Interest and tax burden on corporations in the Czech industrial and banking sector after 2008

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F18%3A00104435" target="_blank" >RIV/00216224:14560/18:00104435 - isvavai.cz</a>

Výsledek na webu

<a href="http://dx.doi.org/10.2478/revecp-2018-0021" target="_blank" >http://dx.doi.org/10.2478/revecp-2018-0021</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.2478/revecp-2018-0021" target="_blank" >10.2478/revecp-2018-0021</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Interest and tax burden on corporations in the Czech industrial and banking sector after 2008

Popis výsledku v původním jazyce

This paper is devoted to the interest and tax burden of corporations in the Czech industrial and banking sector, the identification of the differences between the two sectors, including the evaluation of their developmental trends in the period after the economic and financial crisis of 2008. The interest and tax burden on business entities is determined by negative cash flows that reduce the value of their assets and equity. The basis of the research is the analysis of both components of the financial burden on corporations in these sectors over the past eight years and the identification of factors influencing their capital structure and performance. According to DuPont's equation, the burden is expressed by interest and the tax reduction of corporation's earnings before interest and taxes. The amount of the financial burden depends on the macroeconomic environment where the corporations operate. Our analysis identified an asynchronous dependence between the real payments and changes in the interest and tax rates. The reduction of both rates has had a positive effect on the performance of Czech corporations and increased their capital resources. They became more attractive to foreign investors, and the return on invested capital improved. Based on the results of the analysis, we evaluated the differences in the performance of the average corporation in the banking and industrial sectors.

Název v anglickém jazyce

Interest and tax burden on corporations in the Czech industrial and banking sector after 2008

Popis výsledku anglicky

This paper is devoted to the interest and tax burden of corporations in the Czech industrial and banking sector, the identification of the differences between the two sectors, including the evaluation of their developmental trends in the period after the economic and financial crisis of 2008. The interest and tax burden on business entities is determined by negative cash flows that reduce the value of their assets and equity. The basis of the research is the analysis of both components of the financial burden on corporations in these sectors over the past eight years and the identification of factors influencing their capital structure and performance. According to DuPont's equation, the burden is expressed by interest and the tax reduction of corporation's earnings before interest and taxes. The amount of the financial burden depends on the macroeconomic environment where the corporations operate. Our analysis identified an asynchronous dependence between the real payments and changes in the interest and tax rates. The reduction of both rates has had a positive effect on the performance of Czech corporations and increased their capital resources. They became more attractive to foreign investors, and the return on invested capital improved. Based on the results of the analysis, we evaluated the differences in the performance of the average corporation in the banking and industrial sectors.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50206 - Finance

Projekt

—

Návaznosti

S - Specificky vyzkum na vysokych skolach

Rok uplatnění

2018

Kód důvěrnosti údajů

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

Název periodika

Review of Economic Perspectives

ISSN

1213-2446

e-ISSN

1804-1663

Svazek periodika

18

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

16

Strana od-do

409-424

Kód UT WoS článku

000452436400005

EID výsledku v databázi Scopus

2-s2.0-85058649569