Development of Initiated Bankruptcies in Slovakia and the Czech Republic

Bič, Martin

doi:10.37335/ijek.v10i1.140

Cited by 3 publications

(2 citation statements)

References 29 publications

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“…Decisions aimed at implementing a merger or acquisition as one of the alternatives for achieving the company's strategic goals are primarily based on a general effort to increase efficiency, financial and capital motives, and market motives. Entrepreneurs can very easily find themselves in a bad financial situation (Bič, 2022). In the current economic environment, among the motives for mergers and acquisitions, the necessity of restructuring or the effort to prevent the bankruptcy of companies, often due to unexpected and disruptive changes that in a short period of time will cause a serious liquidity crisis and a rapid decrease in value for the owners of the company.…”

Section: Discussionmentioning

confidence: 99%

The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

Vozárová¹,

Kosikova²,

Hečková³

et al. 2022

JESI

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The banking sector of any nation is its key driver because the performance of the financial sector plays a vital role in the development of any economy. The European banking sector has gone through a process of rapid changes during the past three decades. The established trend of liberalization and deregulation resulted in a wave of massive consolidation, which fundamentally changed the environment in which banks did business. The main purpose of this paper is to evaluate relationships and, above all, quantify the impact of GDP on the volume of cross-border mergers and acquisitions in the banking sector for the period 2004 -2021 in selected countries of the European Area by applying three panel regression methods. From the values shown, it follows that the percentage growth of GDP has a significant effect on the percentage growth of the volume of cross-border mergers and acquisitions in the banking sector and thus was the established hypothesis confirmed. The results confirmed that 1% growth in the economy will cause a 32% increase in the volume of crossborder mergers and acquisitions in the European Area.

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Section: Discussionmentioning

confidence: 99%

The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

Vozárová¹,

Kosikova²,

Hečková³

et al. 2022

JESI

View full text Add to dashboard Cite

show abstract

“…Financial risk is also related to how firms can manage their debt repayment to not face bankruptcy problems. Bankruptcy occurs when debtors are not able to pay back their liabilities and face insolvency issues (Bič, 2022). In this regard, it is a very costly process for SMEs and owners can be reluctant to establish a new firm again (Dvorsky et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

The differences in the impact of entrepreneurial abilities of various European SMEs on their financial risk perceptions

Civelek¹,

Durda²,

Vincúrová³

et al. 2022

EBER

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The objective of the article is to investigate whether the impact of innovativeness and competitiveness of small and medium-sized enterprises (SMEs) on their financial risks differ depending on the countries where SMEs are located. Research Design & Methods:The researchers created an online questionnaire and gained data from 1221 Czech, Slovak, and Hungarian SMEs. Moreover, the researchers applied ordinal logistic regression analyses to achieve the goal of this study. Findings: According to the results, the impact of competitiveness on the bankruptcy risk perception of SMEs differ depending on the countries where they operate. Concerning the impact of innovativeness on financial performance and financial risk management, this article also proves that international differences between SMEs exist. Implications & Recommendations:The developments in the financial literacy of company executives and their managerial experiences and the improvements in credit access conditions, intellectual property rights, and tax legislation can make SMEs reduce their concerns about their financial risks. Thus, policymakers' implementations are crucial to providing equal opportunities for SMEs even if they operate in various markets. Contribution & Value Added: This current research does not only make international comparisons among the investigated variables but also analyses the impacts of entrepreneurial competencies on various indicators of financial risk. These facts not only make this research become a unique study in the literature but also the reason why it should garner the interest of prospective readers such as policymakers, academicians, and SME owners.

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The impacts of innovative and competitive abilities of SMEs on their different financial risk concerns: System approach

Civelek

Krajčík

Fialová

2023

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Research background: The lack of financial resources of small and medium enterprises (SMEs) make them face high financial risk. Their entrepreneurial abilities that belong to Resource-based View (RBV), such as innovativeness and competitiveness, might reduce SMEs? financial risk because those entrepreneurial abilities increase the financial performance of businesses. Purpose of the article: This paper aims to investigate the effects of the innovativeness and competitiveness of SMEs on their financial concerns based on financial risk, including bankruptcy, financial performance, and financial risk management. Methods: The authors use a method of data analysis and synthesis, including advanced knowledge and digital processing of background studies. This paper examines 1221 SMEs from the Czech Republic, Slovakia, and Hungary. Those firms are chosen by random sampling method from Cribis and the Budapest Chamber of Commerce databases. Then the researchers directed an online questionnaire to collect the research data from the randomly selected firms. The researchers use Ordinal Logistic Regression Test for analysis purposes. Findings & value added: This paper's results indicate that SMEs' competitiveness does not impact SMEs? bankruptcy prediction, financial performance, or financial risk management. On the other hand, while more innovative SMEs are less likely to face bankruptcy issues than less innovative SMEs, less innovative SMEs indicate better financial performance than their more innovative counterparts. Since this paper focuses on the influences of intangible assets of SMEs (such as characteristics based on RBV and Entrepreneurial Orientation) on their tangible assets (financial performance etc.) and puts emphasis on this fact from an International perspective, this paper makes a significant contribution to the literature. Furthermore, analyzing multiple relationships between SMEs? different entrepreneurial characteristics and various financial risk concerns is another important fact that might draw prospective readers? attention.

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Development of Initiated Bankruptcies in Slovakia and the Czech Republic

Cited by 3 publications

References 29 publications

The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

The impact of GDP on M&A volume in the European area in the context of the consolidation of the banking market

The differences in the impact of entrepreneurial abilities of various European SMEs on their financial risk perceptions

The impacts of innovative and competitive abilities of SMEs on their different financial risk concerns: System approach

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