The Relationship Between Company Returns and Leverage Depending on the Business Sector: Empirical Evidence from the Czech Republic

Strýčková, Lenka

doi:10.7441/joc.2017.03.07

Cited by 22 publications

(9 citation statements)

References 20 publications

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“…Hypothesis 1 is confirmed, and we can conclude that debt has statistically significant, negative and linear impact on profitability ROA. The same results are shown in paper Dakić et al (2019) on example of Serbian food processing (meat and milk) companies, Czech food processing industry (Blazkovă & Dvoulety, 2018), 14 companies from agricultural sector in Indonesia (Hifayat et al,2020), agricultural firms in China (Liu et al, 2020), 300 large firms in Serbia (Stančić et al, 2016), six business sectors in Czech, including Agricultural (Stryckova, 2017) and trade firms in France (Kebewer, 2013).…”

Section: Analysis Results and Discussionsupporting

confidence: 67%

Is there a relationship between debt and profitability?: Evidence from dairy industry in Serbia

Milošev

2023

Bizinfo

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This paper analyzes if there is a relationship between debt and profitability in the dairy sector in Serbia. The research analyzed the period from 2017 to 2021, on a sample of all 16 large and medium dairy companies. Large and medium companies cover around 90% of total dairy production in Serbia. The Generalized Method of Moments (G.M.M.) is used to analyze the effect of debt indicator DR on the profitability ROA. Analyzed is if there is a linear relationship between two indicators and then a nonlinear one. Results showed that there is a linear and negative impact of debt indicators on the profitability of the observed dairy firms. Results showed that the nonlinear relationship is not statistically significant. Both models show the positive impact of company size and growth potential on profitability, while tangibility and inflation do not have a significant impact.

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Section: Analysis Results and Discussionsupporting

confidence: 67%

Is there a relationship between debt and profitability?: Evidence from dairy industry in Serbia

Milošev

2023

Bizinfo

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“…In today's highly competitive landscape efficiency is one of the most debated topics that helps identifying strengths and weaknesses of the evaluated units, including those related to the agricultural sector (Lorant & Farkas, 2015;Strýčková, 2017;Venclová et al, 2013;Zalizko, Fedun & Martynenkov, 2017). This paper tries to examine the efficiency in terms of effective relationship between consumed inputs and produced outputs.…”

Section: Introductionmentioning

confidence: 99%

A slack-based measure of agricultural efficiency in the European Union countries

Kočišová¹,

Gavurová²,

Kotásková³

2018

Journal of International Studies

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The main aim of this study is to examine the relative efficiency of agriculture in the European Union using Data Envelopment Analysis for the period 2005-2015. We have examined the relative efficiency using non-radial and non-oriented slacks-based model (SBM) under the assumption of a variable return to scale. We have looked for causes of inefficiency and have come up with the recommendations how to change input and output variable to reach the efficiency frontier. The results show that, on average, the European Union agricultural sector has been performing efficiently, and its development could be considered as stable. After taking into account the size of the economies in form of gross domestic product in market prices, we can say, that the efficiency was positively affected mainly by the development in large countries. By examining the optimal values for the variables used in the SBM model, it has been found that on average for the movement on the efficiency frontier it is necessary to reduce both inputs (labour and utilised agricultural area) and simultaneously increase both outputs (animal and crop production).

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“…Figure 3 described the enterprise size expressed as the value of corporate assets. Czech enterprises mostly enter insolvency proceeding almost without any valuable property (Čámská, 2013;Smrčka et al, 2013). Figure 3 provides evidence for this statement.…”

Section: Discussionmentioning

confidence: 77%

Influence of age on selected parameters of insolvent companies

Čámská

Klečka

Scholleová

2021

Problems and Perspectives in Management

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It is natural for the market economy that companies are forced to leave the market when they are not able to survive anymore. This paper is focused on the age structure of the companies in default. The age is considered a period between corporate establishment and insolvency declaration. The paper analyzes whether companies, which report financial accounting statements, have different age structure than non-reporting entities. Data sample consists of 212 companies (147 reporting and 65 non-reporting entities). Moreover, the analysis points out if corporate financial standing differ according to the age structure observed. Using descriptive statistics tools, the observed relationship between the company age and the frequency of insolvency cases is expressed. The evaluation of the financial standing is based on a ratio analysis. Indicators such as return on assets, return on sales, debt ratio, cash and non-cash liquidity, and asset turnover are applied. The results show there are not significant differences in the age structure between the reporting and non-reporting enterprises. Values of financial indicators seem to be independent on the age structure. The paper provides explanations and brings a classification of specific differences observed such as a distinction between reasons due to sector specificities and partly due to the specifics of the current business environment in the Czech Republic (monitored period 2014 – first quarter 2019). AcknowledgmentsThe authors are thankful to the Grant Agency of Academic Alliance (renamed the Grant Agency Academia Aurea) No. GAAA 10/2018 “Financial characteristics of enterprise in bankruptcy” for financial support to carry out this research.

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The Relationship Between Company Returns and Leverage Depending on the Business Sector: Empirical Evidence from the Czech Republic

Cited by 22 publications

References 20 publications

Is there a relationship between debt and profitability?: Evidence from dairy industry in Serbia

Is there a relationship between debt and profitability?: Evidence from dairy industry in Serbia

A slack-based measure of agricultural efficiency in the European Union countries

Influence of age on selected parameters of insolvent companies

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