Prague Economic Papers, 2023 (vol. 32), issue 4
Government Debt and Economic Freedom in the CEE countries. Less is More
Petru-Ovidiu Mura, Liliana Eva Donath
Prague Economic Papers 2023, 32(4):350-366 | DOI: 10.18267/j.pep.834 
Government debt has increased not only in times of economic stress, but it has become a com- mon manifestation of government expenditure funding. The aim of the paper is to inspect the effect of government debt on economic freedom in ten CEE countries between 1995 and 2020 using a panel model approach. Selected quantitative and qualitative variables were examined to validate the hypothesis, including public governance indicators, besides the economic ones. Based on a robust panel setting, we conclude that government debt has a negative impact on economic freedom. A causality from government debt to economic freedom is detected to- gether with a long-term...
Importance of Working Capital Management and Its Components for Firm Profitability
Zdeněk Toušek, Jana Hinke, Barbora Gregor, Martin Prokop
Prague Economic Papers 2023, 32(4):367-388 | DOI: 10.18267/j.pep.835
The current situation of slower economic growth is leading to a more difficult access to funds and unpredictable payment behaviour of customers, which predetermines growing importance of working capital management. The aim of the present article is to examine the effects of working capital investment and its components (inventories, accounts receivable, accounts payable and cash) on the firm's performance in the case of non-cyclical and cyclical industries in the Czech Republic. The underlying dataset comprises corporate data of 293 firms from 2010 to 2018. The calculations reveal that both industries applied over the period a very similar conservative...
Analysis of the Financial Behaviour of Czech Municipalities as a Possibility for International Comparisons
Filip Hrůza
Prague Economic Papers 2023, 32(4):389-410 | DOI: 10.18267/j.pep.837
From the general perspective, municipalities are economic organisations like private companies with their legal subjectivity, own revenues, and property. To better understand their financial management, it is desirable to conduct relevant empirical research, which lacks in the case of the Czech municipal sector and Czech municipalities. This paper aims to analyse and identify the financial behaviour of Czech municipalities within the post-crisis period focusing on the influence of internal and external vulnerability factors. The panel data and linear regression model (fixed-effect model) were used to evaluate how an external crisis affected...
Corporate Budgeting Practices: Empirical Evidence from the Czech Republic
Lenka Stryckova
Prague Economic Papers 2023, 32(4):411-445 | DOI: 10.18267/j.pep.838
This paper investigates current budgeting practices of Czech companies. The article aims to provide recent empirical evidence on the impact of business complexity on budgeting in the Czech Republic, with the main focus on modern budgeting methods. Despite the plethora of critical voices against traditional budgeting, budgeting remains an essential part of most companies' corporate governance. The empirical investigation is based on a questionnaire survey and its statistical evaluation using tests of goodness of fit and cluster analysis. Fundamental research questions of the paper include the influence of business complexity on Czech companies' budgeting...
Symmetric or Asymmetric: How is Economic Growth Responding to Global Economic Uncertainty in Africa's Oil Exporters?
Jonathan E. Ogbuabor, Oliver E. Ogbonna, Onyinye I. Anthony-Orji, Davidmac O. Ekeocha, Obed I. Ojonta
Prague Economic Papers 2023, 32(4):446-472 | DOI: 10.18267/j.pep.836
Motivated by the persistent fall in oil prices due to incessant uncertainty-inducing events in recent years, this study empirically examined if economic growth in Africa's top five oil exporters (Algeria, Angola, Egypt, Libya, and Nigeria) is responding asymmetrically to changes in global economic uncertainty as well as uncertainties from U.S., Europe and China using nonlinear ARDL framework from 1997Q1 to 2021Q4. We find that rising global uncertainty hampers economic growth in these economies, while declining global uncertainty significantly enhances growth in Nigeria, Angola and Libya in the short run, but becomes growth-retarding in the long run....