Czech Financial and Accounting Journal, 2017 (vol. 2017), issue 3

Articles

Problems with quality in financial distribution - a state or market failure?

Jiří Šindelář, Michal Erben

Český finanční a účetní časopis 2017(3):5-17 | DOI: 10.18267/j.cfuc.498  

The paper deals with negative impacts of chosen regulatory attributes (regulatory arbitrage, relative over and under regulation) on economic agents' behaviour in the financial distribution area. Using three case studies from the Czech market (life insurance, corporate bonds and pension savings), we demonstrate situations, when state regulatory incursions caused substantial deformations of the target market and the subsequent detriment of final customers. Although partial market failures cannot be ruled out, our observations show that in particular, the regulatory arbitrage between individual sub-sectors of the financial market is a potent stimulator...

Options valuation included jumps in intervention period

Martin Diviš

Český finanční a účetní časopis 2017(3):19-38 | DOI: 10.18267/j.cfuc.499  

The fundamental equilibrium of the FX rate was significantly impacted by interventions of the Czech national bank. This article focuses on intervention influence on option valuation EURCZK currency pair as an underlying asset in years 2013-2017. We describe and quantify the prices of aforementioned FX options applying different approaches for historical and implied volatility estimation. Applying the implied volatility, we calibrate the jump diffusion model which provides the description of magnitude and direction of jumps in the underlying asset price. Mainly to ensure better comparability of the data for volatility and model estimation, both pre-intervention...

Banking sector of the Czech Republic: development in crisis period and present

Zbyněk Revenda

Český finanční a účetní časopis 2017(3):39-55 | DOI: 10.18267/j.cfuc.500  

The author analyzes the development of the Czech banking sector over the past ten years, focusing on selected assets and liabilities to assess the liquidity and solvency situation and development. Banks did not have any more serious problems even in the years of economic downturn 2009 and 2012-2013, they did not need assistance from the central bank or from the state. A potential and paradoxical problem may be the high level of free reserves at the central bank. It is a risk-free and highly liquid asset, but also a low-yielding asset. This also leads to virtually nil state of bank lending from the central bank. The main reason for the dramatic growth...

The estimation of Mincer function in conditions of the Czech republic

Savina Finardi, Jakub Fischer

Český finanční a účetní časopis 2017(3):57-68 | DOI: 10.18267/j.cfuc.501  

The paper deals with the evaluation of investment in higher education through Mincer's function, which is one of the most important methods of evaluation of this investment. The authors deal with a large set of observations of a total of 20,000, reflecting the positive influence of higher education on the wage earnings of individuals in the conditions of the Czech Republic. However, the positive impact of education attained is not the only relevant factor, but also other factors such as the region, gender and the economic sector affect the total earnings.