Financial performance of eponymous firms in the Czech Republic

Ondřej Machek, Martin Machek and Michele Stasa

Acta Oeconomica Pragensia, 2019, vol. 2019, issue 2, 38-48

Abstract: Past literature suggests that firms that bear the name of the owners, also known as eponymous firms, have superior profitability. The goal of this paper is to test the differences in the financial performance indicators between eponymous and other Czech firms. In a sample of 17,833 privately held firms operating in the Czech Republic, owned by Czech individuals or families and having complete financial data for 2014-2017, we find that eponymous firms have a significantly higher return on assets. However, no difference in return on equity has been found. We also show that eponymous firms have lower asset turnover and labour productivity, use less debt financing and have greater liquidity. In this sense, their financial characteristics are close to those of family businesses. Overall, eponymous firms are younger than other firms, but there are no significant differences in the size of the firms. The results suggest that firms named after the founder are more likely to perform well.

Keywords: eponymous firms; financial performance; Czech Republic (search for similar items in EconPapers)
JEL-codes: M30 M31 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://aop.vse.cz/doi/10.18267/j.aop.620.html (text/html)
http://aop.vse.cz/doi/10.18267/j.aop.620.pdf (application/pdf)
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:jnlaop:v:2019:y:2019:i:2:id:620:p:38-48

Ordering information: This journal article can be ordered from
Redakce Acta Oeconomica Pragensia, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3
http://aop.vse.cz

DOI: 10.18267/j.aop.620

Access Statistics for this article

Acta Oeconomica Pragensia is currently edited by Klára Šimůnková

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