Determining Accuracy of IN05 Index and Its Improvement

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216275%3A25410%2F16%3A39902031" target="_blank" >RIV/00216275:25410/16:39902031 - isvavai.cz</a>

Result on the web

<a href="http://is.muni.cz/do/econ/soubory/aktivity/fai/64632956/FAI2016_02-01.pdf" target="_blank" >http://is.muni.cz/do/econ/soubory/aktivity/fai/64632956/FAI2016_02-01.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.5817/FAI2016-2-1" target="_blank" >10.5817/FAI2016-2-1</a>

Result language

angličtina

Original language name

Determining Accuracy of IN05 Index and Its Improvement

Original language description

The IN05 index is probably the only one model in the world that predicts economic value added (EVA). Determining a positive or negative EVA is conducted based the level of return on equity (ROE). The threshold of the level depends on the changing value of implicit cost of equity (re). The Czech economy has undergone many changes including the economic crisis during the ten years following the creation of the IN05 index. This research uses financial data of 1,224 companies in the manufacturing sector. A very low current prediction power of IN05 was detected in prediction of prosperity. The main benefit of the research is finding a way to increase accuracy of economic value added prediction.

Czech name

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Czech description

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Type

J_x - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

CEP classification

AE - Management, administration and clerical work

OECD FORD branch

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Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2016

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Financial Assets and Investing

ISSN

1804-5081

e-ISSN

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Volume of the periodical

7

Issue of the periodical within the volume

2

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

14

Pages from-to

5-18

UT code for WoS article

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EID of the result in the Scopus database

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