Grant detail

402/99/0606 (1999-2001) The Cultivation of the Financial markets in the Czech Republic.

Principal investigator: † prof. Ing. Michal Mejstřík CSc.

One of important starting points was economic theory about contracts and the effort to reasonably limit the incompleteness of contracts within the valid legal framework, subject to economic rationality. In other words, it concerned economically justifiable and sensible re-shaping of the institutional environment in the field of financial markets in the Czech Republic. The attention of the solvers of the grant was was focused both on theoretical elaboration of the subject matter and on active participation in the process of amending key parts of legislation concerning financial markets.
For example in the area of bankruptcy law, it was possible, as a consequence of finalising research activities about the use of bankruptcy in the restructuring of firms, to apply the in practice hitherto rejected method of reallocating assets from ineffective to effective use, a method which is furthermore very economical from the point of view of state budget. Attention was also paid to the development of CEE financial markets as a part of newly emerging pan-European market.

Theoretical findings of grant were summarized into English written contributions of a book M.Mejstřík et al. "The Cultivation of Financial Market in the Czech Republic", Karolinum press, Praha 2003 (prepared) The lesson is learnt from the therapy of "Czech biased, bivalent form" of corporate governance issues that has still influenced maturation of the Czech financial sector. Institutional changes following "acqui communitaire", support of foreign investments and privatisation of remaining state banks were seen as a consensual policy point of departure. The privatisation of Czech state banks into hands of foreign controlled groups has been completed but only after cleaning banks´ balances from bad loans that has landed in state agencies and created huge burden for public budgets.The analysis of the development of new institutional framework in the banking sector indicates to what extend the inherent risks are covered with the goal of providing a lesson for other transitional economies.

Participation: Dvořáková A., Neprašová M.,Dvořák V.,Jindřichovská I.,Mühlhoferová M.,Půlpánová S., Kašová K., Blaha Z.S., Dlouhý V.,Havel J., Sedláček T.,Liška V.
Work in grant:
Web link:
Finance: Czech Science Foundation (GA ČR)
End date: 12/2001

Case Study ČKD Praha Holding

Derviz, A.: Components of the Czech Koruna Risk Premium in a Multiple Dealer FX Market. Czech National Bank, Research Division, WP No.4 (July)

Havel, J.: Bank Privatisation, Critical Look on Privatisation Procedures. In: Future of the Banking after 2000, Karviná, Silesian University 200, p.9-18.

Havel, J.: Czech Capital Markets- Illusion and Bitter Facts. Finance a úvěr, 1998, roč.48, č.10, s. 608-619

Havel, J.: Ekonomika a právo v transformaci.( Economy and Law in Transformation). Politická ekonomie, 1998, roč..46. č.6, s. 869-874

JIndrichovska I, Rhys, H: Opening up of Investment funds: The Case of the Czech Republic

Jindrichovska, I. and Kuo, D. L. 2002. Timeliness of Earnings in the Czech Market. School of Management and Business Research Paper No. 2002-3. University of Wales Aberystwyth. UK. 35 pp.

Jindřichovská, I. Efektivnost českého kapitálového trhu -- Reflektuje český kapitálový trh podnikové výsledky? 1999. Grant No. 402/99/0606 "Development of the Czech financial markets" (Kultivace finančních trhů v ČR) financed by GAČR under the leadersh

Measuring the Quality of Institutions Supporting Financial Markets

Mejstrik M., About the Bankruptcy Act changes, Hospodarske noviny (Burzovni noviny), Bratislava,16.3.2000

Mejstrik M., Corporate governance: Theory and the Czech practice, Occasional Paper IES, Prague 1999 (in Czech)

Mejstrik M., Governance of corporations and their behavior (in Czech), Finance a Úvěr č. 11, Praha, 2000, s. 629-630, ISSN 0015-1920 (full text)

Mejstrik M., Macroeconomic and Financial Aspects of Euro-Area Development-- In Czech),Czech Journal of Economics and Finance (Finance a uver),vol.50, No.6,2000, ISSN 0015-1920

Mejstrik M., Prerequisites of out-of-court and court methods of firms´ restructuring, Acta Oeconomica Universitatis Carolinae,no. 1/1999, ISSN 0323-066X,, Praha, s. 9-16

Mejstrik M., Privatization and Corporate Governance in the Czech Republic, In: HANDBOOK ON PRIVATIZATION,Editors David Parker & David Saal, Aston University, Birmingham, UK, Publisher Edward Elgar,2003,ISBN 1 84064-613-6,chapter 18

Mejstrik M., Privatization, Foreign Investment and Corporate Governance in the Czech Republic. In:Conference Prague 1999.Transitional Societies in Comparison, 2000, Peter Lang Press, Berlin, pp. 437-474

Mejstrik M., Test by Recession cleared the Market (in Czech), Acta Universitatis Carolinae Oeconomica, No. 2,1999, Carolinum, Praha, s. 9-14, ISSN 0323-066X

Mejstrik M.,Správa velkých akciových společností: teorie a česká praxe, In: Corporate Governance, Bratislava, 2000, s. 19-42

Mejstrik. al., Cultivation of Financial Market in the Czech republic,The Karolinum Press, Prague 2004, ISBN 80-246-0980-0


Invited speaker at the 58th Congress of the International Institute of Public Finance (IIPF), August 2002

the Leadership Forum Conference (November 2003) and the Joint Annual Conference of International Economics and Finance Society-UK (December 2003)

BusinessBriefing Series on The Czech Capital Market organized by American Chamber of Commerce, October 15,2003

Central Europe and Baltic States Regional Insolvency conference by World Bank, EBRD, USAID, March 2000

Conference IIR: Mergers and Acquisition, 21.-22.March 2000

Conference on enterprise transformation:Restructuring and revitalization in the CR,April 2000

Sixth World Congress of ICCESS , Session XI-21 held on Aug 2, 2000

The Developing Capital Markets of Central and Eastern Europe:"Prospects for Stock Exchange Reforms and Harmonization", October 2000

Výroční konference ČSE konaná dne 18.listopadu 2000


Česká Spořitelna


Patria Finance