The Budgeting Processes of Czech Companies: The Role of the Ownership Structure and Foreign Capital

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F20%3A63525898" target="_blank" >RIV/70883521:28120/20:63525898 - isvavai.cz</a>

Result on the web

<a href="http://economic-research.pl/Journals/index.php/oc/article/view/1852" target="_blank" >http://economic-research.pl/Journals/index.php/oc/article/view/1852</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.24136/oc.2020.031" target="_blank" >10.24136/oc.2020.031</a>

Result language

angličtina

Original language name

The Budgeting Processes of Czech Companies: The Role of the Ownership Structure and Foreign Capital

Original language description

The study investigates the initial phase of budgeting process conducted in corporations. The basic concept correlates with findings in scientific literature that describe budgeting as an inefficient tool, burdened by considerable regulation in the preparation and compilation stages. As a consequence, the majority of academics and practitioners have concluded that producing a budget is merely a formality that minimizes wrinkles on the faces of their initiators, while reaping debatable benefits for managerial control. This paper compares data from the literature with the actual budgetary practices of companies operating in the Czech Republic. The attention was paid to the detailed aspects of the budgeting process, factors affecting the time it takes to prepare a budget, and the impact of ownership structure, especially the role of foreign ownership and foreign capital, on the level of decentralization in the budgeting process. Methods: The authors examined these topics through a questionnaire completed by 136 respondents, primarily industrial companies based in the country. The subsequent hypotheses were assessed via application of the Z-test. The results presented show that the budgeting practices of the Czech firms are not only influenced by traditional factors (e.g. the size of the company and its given economic sector), but also certain other aspects. Essential facets comprise the ownership structure and the share of foreign capital involved, the latter affecting the extent of autonomy of the business as to the budgetary process. This submitted paper can extend current theory with new findings on the specific nature of budgeting in post-socialist countries with an open economy and the significant influx of foreign capital.

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

50204 - Business and management

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2020

Confidentiality

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

Name of the periodical

Oeconomia Copernicana

ISSN

2083-1277

e-ISSN

—

Volume of the periodical

11

Issue of the periodical within the volume

4

Country of publishing house

PL - POLAND

Number of pages

20

Pages from-to

779-798

UT code for WoS article

000608491800008

EID of the result in the Scopus database

2-s2.0-85100014842