Prague Economic Papers, 2023 (roč. 32), číslo 1
Impact of Financial Market Development, Financial Crises and Deposit Insurance on Bank Risk
Yiming Chang, Xiangyuan Yu, Wei Shan, Fang Wang, Yinying Tao
Prague Economic Papers 2023, 32(1):1-25 | DOI: 10.18267/j.pep.820 
This paper examines the impact of financial market development, financial crises and deposit insurance on bank risk based on macro data of 86 countries during the period 1998-2014. The results show that banking sector development and stock market development have opposing effects on bank risk measured as bank non-performing loan ratio. The introduction of an explicit deposit insurance system plays a significant role in reducing banks’ risk. However, the bank market development after the introduction of this system also increases banks’ risk. The impact of financial market development and deposit insurance system on banks’ risk was...
Do Environmental Taxes Improve Environmental Quality? Evidence from OECD Countries
Markéta Arltová, Julia Kot
Prague Economic Papers 2023, 32(1):26-44 | DOI: 10.18267/j.pep.821
This article investigates the relationship between environmentally related taxes introduced in OECD countries and air pollution, represented by carbon dioxide and greenhouse gas emission levels in the atmosphere. The article makes a statistical analysis of data on environmental taxes, specifically energy and transport taxes, and other variables that might affect air quality in the OECD member countries. The ARDL model used on the panel data of all OECD member countries shows statistical significance in only one out of five models. A subsequent comparative analysis of the reduced sample of OECD countries that are members of the EU exhibits a statistically...
Institutional Investors' Response to Earnings Management Before Initial Public Offering in Poland
Elżbieta Bukalska, Tomasz Sosnowski, Anna Wawryszuk-Misztal
Prague Economic Papers 2023, 32(1):45-60 | DOI: 10.18267/j.pep.819
The aim of the paper is to analyse the association between the use of accrual-based and real earnings management practices before the company goes public and the decision of institutional investors on buying or refraining from buying shares offered in initial public offering (IPO). The sample consists of 258 Polish new stock companies over the period 2005-2020. We find that such companies refrain from massive earnings management in the pre-IPO period: both real and accrual-based. However, we find evidence that the presence of institutional investors in the IPO is related to earnings inflation (selling, general and administrative expenses). Our study...
Estimating Bohn's Fiscal Sustainability Model with Temporal Variation: Evidence from Turkey
Cansin Kemal Can
Prague Economic Papers 2023, 32(1):61-83 | DOI: 10.18267/j.pep.822
This study aims to estimate a dynamic fiscal reaction function in a state-space setting to obtain time-varying reaction parameters for appraising the evolution of public debt sustainability in Turkey. The data set used for estimation is the longest for Turkey in the literature. Succinctly speaking, this function quantifies the corrective fiscal efforts exerted to preserve the stability of public debt. The time-varying estimation findings in this study suggest that the recent fiscal history of Turkey can be divided into two subperiods in terms of fiscal stability. Before the mid-1990s, no systematic fiscal response existed to restore the...
Are the Effects of Opening New Mass Rapid Transit Segments in Taiwan on Nearby Housing Prices Positive?
Ming-Te Lee, Ming-Long Lee, Ya-Ting Cheng
Prague Economic Papers 2023, 32(1):84-106 | DOI: 10.18267/j.pep.823
This study evaluates the effects of opening new segments of mass rapid transit (MRT) lines on housing prices near the MRT stations in Tucheng District and Xinzhuang District, New Taipei City, Taiwan. The effect of proximity to each MRT station is estimated separately with difference-in-differences regressions integrated with spatial econometrics with heteroscedasticity-robust standard errors. The opening of the new segment of the Blue Line, also known as Bannan Line of the Taipei Metro, does not significantly influence housing prices within 600-metre road network distance of the MRT stations, compared to prices outside the distance range. In contrast,...