Vliv dotace na konkurenceschopnost podniku - předběžná analýza

Subsidy Effect on Enterprise Competitiveness - Preliminary Analysis

Milan Sedláček

Politická ekonomie, 2015, vol. 2015, issue 4, 474-497

Abstract: More than EUR 347 million from EU funds was allocated for boosting competitiveness of Czech economy during the time period from 2004 to 2006. The aim of this paper is to evaluate effects of subsidies from programme "Development", which was focused on rising small and medium company competitiveness. Method Benchmark and method Per se were created for this purpose. Analyses confirm that subsidies are drawn by companies with above average rate of competitiveness. On the other hand, competitiveness of these subsidised companies (measured by eight financial indicators) was ostensibly decreasing after drawing the subsidy. The cause for this fact can be found in Czech accounting legislation which creates a dilemma for company managers. Research results show that managers of subsidized companies have probably chosen conservative strategy - the above average EBIT (created thanks to the subsidy) hold in liquid assets and use it for necessary future reinvestment but formally worsen profi tability ratios.

Keywords: investment; competitiveness; subsidy; evaluation; company performance; financial analysis (search for similar items in EconPapers)
JEL-codes: G38 M20 M48 O16 (search for similar items in EconPapers)
Date: 2015
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DOI: 10.18267/j.polek.1031

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