Classical single-factor comparable company valuation (CCV) like e.g. valuation using the price-earnings ratio is associated with several shortcomings. The two most important are the non-applicability of negative values in the basis of reference and the high requirements to the qualitative...

Starting from the Merton framework for firm defaults, we provide the analytics and robustness of the relationship between default correlations. We show that loans with higher default probabilities will not only have higher variances but also higher correlations between loans. As a consequence,...

In this paper we have developed a financial model of the non-life insurer to provide assistance for the management of the insurance company in making decisions on product, investment and reinsurance mix. The model is based on portfolio theory and recognizes the stochastic nature of and the...

In this paper, I extend the results of Moskowitz and Vissing-Jørgensen (2002) on the returns to entrepreneurial investments in the United States. First, following the authors' methodology I replicate the original findings from the Survey of Consumer Finances (SCF) for the period 1989 - 1998 and...

Dieser Beitrag formuliert Kalküle für Investitionsentscheidungen von Personenunternehmen unter Berücksichtigung der neu geschaffenen Option zur Begünstigung nicht entnommener Gewinne (§ 34a EStG n.F.). Im Kalkül unter Sicherheit besteht die optimale Alternativanlage immer in der abgeltend...

Managers would like to understand which strategies generate value in e-commerce environments, and researchers are just beginning to explore this issue. Which strategies are useful and which are not? In a step towards answering this question, we estimate the impacts of several competitive...

This paper presents the problem of working capital management, profitability and risk represented by working capital strategy. According to the theory the more working capital is engaged in the company resulting in higher liquidity the lower the profitability and risk connected to the liquidity....

We respond to recent failed initiatives of the Czech banking market to develop business models for the sale of retail deposit products, based on third-party distribution channels. We argue that the issue is the application of inappropriate capital budgeting methods. While static cost-benefit...

Investment trajectories of new enterprises are a largely neglected but important issue of new firms' business behavior. This paper debuts in showing robust evidence of new venture investment time patterns by using investment time series of 4.733 new businesses. Based on a fixed effects nonlinear...

The paper deals with payment discipline in the building industry in the Czech Republic. The aim of this paper is to identify, compare and evaluate the financial situation of building companies with different payment practices in the Czech Republic in the period 2010 - 2014. The paper uses...