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Macroeconomic Determinants of Firms' Default in the Czech Republic
[Makroekonomické determinanty úpadku firem v České republice]

Author

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  • Petr Jakubík
  • Tatiana Škerlíková

Abstract

This article deals with firms' defaults and empirically tests its key macroeconomic determinants. The conducted empirical analysis employs quarterly time series of the number of insolvency petitions filed in the period 1996-2009. The obtained results point out prediction ability of the growth rate of real consumption and investment, change in the growth rate of real foreign demand, interest rates, change in the growth rate of the nominal exchange rate and change in the growth rate of real wages on firms' defaults development. The study confirms a strong link between firms' bankruptcy rates and the macroeconomic development in the Czech economy.

Suggested Citation

  • Petr Jakubík & Tatiana Škerlíková, 2014. "Macroeconomic Determinants of Firms' Default in the Czech Republic [Makroekonomické determinanty úpadku firem v České republice]," Český finanční a účetní časopis, Prague University of Economics and Business, vol. 2014(2), pages 69-80.
    • Handle: RePEc:prg:jnlcfu:v:2014:y:2014:i:2:id:395:p:69-80
    DOI: 10.18267/j.cfuc.395
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    References listed on IDEAS

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    1. Petr Jakubík & Petr Teplý, 2011. "The JT Index as an Indicator of Financial Stability of Corporate Sector," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(2), pages 157-176.
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    More about this item

    Keywords

    Firm's Default; Insolvency Petition; Insolvency; Over-indebtedness; Bankruptcy; Credit cost; GDP; Macroeconomic determinants; Firemní úpadek; Insolvenční návrh; Insolvence; Předlužení; Konkurz; Náklady věřitele; HDP; Makroekonomické determinanty;
    All these keywords.

    JEL classification:

    • G33 - Financial Economics - - Corporate Finance and Governance - - - Bankruptcy; Liquidation
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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