Institutional and Macroeconomic Environment of Corporations

Kittová, Zuzana; Steinhauser, Dušan

doi:10.18267/j.polek.1138

Cited by 4 publications

(4 citation statements)

References 9 publications

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“…The Heritage Index of Economic Freedom (The Heritage Foundation, 2021b) evaluates corruption within the Government Integrity sub-index. Kittová and Steinhauser (2017) confirmed the assumption that the institutional environment determines the macroeconomic environment of companies, but also vice versa. They illustrated this fact with the example of the issue of Corporate Governance.…”

Section: Iranian Country Risk Assessmentsupporting

confidence: 67%

The Impact of Institutional Environment on Risk Assessment

Steinhauser¹,

Borovská²

2022

CEBR

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Section: Iranian Country Risk Assessmentsupporting

confidence: 67%

The Impact of Institutional Environment on Risk Assessment

Steinhauser¹,

Borovská²

2022

CEBR

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“…Macroeconomic variables are the aggregated results of enterprises at microeconomic level. The institutional environment is made up of a set of formal, informal institutions and organizations, while the causal relationship between the institutional and macroeconomic environment of enterprises has been demonstrated by previous studies by Kittová & Steinhauser (2017). Authors indirectly quantified the amount of transaction costs in the environment by using the index of economic freedom of the Heritage Foundation.…”

Section: Research Objective and Methodologymentioning

confidence: 99%

“…Authors indirectly quantified the amount of transaction costs in the environment by using the index of economic freedom of the Heritage Foundation. One of the transaction costs is corporate governance, with authors assuming that: "However, in a high-quality institutional environment characterized by a low level of transaction costs, which means with a higher index of economic freedom, the implementation of corporate governance is less costly (Kittová & Steinhauser, 2017)." The analysis was applied to a large sample of observations on countries rated by the Index of Economic Freedom, and this presents a limitation of the previous study.…”

Section: Research Objective and Methodologymentioning

confidence: 99%

The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect

Bažó¹,

Čukanová²,

Markovicova³

et al. 2019

JOC

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In recent years, a decline in competitiveness and in the quality of the business environment measurements has been reflected in the Slovak Republic, as noted, for example, in the assessments of the World Bank and the World Economic Forum, as well as in the business environment index (BEI from Business Alliance of Slovakia PAS), data from which we have used in our research. A multiple regression analysis along with the correlation analysis confirmed our assumption that in the Slovak Republic a state of institutional hysteresis exists. The hysteresis effect indicates rigidity despite the economic recovery, not restoring the original balance after a certain failure in the economic process. In our case, many external environment subindeces tend to decline while macroeconomic variables (employment, value added, R&D expenditures, revenues from corporate taxes) grow. On the other hand, the internal factors of a company, through which it itself affects the environment, such as the level of liquidity or innovation, is growing. We conclude that the companies we examined have adapted. The process of improving the assessment of the country (corruption, law enforcement, equality before the law, functioning of the judiciary) will become much more expensive over time. The result of this change should be an entrepreneurial environment in which the entrepreneur does not have to deal with the ongoing optimization of taxes and levies, a condition which in the long run would lead to the economic recovery in the Slovak Republic and to improvements in competitiveness.

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“…A contract arises between the capital owners and corporate managers that can be broken by one or both parties under imperfect competition conditions. In order to ensure desirable performance under these contracts, a concept of corporate governance has been devised [7].…”

Section: Introductionmentioning

confidence: 99%

Economic Transition and the Corporate Governance Implementation

Kittová¹,

Steinhauser²,

Ružeková³

2018

Entrepreneurship - Development Tendencies and Empirical Approach

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In Slovakia, the privatization of the state property in the beginning of the 1990s created a need for the corporate governance implementation. The aim of this chapter is to evaluate the level of implementation of corporate governance in Slovakia after more than 25 years since starting the transition from a centrally planned to a market economy, including a legal framework for its implementation. To support our analysis, we explored a relationship between the level of the corporate governance implementation and economic results of corporations. For this purpose, we reviewed annual reports for year 2015 by 27 corporations listed on the Bratislava Stock Exchange. The average profit of the evaluated corporations was approaching 21 million EUR, and the average assets value was at 1.2 billion EUR. Using the scoring method devised by us for this purpose, the average score of the annual report evaluation reached 2.59 points out of maximum 5 points. Finally, we tested a hypothesis that improving the level of corporate governance implementation may contribute to profitability and assets value of corporations.

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Institutional and Macroeconomic Environment of Corporations

Abstract: N/A

Cited by 4 publications

References 9 publications

The Impact of Institutional Environment on Risk Assessment

The Impact of Institutional Environment on Risk Assessment

The Impact of Institutional Environment on Slovak Enterprises and the Institutional Hysteresis Effect

Economic Transition and the Corporate Governance Implementation

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