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CORPORATE DEAD CAPITAL MANAGEMENT
Makovský, Zdeněk ; Tetřevová, Liběna (advisor)
The presented doctoral thesis deals with the problems of the corporate dead capital management in the conditions of the Czech Republic. The dramatic development of the financial markets in the recent years, related mainly to the development of communications technologies and to globalization, enabled Czech companies to make easy use of the capital markets to up-value their momentarily surplus dead capital. The reason why Czech companies have not used this possibility so much so far is partly the tradition of using banking institutions, partly the historically not very developed Czech financial market, and last but not least the worries about the risk of money depreciation. This thesis deals with the optimal portfolio creation methods in the conditions of the Prague Stock Exchange, including the risk management. The theoretical part of the thesis analyses the individual segments of the financial and capital markets from different points of view and it also analyses the dead capital management risks. An independent chapter is dedicated to the stock exchange indices as prospective underlying assets for financial derivatives. The chapter then analyses the structure of PX index, which includes the most liquid Czech shares. The thesis pays substantial attention to the legal and economic analyses of the financial derivatives as possible instruments, alternatively utilizable for appreciation of the dead capital. Financial derivatives do not necessarily represent a considerably higher risk for the company than using other financial instruments if their usage is accompanied by suitable risk mitigation methods. The view of financial derivatives as a game of hazard is analysed separately. This analysis aims to avoid potential legal complications that could be connected with financial derivatives. The closing section of the theoretical part describes the Capital Asset Pricing Model (CAPM), and then it extends and modifies it for the conditions of the Prague Stock Exchange. The practical part of the thesis describes the methods of creating the optimal portfolio, which might help the company appreciate the dead capital. The procedures of creating the portfolio are verified on particular titles, including the possibility of using a financial derivative and comparison of both approaches. The conclusion outlines the prospective development of the Czech capital market.
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CORPORATE DEAD CAPITAL MANAGEMENT
Makovský, Zdeněk ; Tetřevová, Liběna (advisor)
The presented doctoral thesis deals with the problems of the corporate dead capital management in the conditions of the Czech Republic. The dramatic development of the financial markets in the recent years, related mainly to the development of communications technologies and to globalization, enabled Czech companies to make easy use of the capital markets to up-value their momentarily surplus dead capital. The reason why Czech companies have not used this possibility so much so far is partly the tradition of using banking institutions, partly the historically not very developed Czech financial market, and last but not least the worries about the risk of money depreciation. This thesis deals with the optimal portfolio creation methods in the conditions of the Prague Stock Exchange, including the risk management. The theoretical part of the thesis analyses the individual segments of the financial and capital markets from different points of view and it also analyses the dead capital management risks. An independent chapter is dedicated to the stock exchange indices as prospective underlying assets for financial derivatives. The chapter then analyses the structure of PX index, which includes the most liquid Czech shares. The thesis pays substantial attention to the legal and economic analyses of the financial derivatives as possible instruments, alternatively utilizable for appreciation of the dead capital. Financial derivatives do not necessarily represent a considerably higher risk for the company than using other financial instruments if their usage is accompanied by suitable risk mitigation methods. The view of financial derivatives as a game of hazard is analysed separately. This analysis aims to avoid potential legal complications that could be connected with financial derivatives. The closing section of the theoretical part describes the Capital Asset Pricing Model (CAPM), and then it extends and modifies it for the conditions of the Prague Stock Exchange. The practical part of the thesis describes the methods of creating the optimal portfolio, which might help the company appreciate the dead capital. The procedures of creating the portfolio are verified on particular titles, including the possibility of using a financial derivative and comparison of both approaches. The conclusion outlines the prospective development of the Czech capital market.
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