Table Of ContentSpringer Proceedings in Business and Economics
David Procházka Editor
Global Versus
Local Perspectives
on Finance and
Accounting
19th Annual Conference on Finance and
Accounting (ACFA 2018)
Springer Proceedings in Business and Economics
More information about this series at http://www.springer.com/series/11960
á
David Proch zka
Editor
Global Versus Local
Perspectives on Finance
and Accounting
19th Annual Conference on Finance
and Accounting (ACFA 2018)
123
Editor
DavidProcházka
Faculty of Financeand Accounting
University of Economics, Prague
Prague,Czech Republic
ISSN 2198-7246 ISSN 2198-7254 (electronic)
SpringerProceedings in Business andEconomics
ISBN978-3-030-11850-1 ISBN978-3-030-11851-8 (eBook)
https://doi.org/10.1007/978-3-030-11851-8
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Contents
The Negative Interest Rates: Evidence from Bulgaria . . . . . . . . . . . . . . 1
Svilen Kolev
Hedge Accounting During the Negative Interest Rate Environment
by Insurance Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Zdeněk Rybák
Basel III Capital Requirements and Constraint of Credit Supply
in Open Transition Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Naďa Blahová and Karel Brůna
Analysis of India Outbound FDI Determinants Using Gravity
Model Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
Zoha Asghar and Pankaj Kumar Gupta
Problems of the Banking System of the Russian Federation
in Modern Conditions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55
Olesya Kukharenko and Aliya Gizyatova
Financial Resources Governance of Ukraine: Identification
of Opportunities and Conditions for Improvement . . . . . . . . . . . . . . . . 63
Iryna Danyliuk-Chernykh, Vira Vartsaba, Victor Petrenko
and Zoriana Matsuk
An Examination of the Debt of the General Government
with the Panel Model in the V4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 73
Marianna Sávai
Diversification of Banking Activity and Its Importance
in Building Financial Stability . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79
Renata Karkowska
v
vi Contents
Individual Savings Accounts in Poland—Why Governments Didn’t
Nudge People to Make Savings Enough Strong? . . . . . . . . . . . . . . . . . . 89
Agnieszka Jachowicz
Mentality Dimension of the Securities Market in Ukraine . . . . . . . . . . . 101
Zoriana Matsuk, Iryna Danyliuk-Chernykh and Valeriya Lakshina
Harmony, Hierarchy and Dividend Policy Around the World . . . . . . . . 115
Hanaan Yaseen and Victor Dragotă
Dividend Policy Explained by Country’s Standards of Living:
An International Evidence . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125
Hanaan Yaseen
Prediction of Bankruptcy in Georgian Enterprises. . . . . . . . . . . . . . . . . 135
Aleksandre Petriashvili
Evaluation of the Impact of Credit Rating Agencies Decisions
on the Market of Treasury Debt Securities . . . . . . . . . . . . . . . . . . . . . . 143
Anna Szelągowska and Piotr Staszkiewicz
Does the Shadow Economy Kuznets Curve Exist
for Russian Regions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 153
Anna Kireenko, Ekaterina Nevzorova and Denis Alekseev
Dynamics and Structural Development of Healthcare Expenditures
in the Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 167
Eva Gajdošová
Capital Structure Models: Adjustments for Nonpublic Traded
Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 177
Lucie Poulová
Review of Models of Transitory Earnings . . . . . . . . . . . . . . . . . . . . . . . 187
Tomáš Buus
Materiality in Financial Accounting—Theory and Practice . . . . . . . . . . 199
Mariusz Karwowski
Influence of Representation of Mezzanine Capital on the Rule
of True and Fair View . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 211
Artur Jastrzębowski and Marek Wierzbiński
Is Bitcoin a Currency or an Investment? An IFRS View. . . . . . . . . . . . 217
David Procházka
Human Resource Accounting: The Football Sector . . . . . . . . . . . . . . . . 227
Martin Kučera
Contents vii
Emission Rights Reporting by Czech Companies. . . . . . . . . . . . . . . . . . 239
Ondřej Buben
Investigation of Global Production Network via Network Analysis . . . . 249
Semanur Soyyiğit and Kıymet Yavuzaslan
An Analysis of the Influence of Mergers on the Economic Situation
of a Successor Company in the Finance and the Insurance Sectors . . . . 265
Petr Mikyska and Jana Skálová
Solvency Position of Insurers on Czech Market
at Day-One Reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279
Pavel Wünsch
Nonfinancial Information in Small- and Medium-Sized Companies’
Annual Reports: Evidence from the Czech Republic . . . . . . . . . . . . . . . 289
Marcela Žárová
Financial Reporting on Impairment of NonCash-Generating Assets
by Public Sector. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 297
Marianna Kicová
Valuation of Plant Biological Assets on the Example of Rapeseed . . . . . 307
Dawid Obrzeżgiewicz
“Leading by Example”—Are State-Owned Enterprises Leaders
of Corporate Social Responsibility? Evidence from Poland . . . . . . . . . . 319
Anna Doś
The Concept of the Balanced Scorecard Implementation
for the Polish City of Olsztyn. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 329
Malgorzata Siemionek-Ruskan
History of Budget Development According to the People Responsible
for Budget Planning in Poland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 341
Anna Siemionek and Michal Chalastra
Reorganization in the Czech Republic . . . . . . . . . . . . . . . . . . . . . . . . . . 351
Jan Hospodka
Earn-Outs: Mitigating Risk and Bridging Value Expectations
in M&A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
Taisia Nistorenco
Real Estate Valuations and Contributions to the Economy
in Turkey . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373
Celal Biçakci and Güler Yalçin
viii Contents
Consequences of the Arbitrage Dichotomy of Capital Allocation
for the Construction of Opportunity Cost of Equity in Private
Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379
Romana Čižinská and Tomáš Krabec
Expertise Fee Appreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 387
Celal Biçakci and Güler Yalçin
Gamification in Management Education. . . . . . . . . . . . . . . . . . . . . . . . . 395
David Anthony Procházka
The Negative Interest Rates: Evidence
from Bulgaria
SvilenKolev
Abstract Thepaperexaminesinitialeffectsfromthenegativeinterestrateonthe
excess reserves of the banks in Bulgaria implemented by the Bulgarian National
Bankinthebeginningof2016.Theresearchcoverstheeffectsontheinterestrates
on the interbank money market and briefly discusses the liquidity management in
thebankingsystembytransformingbanks’cashequivalentsinothertypesofassets
(financial instruments, loans, for example). Conclusions and proposals are made,
concerningthemeaningofthenegativeinterestrateforthechangeandthedynamics
oftheinterestratesondepositsandloansandtheprofitabilityofthebanksinBulgaria.
· ·
Keywords Monetarypolicy Unconventionalmonetarypolicy Negativeinterest
rates
1 Introduction
The main consequence of the sharp slowdown of the economic activity due to the
globalfinancialcrisiswastheradicalchangeinthemonetarypolicyconductedby
theleadingcentralbanks—theUSFederalReserve,BankofEngland,BankofJapan
(BoJ) and the European Central Bank (ECB). Due to the sharp fall in production
and the risk of prolong period with low inflation the four central banks made an
aggressivedecreaseoftheirkeyinterestratesthoughnotsimultaneously.Although
thecontrolofthelevelsofthekeyinterestratesisaconventionalmonetarypolicy
tool,thereductionofthekeyinterestratestozeroandeventonegativenominallevels
isanunconventionalmonetarypolicyinstrument.Thus,inpractice,thecentralbanks
lostoneoftheirtraditionalmonetarypolicyinstruments.
Between mid-2014 and early 2015 four central banks in Europe have lowered
theirkeyinterestratesbelowzero(KolevandTrifonova2016).TheECBreducedthe
B
S.Kolev( )
DepartmentofFinance,FinanceandAccountancyFaculty,UniversityofNationalandWorld
Economy,StudentskiGrad“Hr.Botev”,8DecemberStreet,1700Sofia,Bulgaria
e-mail:[email protected]
©SpringerNatureSwitzerlandAG2019 1
D.Procházka(ed.),GlobalVersusLocalPerspectivesonFinance
andAccounting,SpringerProceedingsinBusinessandEconomics,
https://doi.org/10.1007/978-3-030-11851-8_1
2 S.Kolev
interestrateonthedepositfacilityto−0.10%onJune112014andsubsequentlyto−
0.20%(September10,2014),−0.30%(December9,2015)andto−0.40%(March
16, 2016). The National Bank of Denmark changed the interest rate on deposit
certificates on September 5, 2014, from +0.05 to −0.05%. For a short period of
time—frommid-2012toApril2014,theNationalBankofDenmarkalsomaintained
negativeinterestratesonthedepositcertificates.InanattempttoprotecttheSwiss
francagainstappreciationonthe18thofDecember2014theSwissNationalBank
alsoannouncedtheintroductionofanegativeinterestrateonthebankdepositswith
thecentralbankaboveacertainlimitwithdirectapplicationfromJanuary15,2015.
Subsequently,onFebruary18,2015,theBankofSwedenlowereditsbaserateon
therepooperationsto−0.10%,afterithadimplementednegativeinterestratesfrom
theperiodfrom2009until2010,inlinewithitspolicyformaintaininganinterest
corridor(JobstandLin2016).
After mid-2015 and in 2016 more central banks in Europe introduced negative
interest rates. On September 24, 2015, the Central Bank of Norway introduced a
negativeinterestrateonbankdepositsatthecentralbankof−0.25%.OnMarch23,
2016,theCentralBankofHungaryimposedanegativedepositrateof−0.05%with
themainobjectiveformaintainingthepricestabilityandcounteringwithexchange
rate pressures. As of July 1, 2016, the Central Bank of Bosnia and Herzegovina
implemented a negative deposit rate of 0.20% with the main objective to transmit
theECB’smonetarypolicystanceandtoavoidpotentiallosses.Also,Japanbecame
thefirstAsiancountrywhosecentralbankintroducedanegativeinterestrate.Onthe
29thofJanuary2016theBoJannouncedtheimplementationofanegativeinterest
rateof−0.10%(BoJ2016).
Onthe26thofNovember2015theBulgarianNationalBank(theCentralbankof
Bulgaria,BNB)GoverningCounciladoptednewOrdinance№21ontheMinimum
RequiredReservesMaintainedwiththeBulgarianNationalBankbyBanks,effective
asof4thofJanuary2016(BNB2016a).Thenewordinanceintroducedanegative
interestrateonbanks’excessreserveswhenthedepositfacilityoftheECBisnegative
andazerointerestratewhentherateoftheECB’sdepositfacilityispositiveorzero.
One of the main aims was the ECB’s monetary policy stance to be transmitted in
Bulgaria. The other was the desire of the BNB to avoid potential losses since it
alreadyinvestedinhigh-qualitygovernmentbondsbearingnegativeyields.Initially,
theratewas−0.30%beforetheBNBlowereditto−0.40%aftertheECB’saction
inMarch2016andthereafter—to−0.60%asofOctober1,2017,butafteritsown
discretionalthoughtheECB’sdepositfacilitywasstill−0.40%.
The negative interest rate on banks’ excess reserves, which the BNB adopted
from the 4th of January 2016 led to a drop of their total reserves and to an initial
sharpdropoftheirexcessreserves,toamoreintensiveliquiditymanagementthrough
currencyexchangewiththecentralbankandtoatransformationofcashequivalents.
Because of the negative interest rate the reference rates on the interbank money
market in Bulgaria, which form the basis of the interest rate levels on loans and
deposits, also dropped below zero for the first time. For example, as of 15th of
February2018allmaturitiesoftheSOFIBID(SofiaInterbankBidRate)reference
rate(fromovernightto12months)werenegative.ThematuritiesoftheSOFIBOR
