Tomáš Meluzín

Trends in IPOs: The Evidence from CEE Capital Markets

The purpose of this paper is to investigate IPO developments across five CEE countries between 2003 and 2012. Using a wider range of methods and different data sets we intend to complement the previous research. Applying descriptive statistics, relevant local developments are analysed first before being compared with leading European markets (London Stock Exchange and Deutsche Borse). We also investigated the assumption that a growing market has an explanatory power for the accelerating IPO activity. For this purpose we performed a Spearman correlation analysis. The data were evaluated at the significance level of α = 5 %. All CEE capital markets recorded strong dynamism over the observed period. All fundamental capital market parameters increase the attractiveness of individual capital markets, although their values lag behind developed European capital countries. The sole leader in the region is Poland with a flourishing IPO market. Our assumption that a growing market has a positive impact on IPO activities could not be supported by empirical evidence.

Qualitative identification of chaotic patterns in multidimensional time series

Concepts of chaos have been introduced into time series theory relatively long time ago. However, multidimensional chaotic tasks are still prohibitively difficult to solve. Qualitative models are based on three values only — decreasing, constant, and increasing. A qualitative solution of a chaotic model gives a set of time scenarios. E.g. Lorenz model has 813 qualitative scenarios. There are 8222 transitions among the set of Lorenz scenarios. A qualitative interpretation of quantitative multidimensional time series is based on some quantitative smoothing algorithm followed by qualitative descriptions of the first and second derivatives. If a qualitative interpretation of a time series represents a path in the Lorenz oriented graph then the time series has the Lorenz chaotic patterns.

Why Do Companies Stay Private? Determinants for IPO Candidates to Consider in Poland and the Czech Republic

We surveyed sixty-five chief financial officers (CFOs) at nonpublic and nonfinancial companies in the Czech Republic and Poland that are considered candidates for an initial public offering (IPO) to document their propensity to decline to launch an IPO and maintain private ownership. First, we found that the main arguments against launching an IPO in both countries involve information disclosure and limitations on decision-making control. Surprisingly, the majority of the managers do not see the capital market as a source of cheaper and more flexible financing compared to bank loans and other sources. In terms of exogenous factors, Polish CFOs are opportunistic with regard to the timing of an IPO. They view “the window of opportunity” in terms of overall business and industry conditions as significantly more important than do their Czech counterparts. Czech CFOs rank IPO-related demands on time and costs as the main obstacle to going public. Finally, Czech CFOs agree that a lack of confidence in the capital market is their major concern more frequently than do their Polish peers.

Institutional Determinants of Private Equity Market in Czech Republic

DOI: 10.14254/2071789X.2017/10-4/7 ABSTRACT. A well-functioning private equity and venture capital market is affected by a range of institutional aspects. This study intends to answer the question on what is the current tax and legal environment for private equity and venture capital investments in Czech Republic as previous studies have emphasized that a rather poor scope of resources available. Qualitative data with content analysis proved to be the best way to assess the institutional framework. Data collection methods cover a comparative analysis of scientific literature documents and reports, as well as primary data from interviews with experts in the industry. The results of both secondary and primary data analysis were categorized and serious gaps in the institutional framework were identified and discussed. Our results indicate that the issue of legal and organisational structure suitable for private equity and venture capital funds may be resolved through a national equivalent to a Limited Partnership which has already been adopted into Czech law. However, a tax handicap was identified implying that it is necessary to amend the tax legislation so that the legal regulation extends the tax exemption. Another amendment should then be directed towards eliminating or mitigating the barriers imposed on pension. We believe that our findings provide valuable implications for the government, banks, stock exchanges and venture capital industry while formulating new strategies how to increase the level of investments in this specific environment of Czech Republic.

Trends in IPOs: The Evidence From Financial Markets

This paper deals with the analysis of initial public offerings of shares in terms of their quantity and the amount of capital raised by this form of financing on the world markets. Relevant global developments will be analyzed first, followed by a description of regional situation. The analysis is based on secondary data which are processed by descriptive statistics methods. The analysis of IPO trends on the world markets indicates that, in the period of 2004-2007, IPO-based financing of corporate growth gained in importance on both developed and emerging markets. The IPO segment was dominated by the largest emerging markets (Brazil, Russia, India and China) and at the same time the US American and Western European markets decline in their importance. The world-wide economic crisis of 2008 suppressed the interest in new IPOs, particularly in the developed economies. As the economy of most countries is beginning to revive, the interest in the IPO approach from businesses and investors is on the rise. It can be expected that, in the next few years, the arena of initial public offerings will be dominated by visionary companies operating on emerging markets where the execution of an IPO will constitute the key element in securing the capital essential for further expansion.

Private Equity and Venture Capital: an Empirical Analysis

The paper deals with the analysis of the private equity and venture capital investment and divestment trends and activities on the European market, particularly on the market of Central and Eastern Europe ( CEE ), in times of economic crises 2007-2009. The analysis is based on the data published by the European Private Equity and Venture Capital Association ( EVCA ), the Czech Private Equity and Venture Capital Association ( CVCA ) and the Bundesverband Deutscher Kapitalbeteiligungsgesellschaften (BVK). The economic crisis in 2008-2009 caused a rapid cooling of the European market. Private equity and venture capital management companies located in Europe have decreased significantly both investment and divestment activity. The economic crisis on CEE market showed a delay and a lower intensity in comparison with Western Europe. CEE market is, however, underdeveloped. This argument is supported by the data indicating annual investment and divestment value, and number of companies received private equity financing.

Analysis of the Current Situation in the Area of IPO on the Czech Capital Market

Funding the development of the company through the ‘Initial Public Offering’ has a high representation globally, the Czech Republic unlike, and belongs to traditional methods of raising funds necessary for the development of business in the developed capital markets. Under the conditions of the Czech capital market it is possible to identify only few companies, who attempted to fund through the IPO way at present. The objective of this paper is to analyze the current situation in the area of IPO on the Czech capital market and identify the causes of the low number of IPO s in the Czech Republic. The paper was written with the financial support of the Czech Science Foundation (Grant Agency of the Czech Republic), grant project No. 402/09/P134 ‘Decision Model of Company Financing via IPO ’.

Common sense synthesis of equation less bankruptcy qualitative models

Many different formal tools, e.g. statistic, fuzzy logic, neural networks, are used to study different bankruptcy related tasks. A qualitative modeling philosophy has been developed in an effort to produce a general and reasonably unified common sense approach to modeling of unique, complex and unsteady state systems. A qualitative description is information non intensive as it is based just on three values, namely positive, zero, negative. No quantifiers are used, e.g. numbers, fuzzy and rough sets. A simple set of three qualitative relations, among five variables is used as a model. There are 17 scenarios and 40 possible transitions among them.