Publication details

Vliv dotace na konkurenceschopnost podniku - předběžná analýza

Title in English Subsidy Effect on Enterprise Competitiveness - Preliminary Analysis


Year of publication 2015
Type Article in Periodical
Magazine / Source Politická ekonomie
MU Faculty or unit

Faculty of Economics and Administration

Field Management and administrative
Keywords competitiveness; subsidy; evaluation; company performance; financial analysis; investment
Description 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 profitability ratios.
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