Euroskepticism’s Many Faces: The Cases of Hungary and the UK

While increasing numbers of Europeans are skeptical about the EU, the primary causes behind Euroskepticism vary widely from country to country. Our paper examines the differing sources of Euroskepticism within Hungary and the United Kingdom, using these examples as case studies for the broader EU. Hungarian Euroskeptics accuse the EU of suppressing Hungarian culture and violating the country’s national sovereignty, fostering a growing sense that EU membership has not brought the promised benefits. The primary driving forces behind British Euroskepticism, however, are opposition to intra-EU immigration and a sense that the island nation is inherently separate from the Continent. The case studies of Hungary and the UK demonstrate that the motives behind Euroskepticism vary widely across the continent. If confidence in the EU is to be restored, the wide array of concerns held by various Euroskeptic groups must be specifically addressed

Low Versus High Leverage (LVH)

Disputes whether financial structure can create value or not were started more than 50 years ago with Modigliani Miller theorem. In this paper I would like to present my own view on level of debt in value creation process. What I am going to prove is that due to expansion option companies with low level of debt are outperforming highly leveraged companies in the long run. I have created a new factor LVH (low versus high leverage) to quantitatively prove that being long in companies with below median net debt/EBITDA and being short in companies with above net debt/EBITDA can bring abnormal returns (with Sharpe ratio even higher than 0.9 and statistically significant alfa of around 7.7% yearly). As shown in chapter IV.II. such strategy might be supplemented by Momentum, Betting against Beta or High minus Low Devil strategies

Low Versus High Leverage (LVH)

Disputes whether financial structure can create value or not were started more than 50 years ago with Modigliani Miller theorem. In this paper I would like to present my own view on level of debt in value creation process. What I am going to prove is that due to expansion option companies with low level of debt are outperforming highly leveraged companies in the long run. I have created a new factor LVH (low versus high leverage) to quantitatively prove that being long in companies with below median net debt/EBITDA and being short in companies with above net debt/EBITDA can bring abnormal returns (with Sharpe ratio even higher than 0.9 and statistically significant alfa of around 7.7% yearly). As shown in chapter IV.II. such strategy might be supplemented by Momentum, Betting against Beta or High minus Low Devil strategies