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Construction Industry and Payment Discipline in the Czech Republic

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  • Lucie Kureková
  • Pavlína Hejduková

Abstract

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.

Suggested Citation

  • Lucie Kureková & Pavlína Hejduková, 2016. "Construction Industry and Payment Discipline in the Czech Republic," European Financial and Accounting Journal, Prague University of Economics and Business, vol. 2016(3), pages 53-68.
    • Handle: RePEc:prg:jnlefa:v:2016:y:2016:i:3:id:162:p:53-68
    DOI: 10.18267/j.efaj.162
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    References listed on IDEAS

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    More about this item

    Keywords

    Bankruptcy models; Companies; Construction industry; Payment discipline; Payment index;
    All these keywords.

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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