FINANCIAL BEHAVIOUR OF FAMILY COMPANIES IN THE CZECH REPUBLIC

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F60076658%3A12510%2F24%3A43908853" target="_blank" >RIV/60076658:12510/24:43908853 - 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

FINANCIAL BEHAVIOUR OF FAMILY COMPANIES IN THE CZECH REPUBLIC

Original language description

The article deals with an analysis of the financial behaviour of Czech family businesses registered by the Association of Small and Medium Enterprises of the Czech Republic. This association registers a group of entrepreneurs who meet the definition of family businesses and have voluntarily registered in this register. The Albertina database provided data from the financial statements of 475 family businesses for the year 2022. Drawing on an analysed sample, which represents almost 39% of the total number of records in the family business database, the study identifies typical features of financial behaviour in these units. The sample predominantly includes limited liability companies (94.1%), with joint-stock companies making up the remaining 5.9%.Cluster analysis, using the k-means method, allowed three groups of companies to be distinguished according to their similarity. We have identified three key financial indicators for cluster analysis: operational profitability, retained earnings, and total liability. The company&apos;s main activity is the basis for calculating operating profitability, defined as the ratio of operating profit to total assets. The retained earnings measure, defined as the ratio between retained earnings and total assets, allows for comparability across industries. Total liability, divided by total assets, indicates the proportion of a company’s assets financed through debt. We compared the three indicators of family firms using a cluster analysis. This comparison of selected financial indicators showed three different groups of family companies in the Czech Republic. We have found that Czech family companies have a conservative approach to financial behaviour. The findings of this study contribute to the understanding of financial behaviour in Czech family companies, providing valuable insights for academics and practitioners in the field.

Czech name

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Czech description

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Type

D - Article in proceedings

CEP classification

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OECD FORD branch

50206 - Finance

Project

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Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2024

Confidentiality

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

Article name in the collection

Conference Proceedings Business Trends 2024

ISBN

978-80-261-1270-9

ISSN

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e-ISSN

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Number of pages

14

Pages from-to

186-199

Publisher name

Faculty of Economics University of West Bohemia

Place of publication

Plzeň

Event location

Plzeň

Event date

Nov 21, 2024

Type of event by nationality

WRD - Celosvětová akce

UT code for WoS article

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