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Loan financing is one of the most famous and yet the most common forms of corporate financing. The availability of credits by the banking sector for the various size categories of enterprises, which operate in individual selected regions, we focused on a questionnaire survey, which evaluation is the main contribution of research.
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Financial efficiency of an entities operating in full operating cycle conditions is influenced by environmental characteristics. That paper analyzes one of the financial results measured by cash tied in inventories in e-commerce full operating cycle financially constrained V4 entities. In recent decades, the countries of Central and Eastern Europe there are significant changes in national economies. Many of them joined the European Union in 2004. Among the EU Member States noteworthy is the largest group of countries of Central and Eastern Europe: Czechia, Poland, Slovakia and Hungary. On 15 February 1991 they have concluded an agreement on the formation of the Visegrad Group. It was aimed at expanding cooperation between these countries and in the initial phase of accession to the European Union and NATO. Analysis of the changes that have taken place in companies using online sales in the countries of the Visegrad Group is the subject of this article.
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This contribution analyses the number of newly established as well as closed down entrepreneurial units in the Czech Republic between 2008 and 2015 with regard to the legal form of business as well as the field of business activity. The aim is to use the non-public sources of Czech Statistical Office and assess the trend in the number of entrepreneurial units in the Czech Republic. The methods of comparative analysis and trend analysis were used to monitor individual types of business activities as for the number of established and closed entrepreneurial units. The types of economic activities with high entrepreneurial activity were determined by means of net balance and average annual growth rate. The contribution reacts to the conclusions of a European Commission study Flash Eurobarometer (2012), which assesses the Czech Republic as one of four EU countries where a growing number of people prefers self-employment to employment. The authors consider the differences among various entrepreneurial activities and among legal forms of business to be a starting point for a discussion about support to particular fields of business, about private investment and forms of financial flows on both national and international levels.
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Risk management is one of the main priorities in the Common Agricultural Policy (CAP) for 2014-2020. Crop insurance belongs to the three CAP indicated types of instruments for financing risks, along with mutual funds and income stabilization tool. In Poland crop insurance is the only available instrument and despite its obligatoriness and subsidizing the market penetration amounts to 40%. The aim of this paper is to present development of agricultural insurance in quantitative terms and its main contributory factors. The answers were provided based on the qualitative and quantitative analysis. The data come mainly from the official statistics and information provided by The Ministry of Agriculture and Rural Development. The results show that apart from very high costs of crop insurance, resulting from a long-term loss ratio of more than 100% for , a very important determinant affecting crop insurance purchasing decisions is the subjective assessment of prosperity in agriculture as well as the scope and type of state aid (investment-related benefits are stimulating while revolving loans are inhibitive).
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Tax administrations worldwide provide taxpayers with favour and offer them the opportunity to set up transfer pricing system according to pre-agreed criteria. When taxpayer´s system complies with, tax administrator does not dispute the transaction. Any predefined arrangement leading to the recognition of transfer pricing system by tax administrator can be defined as a safe harbour. During the review process of current sources, it was found out that there is no relevant research available focused on assessing the appropriateness of introducing safe harbour system for both businesses and government. At the same time even the OECD does not work with data that would conclusively prove the impact of transfer pricing regulation on companies´ behaviour. For this reason, a research was conducted in this area with focus on the potential of safe harbour to affect tax contributions of enterprises. Financial data were rendered from Amadeus database. The impact of safe harbour system was observed on the time series development of taxation of particular cluster. Cluster analysis was selected as the most suitable method for grouping companies.
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Financial creditworthy models are popular for their simplicity and fast applications. Above all, quantitative evaluation of financial health guarantees an unbiased assessment of company. On the other hand, these models do not take into account the soft factors. Probably, the most famous Czech financial models known as creditworthy are Credibility Index, Rudolf Doucha´s Balance analysis, and Kralicek´s Q-test. They were created for the purpose of assessing the creditworthiness usually without using statistical methods. Can they be used for prediction of business failure despite this drawback? What is their success rate? Which of these classic financial models achieves the highest accuracy? To find answers a dataset of financial statements of 92 companies in manufacturing industry was analysed. These companies went bankrupt between 2010-2014.
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The aim of the paper is to explore possible relationship between adopting and using XBRL as a reporting language for small and medium sized companies and development status of the economy and to explore possible relationship between adopting and using XBRL as a reporting language for small and medium sized companies and the existence of XBRL Jurisdiction. Methodology used in the research project is focused on the current experiences of using XBRL by insurance and banking sector companies and by companies in other sectors with accordance to regulations for insurance and banking sector companies and for small and medium sized enterprises in European Union member states. Research is then focused also on the existing relationship between XBRL usage and the development status of the economy and other social factors. Preliminary results in the field of problems in the process of creating and implementing XBRL by small and medium sized enterprises in the future are dependence of automation on taxonomy preparation level. The second side of problems to overcome is linked to costs of adopting XBRL, which are highly changeable and not easily predictable. The other problem is linked to taxonomies already in use, which are subject to changes and transformations what can cause problems for software systems designed for older taxonomies. In some European Union countries XML reporting format is required by state legislation for small and medium sized enterprises with no other option. XBRL also requires more skills from accounting experts than simpler XML based reporting.
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The present paper focuses on the comparison of the development of corporate tax revenue of the largest European countries for the period of 1965 - 2014, followed by identification of selected differences between the countries and characterization of causes of this different development. Different amount of the corporate tax revenue is often affected by different types of fiscal policy and existing deficit tendencies of fiscal economy of countries. The main aim of this paper is to analyze and compare the differences in the development of tax revenues between the countries themselves in space and time by using the method of dynamic conditional correlations, while interpretation of the results is based on traditional macroeconomic indicators. The method allows us to compare the development of corporate tax revenue and structure of tax components between each pair of analyzed countries separately, what is in comparison with the commonly used (e. g. panel) models considered to be its main positive aspect. A new look on the measurement and evaluation of the selected revenues allows us to explain the structure of revenue components (especially the tax ones) for the implementation and testing of fiscal consolidation.
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This paper presents partial results of the research focused on the success of completed M&A transactions in the manufacturing industry in the Czech Republic. The M&A topic has been frequently debated owing to the impossibility of unambiguously determining the associated effects. One of the M&A reasons consists in achieving the economies of scale, which should be reflected in decreasing costs. Our research is based on the sample of 59 transactions taking place in 2004 – 2011. The transactions involved 102 companies. These companies were examined for seven years, i.e. three years before the merger, and three years after the merger. The obtained data on the transactions were analysed separately for the group of successful and unsuccessful transactions. The success of the transactions was assessed by the amount of the achieved sales and the net income in the three years following the transaction. The aim of our research was to determine whether the mergers resulted in achieving economies of scale and in what areas. Testing the indicators was based on the Mann-Whitney U test. The research results have shown that only part of the mergers have been successful. The performed statistical tests confirmed the assumption that in the case of successful M&A transactions, there are savings in labour costs.
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The aim of this paper was to emerge the groups of households having similar level of both incomes and expenditures per equivalent unit and to give their in socioeconomic, demographic characteristic as well as the characteristic connected with the household localization. The data came from unpublished CSO data for household budget investigations. The applied testing methods were both k-means cluster analysis and discriminant function analysis. Five groups of households were distinguished, they differ with respect to their incomes and expenditures. The determinant most seriously affecting both incomes and expenditures of the households turned out the following: household head education level, household size and its socio-economic situation. Households with the lowest incomes and expenditures were connected with variables such as lower household head education level, larger number of family members and the location in rural areas. On the other side, the households with the best financial situation were the ones in which household head had university degree, was employed at white-collar position and the household was placed in a city.
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Savings are an essential element of planning the future, in particular this objective is attained by saving for old age. The saved amount depends on numerous factors. Additionally, each of them can have the effect of a stimulant or destimulant. This article determines the influence of particular factors, which allowed to formulate specific recommendations for the future. Recommendations, which by influencing e.g. the level of the citizens’ education or certainly their income, can result in the future in an increase of the savings amount. The objective of this article is to present the scale of and the determining characteristics of saving, in particular the tendency to save money with the intention to financially secure the old age period. This article uses a representative, nationwide research, namely Diagnoza Społeczna 2015 (Social Diagnosis 2015), conducted with a test group of 11,740 households with 35,279 members.
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The economy of the Slovak republic is integrated within the frame of the global world economy. The companies are functioning in the highly competitive environment. SMEs dominate the Slovak economy, covering 99.5% of the enterprise population. The vast majority of SMEs were micro enterprises, employing up to 9 employees. Self-entrepreneurs are an important component of the enterprise population in the Slovak Republic. Available financial resources are a key factor for the development of SMEs, also in the Slovak Republic. SMEs may be funded from various sources. Venture capital funds are oriented towards financing establishment and growth of small innovative businesses. In this paper, we will define SMEs, the venture and equity capital and we will analyze the role of venture and equity capital in financing of SMEs in the Slovak Republic. The use of private equity capital and venture capital in Slovakia reached the peak in 2009. Since then, the only decline is noticeable or the stability of the compared period. The most important problem can be the lack of knowledge of entrepreneurs about the possibilities of funding for their projects by venture capital. It is clear that Slovakia has a high innovation potential and significant development begins in the area of start-ups.
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The financial crisis of past decades has shown the need to take into account liquidity risk in stress-testing frameworks in an explicit way. The stress-testing model presented in this paper provides an answer to the fundamental question of the risk management: What hypothetical costs a bank should expect for liquidity provision in a particular point of time by the negative development of future financing conditions? Its key components are the cash flow scenarios under consideration the counterbalancing capacity (CBC) and the liquidity spread scenarios developed by historical simulation approach. This enables the view on to the realistic risk, after exhaustion of compensation capacity. Multiple dimensions of liquidity risk are combined with two quantitative risk measures, Value-at-Risk (VaR) and Expected Shortfall (ES). The analytical components of liquidity risk management that are needed to address the new Basel III are taken into account. Additionally to calculation of liquidity costs, detailed analyses of liquidity needs are possible. An application on a typical middle sized bank in a case study illustrates how sensitive VaR and ES are to the shocks.
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Budgetary gaming behavior (such as spending money at year end to avoid losing it, deferring necessary expenditures, accelerating sales near year end to meet the budget, negotiating easier targets) belongs among arguments against using budgets for company management. Especially proponents of Beyond Budgeting movement propose to abandon budgets for this reason. The paper presents results of the survey among 214 companies domiciled in the Czech Republic and Slovakia dealing with budgeting gaming and its context. Descriptive statistics and formal statistical test (Kruskal-Wallis, Mann-Whitney) revealed that the problem of budgetary gaming is more prevalent in larger companies that are subsidiaries. On the contrary, in the small enterprises it is less present problem, but more correspondents with the use of budgets for management purposes. Albeit the occurrence of budgetary gaming behavior, the companies in the sample did not intend to abandon budgeting at all.
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The aim of the paper is to evaluate synchronisation in Europe throughout integration process in the European Union and/or the euro area. Gradually we apply Granger causality testing and cluster analysis to identify core and peripheral countries. These two alternative methodological approaches enable us to recognize synchronised countries, countries with rather asymmetric evolution, leading as well as lagging countries. Business cycle evolution is evaluated either through GDP growth or output gap indicators. In line with expectations, French and German business cycle have the most crucial impact on other countries´ cycles. Our findings prove that degree of integration process can lead to higher synchronisation. However there is still significant number of countries which are not synchronised with core countries. This fact complicates application of single monetary policy instruments in the euro area and economic performance in the EU as a whole.
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The development of the entrepreneurial spirit among future employees is extremely important for a sustainable development. The creativity, the sense of initiative and the entrepreneurial spirit will help the current graduate, future employee, to develop their critical thinking, to be creative, innovate in their field of activity, be productive, flexible and autonomous and also capable to manage a project, within the limits of their skills. This research introduces the most important results concerning the entrepreneurial spirit among future employees for a better integration on the labor market and a significant contribution to the sustainable local development. The data were collected through a questionnaire applied on a representative sample of teachers in the pre-university education who carry out their activity in theoretical, technology and vocational high schools in the county. They served in outlining an overview on the impact that development of the entrepreneurial spirit has on the prospects of sustainable local development through current graduates, future employees. Regardless of their level of education, the teaching staff represents the main transmitter of training and development of the entrepreneurial spirit within the lifelong learning cycle.
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In 2020, many pressures have accumulated affecting the real economy and the existing economic theories describing and explaining them. These pressures include the global economic crisis, natural and climate disaster, political tensions and the COVID-19 pandemic, which are mutually reinforcing and represent a temporal turning point in the practice and theory of economics and management. The shock of 2020 also undoubtedly concerns the principles and methods of managing a logistics company. The study analyses and critically evaluates the current method of evaluating the efficiency of logistics company management and the business model corresponding to this method. The economic, social and natural consequences of the hitherto economic activity of logistics companies were indicated. In order to overcome the identified negative effects of their activities, new evaluation criteria and a new business model were proposed. It is postulated that the so-called economic resilience (RE), which consists of a set of specific criteria related to economic productivity, safety and agility. Economic productivity ensures the financial profitability of business activity, safety refers to sanitary and social guarantees, and agility to effective market adjustments. The proposed business model should be composed of three key mechanisms – sectoral, innovative and cultural. The sectoral mechanism is created by the driving forces of competition, the innovative mechanism - striving to improve the existing facts, and the cultural mechanism – the applicable ethical and moral standards.
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In the face of an increasingly unstable economy caused by the global pandemic, a large number of economists ask the question whether the current patterns and models of business management or supply chains are still appropriate and adapted to the current economic situation. In many sectors, the global changes triggered by COVID-19 have put into question the use of existing business models. It seems that the principle of “optimum” no longer exists. Continuous improvement of supply chains or lean and agile management will no longer prove themselves in the present conditions. The tendencies to shorten supply chains keep safety stocks at the lowest possible level and optimize costs by all links led to an economic disaster in the face of the global pandemic. Business, sectors and economies cannot expect a stable, long-term economic environment. Forecasts of future developments, based on an analysis of historical patterns, are currently unlikely and inadequate in the context of rapidly changing local, international or global markets. Uncertainty and the existing market disruptions require decision-makers to rethink potential business or supply chain management alternatives in such a turbulent environment. Currently, a number of local and global trends can be identified to indicate the upcoming changes in business and society. Their long-term impact on the management of the enterprise, including social capital, will certainly be significant. Among many trends, it is possible to indicate the increasingly stronger position of emerging markets, which are involved in global production. Another significant trend is demographic change and migration creating a new face of the workforce. The development of new technologies or the ubiquitous network nature blur the existing boundaries between various sectors of the economy on a global scale.
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The ability of a company to generate profit for its investors is key to its long-term performance, sustainability and competitive position. The present study examines the movements in the main indicators characterizing the return on investment in some enterprises in the automotive sector in Bulgaria for the last 4 financial years and attempts to identify the main factors that determine the observed dynamics. For this purpose, the methods of financial analysis and regression analysis of panel data were used. The results of the applied methods are interpreted in terms of the specifics of the sector.
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The object of study in this article is the accounting normative and regulatory framework of the Republic of Bulgaria for the period 1990-2021, in the context of the possibilities for its dynamic harmonization. The purpose of the study is based on the experience gained over the past thirty years in the field of national accounting framework, to outline existing patterns, to identify trends and problem areas in the field of accounting legislation in order to improve the organization of national accounting, in the context of its updating.
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