Sectoral analysis of the differences in profitability of Czech and German business ventures – an empirical benchmark study

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Show simple item record Beyer, Dirk Hinke, Jana
dc.contributor.other Ekonomická fakulta cs 2018-03-29 2018-03-29 2018-03-29
dc.identifier.issn 1212-3609
dc.description.abstract Profitability measures are a lens through which business can be viewed and they form a common basis for investment decisions. Especially in areas close to national borders, these decisions could be linked to the question on which side of the border a venture should be located in order to realise country-specific comparative advantages that make the investment more profitable. Differences in profitability between countries are driven by manifold aspects, including specific cost or revenue structures, financing patterns and conditions, as well as taxation. The aim of this study is to identify the driving factors behind differences in profitability of Czech and German firms on the basis of a comparative analysis. In this article, a two-step variance analysis is conducted. The first step focuses on the operational differences in RoA between Czech and German ventures, which is based on deeper analyses of the asset turnover and the profit margin. In the second step, the differences in RoE are analysed, considering influences from national taxation, conditions and patterns of financing and operations of the ventures. A model-based cumulative variance analysis quantifies the impacts of these underlying drivers of profitability with a comparative focus. For this reason, the average measures of these drivers from 2002 to 2014 – the longest time series available for both countries are extracted from the BACH database, which provides harmonised accounting information. This paper confirms the hypothesis that specific drivers of profitability differ significantly between the two countries in certain business sectors and would cause substantial differences in profitability. Due to the overlapping nature of these individual effects, they compensate each other to a great extent. The results provide useful benchmarks that a company´s management can use to increase its profitability tackling specific comparative (dis-)advantages between the Czech Republic and Germany. en
dc.format text
dc.format.extent 17 stran cs
dc.language.iso en
dc.publisher Technická Univerzita v Liberci cs
dc.publisher Technical university of Liberec, Czech Republic en
dc.relation.ispartof Ekonomie a Management cs
dc.relation.ispartof Economics and Management en
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dc.rights CC BY-NC
dc.subject profitability en
dc.subject international benchmarking en
dc.subject variance analysis en
dc.subject business sectors en
dc.subject.classification M21
dc.title Sectoral analysis of the differences in profitability of Czech and German business ventures – an empirical benchmark study en
dc.type Article en
dc.publisher.abbreviation TUL
dc.relation.isrefereed true
dc.identifier.doi 10.15240/tul/001/2018-1-009
dc.identifier.eissn 2336-5604
local.relation.volume 21
local.relation.issue 1
local.relation.abbreviation E+M cs
local.relation.abbreviation E&M en
local.faculty Faculty of Economics
local.citation.spage 127
local.citation.epage 143
local.access open
local.fulltext yes
local.filename EM_1_2018_09

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