Macroeconomic background of public listing in Czechia and Hungary

Abstract

The principal objective of this paper is to analyze the common and country-specific aspects in the macroeconomic and political background of the poor public listing in Czechia and Hungary. Vector Autoregressions were tested on country level and a fixed effect panel regression analyzed the cross-country phenomena. As a key result, we cannot support the idea that privatization policies, funded pension pillar, economic crisis or stock market ownership could be useful variable which describes the solution of current situation. Believing that economic growth or the increasing number of companies can solve this problem proved to be also a false hope. Deeper and finer political and market incentives are necessary to highlight the added value of public listing for the targeted sector.