Corporate Budgeting Practices: Empirical Evidence from the Czech Republic

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F46747885%3A24310%2F23%3A00011258" target="_blank" >RIV/46747885:24310/23:00011258 - isvavai.cz</a>

Result on the web

<a href="https://pep.vse.cz/pdfs/pep/2023/04/04.pdf" target="_blank" >https://pep.vse.cz/pdfs/pep/2023/04/04.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.18267/j.pep.838" target="_blank" >10.18267/j.pep.838</a>

Result language

angličtina

Original language name

Corporate Budgeting Practices: Empirical Evidence from the Czech Republic

Original language description

The essence of this research paper lies in the investigation of the current budgeting practices of Czech companies. Budgeting is a vital part of the financial management of each company. The article aims to provide recent empirical evidence on the impact of business complexity on budgeting in the Czech Republic, with the main focus on modern budgeting methods. The first part of the paper introduces various perspectives and results from the budgeting literature. Despite the plethora of critical voices against traditional budgeting, budgeting remains an essential part of the corporate governance of most companies. The empirical investigation is based on the questionnaire survey and its statistical evaluation using tests of goodness and cluster analysis. Fundamental research questions of the paper include the influence of business complexity on the budgeting practices of Czech companies, factors that currently play an essential role and their importance, and the approach of Czech companies towards modern budgeting practices. The article results indicate that Czech firms use various financial management tools, including budgets. Traditional budgeting methods are still dominant in most companies; empirical data evaluation confirmed mild differences between companies financed by domestic and foreign capital; nevertheless, those distinctions weren’t confirmed by statistical testing. Respondents chose as essential factors in their budgeting practice first connection of budgets to strategic planning and second, the possibility of using budgets as a tool for business performance evaluation.

Czech name

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Czech description

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Type

J_imp - 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

Project

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Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2023

Confidentiality

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

Name of the periodical

Prague Economic Papers

ISSN

1210-0455

e-ISSN

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Volume of the periodical

32

Issue of the periodical within the volume

4

Country of publishing house

CZ - CZECH REPUBLIC

Number of pages

35

Pages from-to

411-445

UT code for WoS article

001056830100004

EID of the result in the Scopus database

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