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A structural model for the verification of the causal relationship between sustainability and economic value added is presented in this paper. The study has shown that there is no definite and unique relationship between corporate sustainability and economic value. Based on the results of the structural modelling, sustainable value model ESGVA is methodologically improved. The model expresses all four dimensions of corporate sustainability: environmental, social, corporate governance and economic. The case study demonstrates how different the results are if a purely economic concept of company value is used compared to value that takes into account environmental, social and corporate governance factors. The model is applicable to comparative analysis of socially responsible investments. Sustainable value provides extra information on corporate performance and can be used for decision-making of individual investors.

Research background: Among academicians, a growing interest in brand valuation methods can be observed since the 1980s, when it became obvious that firms have off-balance sheet assets which have a significant effect on their value. Moreover, in a number of cases. the need to value the brand arises due to the repotting requirements or transactional and other intrafirm reasons. The existing methods used so far have commonly focused on changes in variables such as sale prices, changes in customer behaviour, or sales volumes and very often lead to different results, even when valuing the same brand. We believe that the risk factor has been neglected in these methods. although having a significant impact on the brand valuation. Purpose of the article: The aim of this paper is to formulate an alternative brand valuation approach based on the risk difference. This is defined as the difference between the risk to which a producer with a certain brand is exposed and the risk of the producer without a brand. Methods: Firstly, a set of assumptions was defined concerning the issue what conditions are required to be applied to use the proposed methodological approach. Next, the concept itself is formulated and tested while using the case study approach. Hence, in conditions of a model company, the method was verified with specific data. The results were also compared with the reproduction cost approach. Findings & value added: This paper presents a novel brand valuation method based on the risk difference. Building on a thought experiment, we compare an incumbent with a brand rather than with an average producer, which is a commonly used approach, with a new entrant to the market. We argue that in comparison to existing methods, our methodological approach reduces the number of unobservable inputs in the brand valuation process, and thus increases the accuracy and reliability of its results. Our method supports both researchers and practitioners to establish a better understandi

Sustainable investing is an investment approach in line with the values of sustainable development and compliance with environmental, social, and corporate governance (ESG) criteria. The aim of the article is to propose a sustainable investing model (SIM) to support the decision-making of responsible individual investors. The proposed model aggregates economic indicators of investment decision-making, positive and negative ESG criteria, the market value of the stock, a systematic and unsystematic risk (expressed by the capital asset pricing model (CAPM)), thus widening the investment triangle by another peak—and that is sustainability. The research methodology is based on four key areas (environmental, social, corporate governance, and economic) associated with sustainable investments, stock market value, and risk. The research methodology of structural equation models is applied for the construction of the SIM. Mathematical equations are used to apply the SIM, which expresses values, the so-called factor scores. For the classification of sustainable investments, a classification scale is created that divides investments into three groups: above-average, average, and below-average. The SIM comprehensively evaluates individual ESG criteria and economic areas of sustainable investments, thus assisting the investor in deciding on sustainable investments of Czech joint-stock companies in the manufacturing industry, including benchmarking with other sustainable investments.

In this paper, we intend to contribute evidence in regard to going public financial impact and thus motivation on a sample of mature companies that launched an IPO at the Warsaw Stock Exchange between 2005 and 2015. First, we review recent literature focusing on financial and non-financial consequences of an IPO. Next, we use fuzzy sets and fuzzy reasoning to define a “mature” company and assess financial consequences of going public. Our main conclusion is that the majority of Polish mature companies use an IPO as a channel how to raise capital and accelerate their investments and growth. This contradicts many previous empirical studies highlighting that the main motivation of mature companies to go public is to use the capital raised within an IPO to rebalance their capital structure.

Objective: In this article, we intend to contribute evidence in regard to going public motivation on a sample of companies that launched an IPO at the Prague Stock Exchange between 2004 and 2017. Research Design & Methods: In order to evaluate the prevailing motives for the IPO launch, we design and apply a set of composite indicators the values of which may be understood as an indication of the extent to which IPO launch motives originate in the zone of the issuing company's needs or in the zone of interest of its owner (owners). Findings: Our main conclusion is that the dominant going public motivation is to allow current shareholders to cash out and to enhance the company's publicity and image. Implications & Recommendations: Since the study disclosed that the prevailing motive of primary issues at the Prague Stock Exchange was the exit of investors and enhancing publicity and image we suggest that companies launching the Prague Stock Exchange in recent years were predominantly determined by non-financial aspects. Thus, the research findings represent substantial implications for issuers, investment bankers, the stock exchange, and macroeconomic policy makers when the concept of incentive schemes how to increase the attractiveness of the local capital market will be proposed. Contribution & Value Added: Our set of composite indicators allows to assess not only the predominant IPO motive zone, but also measure the intensity of the motives. This helps to understand better the urgency of the needs of the issuing companies satisfied by the IPO implementation.

The objective of this study is to develop a qualitative model supporting chief financial officers (CFOs) while considering the timing of initial public offerings (IPOs) under conditions of underdeveloped capital markets, where decision making is often made under information shortage. A lack of adequate statistical data in connection with turbulently changing environment suggests that additional research is needed to develop new IPO timing models based not only on statistical analyses. We used a qualitative research approach based on trends, which are increasing, constant or decreasing. Firstly, we identified key variables influencing IPO timing, which have sufficient support in the relevant IPO academic literature, e.g. GDP growth rates, level of compliance, stock market returns, etc. Next, a qualitative model working with 9 variables was developed. The result is represented by 19 scenarios and their qualitative solutions. The transitional graph represents all possible transitions among the 19 scenarios. The main message of the findings presented is what scenarios can occur and what actions might be implemented by CFOs in order to increase the chances of IPO success. We believe that our findings provide valuable implications for local issuers, investment bankers, stock exchanges and macroeconomic policy makers.

The article focuses on the problem of interdependences among Central European capital markets. The main aim of this research is to identify long-term interdependences among Austrian, Czech, Hungarian and Polish capital markets and the market of Germany. Additionally, the impact of short-term shocks on these markets is under evaluation. In the first step of the research the interdependencies among the capital markets in the years 1997-2015 were verified. For this purpose the DCC-GARCH model with the conditional t-distribution was used. In the second step, an analysis of cointegration for the interdependencies among the markets was carried out. The authors proposed to include conditional variances of the analysed markets as additional explanatory variables in the cointegration analysis. As the conditional variance most often reflects the impact of short-term shocks, the proposed approach allowed to take into account short-term market shocks in the cointegration analysis. The results enabled to identify long-term path for the course of the interdependences among markets of Germany, Austria, Czech Republic, Hungary and Poland. The mentioned Central European capital markets make a group of markets characterized with similar long-term path, which are focused around the dominant market of Germany.

Increasing globalization contributes to the growing role primary capital markets play for raising external equity capital. This phenomenon is becoming more significant in both developed and emerging countries and influences the effectiveness of national economy. We survey 45 chief financial officers (CFOs) from not public and not financial companies operating in the Czech Republic and Poland to document the internal determinants of going public. We use statistical analyses and comparison with recent academic literature and empirical evidence to interpret the survey-gained data. First, the most important IPO motivations are enhanced publicity and reputation of the company and establishment of the firm´s market value. These benefits are expressed by CFOs across all firms and in both countries. A considerably larger number of CFOs is motivated by raising external equity capital. Surveyed companies tend to conduct an IPO in the expansion stage of their life cycle. Next, the significance of other going public determinants differs between Czech and Polish respondents and across companies varying in size and age. Third, our findings indicate that theories on IPO formulated for well-developed capital markets can explain going public determinants in smaller emerging markets. We suggest that our evidence can be a source of knowledge for enterprises while formulating new financial strategies. Furthermore, we also expect that survey results will be beneficial for investment bankers, stock exchanges and macroeconomic policy makers while discussing and designing incentives to attract more enterprises onto the primary capital markets under the specific conditions of the Czech Republic and Poland.

This article describes the impact of R&D investment to on the economic stability in the Czech electronics industry in the period 2007–2014. Increasing the competitiveness of companies is conditional on the systematic investments, development and stability of companies. Searching for competitive advantage through innovation may be one of the ways of how to obtaining a sTab. market position in the industry. The aim of this article was is to determine whether there are relations between changes of economic indicators and the reporting process of research activities for innovative companies in the electronics industry. The research was conducted among 103 companies based in the Czech Republic, which invested in R&D in 2007 – 2013. The comparison was made between companies which invested in the 2007 – 2013 in the annual or occasional R&D. Two subgroups were established and companies in each subgroup were monitored companies according to their size. Spearman’s rank correlation was used to assess if relationships among R&D Expenditure and Operating Revenue were preserved across periods. Two hypotheses were formulated and verified on the basis of statistical data processing of innovative companies. The results showed that innovative companies had the ability to better capitalize on their asset base, and they are better able to cover their needs from their own resources better than other companies of in the electronics industry. Their ability to provide a return on equity varies by according to company size. Innovative companies showed an ability to reach a positive outcome from operating activities. The coefficient of self-financing for SMEs is for SMEs constantly above the industry mean and increases with the length of period of time. This trend was not confirmed for micro-companies and large companies this trend was not confirmed.

The purpose of this paper is to investigate IPO developments across five CEE countries between 2003 and 2012. The purpose of this paper is to investigate IPO developments across five CEE countries between 2003 and 2012. Using a wider range of methods and different data sets we intend to complement the previous research. Applying descriptive statistics, relevant local developments are analysed first before being compared with leading European markets (London Stock Exchange and Deutsche Börse). We also investigated the assumption that a growing market has an explanatory power for the accelerating IPO activity. For this purpose we performed a Spearman correlation analysis. The data were evaluated at the significance level of = 5 %. All CEE capital markets recorded strong dynamism over the observed period. All fundamental capital market parameters increase the attractiveness of individual capital markets, although their values lag behind developed European capital countries. The unambiguous leader in the region is Poland with a flourishing IPO market. Our assumption that a growing market has a positive impact on IPO activities could not be supported by empirical evidence., Cílem článku je zhodnotit vývoj primárních emisí akcií v pěti zemích střední a východní Evropy za období let 2003 až 2012.

The main objective of this study is to indicate the influence of local macroeconomic and capital market factors on the values of IPOs in Poland over the period of 2003 to 2012. Our sample includes 330 local enterprises that conducted an IPO on the Main Market of the Warsaw Stock Exchange after Polish EU accession. The models for which estimation results are presented in this paper reveal that the individual country regression analysis working with untransformed IPO values (Model 1) did not generate significant parameter estimates. On the other hand, a logarithmic transformation of IPO values leads to persistently significant estimates for our regressions. Based on the Model (2) the empirical evidence supported the hypothesis that Polish ten-year government bond yields (indicating the price of competing financing funds) have explanatory power for IPO values. However, our assumption that also other macroeconomic- and capital market indicators have explanatory power for IPO values in the Polish capital market could not be supported by empirical evidence.

IPO (Initial Public Offering) is a complex decision making task which is always associated with different types of uncertainty. Poor accuracies of available probabilities of lotteries e.g. quantification of investor interest is studied in the first part of this paper (Meluzín, Doubravský, Dohnal, 2012). However, IPO is often prohibitively ill-known. This paper takes into consideration the fact that decision makers cannot specify the structure/topology of the relevant decision tree. It means that one IPO task is specified by several (partially) different decision trees which comes from different sources e.g. from different teams of decision makers/experts. A flexible integration of those trees is based on fuzzy logic using the reconciliation (Meluzín, Doubravský, Dohnal, 2012). The developed algorithm is demonstrated by a case study which is presented in details. The IPO case integrates two partially different decision trees., IPO (Initial Public Offering) je složitá rozhodovací úloha, která je vždy spojena s různými druhy nejistoty. Nedostatečná přesnost dostupných pravděpodobností loterií, např. kvantifikace zájmu investorů, je studována v první části této práce (Meluzín, Doubravský, Dohnal, 2012). Nicméně, problematika IPO je obecně málo známa. Tento článek bere v úvahu skutečnost, že osoby s rozhodovací pravomocí mohou stanovit strukturu / topologii příslušného rozhodovacího stromu. To znamená, že jeden úkol IPO je dán několika (částečně) různé rozhodovací stromy, které pochází z různých zdrojů, např z různých týmů s rozhodovací pravomocí / odborníků. Flexibilní integrace těchto stromů je založen na fuzzy logice pomocí smíření (Meluzín, Doubravský, Dohnal, 2012). Vyvinutý algoritmus je ukázán na případové studii, která je detailně prezentována. IPO studie integruje dva částečně rozdílné rozhodovací stromy.

This paper examines determinants influencing the decision to go public by enterprises under the conditions in force on the Polish capital market. The intent of this research required to collect primary data. The sample has been divided into two groups. The first group consisted of the entities that have previously executed an initial public offering (IPO), the second one included the entities that considered doing so in the past or are IPO candidates. The survey results can be summarized as follows. First, raising external capital as a reason for IPO received a strong support from the respondents of both groups of companies. Next, more than 50 % of respondents in each group believe that IPO will have a positive effect on its image and publicity. Most of the respondents also believe that IPO will improve the company valuation, strengthen the management's bargaining position in negotiations with providers of external capital, and increase the attractiveness of the company as an employer. Thirdly, the respondents do not see debt reduction as a reason to go public. Low level of support was given to other reasons, which include withdrawal from the venture capital fund, diversification of the existing shareholders' portfolios, and solution to the succession problem. The results of this survey made it possible to formulate new insights as contributions towards a better understanding of corporate financing strategies under the specific conditions of the CEE region., Článek se zabývá studiem důvodů ovlivňujících rozhodování podniků uskutečnit IPO v podmínkách polského kapitálového trhu. Dosažení výzkumného cíle předpokládalo sběr primárních dat. Výzkumný vzorek podniků je rozdělen do dvou skupin. První z nich zahrnuje podniky, které IPO uskutečnily, druhá pak subjekty, které o IPO v minulosti uvažovaly, případně jsou ve vztahu k prvotní emisi vhodnými kandidáty. Výsledky výzkumu lze shrnout následovně. Zaprvé, získání externího financování je nejvýznamnějším důvodem pro emisi v obou skupinách respondentů. Více než 50 % respondentů rovněž sdílí názor, že IPO bude mít pozitivní efekt na jejich image a publicitu. Zadruhé, většina respondentů rovněž očekává, že IPO zvýší hodnotu podniku, posílí vyjednávací pozici managementu vůči poskytovatelům externího kapitálu a v neposlední řadě pozitivně ovlivní atraktivnost podniku coby zaměstnavatele. Zatřetí, respondenti nespatřují v možném snížení zadluženosti důvod pro uskutečnění IPO. Nízká míra významnosti se dotýká rovněž ostatních důvodů, jakými jsou exit venture kapitálového investora, diverzifikace stávajícího majetkového portfolia akcionářů, nebo řešení problému nástupnictví. Výsledky výzkumu umožňují lépe pochopit strategii podnikového financování ve specifických podmínkách regionu střední a východní Evropy.

The main objective of this study is to indicate the influence of local macroeconomic factors, consequently GDP growth rates, the reference interest rate, industrial production growth rates, Warsaw Stock Exchange Index (WIG) returns and the volume of private equity investments, on the number of initial public offerings (IPOs) in an emerging market, Poland, over the period of 2004 to 2012. Our sample includes 218 local enterprises that conducted an IPO on the Main Market of the Warsaw Stock Exchange. Financial and privatised companies are excluded from the data processing. As follows from the previous studies, the situation in the year preceding the companys initial public offering is crucial. Therefore, we used a model with one-year delay for all the explanatory variables in relation to the dependent variable (i.e. number of new listing). The model estimation was performed with the Ordinary Least Squares method. The main conclusion of our model is that the GDP growth has a significant impact on the number of new issues. This result implies that the business cycle has a direct impact on the IPO activity in the Polish capital market. The next conclusion is that the attractiveness of a capital market for investors measured by annual index returns appears to be an important factor for going public activities. Surprisingly, the model could confirm that other macroeconomic and capital market factors have had no explanatory power for IPO numbers in Poland between 2004 and 2012. El objetivo principal del presente estudio consiste en demostrar la influencia de factores macroeconómicos locales tales como, la tasa de crecimiento del Producto Interior Bruto (PIB), la tasa de interés anual de referencia, la tasa de crecimiento de la producción industrial, el retorno de la inversión del Mercado de Valores de Varsovia (GPW) y el volumen de inversiones de capital privado, en el número de Ofertas Públicas de Venta (OPV) en un Mercado emergente como el de Polonia en el periodo 2004-20, SStudie se zabývá modelováním vlivu makroekonomických faktorů na počet prvotních veřejných nabídek akcií v podmínkách polského kapitálového trhu za období 2004 - 2012. Hlavním výstupem modelu je zjištění, že na počet primárních emisí měly vliv dva externí faktory: míra růstu HDP a výnosnost hlavního akciového indexu WIG. Vliv ostatních do modelu zakomponovaných proměnných byl statisticky nevýznamný.

Dizertační práce se zabývá rozhodováním managementu o použití zisku na výplatu dividend. Hlavním cílem práce je identifikovat faktory, které mají zásadní vliv na rozhodování managementu o použití zisku na dividendy a vytvořit komplexní matematický model pro predikování výplaty dividendy. Jedním z dílčích cílů je zhodnotit současný stav dividendové teorie a přehledným způsobem syntetizovat existující přístupy. K vlastnímu výzkumu jsou použita jak primární data získaná dotazníkovým šetřením, tak sekundárná data získaná z finančních výkazu zkoumaných společností. Na základě toho jsou identifikovány faktory, které mají v podmínkách České republiky zásadní vliv na rozhodování o výplatě dividend a je navržen a validován logistický model. Dále v práci jsou konfrontovány nové poznatky získané v rámci řešení dizertační práce s již provedeným a publikovaným výzkumem jiného autora mezi společnostmi ve stejném odvětví., Doctoral thesis deals with management decisions on using profit to pay dividends. The main aim of the work is to identify factors that have a major influence on management decisions on using profit to pay dividends and to develop a comprehensive mathematical model for predicting the payment of dividends. One of the partial aims is to assess the current state of the dividend theory and to synthesize existing approaches by transparent manner. As primary data obtained from a questionnaire survey and secondary data obtained from the financial statements of surveyed companies are used for the research. Based on that, factors that have in the Czech Republic a major influence on decision to pay a dividend, are identified and the logistic model is developed and validated. New knowledge obtained in the framework of the doctoral thesis is also confronted with other research among companies in the same industry, which has been carried out and published by other author., Ústav ekonomických věd, Disertační práce splnila vytýčený cíl a poskytuje kvalitní základ pro další vědecký výzkum. Navržený model je funkční, přínosem je také rozsáhlá rešerše literatury a provedený výzkum.