Risk areas of the financial health assessment in agriculture

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F16%3A43891414" target="_blank" >RIV/60076658:12510/16:43891414 - isvavai.cz</a>

Result on the web

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DOI - Digital Object Identifier

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Result language

angličtina

Original language name

Risk areas of the financial health assessment in agriculture

Original language description

In the field of agriculture, there are a lot of specifics reflected in the value of items in financial statements, and thus in the results of financial health assessment of a company through bankruptcy and credibility models. This assessment, which can be partly influenced by the company itself, does not provide the information necessary for investors, owners and the public. This article focuses on the assessment of financial health of agricultural enterprises in the Czech Republic. It determines the most and the least controllable parameters included in financial health assessment. The reliability of the selected models was also evaluated. The selected models include IN 05, Gurčík model, CH-index and the Řezbová OP model for the Operational Programme Rural Development. This reliability was tested on data from 200 enterprises which were in bankruptcy or liquidation at the time of the assessment. The data were taken from the Albertina Gold database. The third part includes a regression analysis of these four models to determine which indicators, both individual and mutual, are statistically significant for the outcome of the model and which of them influence the level of the assessment to the greatest extent. These two analyses were carried out on nearly 10,000 data entries from the Albertina Gold database. The values of assets and profit seem to be the most easily influenced. These values can be influenced by the choice of a depreciation method, creation of provisions and adjustments, but also by specific valuation that is largely done through calculations in agriculture. The most important indicators are profit and a group of indicators related to the enterprise's debt, such as interest payable, current liabilities and total debt

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

GA - Agricultural economics

OECD FORD branch

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Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2016

Confidentiality

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

Article name in the collection

AGRARIAN PERSPECTIVES XXV. Global and European Challenges for Food Production, Agribusiness and the Rural Economy.

ISBN

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ISSN

2464-4781

e-ISSN

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Number of pages

8

Pages from-to

236-243

Publisher name

Česká zemědělská univerzita v Praze, Provozně ekonomická fakulta

Place of publication

Praha

Event location

Praha 6 - Suchdol

Event date

Sep 14, 2016

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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