Interest and tax burden on corporations in the Czech industrial and banking sector after 2008
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F18%3A00104435" target="_blank" >RIV/00216224:14560/18:00104435 - isvavai.cz</a>
Result on the web
<a href="http://dx.doi.org/10.2478/revecp-2018-0021" target="_blank" >http://dx.doi.org/10.2478/revecp-2018-0021</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.2478/revecp-2018-0021" target="_blank" >10.2478/revecp-2018-0021</a>
Alternative languages
Result language
angličtina
Original language name
Interest and tax burden on corporations in the Czech industrial and banking sector after 2008
Original language description
This paper is devoted to the interest and tax burden of corporations in the Czech industrial and banking sector, the identification of the differences between the two sectors, including the evaluation of their developmental trends in the period after the economic and financial crisis of 2008. The interest and tax burden on business entities is determined by negative cash flows that reduce the value of their assets and equity. The basis of the research is the analysis of both components of the financial burden on corporations in these sectors over the past eight years and the identification of factors influencing their capital structure and performance. According to DuPont's equation, the burden is expressed by interest and the tax reduction of corporation's earnings before interest and taxes. The amount of the financial burden depends on the macroeconomic environment where the corporations operate. Our analysis identified an asynchronous dependence between the real payments and changes in the interest and tax rates. The reduction of both rates has had a positive effect on the performance of Czech corporations and increased their capital resources. They became more attractive to foreign investors, and the return on invested capital improved. Based on the results of the analysis, we evaluated the differences in the performance of the average corporation in the banking and industrial sectors.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50206 - Finance
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2018
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Review of Economic Perspectives
ISSN
1213-2446
e-ISSN
1804-1663
Volume of the periodical
18
Issue of the periodical within the volume
4
Country of publishing house
CZ - CZECH REPUBLIC
Number of pages
16
Pages from-to
409-424
UT code for WoS article
000452436400005
EID of the result in the Scopus database
2-s2.0-85058649569