Payment habits of engineering companies in the Czech Republic

Jindřich Špička

Ekonomika a Management, 2014, vol. 2014, issue 2

Abstract: The aim of the article is to identify, compare and evaluate financial position of companies with different payment habits in the Czech engineering industry in the period 2008 - 2012 using individual data and felicitous statistical methods (Kolmogorov-Smirnov test). The article focuses on evaluation of the default risk coming from engineering companies. Based on sample of 2012 engineering companies, the results show that payment habits increase with higher return on assets, higher liquidity, lower debt ratio and higher liability turnover. Payment habits of engineering companies are very good. However, about 6 % of solvent companies have poor payments habits. Such companies are risky for their suppliers with respect to the secondary insolvency phenomenon.

Keywords: Payment habits; Engineering Industry; Secondary Insolvency; Platební morálka; Strojírenství; Druhotná platební neschopnost (search for similar items in EconPapers)
JEL-codes: G32 G33 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.vse.cz/eam/download.php?jnl=eam&pdf=228.pdf
http://www.vse.cz/eam/228 (text/html)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:prg:jnleam:v:2014:y:2014:i:2:id:228

Ordering information: This journal article can be ordered from
Redakce Ekonomika a management, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://www.vse.cz/eam/

Access Statistics for this article

Ekonomika a Management is currently edited by Eva Kislingerová

More articles in Ekonomika a Management from Prague University of Economics and Business Contact information at EDIRC.
Bibliographic data for series maintained by Stanislav Vojir ().