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Public Procurement and its Impact on Financial Indicators of Companies in the Construction Sector in Slovakia
[Verejné obstarávanie a jeho vplyv na finančné ukazovatele firiem v sektore stavebníctva na Slovensku]

Author

Listed:
  • Zuzana Špinerová

Abstract

The aim of this article is to examine whether there exists a relation between the participation in execution of public contracts and financial indicators of companies. The issue is analysed using data on companies involved in the construction sector of the Slovak Republic. Hypotheses that the participation of companies in public contracts positively affects their financial indicators are tested using a quantitative approach. The results of the regression analysis indicate that companies which contribute to realisation of public contracts achieve more favourable values of profitability ratios compared to companies without public contracts. Nevertheless, the higher profitability may stem from higher efficiency of those companies or from the presence of inefficiency in the procurement process. With respect to the main objective and the extent of the presented analysis, it is not possible to assess which option is more plausible.

Suggested Citation

  • Zuzana Špinerová, 2014. "Public Procurement and its Impact on Financial Indicators of Companies in the Construction Sector in Slovakia [Verejné obstarávanie a jeho vplyv na finančné ukazovatele firiem v sektore stavebníctv," Acta Oeconomica Pragensia, Prague University of Economics and Business, vol. 2014(3), pages 61-76.
    • Handle: RePEc:prg:jnlaop:v:2014:y:2014:i:3:id:437:p:61-76
    DOI: 10.18267/j.aop.437
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    References listed on IDEAS

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    1. Jana Chvalkovská & Petr Janský & Jiří Skuhrovec, 2012. "Listinné akcie na majitele a veřejné zakázky [Bearer Shares in Paper Form and Public Procurement]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(3), pages 349-361.
    2. Oriana Bandiera & Andrea Prat & Tommaso Valletti, 2009. "Active and Passive Waste in Government Spending: Evidence from a Policy Experiment," American Economic Review, American Economic Association, vol. 99(4), pages 1278-1308, September.
    3. Duch, Néstor & Montolio, Daniel & Mediavilla , Mauro, 2009. "Evaluating the impact of public subsidies on a firm’s performance: a two-stage quasi-experimental approach," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 16, pages 143-165.
    4. Jan Pavel, 2010. "Analýza vlivu míry konkurence na cenu rozsáhlých staveb dopravní infrastruktury [The Analysis of the Relationship Between the Rate of Competition and the Prices of Large Transport Infrastructure Bu," Politická ekonomie, Prague University of Economics and Business, vol. 2010(3), pages 343-356.
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    More about this item

    Keywords

    Public procurement; Profitability; Construction sector; Slovak Republic;
    All these keywords.

    JEL classification:

    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H57 - Public Economics - - National Government Expenditures and Related Policies - - - Procurement
    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics

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