The Development of Capital Markets of New EU Countries in the IFRS Era

Procházka, David; Pelák, Jiří

doi:10.1016/s2212-5671(15)00720-0

Cited by 13 publications

(8 citation statements)

References 26 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Romania, almost regardless of the issues studied, is generally referred to as emerging country (Hall et al 2014;Procházka and Pelák 2015). This determines the interest in understanding what an emerging country means.…”

Section: Specific Figures For Developing Countries-grounds For Romanimentioning

confidence: 99%

The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies

Nenu

Vintilă

Gherghina

2018

IJFS

View full text Add to dashboard Cite

This paper analyzes the evolution of the main theories regarding the capital structure and the related impact on risk and corporate performance. The capital structure is a dynamic process that changes over time, depending on the variables that influence the overall evolution of the economy, a particular sector, or a company. It may also change depending on the company's forecasts of its expected profitability, capital structure being, in fact, a risk-return compromise. This study contributes to the literature by investigating the drivers of capital structure of the firms from the Romanian market. For the econometric analysis, we applied multivariate fixed-effects regressions, as well as dynamic panel-data estimations (two-step system generalized method of moments, GMM) on a panel comprising the companies listed on the Bucharest Stock Exchange. The analyzed period, 2000-2016, covers a cycle with significant changes in the Romanian economy. Our results showed that leverage is positively correlated with the size of the company and the share price volatility. On the other hand, the debt structure has a different impact on corporate performance, whether this calculated on accounting measures or seen as market share price evolution.

show abstract

Section: Specific Figures For Developing Countries-grounds For Romanimentioning

confidence: 99%

The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies

Nenu

Vintilă

Gherghina

2018

IJFS

View full text Add to dashboard Cite

show abstract

“…However, public firms are usually largest business entities in country and their exclusion may distort aggregate country's results in relative comparison to other countries. This restriction may penalise especially Poland, which has significantly bigger capital market than other V4 countries (Procházka & Pelák, 2015). Thirdly, ROA and ROE measures are based on accounting figures.…”

Section: Resultsmentioning

confidence: 99%

The impact of ownership and other corporate characteristics on performance of V4 companies

Procházka¹

2017

Journal of International Studies

Self Cite

View full text Add to dashboard Cite

Abstract. The objective of this paper is to assess financial performance of Czech, Hungarian, Polish, and Slovak unlisted companies. The sample retrieved from the Amadeus database contains 171,095 firm-year observations for the period of 2010-2014. A linear regression model (weighted least squares with robust correction for standard errors) is run to regress Return on Assets (ROA) as the dependent variable against selected entity-specific factors, including ownership characteristics. Empirical evidence uncovers several findings. Firstly, the performance of V4 companies is comparable except for Hungary, where companies report lower ROA on average. Secondly, firms established after the failure of communist regimes outperform the privatised companies. Thirdly, the ownership characteristics do matter. Having domestic owners is not a disadvantage, as only the companies with controlling shareholders from the Anglo-Saxon countries perform better. Other jurisdictions of parents lead either to comparable (e.g., old EU members, developed Asian countries) or even worse (e.g., new EU members, post-Soviet bloc) performance as compared to domestic ownership. Similarly, family firms perform significantly better than the companies controlled by institutional owners or by public sector, but worse than the firms controlled by financial institutions. The listing status of a parent is not an influential factor of performance. Fourthly, the size of a company also matters, as small enterprises report better performance in their financial statements than medium and large undertakings. Fifthly, higher leverage undermines performance. Finally, there is a wide dispersion in average performance across the industries. The study results might be relevant for policy makers while choosing between direct and indirect support for diverse types of businesses.

show abstract

“…The other collected information refer to the auditor reputation and audit opinion (often used in the literature review according to Ben Salem 2017;Glaum et al, 2013;Hope et al, 2008;Nurunnabi, 2015;Păunescu, 2015;Tsalavoutas, 2010), size of the company (total assets) (Garcia-Navarro & Bastida, 2010;Glaum et al, 2013;Hope et al, 2008), stakeholders' structure (Hope et al, 2008;Bova & Pereira, 2012;Procházka & Pelák, 2015;Juhmani, 2017) and stock market capitalization (Ben Salem 2017). All these are regular variables employed in disclosure studies, so they are collected to first ensure comparability with other studies, and second to create an understanding of the company's institutional context.…”

Section: Methodsmentioning

confidence: 99%

“…Glaum et al (2013) and Nurunnabi (2015) include as well cultural factors in their research methodologies, and also other cultural factors are found in the literature, such as secrecy (Albu et al 2011;Mokhtar et al 2018) and conservatism (Glaum et al 2013). Capital market's size is another country-level factor which influences IFRS adoption and compliance (Glaum et al, 2013;Procházka & Pelák, 2015;Zehri & Chouaibi, 2013).…”

Section: Literature Review 21 a Review Of The Literature On Ifrs Commentioning

confidence: 99%

Investigating IFRS compliance in transitioning countries: A qualitative study

Petre¹,

Albu²

2020

JAMIS

View full text Add to dashboard Cite

Idea: The purpose of the paper is to investigate the institutional context in which companies' compliance with IFRS is created over time. Data: We collected financial and non-financial data from the Bucharest Stock Exchange website, from companies' website and from the media, for three pharma companies listed on the Bucharest Stock Exchange. We focused on the period 2013-2017, given that 2012 is the first year for the IFRS application in Romania in the individual accounts. Tools: We employed the EY (2012) Disclosure Checklist and the Dichotomous approach (Tsalavoutas, 2011) to determine the IFRS compliance index. We mobilize an institutional theory-based framework to analyze the IFRS compliance index. What's new? Our results indicate that the level of compliance is an organizational response to macro-, industry-, and organizational level factors. Moreover, companies face several pressures for compliance with different requirements, and choose to what pressures to comply first. Therefore, compliance with disclosure requirements from some IFRS is a piece in an organizational puzzle, so wider frameworks and analyses are needed to understand organizational responses. So what?: Companies respond with various levels of compliance in emerging economies such as Romania, and understanding the factors influencing compliance is of interest for regulators, auditors, and capital market participants. Contribution: We contribute with a qualitative, institutional-based study to a research stream dominated by archival methods, and bring complementary explanations for organizational levels of compliance with IFRS.

show abstract

The Development of Capital Markets of New EU Countries in the IFRS Era

Cited by 13 publications

References 26 publications

The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies

The Impact of Capital Structure on Risk and Firm Performance: Empirical Evidence for the Bucharest Stock Exchange Listed Companies

The impact of ownership and other corporate characteristics on performance of V4 companies

Investigating IFRS compliance in transitioning countries: A qualitative study

Contact Info

Product

Resources

About