scholarly journals DETECTING EARNINGS MANAGEMENT INVESTIGATION ON DIFFERENT MODELS MEASURING EARNINGS MANAGEMENT FOR EMERGING EASTERN EUROPEAN COUNTRIES

2017 ◽  
Vol 5 (11) ◽  
pp. 222-259
Author(s):  
Susana Callao ◽  
José I. Jarne ◽  
David Wróblewski
Keyword(s):  
Time Series ◽  
Earnings Management ◽  
European Countries ◽  
Economic Environment ◽  
Eastern European ◽  
Cross Sectional ◽  
The Czech Republic ◽  
Wide Range ◽  
Eastern European Countries ◽  
Post Communism

Earnings management has received considerable attention as numerous papers were investigated different hypotheses. However, there is still no consensus on how efficiently detect and measure earnings managements. Nevertheless, most authors use methodology based on accruals, sophisticated models that attempt to separate total accruals into discretionary and nondiscretionary components. We may find wide range of use of alternative models to measure earnings management. Nevertheless, the researchers typically used five the most popular models: the Jones (1991) model, the modified Jones model (Dechow, Sloan, and Sweeney, 1995), Teoh, Welch and Wong (1998) model, Kasznik (1999) model and Kothari et al. (2005) model. However, it is confirmed that the environment where the company is operating influences on the earnings management. Therefore, we focus our study on the growing market of the developing European countries. In particular, our analysis comprises four different and independent samples from emerging Eastern European countries: Poland, Hungary, Slovakia and the Czech Republic, since earnings management in Eastern European countries is still barely explored. Consequently, our objective is to evaluate the ability of the existing models on earnings management for the environment of countries from the East of Europe. Our results confirm that the Jones (1991), Shivakumar (1996), Kasznik (1999) and Yoon and Miller model (2002) offers the most reliable results for detecting earnings management in emerging Eastern European post-communism economic environment. Additionally, based on broad analyses the results indicate that there is no superiority of the cross-sectional models vis-à-vis their time-series counterparts. Both methodologies are consistent in detecting earnings management for Eastern European companies. Therefore, we verified the importance of the previous evaluation of the ability of each model for detecting earnings management before its application. It is because each economic environment has different peculiarities and circumstances, as observed in case of our developing European countries.

scholarly journals Do the burst of financial crisis and European Union membership impact Earnings Management. Evidence from emerging Eastern European countries

2020 ◽  
Vol 25 (4) ◽  
pp. 608-647
Author(s):  
Susana Callao ◽  
José I. Jarne ◽  
David Wroblewski
Keyword(s):  
European Union ◽  
Financial Crisis ◽  
Earnings Management ◽  
Global Financial Crisis ◽  
European Countries ◽  
Eastern European ◽  
The European Union ◽  
The Czech Republic ◽  
Factors Influencing ◽  
Eastern European Countries

The paper studies earnings management in developing European countries. We investigated if membership in the European Union and the recent global financial crisis affected the decisions of managers in Eastern European countries to engage in earnings management. By analyzing a sample of 4,627 firms from four developing Eastern European countries (the Czech Republic, Poland, Hungary, and Slovakia) over the period of 2002-2009, our findings suggest there was a decrease in earnings management over the period leading up to the accession of these countries to the European Union. Additionally, we found that there was an increase in earnings management after the burst of the financial crisis. The results contribute to the debate in the accounting literature regarding the variations in earnings management related to the changes in environmental factors influencing companies. These results have several implications for standard setters and regulators; in particular, companies’ incentives are strongly influenced by the general conditions and circumstance of their home countries. Additionally, the study explores the still unexplored developing markets of Eastern European countries.

A Mistrustful Society?

2020 ◽  
Vol 10 (2) ◽  
pp. 52-71
Author(s):  
Nicole Horáková
Keyword(s):  
Czech Republic ◽  
Empirical Data ◽  
European Countries ◽  
Eastern European ◽  
The Czech Republic ◽  
State Institutions ◽  
Government Institutions ◽  
European Values ◽  
European Values Study ◽  
Eastern European Countries

The level of trust in politicians also in government institutions is taken as an indicator of the state of society in general. Various studies have shown that the population of the Central Eastern European countries, and especially the citizens of the Czech Republic, lack trust in state institutions and democratic structures. The trust of the Czech population in government institutions is, compared to other (Western) European countries, at a relatively low level. This article aims to discuss different factors that are currently influencing this lack of trust: the historical, cultural, and institutional. The empirical data for this article is based on the European Values Study and Czech surveys of public opinion concerning trust in government institutions.

scholarly journals Susceptibility to smoking and associated factors among the youth in central and eastern European countries. 

2021 ◽  
Author(s):  
Kinga Polanska ◽  
Malgorzata Znyk ◽  
Dorota Kaleta
Keyword(s):  
Czech Republic ◽  
Young People ◽  
Passive Smoking ◽  
Smoking Initiation ◽  
European Countries ◽  
Eastern European ◽  
The Czech Republic ◽  
Susceptibility To Smoking ◽  
Eastern European Countries ◽  
Smoking Susceptibility

Abstract Background Tobacco use among young people still remains a major public health problem. The aim of this study was to examine the association between a variety of factors and susceptibility to smoking initiation and experimentation among the youth from central and eastern European countries. Methods The data used in the current analysis, focusing on current non-smokers, is available from the Global Youth Tobacco Survey, which was performed in five countries (the Czech Republic (2016), n = 3191; Slovakia (2016), n = 3178; Slovenia (2017), n = 2255; Romania (2017), n = 4681; Lithuania (2018), n = 2260). Results Among the never smokers, nearly a quarter of the students were susceptible to smoking in 4 of 5 countries (16% of those susceptible to smoking were identified in Romania). Moreover, 60% of the students in the Czech Republic, Slovakia and Slovenia, and about 50% of the students in Lithuania and Romania were found to be vulnerable to smoking experimentation (an analysis among ever smokers). The multiple regression models provided results that are consistent among all the examined countries, with the following factors identified as significant correlates of smoking initiation and experimentation: being girls, having more money available for own expenses, experiencing exposure to passive smoking in public places, as well as indicating peer smoking. Moreover, adolescents who have declared lack of antismoking education and knowledge on harmful effects of passive smoking, those who saw people using tobacco on TV, in videos or in movies as well as advertising of tobacco products at point of sales were susceptible to smoking. Finally, the students who shared an opinion that smoking helped people feel more comfortable at celebrations, parties or in other social gatherings were at higher risk of smoking susceptibility. Conclusions A high proportion of the youth from central and eastern European countries is susceptible to smoking. Personal and social factors and those related to educational and policy issues were strongly and consistently correlated with smoking susceptibility. These factors should be considered when designing and implementing anti-smoking activities among young people.

scholarly journals “Non-Union State”: the Republic of Belarus in the memory wars of Eastern Europe

2021 ◽  
pp. 66-84
Author(s):  
Andrei Aleksandrovich Linchenko
Keyword(s):  
Eastern Europe ◽  
European Countries ◽  
Political Regime ◽  
Eastern European ◽  
Non Union ◽  
The Difference ◽  
The Republic ◽  
Eastern European Countries ◽  
Post Communism ◽  
Methodological Aspects

The subject of this research is the position of Belarus in the memory wars of Russia and Eastern European countries of the two recent decades. Based on P. Bourdieu’s theory of symbolic power, as well as comparative analysis of the key stages of the historical politics of Russia and Belarus as the members of the Union State, the author explores the causes and peculiarities of electoral neutrality of Belarus in the memory wars of Russia and Eastern European countries. Analysis is conducted on the theoretical-methodological aspects of the concept of “memory wars”. Content analysis of the relevant research reveals the specificity of the Belarusian case with regards to correlation between domestic and foreign historical politics. The specificity of the forms of post-Communism that have established in Russia and Belarus, the difference in the pace of historical politics of the last three decades, as well as the evolution of the political regime of Alexander Lukashenko contributed to the formation of peculiar position of the Republic of Belarus in the memory confrontation between Russia and its Eastern European neighbors. The internal manifestation of such position was the desire to displace the conflicts between memory communities in the republic, the movement of memory to the periphery of cultural-information space, while the external manifestation was strive for electoral neutrality (memory isolationism) in the memory wars in Eastern Europe. Such position is aimed not so much at supporting Russia’s memory initiatives, but at solving the relevant political and economic challenges, using historical politics as the instrument for promoting the own interests.

scholarly journals The CEECs in global value chains: The role of Germany

2018 ◽  
Vol 68 (1) ◽  
pp. 1-29 ◽  
Author(s):  
Łukasz Ambroziak
Keyword(s):  
Value Added ◽  
Global Value Chains ◽  
European Countries ◽  
Value Chains ◽  
Eastern European ◽  
The Czech Republic ◽  
Eastern European Countries ◽  
Fragmentation Of Production ◽  
Backward Linkages

This paper aims to present the role of Germany in the global value chains (GVCs) of 10 Central and Eastern European countries (CEECs) in 1995–2011. GVCs, being a result of the fragmentation of production processes, have changed the nature of economic globalisation. The study covers five Central European countries (CECs) (the Czech Republic, Hungary, Poland, Slovakia and Slovenia), the three Baltic States (Estonia, Lithuania and Latvia) as well as Bulgaria and Romania. Germany is chosen because it is the main trading partner of the majority of the CEECs. The illustration of the position of Germany in GVCs of the CEECs is based on trade statistics in value added terms. The research results show that Germany has become an engine of increasing integration of the CECs in the GVCs. The role of Germany as a supplier of inputs to the CECs’ exports (backward linkages) is larger than its role as an exporter of value added originating from the CECs (forward linkages).

scholarly journals Exchange Rate Volatility, Currency Misalignment, and Risk of Recession in the Central and Eastern European Countries

Risks ◽  
2021 ◽  
Vol 9 (5) ◽  
pp. 82
Author(s):  
Victor Shevchuk ◽  
Roman Kopych
Keyword(s):  
Exchange Rate ◽  
Czech Republic ◽  
Economic Freedom ◽  
Exchange Rate Volatility ◽  
European Countries ◽  
Eastern European ◽  
The Czech Republic ◽  
Heritage Foundation ◽  
The Business Cycle ◽  
Eastern European Countries

This study is aimed at estimation of the exchange rate volatility and its impact on the business cycle fluctuations in four central and eastern European countries (the Czech Republic, Hungary, Poland, and Romania). Exchange rate volatility is estimated with the EGARCH(1,1) model. It is found that exchange rate volatility is affected by the components of the Index of Economic Freedom from the Heritage Foundation, besides inflation and crisis developments. The empirical results using GMM estimation technique and comprehensive robustness checks suggest that exchange rate volatility reduces the risk of recession in the Czech Republic while the opposite effect is found for Hungary and Romania, with a neutrality for Poland. These findings continue to hold after controlling for the fiscal and monetary policy indicators. There is evidence that the RER undervaluation prevents sliding into a recession on a credible basis in Poland only, with a neutral stance for other countries. Except in Romania, higher levels of economic freedom is associated with worsening of the cyclical position of output. Among other results, stabilization policies in the recession imply fiscal tightening for the Czech Republic and Romania, higher money supply for the Czech Republic and Poland, and lower central bank reference rate for Hungary.

scholarly journals Does politics matter in the conduct of fiscal policy? Political determinants of the fiscal sustainability: Evidence from seven individual Central and Eastern European countries (CEEC)

2007 ◽  
Vol 54 (4) ◽  
pp. 489-500 ◽  
Author(s):  
Srdjan Redzepagic ◽  
Matthieu Llorca
Keyword(s):  
Czech Republic ◽  
Fiscal Policy ◽  
Ordinary Least Squares ◽  
Fiscal Sustainability ◽  
European Countries ◽  
Eastern European ◽  
The Czech Republic ◽  
Baltic Countries ◽  
Political Determinants ◽  
Eastern European Countries

This paper aims at assessing the fiscal sustainability and its political determinants in seven Central and Eastern European Countries (CEEC), namely Estonia, Latvia, Lithuania, Poland, Slovenia, Slovakia and the Czech Republic. First, using the recent sustainability approach of Bohn (1998) based on fiscal reaction function, econometric findings using Ordinary Least Squares (OLS) reveal a positive response of the primary surplus to changes in debt in several countries. In other words, fiscal policy is sustainable in Baltic countries, Slovenia and Slovakia, but not in Poland and in the Czech Republic. Second, by introducing political dummy variables, we test the electoral budget cycle and the partisan cycle theories. We find the presence of electoral and partisan cycle in Poland but not in the rest of our countries.

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