽  
Exchange Rates ◽  
Foreign Exchange ◽  
Foreign Exchange Market ◽  
Spillover Effects ◽  
Eastern European ◽  
Exchange Market ◽  
The Czech Republic ◽  
Crisis Period

This article attempts to empirically analyze the dynamic relationship and volatility spillover effects between exchange rates and stock returns of the five Central and Eastern European (CEE) countries (Hungary, Poland, the Czech Republic, Romania and Croatia) covering the period 2000–2017 by using the bivariate generalized autoregressive conditional heteroskedasticity-Baba, Engle, Kraft and Kroner (GARCH-BEKK) framework alongside with the constant and dynamic conditional correlation (CCC and DCC) models. The major findings reveal the following: bidirectional volatility spillovers between the two financial markets in Hungary, the Czech Republic and Croatia in the pre-crisis period; unidirectional spillover of volatility from the stock market to foreign exchange market for Poland during the sub-prime crisis period; unidirectional spillover of volatility from the foreign exchange market to the stock market for Hungary in the post-crisis period and Romania in the pre-crisis period; non-persistence volatility spillover between them in case of the Czech Republic, Romania and Croatia in the post-crisis period; the absence of volatility transmission from the stock market to foreign exchange market occurs in Hungary, while from the foreign exchange market to the stock market in case of Poland in the post-crisis period. We further find a short-lived but non-negligible financial contagion between stock and foreign exchange market in these countries. These empirical insights have significant implications for portfolio investments and currency risk hedging.

scholarly journals Does volatility transmission between stock market returns of Central and Eastern European countries vary from normal to turbulent periods?

2020 ◽  
Vol 70 (3) ◽  
pp. 449-468
Author(s):  
Ngo Thai Hung
Keyword(s):  
Czech Republic ◽  
Stock Markets ◽  
Stock Price ◽  
Market Returns ◽  
Stock Market Returns ◽  
The Czech Republic ◽  
Crisis Period ◽  
Volatility Spillovers ◽  
Egarch Model ◽  
Eastern European Countries

AbstractThis study investigates the transmission mechanism of price and volatility spillovers across the Budapest, Warsaw, Prague, Bucharest, and Zagreb stock markets in the pre- and post-financial crisis periods under the framework of the multivariate Exponential Generalized Autoregressive Conditional Heteroskedasticity (EGARCH) model. By using daily closing prices, the results highlight certain interesting findings. I found evidence of price spillovers of the intraregional linkages among the stock price movements in five countries. This analysis shows the existence of bi-directional volatility spillovers between stock markets of the Czech Republic and Croatia in the pre-crisis period, and between Hungary and Romania in the post-crisis period. Also, there are significant volatility spillovers from Croatia to Poland and from Poland to the Czech Republic during two periods. The volatility is found to respond asymmetrically to innovations in other markets. The findings also indicate that the stock markets are more substantially integrated into crisis, as well as the persistence of volatility spillovers between the stock markets increases, and the financial stock markets become more integrated after the crisis period.

Social variation in size at birth and preterm delivery in the Czech Republic and Sweden, 1989-91

1998 ◽  
Vol 12 (1) ◽  
pp. 7-24 ◽  
Author(s):  
Koupilova ◽  
Vagero ◽  
Leon ◽  
Pikhart ◽  
Prikazsky ◽  
...  
Keyword(s):  
Czech Republic ◽  
Preterm Delivery ◽  
The Czech Republic ◽  
Social Variation ◽  
Size At Birth
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