European Financial and Accounting Journal 2016, 11(3):53-68 | DOI: 10.18267/j.efaj.162

Construction Industry and Payment Discipline in the Czech Republic

Lucie Kureková1, Pavlína Hejduková2
1 Lucie Kureková; University of Economics in Prague, Faculty of Economics, Department of Economics, Winston Churchill Square 4, 130 67 Prague 3, Czech Republic, <xkurl06@vse.cz>.
2 Pavlína Hejduková; University of West Bohemia, Faculty of Economics, Department of Finance and Accounting, Univerzitní 8, 306 14 Pilsen, Czech Republic, <pahejdu@kfu.zcu.cz>.

The paper deals with payment discipline in the building industry in the Czech Republic. The aim of this paper is to identify, compare and evaluate the financial situation of building companies with different payment practices in the Czech Republic in the period 2010 - 2014. The paper uses enterprise and statistical methods. The payment discipline of companies is expressed by a payment index, which is constructed by Bisnode. The results are based on analysis of 1374 companies which are operated in the building industry. The analysis shows that payment habits increase with higher index IN05, Taffler's model, index IN99 and with larger size of the firms. Payment habits of building companies are very good. However, about 2 % of solvent companies have poor payments habits.

Keywords: Bankruptcy models, Companies, Construction industry, Payment discipline, Payment index
JEL classification: G31, G32, G33, L74, M21

Published: October 1, 2016  Show citation

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Kureková, L., & Hejduková, P. (2016). Construction Industry and Payment Discipline in the Czech Republic. European Financial and Accounting Journal11(3), 53-68. doi: 10.18267/j.efaj.162
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