Prague Economic Papers, 2024 (roč. 33), číslo 6
The Second RP-PCA Factor and Crude Oil Price Predictability
Qi Shi
Prague Economic Papers 2024, 33(6):662-690 | DOI: 10.18267/j.pep.879 
Although it is notoriously difficult to utilize financial ratios to forecast the crude oil market prices, our study challenges this perception and reveals that the second risk premium principal component analysis (RP-PCA) factor may contain statistically significant information for both in-sample and out-of-sample forecasts of future crude oil prices. Our evidence illustrates that the second RP-PCA factor substantially outperforms many other popular predictors (approximately 30 conventional predictors) in forecasting crude oil prices and generating adequate higher values of economic profits. We conduct a range of informative tests, including bootstrap...
The Impact of Deferred Tax on the Purchase Prices in Czech Real Estate Transactions
Tomáš Podškubka, Barbora Rýdlová
Prague Economic Papers 2024, 33(6):691-708 | DOI: 10.18267/j.pep.883
The study examines the deferred tax in the valuation and acquisition of real estate companies, the behavior of the buyers and sellers in real estate transactions and the impact on the purchase price. We analyze the data from the Czech Republic commercial real estate market in the period of 2018-2019 where taxation provisions for Asset and Share Deal transactions induce a special type of a deferred tax - a latent capital gains tax (LCGT). Based on the data of 25 Share Deal real estate transactions we bring evidence that the LCGT was reflected in the purchase price by 0-50%, median value being 0%. We document that this market-imported percentage can...
Oil Price Implications for the Petroleum and Pharmaceutical Industry: the Quantile Regression Approach
Sanja Bakić
Prague Economic Papers 2024, 33(6):709-730 | DOI: 10.18267/j.pep.878
In the study, quantile regression (QR) is employed as the primary research tool, with ordinary least squares (OLS) regression used for comparison purposes. The motivation for this research stems from conflicting findings in existing literature regarding the spillover effects of Brent crude oil prices for the pharmaceutical industry. Findings from the QR analysis indicate that more substantial spillover effects occur in the tail quantiles, specifically during periods of economic crisis and prosperity. Recommendations for future research should focus on gaining a deeper understanding of the mechanisms underlying the differential responses of oil and...
The Conspicuous Consumption Phenomenon in Saudi Arabia
Alotaibi Mohamed Meteb
Prague Economic Papers 2024, 33(6):731-763 | DOI: 10.18267/j.pep.881
With Saudi Arabia's tendency to implement a policy of economic openness to the world from the early 1980s, the phenomenon of conspicuous consumption (society of consumption and imitation) has increased. Due to the adoption of the concepts of economic globalization, changing consumption patterns, tourism and travelling and the spread of multi-national companies which market and promote their products over different mass media, this phenomenon has remarkably gone up. Over time, the effects of this phenomenon have spread to low-income groups, especially young people, and it has been a motive for some young people to earn money illegally to afford it....
IPO Listing Review and Corporate Tax Avoidance: Evidence from the Sci-Tech Innovation Board in China
Xiaohong Yu, Maonan Chen, Yujun Wu, Dinglun Wang
Prague Economic Papers 2024, 33(6):764-800 | DOI: 10.18267/j.pep.882
IPO listing review via comment letters is an important mechanism to improve the quality of listed firms, while its impact on corporate post-listing behaviors is not clear. Using China's Sci-Tech Innovation Board (STAR market) listed firms, this paper examines the impact of IPO listing review on corporate post-listing tax avoidance behavior. The empirical tests show that the increase of listing review intensity is significantly associated with lower corporate tax avoidance activities of firms after listing. Using textual analysis methods and mediating analysis, this study finds that the decrease effect of listing review on corporate tax avoidance activities...