European Financial and Accounting Journal, 2019 (vol. 14), issue 2

Articles

Compliance with Disclosure Requirements under IFRS 3 of Companies Trading at Prague Stock Exchange

Taisia Nistorenco

European Financial and Accounting Journal 2019, 14(2):5-26 | DOI: 10.18267/j.efaj.224  

This article analyses compliance with information disclosure requirements under IFRS 3 Business Combinations in 23 companies trading at Prague Stock Exchange. The analysis was performed with the use of publicly available data contained in annual reports of the companies. Beyond quantification of the level of compliance, the research explores which factors affect diligence in following IFRS 3 disclosure requirements, specifically the company size, history of trading on the stock exchange, ownership structure and the acquisition price paid. The literature review also focuses on aspects with a potential to influence the level of diligence in areas of...

Panel Cointegration and Granger Causality Approach to Foreign Direct Investment and Economic Growth in Some Selected Emerging Economies

Aderemi Timothy Ayomitunde, Olayemi Henry Omotayo, Adejumo Akintoye Victor, Yusuff Fatai Abolore

European Financial and Accounting Journal 2019, 14(2):27-42 | DOI: 10.18267/j.efaj.225  

The aim of this study is to investigate the relationship between foreign direct investment and economic growth in seven emerging countries. Past empirical studies have failed to estimate the long run relationship between the variables in these countries, which has created a gap in the literature. Data was collected from the United Nations Conference on Trade and Development and World Bank Indicator from 1990 to 2017, and the Johansen Fisher Panel Cointegration and Pairwise Dumitrescu Hurlin Panel Causality Tests were utilised to address the objective of the study. Consequently, the empirical results show that FDI, GDP per capita, growth rate and economic...

The SER Spread Under the ECB Quantitative Easing

Jakub Jakl

European Financial and Accounting Journal 2019, 14(2):43-70 | DOI: 10.18267/j.efaj.226  

This paper discusses the effects of the ECB's asset purchase programmes (APPs) on the SER spread, while the main focus is given to detail intraday analysis of implementation of the Public Sector Purchase Programme (PSPP). The SER spread is perceived as an important indicator of interbank trust in the Eurozone and its elevated level normally signals distortion and mistrust among commercial banks with a power to spill over into the whole financial sector. Recent development on interbank markets and especially within monetary policy in the Eurozone could have impaired the ability of the SER spread to act as a proxy for global systemic risk. The SER spread...

Forecasting Cross-Section of Stock Returns with Realised Moments

Milan Fičura

European Financial and Accounting Journal 2019, 14(2):71-84 | DOI: 10.18267/j.efaj.227  

The study tests whether realised moments of stock returns (mean, variance, skewness and kurtosis) computed from daily returns over the last month, quarter and year can predict the 1-month cross-sectional stock returns of 40 US-traded liquid stocks in the period 1986-2019. The performed univariate regression analysis confirmed a statistically significant positive effect between all the realised moments, computed over the last quarter and year, and the future 1-month cross-sectional stock returns, while the 1-month realised moments proved to be mostly insignificant. Multivariate analysis, performed with Elastic Net Regression, has confirmed that investment...