Michal Kudej

Faculty of Business Administration,

Prague University of Economics and Business,

Prague, Czech Republic

michal.kudej@vse.cz

Evaluation of the selected economic parameters of Czech companies and their potential for overcoming global crises during the Covid-19 pandemic

Beata Gavurova

Center for Applied Economic Research,

Faculty of Management and Economics,

Tomas Bata University in Zlin,

Zlin, Czech Republic

gavurova@utb.cz

Zuzana Rowland

Institute of Technology and Business,

School of Expertness and Valuation,

České Budějovice, Czech Republic

rowland@mail.vstecb.cz 

Abstract. The aim of the study is to evaluate the potential of Czech companies in overcoming the pandemic crisis caused by Covid-19 on the basis of the selected economic parameters. To achieve this aim, development of Czech companies in the period of 2004-2018 has been analysed, which includes the periods before and during the financial crisis and the period of Czech economy growth. A thorough analysis of this period allows us to create an evaluation platform and formulate the assumptions as to what extent Czech companies are able to cope with another crisis caused by the Covid-19 pandemic. The research sample consists of 25,501 financially stable Czech companies of various sizes. 184,548 pieces of financial data from these companies are analysed using standard statistical methods, namely Kruskal–Wallis test. The results of the analyses show that in the case of Czech companies, the hypothesis of a significant impact of the financial crisis and the subsequent long recovery period is not confirmed. Czech companies show a relatively high resilience to the effects of the financial crisis of 2008 and the ability to overcome this crisis. Government measures to support the economy will play an important role in crisis management processes, enabling companies to survive in the worst stages of their operation and thus bridge the period of revenue losses and other negatives associated with the crisis. Based on the evaluation of the post-crisis development, we can state that Czech companies with appropriate government support will be able to overcome the negative consequences of the pandemic crisis caused by Covid-19. The results of the study have several implications for policy-making and are also beneficial for the development of a methodological platform and the creation of national and international benchmarking indicators.

Received: April, 2020

1st Revision: December, 2020

Accepted: March, 2021

DOI: 10.14254/2071-8330.2021/14-1/18

JEL Classification: G01, G33, G38

Keywords: financial crisis, pandemic crisis, bankruptcy, financial indicators, financial stability, government support