Prague Economic Papers, 2021 (roč. 30), číslo 1
ATP Identification Using Balance of Payments Data: Case of the Czech Republic
Jan Pavel, Jana Tepperová
Prague Economic Papers 2021, 30(1):3-19 | DOI: 10.18267/j.pep.757 
Multinational enterprises apply aggressive tax planning (ATP) to optimize global tax liability usually by combining parameters of different tax systems in both national jurisdictions and double tax treaties. At a macroeconomic level, the implementation of various optimization schemes affects the given values of the balance of payments. By conducting econometric analysis, the present paper examines the extent to which selected optimization schemes can be traced in the Czech Republic's balance of payments. The results show that payments for counselling services and royalties flow mostly to locations with low corporate tax rates, which may suggest an...
Does Distribution Growth Affect the Insurers' Asset Allocation in Life Insurance? The Case of Central Europe
Jiří Šindelář, Michal Erben
Prague Economic Papers 2021, 30(1):20-36 | DOI: 10.18267/j.pep.752
This paper deals with the effects of distribution stress and macroeconomic factors on the composition of life insurance investment portfolios on the Central European market. Using a wide array of variables and the VAR model as our main method, we have found that a strong majority of insurers react to external shocks, induced by high levels of contract turnover or positive changes in macro-variables such as GDP and inflation, by strengthening bond components of their portfolio. The exception is connected to interest rates (two-week repo), which presumably have a negative effect on bond investments. Other components such as shares, funds and cash positions...
GHG Emissions Performance: Alternative Accounting Approaches for the European Union
Patricia Milanés-Montero, Esteban Pérez-Calderón, Ana Isabel Dias
Prague Economic Papers 2021, 30(1):37-60 | DOI: 10.18267/j.pep.761
This study provides evidence on the probability of adopting an accounting approach for emission allowances and greenhouse gas emissions as a function of each company's GHG emissions performance. The different accounting treatments adopted by national standard-setters and the lack of specific guidance from the International Accounting Standard Board (IASB) allow identification of the use of multiple accounting approaches. Based on a sample of 85 companies registered with the Portuguese, Spanish, and French National Plans of Allocation, data collected from the annual reports were analysed for the period 2008-2014. The results suggest that the probability...
Why do Some Special Economic Zones Attract More Firms than Others? Panel Data Analysis of Polish Special Economic Zones
Piotr Ciżkowicz, Magda Ciżkowicz-Pękała, Piotr Pękała, Andrzej Rzońca
Prague Economic Papers 2021, 30(1):61-89 | DOI: 10.18267/j.pep.763
Using a unique firm-level data for Polish Special Economic Zones (SEZ) to estimate a set of panel data models we find that both employment and investment growth in SEZ are driven mainly by labour market characteristics of zone-hosting regions, while other factors (including market access, zone business climate and firms' concentration) play a less important role. Firms choose their locations based on labour availability rather than on labour costs. Moreover, they pay particular attention to availability of low-skilled rather than high-skilled labour. As far as tax incentives are concerned, their predictability matters more for SEZ development than...
Does Social Progress Explain the Dividend Payout Decision?
Hanaan Yaseen
Prague Economic Papers 2021, 30(1):90-114 | DOI: 10.18267/j.pep.758
This paper investigates whether national social progress influences dividend payout policy of companies around the world. Using a large database of 12,312 companies from 70 countries, for 7 years (2008-2014), I provide strong evidence that social progress is significant in relation to important corporate decisions on paying dividends. Dividend payout policy is explained by the social progress of the country in which the company is active. Access to higher education, satisfaction of basic human needs, overall wellbeing and opportunities positively influence the dividend payout ratio and the propensity to pay dividends. Moreover, the Social Progress...
Dynamic Herding Behaviour In the US Stock Market
Muhammad Yasir, A. Özlem Önder
Prague Economic Papers 2021, 30(1):115-130 | DOI: 10.18267/j.pep.760
This paper employs a dynamic herding approach that takes herding under different market regimes into account. We use daily data on US stock returns for the S&P 500 ranging from 2006 to 2017. The results of the linear model yield no evidence of herding. However, the findings of switching regression of Bai and Perron (1998) demonstrate evidence of herding during crisis regimes of S&P 500. The alternative approach of Markov switching also supports these findings.