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Charakteristiky insolvenčních řízení společností s virtuálními sídly
[Characteristics of Insolvency Proceedings of Enterprises with Virtual Address]

Author

Listed:
  • Luboš Smrčka
  • Dagmar Čámská
  • Markéta Arltová
  • Jan Plaček

Abstract

The aim of the research is to show differences between characteristics of insolvency proceedings of traditional and virtual enterprises. This paper focuses on results of insolvency proceedings in the case of enterprises which do not have a traditional headquarter. Instead of the traditional headquarter these enterprises are registered at virtual addresses for a purpose of business register. Among the professional public this institute enables discussions about lower transparency and even functioning of grey-area. First the paper analyzes results for enterprises with virtual address and second these results are compared with traditional enterprises. Research questions are based on probability of insolvency proposal, kind of bankruptcy (with default and without default) and level of creditors' satisfaction. The used data are extracted from business as well as insolvency register. The gained results show that there are significant differences between the insolvency proceedings of traditional and virtual enterprises which have in this case higher probability of insolvency, lower level of creditor's satisfaction and therefore many cases finish without default due to enterprises' property emptiness.

Suggested Citation

  • Luboš Smrčka & Dagmar Čámská & Markéta Arltová & Jan Plaček, 2017. "Charakteristiky insolvenčních řízení společností s virtuálními sídly [Characteristics of Insolvency Proceedings of Enterprises with Virtual Address]," Politická ekonomie, Prague University of Economics and Business, vol. 2017(3), pages 287-300.
    • Handle: RePEc:prg:jnlpol:v:2017:y:2017:i:3:id:1144:p:287-300
    DOI: 10.18267/j.polek.1144
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    References listed on IDEAS

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    1. Becht, Marco & Mayer, Colin & Wagner, Hannes F., 2008. "Where do firms incorporate? Deregulation and the cost of entry," Journal of Corporate Finance, Elsevier, vol. 14(3), pages 241-256, June.
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    More about this item

    Keywords

    insolvency proceeding; virtual address; traditional headquarter; level of creditors' satisfaction; default; Czech Republic;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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