Corporate Bankruptcies in the Czech Republic: The Development Over the Last Decade
Corporate Bankruptcies in the Czech Republic: The Development Over the Last Decade

Author(s): Karina Benetti
Subject(s): Business Economy / Management, Economic history, Transformation Period (1990 - 2010), Present Times (2010 - today), Law on Economics
Published by: Masarykova univerzita nakladatelství
Keywords: corporate bankruptcy; corporate insolvency proposals; development; financial health;
Summary/Abstract: This paper deals with the analysis of development of corporate bankruptcies in the Czech Republic over the last decade. Corporate bankruptcies are an inherent element of the market economy. In the Czech Republic in 2006 was published a law no. 182/2006 Coll., On Bankruptcy and Its Resolution (Insolvency Act), which came into effect from January 1st, 2008. This law came into effect just at a time when the new financial crisis started getting stronger. This crisis has affected the development of corporate bankruptcies not only in the Czech Republic but also in other countries. Corporate Bankruptcies (Mączyńska, 2009) are the necessary selection mechanism in the world of business and have an important rationalizing function – they rid the market of entities that are unable to meet the appropriate efficiency requirements. The aim of this paper is to analyze the development of corporate bankruptcies – the comparison between the development of corporate insolvency proposals and corporate bankruptcies (using total and monthly data) in the Czech Republic over the last decade – in the period 2008 to 2017 with a forecast for 2018. The software STATGRAPHICS Centurion will be used for this analysis. The data needed to analyze the development of corporate insolvency proposals and corporate bankruptcies has been taken over from the company Creditreform, s.r.o. Czech Republic.

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