Debt as a financial risk factor in SMEs in the Czech Republic
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F20%3A63526260" target="_blank" >RIV/70883521:28120/20:63526260 - isvavai.cz</a>
Result on the web
<a href="http://economic-research.pl/Journals/index.php/eq/article/view/1765" target="_blank" >http://economic-research.pl/Journals/index.php/eq/article/view/1765</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.24136/eq.2020.005" target="_blank" >10.24136/eq.2020.005</a>
Alternative languages
Result language
angličtina
Original language name
Debt as a financial risk factor in SMEs in the Czech Republic
Original language description
Research Background: The approach is based on theoretical sources and completed studies on business debt, debt level and repayment awareness and how this issue relates to SMEs in the Czech Republic. Purpose of the article: The main purpose of this paper is to examine the attitude of SMEs towards the issue of company debt and its position within the economy. This attitude is an inherent part of the company's risk management. Methods: Three researched issues (How strongly is company debt perceived as a financial risk factor; Does the company consider debt to be a serious matter in their business; What measures does the company take to reduce risk) supported by hypotheses, which verified the thesis, were statistically tested. Finding & Value added: Practical implications confirm the thesis that there is a belief that SMEs do not consider debt to be a critical factor of business risk and do not associate it directly with the major risk of business failure. SMEs do not view debt negatively and do not directly link debt to the risk of failure. Consequently, companies consider the risk of indebtedness as relatively insignificant. Their approach to indebtedness is therefore generally passive and they also believe that it will not jeopardize their business, and they will always somehow manage to solve it through insurance, risk avoidance and through creation of financial reserves.
Czech name
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Czech description
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Classification
Type
J<sub>ost</sub> - Miscellaneous article in a specialist periodical
CEP classification
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OECD FORD branch
50204 - Business and management
Result continuities
Project
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Continuities
V - Vyzkumna aktivita podporovana z jinych verejnych zdroju
Others
Publication year
2020
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
Equilibrium. Quarterly Journal of Economics and Economic Policy
ISSN
1689-765X
e-ISSN
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Volume of the periodical
15
Issue of the periodical within the volume
1
Country of publishing house
LT - LITHUANIA
Number of pages
19
Pages from-to
87-105
UT code for WoS article
000530328200005
EID of the result in the Scopus database
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