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Impact of financial crisis on ROA differences among industries of the Czech economy
[Vliv finanční krize na vývoj rentability aktiv tržních odvětví české ekonomiky]

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  • Ladislav Šiška

Abstract

The article presents answers to the basic question, whether American financial crisis hit Czech non-financial firms uniformly, and the subsequent question, whether there were significant differences in profitability among industries during pre- and post-crisis years. The answers were found by means of Spearman's rank correlation coefficient and k-means clustering method. The analysis drew from aggregated data published by the Czech Ministry of Industry and Trade covering years 2007 to 2015. The results show that the financial crisis lowered temporarily the ROA indicator in the more than half of industries forming the Czech economy. The reaction was uneven, plastic and rubber manufacturing reported the highest performance in all analyzed years, while industries such as coke manufacturing and oil refinery, electronic equipment manufacturing, accommodation activities incurred heavy losses during analyzed years.

Suggested Citation

  • Ladislav Šiška, 2017. "Impact of financial crisis on ROA differences among industries of the Czech economy [Vliv finanční krize na vývoj rentability aktiv tržních odvětví české ekonomiky]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2017(1), pages 5-16.
    • Handle: RePEc:prg:jnlcfu:v:2017:y:2017:i:1:id:489:p:5-16
    DOI: 10.18267/j.cfuc.489
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    References listed on IDEAS

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    1. Stefan Hirsch & Jan Schiefer & Adelina Gschwandtner & Monika Hartmann, 2014. "The Determinants of Firm Profitability Differences in EU Food Processing," Journal of Agricultural Economics, Wiley Blackwell, vol. 65(3), pages 703-721, September.
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    More about this item

    Keywords

    Profitability; Return on assets; Financial crisis; Industries; Ziskovost; Rentabilita aktiv; Finanční krize; Tržní odvětví;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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