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The Effect of Selected Macroeconomic Factors on the Sustainability and the Market Value of Czech Joint-Stock Companies

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F20%3APU136558" target="_blank" >RIV/00216305:26510/20:PU136558 - isvavai.cz</a>

  • Result on the web

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    The Effect of Selected Macroeconomic Factors on the Sustainability and the Market Value of Czech Joint-Stock Companies

  • Original language description

    The paper analyzes relations between macroeconomic indicators and the Firm Market Value as related to corporate sustainability. Empirical research was verified in 128 unlisted manufacturing companies in the Czech Republic with more than 250 staff according to the EU criteria. The data were obtained by empirical research in the Czech Republic in 2014-2018. The aim of the paper is to propose a suitable sustainability model for unlisted Czech joint-stock companies in the Czech Republic and to investigate the macroeconomic impacts on the Firm Market Value and sustainability. The research methodology is based on multidimensional statistical methods EFA and CFA, and on structural equation modelling of mutual relationships. Empirical research has shown that factors such as inflation, unemployment and government debt do not directly affect corporate sustainability determined by ESG factors, nor do they positively affect the growth of the Firm Market Value. The only research hypothesis confirmed was the hypothesis that if government debt increases, inflation and unemployment will negatively affect the firm risk of a company. Although the research failed to reveal any interrelationships, investors are recommended to monitor these fundamental factors, especially their rapid or long-term fairly rapid growth, as this would lead to a decline in the Firm Market Value.

  • Czech name

  • Czech description

Classification

  • Type

    D - Article in proceedings

  • CEP classification

  • OECD FORD branch

    50204 - Business and management

Result continuities

  • Project

  • Continuities

    S - Specificky vyzkum na vysokych skolach

Others

  • Publication year

    2020

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Article name in the collection

    Proceedings of the 11th International Multi-Conferences on Complexity, Informatics and Cybernetics: IMCIC 2020

  • ISBN

    978-1-950492-26-8

  • ISSN

  • e-ISSN

  • Number of pages

    6

  • Pages from-to

    99-104

  • Publisher name

    International Institute of Informatics and Systemics, IIIS

  • Place of publication

    Orlando, Florida

  • Event location

    Orlando, Florida

  • Event date

    Mar 10, 2020

  • Type of event by nationality

    WRD - Celosvětová akce

  • UT code for WoS article