Browsing by Author "Sejkora, František"
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- ItemA NEW LOOK AT BANKRUPTCY MODELS(Technická Univerzita v Liberci, ) Kuběnka, Michal; Čapek, Jan; Sejkora, František; Ekonomická fakultaNew models for bankruptcy prediction are constantly being formulated and tested against the current ones and current ones are tested to assess their current accuracy and to allow users to determine the reliability of the results when using the model. These models use accounting information as input data. Accounting systems, for example, US GAAP, or IFRS, contain rules that may be applied differently from one company to another without being breached. This leads to input data uncertainty. Likewise, uncertainties may arise due to errors in recording and transcribing input data or in translating the values of assets, equity or liabilities in foreign currencies. This research was focused on the effect of entry data uncertainty on models’ ability to accurately predict bankruptcy. The initial assumption was that raising the number of input values would increase the error rate probability in entry data, thus also heightening the uncertainty of the results in the given bankruptcy prediction model. The data set of tested companies contained 1,220 non-bankrupt and 285 bankrupt Czech companies. The tested models – Z’ score, Model 1, and Ycz – were applied to this sample, and in all cases, the resulting accuracy was lower than the accuracy declared by their authors. A procedure was created for the inclusion of entry data uncertainty in the practical application of a model. This procedure consists of changing the limit value of the model that separates bankrupt and non-bankrupt companies to an interval that “absorbs” such uncertainties. The model cannot classify the companies in this interval. The research shows that the inclusion of uncertainties in entry data further reduces their accuracy. However, the reduction in accuracy between the individual models varies significantly from 2.2% to 39.4% for bankrupt companies, and from 3.5% to 91.8% for non-bankrupt companies, respectively. The analysis of the entry data uncertainty effect shows the need to create models with high precision and minimum of input values because the model error rate grows the higher their number. The findings of this research can be applied in the creation of new models for predicting bankruptcy not only in the Central Europe but globally.
- ItemThe position of management of Czech joint-stock companies on dividend policy(Technická Univerzita v Liberci, ) Duspiva, Pavel; Sejkora, František; Ekonomická fakultaThe concept of distributing economic results belongs unequivocally among management’s basic financial decisions. Dividend payout to shareholders can be considered to be the distribution of economic results while fulfi lling legal conditions. The goal of this article is to identify factors that have a fundamental infl uence on dividend payout and to further determine and evaluate the position of management on dividend theories. This problematic is current for the conditions of Czech joint-stock companies, because deeper studies in this area are not available for recent years. Nevertheless, currently, the greater majority of joint-stock companies now regularly pay dividends, and dividend policy has become a part of their fi nancial policy that is impossible to overlook. With regards to the fact that profi t is the necessary condition for dividend payout, research was aimed at the sector, “Production and Distribution of Electricity, Gas and Water,” which is most interesting among Czech joint-stock companies from the perspective of profi tability and frequency of dividend payout. For the reasons of quantitative research, a two-part questionnaire was created for workers in financial management – specifi cally, members of the executive board, who are assumed to have comprehensive knowledge and an overview of the company. The survey showed that the most important factors for management when making decisions concerning dividend payout are the following: the requirements of existing shareholders, access to funds, the actual amount of profit and maintaining the target state of debt. Further resultsconfirmed that dividend policy does infl uence fi rm value. However, dividends are not supported as a tool for lowering information asymmetry and agency costs between management and shareholders. This conclusion can becaused by ownership structure when the fi rms investigated are characterized by high concentration of ownership; then, one shareholder is able to better protect the other shareholders against the implementation of management’s interests.