IDEAS home Printed from https://ideas.repec.org/a/prg/jnlpol/v2015y2015i4id1031p474-497.html
   My bibliography  Save this article

Vliv dotace na konkurenceschopnost podniku - předběžná analýza
[Subsidy Effect on Enterprise Competitiveness - Preliminary Analysis]

Author

Listed:
  • Milan Sedláček

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.

Suggested Citation

  • Milan Sedláček, 2015. "Vliv dotace na konkurenceschopnost podniku - předběžná analýza [Subsidy Effect on Enterprise Competitiveness - Preliminary Analysis]," Politická ekonomie, Prague University of Economics and Business, vol. 2015(4), pages 474-497.
    • Handle: RePEc:prg:jnlpol:v:2015:y:2015:i:4:id:1031:p:474-497
    DOI: 10.18267/j.polek.1031
    as

    Download full text from publisher

    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1031.html
    Download Restriction: free of charge
    File URL: http://polek.vse.cz/doi/10.18267/j.polek.1031.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.polek.1031?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Inka Neumaierová & Ivan Neumaier, 2014. "INFA Performance Indicator Diagnostic System," Central European Business Review, Prague University of Economics and Business, vol. 2014(1), pages 35-41.
    2. Clausen, Tommy H., 2009. "Do subsidies have positive impacts on R&D and innovation activities at the firm level?," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 239-253, December.
    3. Man, Thomas W. Y. & Lau, Theresa & Chan, K. F., 2002. "The competitiveness of small and medium enterprises: A conceptualization with focus on entrepreneurial competencies," Journal of Business Venturing, Elsevier, vol. 17(2), pages 123-142, March.
    4. Ahsan Habib, 2006. "Disaggregated earnings and prediction of future profitability: evidence from industrial groups in Japan," Review of Accounting and Finance, Emerald Group Publishing, vol. 5(4), pages 355-369, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Thomas Lans & Wim Hulsink & Herman Baert & Martin Mulder, 2008. "Entrepreneurship Education And Training In A Small Business Context: Insights From The Competence-Based Approach," Journal of Enterprising Culture (JEC), World Scientific Publishing Co. Pte. Ltd., vol. 16(04), pages 363-383.
    2. Heira Georgina Valdez-Bocanegra & Gonzalo Maldonado-Guzmán & Carmen Castrejón-Mata, 2020. "The Entrepreneurial Orientation and its Impact on Competitiveness and Growth: Empirical Evidence in the State of Aguascalientes in Mexico," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 10(3), pages 1-6.
    3. Qi‐an Chen & Shuxiang Tang & Yuan Xu, 2022. "Do government subsidies and financing constraints play a dominant role in the effect of state ownership on corporate innovation? Evidence from China," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3698-3714, December.
    4. Hornyák, Miklós & Kruzslicz, Ferenc & Lányi, Beatrix, 2023. "A kis- és középvállalatok digitális transzformációja - az online jelenlét és a versenyképesség összefüggései [The relationships between the online presence of SMEs and competitiveness]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(5), pages 517-543.
    5. Saeed Moazemi Goodarzi & Ebrahim Ali Razini, 2016. "Analyze the Competitiveness of Iran in the Aluminum Export with the Use of Analyze the Share Shift Index and Trademapping Index," Modern Applied Science, Canadian Center of Science and Education, vol. 10(12), pages 177-177, December.
    6. Jenny Lukito Setiawan & Azilah Kasim & Elia Ardyan, 2022. "Understanding the Consumers of Entrepreneurial Education: Self-Efficacy and Entrepreneurial Attitude Orientation among Youths," Sustainability, MDPI, vol. 14(8), pages 1-18, April.
    7. Barge-Gil, Andrés & López, Alberto, 2014. "R&D determinants: Accounting for the differences between research and development," Research Policy, Elsevier, vol. 43(9), pages 1634-1648.
    8. Beck, Mathias & Junge, Martin & Kaiser, Ulrich, 2017. "Public Funding and Corporate Innovation," IZA Discussion Papers 11196, Institute of Labor Economics (IZA).
    9. Liu, Jingjing & Zhao, Min & Wang, Yanbo, 2020. "Impacts of government subsidies and environmental regulations on green process innovation: A nonlinear approach," Technology in Society, Elsevier, vol. 63(C).
    10. George A Shinkle & Jo-Ann Suchard, 2019. "Innovation in newly public firms: The influence of government grants, venture capital, and private equity," Australian Journal of Management, Australian School of Business, vol. 44(2), pages 248-281, May.
    11. Coppola, A. & Ianuario, S. & Chinnici, G. & Di Vita, G. & Pappalardo, G. & D'Amico, D., 2018. "Endogenous and Exogenous Determinants of Agricultural Productivity: What Is the Most Relevant for the Competitiveness of the Italian Agricultural Systems?," AGRIS on-line Papers in Economics and Informatics, Czech University of Life Sciences Prague, Faculty of Economics and Management, vol. 10(2).
    12. Andrés Barge-Gil & Alberto López, 2015. "R versus D: estimating the differentiated effect of research and development on innovation results," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 24(1), pages 93-129.
    13. Pilar Laguna-Sánchez & Pilar Abad & Concepción de la Fuente-Cabrero & Rocío Calero, 2020. "A University Training Programme for Acquiring Entrepreneurial and Transversal Employability Skills, a Students’ Assessment," Sustainability, MDPI, vol. 12(3), pages 1-17, January.
    14. Bergevoet, R.H.M. & Giesen, G.W.J. & Saatkamp, H.W. & van Woerkum, C.M.J. & Huirne, R.B.M., 2007. "PR - Evaluation Of A Training Programme Designed To Improve The Entrepreneurial Competencies Of Dutch Dairy Farmers," 16th Congress, Cork, Ireland, July 15-20, 2007 345359, International Farm Management Association.
    15. Fischer, Denise & Greven, Andrea & Tornow, Mark & Brettel, Malte, 2021. "On the value of effectuation processes for R&D alliances and the moderating role of R&D alliance experience," Journal of Business Research, Elsevier, vol. 135(C), pages 606-619.
    16. Alexander Kalita & Alexander Chepurenko, 2020. "Competitiveness of Small and Medium Businesses and Competitive Pressure in the Manufacturing Industry," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 14(2), pages 36-50.
    17. Arturo GUTIERREZ FERNANDEZ & Macarena PEREZ-SUAREZ, 2017. "The Export Competitiveness Of Social Enterprises As Compared To With Export Smes," Revista Galega de Economía, University of Santiago de Compostela. Faculty of Economics and Business., vol. 26(1), pages 55-72.
    18. Lee, Jeongwon & Hwang, Junseok & Kim, Hana, 2022. "Different government support effects on emerging and mature ICT sectors," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    19. Enrico Vanino & Stephen Roper & Bettina Becker, 2020. "Knowledge to Money: Assessing the Business Performance Effects of Publicly Funded R&D Grants," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 17(04), pages 20-24, January.
    20. Guven Lisaniler, Fatma & Tumer, Mustafa, 2011. "Competitiveness of manufacturing enterprises in North Cyprus: A firm level analysis," MPRA Paper 72918, University Library of Munich, Germany, revised 24 Apr 2016.

    More about this item

    Keywords

    investment; competitiveness; subsidy; evaluation; company performance; financial analysis;
    All these keywords.

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • M20 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - General
    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlpol:v:2015:y:2015:i:4:id:1031:p:474-497. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.