scholarly journals The application of Kohonen networks for identification of leaders in the trade sector in Czechia

Equilibrium ◽  
2019 ◽  
Vol 14 (4) ◽  
pp. 739-761 ◽  
Author(s):  
Jaromír Vrbka ◽  
Elvira Nica ◽  
Ivana Podhorská
Keyword(s):  
Neural Networks ◽  
Cluster Analysis ◽  
Czech Republic ◽  
Value Added ◽  
Financial Statements ◽  
Data Set ◽  
The Czech Republic ◽  
Return On Equity ◽  
Kohonen Networks ◽  
Trade Sector

Research background: The trade sector is considered to be the power of economy, in developing countries in particular. With regard to the Czech Republic, this field of the national economy constitutes the second most significant employer and, at the same time, the second most significant contributor to GNP. Apart from traditional methods of business analyzing and identifying leaders, artificial neural networks are widely used. These networks have become more popular in the field of economy, although their potential has yet to be fully exploited. Purpose of the article: The aim of this article is to analyze the trade sector in the Czech Republic using Kohonen networks and to identify the leaders in this field. Methods: The data set consists of complete financial statements of 11,604 enterprises that engaged in trade activities in the Czech Republic in 2016. The data set is subjected to cluster analysis using Kohonen networks. Individual clusters are subjected to the analysis of absolute indicators and return on equity which, apart from other, shows a special attraction of individual clusters to potential investors. Average and absolute quantities of individual clusters are also analyzed, which means that the most successful clusters of enterprises in the trade sector are indicated. Findings & Value added: The results show that a relatively small group of enter-prises enormously influences the development of the trade sector, including the whole economy. The results of analyzing 319 enterprises showed that it is possible to predict the future development of the trade sector. Nevertheless, it is also evident that the trade sector did not go well in 2016, which means that investments of owners are minimal.

scholarly journals Using Kohonen networks in the analysis of transport companies in the Czech Republic

2019 ◽  
Vol 61 ◽  
pp. 01010 ◽  
Author(s):  
Tomáš Krulický
Keyword(s):  
Neural Networks ◽  
Cluster Analysis ◽  
Czech Republic ◽  
Financial Statements ◽  
Transport Sector ◽  
The Czech Republic ◽  
Operating Profit ◽  
Kohonen Networks ◽  
Kohonen Map ◽  
Further Development

The transport sector has a significant impact on the performance of the Czech economy. Transport companies, of course, have their own specificities, whether they deal with ecology or the financial and economic situation. It is precisely the economic position of a transport company that needs to be analysed in order to identify the need for change, to predict the further development of such company. For analysis, a variety of methods is used, of which artificial neural networks are a very interesting and effective tool. The aim of this paper is to make a cluster analysis of transport companies operating in the Czech Republic based on this tool. The data of the financial statements of transport companies in the Czech Republic in 2016 are taken into account. Only some items from the financial statements are selected for analysis. The file is then subjected to a cluster analysis, specifically using the Kohonen networks – Statistica software. In accordance with the methodology of the contribution, the data is divided into three sets - training, testing and validation. Companies were divided into clusters in the 10x10 Kohonen Map. Some clusters are significant in terms of number of companies. These clusters are further analysed. Specific conclusions are made: A larger company generates, on average, a higher operating profit, larger companies achieve higher ROE and, in the case of a larger company, the financial leverage acts more positively.

scholarly journals The use of neural networks to determine value based drivers for SMEs operating in the rural areas of the Czech Republic

2020 ◽  
Vol 11 (2) ◽  
pp. 325-346 ◽  
Author(s):  
Jaromír Vrbka
Keyword(s):  
Neural Networks ◽  
Czech Republic ◽  
Rural Areas ◽  
Economic Value ◽  
Value Added ◽  
Value Drivers ◽  
Data Set ◽  
The Czech Republic ◽  
The Difference ◽  
A Company

Research background: In the past, the main objective of a company was to generate sufficient profit. Nowadays, a company must seek to achieve much broader objectives. To be successful in this pursuit, it must not only measure financial performance, but also monitor internal and external developments, increase shareholders’ wealth and protect the interests of other stakeholders, i.e. to analyze and act on those factors that affect company value. Purpose of the article: The objective of the contribution is to determine through the use of artificial neural networks the relationship between business value drivers, or value based drivers (VBD), and EVA Equity, which is economic value added (EVA), of small and medium-sized enterprises operating in the rural areas of the Czech Republic. Methods: The data was obtained from the Bisnode´s Albertina database. The data set consists of the profit and loss accounts for 2013 to 2017 of small and medium-sized enterprises operating in rural areas of the Czech Republic. Two scenarios are analyzed. In the first, the independent variables are only the value drivers, whereas in the second, company location (region) is included. The objective is to find the dependence of EVA Equity on individual VBD and company location. A sensitivity analysis is conducted, on the basis of which the importance of individual value drivers and company location is determined. Findings & Value added: The output is a set of value drivers, which could be used by company managers to regulate the growth of EVA Equity, i.e. value for shareholders. The findings reveal that the difference between successful and unsuccessful companies is determined by the level of involvement of human capital; companies use a large number of substitutes for factors of production, whereby the involvement of borrowed capital is likely to cause a positive financial leverage effect.

scholarly journals Analysis of Transportation Companies in the Czech Republic by the Kohonen Networks – Identification of Industry Leaders

2020 ◽  
Vol 23 (1) ◽  
pp. A32-A43
Author(s):  
Jakub Horák ◽  
Petr Šuleř ◽  
Jaromír Vrbka
Keyword(s):  
Neural Networks ◽  
Artificial Neural Networks ◽  
Czech Republic ◽  
Computational Models ◽  
Data File ◽  
Transportation Industry ◽  
The Czech Republic ◽  
Kohonen Networks ◽  
Artificial Neural ◽  
Accuracy Of Results

Computational models of artificial neural networks are currently used in different areas. Accuracy of results exceeds the performance of traditional statistical techniques. Artificial neural networks as the Kohonen map may be used e.g. to identify industry leaders, thus replacing the traditional cluster analysis and other methods. The aim of this contribution is to analyse the transportation industry in the Czech Republic by the Kohonen networks and identify industry leaders. The data file contains results - division of companies into a total of 100 clusters. Each cluster is subjected to analysis of absolute indicators and several parameters, average, as well as absolute, are examined. In total, 88 firms may be considered as industry leaders. Consequently, a fairly small group of companies has a strong influence on development of the whole transportation industry in the Czech Republic.

scholarly journals Factors influencing true and fair view when preparing financial statements under IFRS: evidence from the Czech Republic

Equilibrium ◽  
2020 ◽  
Vol 15 (3) ◽  
pp. 595-611
Author(s):  
David Homola ◽  
Marie Paseková
Keyword(s):  
Czech Republic ◽  
Value Added ◽  
Financial Statements ◽  
Statistical Dependence ◽  
Chi Square ◽  
The Czech Republic ◽  
Factors Influencing ◽  
Wide Range ◽  
Average Size

Research background: Accounting records provide a wide range of data necessary for decisions of the management as well as for users of a company’s financial statements. IFRS represents one of the widely accepted accounting principles, often mentioned in relation to the preparation of high-quality financial statements. Purpose of the article: The aim of this paper is to identify the factors contributing to the occurrence of misstatements when preparing financial statements under IFRS. The subsequent goal is to identify the possible influences of such misstatements on the users of the financial statements. Methods: The research itself focuses on perceived problems in IFRS application in the Czech Republic. The total tested population is 193 Czech companies preparing their financial statements under IFRS. Descriptive statistics, the chi-square test of independence along with proportional tests, are used for the statistical data analysis. Findings & Value added: The results indicate that, while misstatements in accounting do not occur regularly, a statistical dependence can be shown be-tween the frequency of misstatements occurrence and the average size of mis-statements. The frequency of the subsequently identified misstatements is also proven to be statistically dependent on the average size of misstatements. The IFRS themselves are not proven to influence misstatement occurrences in financial statements, which is in contrast with previous studies. Managerial pressures, similarly to other studies, are proven by the research to be affecting the quality of accounting information. This paper broadens the literature on the factors influencing the quality of financial statements prepared under IFRS and simultaneously reaches conclusions disproving the frequently noted bene-fits of IFRS implementation.

scholarly journals The Dependence of the CZK Exchange Rate on the Development of the GDP in the Czech Republic in the Conditions of an Expected Crisis

2021 ◽  
Vol 92 ◽  
pp. 08013
Author(s):  
Veronika Machová ◽  
Tomáš Krulický
Keyword(s):  
Neural Networks ◽  
Exchange Rate ◽  
Czech Republic ◽  
Value Added ◽  
The Czech Republic ◽  
The Past ◽  
Currency Exchange ◽  
Currency Exchange Rate ◽  
The World ◽  
Rate Development

Research background: In the past, some studies proved that the development of a currency exchange rate predicts the development of the whole national economy. The monetary market overtakes the development of the actual economy for a few months. Does this apply also in the case of the Czech koruna, in the era of the global Coronavirus pandemics and in the world affected by the pandemics? Purpose of the article: The main objective is to analyze a dependence of the Czech koruna (CZK) to Euro (EUR) exchange rate development on gross domestic product of the Czech Republic in the conditions of an expected crisis. Methods: The data used of the analysis are represented by the information about the CZK and EUR exchange rate from the beginning of 1999 to the 15th June 2020 and by the quarterly development of the Czech GDP. To measure the dependence and predict the development of the GDP based on the CZK exchange rate development, the method of AI is used, namely the regression analysis using the artificial neural networks. Findings & Value added: The effect of EUR/CZK on GDP can be quantified reaching around 31%. It is assumed that the GDP will fall significantly in 2020 with a certain growth only being possibly expected in 2021 (even more significantly in the second quarter of 2021). Due to the GDP development, the development of the EUR/CZK could then be forecasted as well.

scholarly journals Corporate responsibility aspects of food banks network in the Czech Republic regarding the need of their economic sustainability

2021 ◽  
Vol 92 ◽  
pp. 06028
Author(s):  
Lukas Polacek ◽  
Jan Vavrina
Keyword(s):  
Czech Republic ◽  
Best Practice ◽  
Financial Analysis ◽  
Value Added ◽  
Financial Statements ◽  
Problem Area ◽  
Food Banks ◽  
Current Form ◽  
Economic Point ◽  
The Czech Republic

Research background: Food banks, in their current form, provide services free of charge, but their activities cannot be conducted without public subsidies. Specifically, these are operational and investment subsidies mainly from the resources of the Ministry of Agriculture of the Czech Republic. Thus, the tendency to change the current servicing scheme, mainly from the economic point of view, becomes a growing interest area for food banks and respective stakeholders. Purpose of the article: Purpose of the article is to identify current best practice of food banks sector and to find common aspects of the financial position of food banks in the Czech Republic, using their financial statements and approaches of technical financial analysis in application on the sample of entities. Methods: Authors use general methods of analysis and synthesis of relevant scientific articles and studies with respect to the fact that the problem area of effective and efficient activities in the CEE countries or even Europe is quite rare. There are employed data from accessible financial statements of currently existing 15 food banks in the Czech Republic. Findings & Value added: This article provides an initial outcome of an ongoing specific research project on sustainable service of food banks in the frame of corporate responsible activities within a globalized food manufacturing and food supply chain industry. Authors fill with partial results of this article a gap in the research of the sustainable food bank activities in the CEE countries.

scholarly journals Artificial Intelligence for Cluster Analysis: Case Study of Transport Companies in Czech Republic

2021 ◽  
Vol 14 (9) ◽  
pp. 411
Author(s):  
Eva Kalinová
Keyword(s):  
Cluster Analysis ◽  
Czech Republic ◽  
Financial Analysis ◽  
Transport Sector ◽  
Economic Sectors ◽  
Accounting Data ◽  
The Czech Republic ◽  
Kohonen Networks ◽  
Further Development

What is the situation of the transport sector in the Czech Republic and what is its importance for the economy of the Czech Republic? How and to what extent do businesses operating in this sector influence the sector as such, and how many businesses in this sector have such influence? Additionally, what happens if the most important businesses in the transport sector go bankrupt, and which businesses are the most important ones? Searching for the answers to these questions is a subject of this contribution, focusing primarily on the cluster analysis using artificial neural networks (ANN), specifically with Kohonen networks, which represent the main method for processing a large volume of not only accounting data on transport companies. In this research, the dataset consists of the financial statements of transport companies for the years 2015–2018. The research part of the contribution deals mainly with the issue of the transport sector’s development in the years 2015–2018 with the companies operating in this sector and tries to identify the most important companies in terms of their importance for this sector. The results show that the whole transport sector is influenced mainly by the two largest companies, whose potential changes can affect companies themselves but to a great extent also the development of the whole transport sector. For the two companies, financial analysis is carried out using ratios, whose results show that despite the negative values of the important value generators of one of these companies, the company is still able to significantly influence the situation in the transport sector of the CR. This information is a clear guide for experts, development analysts, to determine the further development of the whole sector when focusing on the development of the two specific companies only. A question arises as to how the created model can be applied to other economic sectors, especially in other EU countries.

scholarly journals Assessing the existence of synergistic effect in the consolidated accounting entities in the Czech Republic

2018 ◽  
Vol 15 (2) ◽  
pp. 305-316
Author(s):  
Jaroslava Rajchlova ◽  
Anna Fedorova ◽  
Kristina Somerlikova ◽  
Libor Grega ◽  
Veronika Svatošová
Keyword(s):  
Czech Republic ◽  
Synergistic Effect ◽  
Financial Statements ◽  
Cost Ratio ◽  
Data Correlation ◽  
Consolidated Financial Statements ◽  
Statistical Population ◽  
The Czech Republic ◽  
Return On Equity ◽  
Parent Companies

The objective of the research was to identify possible positive synergistic effect of concerns. Because of the advantages of the existence of consolidated financial statements, the focus is on the Czech consolidated groups.Consolidated financial statements of 719 groups of accounting entities – concerns in the Czech Republic were studied, i.e., the statistical population consisted of 719 reporting units, which can be considered as the total population of all published consolidated financial statements. Following economic indicators were analyzed to discover the existence of positive synergistic effect: cash position ratio, return on equity, return on sales.Based on the research, it the authors concluded that return on equity revealed dependency between change in the value of the indicator of the parent company and consolidated unit. Values of this indicator are interesting from the investment point of view. They confirm success of capital acquisitions.Cash ratio monitoring revealed an inconsistent environment, unambiguous data correlation between the group data and the individual financial statements of the parent companies.Return on sales indicator showed that consolidated groups had reached higher values of the indicator, i.e., lower total cost ratio than parent companies. Data correlation was found at the low level, i.e., the parent companies did not influence consolidated data.Acquisition companies in the Czech Republic in the period 2008–2013 generated positive financial synergy. For financial indicator of return on equity, dependence between consolidated groups and parent companies was confirmed. Positive financial synergy was found out for all monitored financial indicators.

scholarly journals Relationship between legislation and accounting errors from the point of view of business representatives in the Czech Republic

2019 ◽  
Vol 10 (1) ◽  
pp. 193-210 ◽  
Author(s):  
Marie Paseková ◽  
Eva Kramná ◽  
Bohumila Svitáková ◽  
Miroslava Dolejšová
Keyword(s):  
Czech Republic ◽  
Goodness Of Fit ◽  
Accounting Standards ◽  
Value Added ◽  
Financial Statements ◽  
Point Of View ◽  
Goodness Of Fit Test ◽  
The Czech Republic ◽  
Non Profit ◽  
Accounting Errors

Research background: Previous studies have demonstrated that providing relevant information to users is positively affected by higher quality of accounting standards and adhering to ethical rules and accounting principles by accounting professionals. On the other hand, there are a lot of cases when the law was broken. The most common reason for committing financial statement´s fraud include in-creasing stock prices, getting loans from bank or avoiding payment of taxes. Purpose of the article: The aim of this paper is to evaluate both the relationship between using of legislation and accounting errors rate in the financial statements as well as the possible using of creative accounting from the point of view of enterprises and non-profit organizations in the Czech Republic. Methods: Among the quantitative research methods the questionnaire was used. The questionnaires were sent out to randomly 201 selected enterprises and non-profit organization. The survey was conducted from September 2017 to the end of January 2018. The data were analyzed by means of the tools of descriptive statistics and the chi-square goodness of fit test. The research questions sought to investigate whether Czech Accounting Standards helped in all areas of accounting and reporting and avoiding of errors in financial statements, and whether the respondents encountered fraudulent procedures in compiling financial statements. Findings & Value added: The results indicated that using Czech Accounting Standards was perceived as a useful tool in solving all situations in areas of accounting and avoiding accounting errors. Moreover, it was proved that the volume and frequency of errors were not significant in financial statements.

scholarly journals The process of economic integration and globalization in the area of financial reporting, focusing on publication of financial statements in the Czech Republic and in selected countries of the European Union

2021 ◽  
Vol 92 ◽  
pp. 02004
Author(s):  
Hana Bartková ◽  
Marcela Palochová ◽  
Marek Pomp
Keyword(s):  
European Union ◽  
Czech Republic ◽  
Financial Reporting ◽  
Practical Knowledge ◽  
Value Added ◽  
Financial Statements ◽  
The European Union ◽  
The Czech Republic ◽  
Transnational Companies ◽  
Business Entities

Research background: One of the most important features of the current development of the world economy is international integration, which is taking on global dimensions. Operations of transnational companies and the development of the global capital market brings the necessity of accounting harmonization. The goal of this is to ease the mutual observation, reporting, use and thus creation of a single, international accounting. Purpose of the article: The purpose of this article is to describe the current state of the process of harmonization during preparing the annual accounts in the Czech Republic and in selected countries of the European Union, with the analysis of impacts of change in the legislative framework to the obligations of entities in the area of preparation and publication of financial statements. Methods: Scientific procedures using theoretical methods were used in the paper, which include description, analysis, synthesis, comparison and evaluation, inclusive of processing and evaluation of data and information obtained from research conducted by business entities in the Czech Republic. Findings & Value added: The article analyses the impacts of the process of harmonization and globalization on the area of financial reporting and on publishing financial statements. Based on the acquired theoretical and practical knowledge, the paper suggests possible solutions to improve the informational obligations of accounting units. The paper also evaluates the achievement of compliance in the area of reporting financial statements from the perspective of the Czech Republic and selected countries of the European Union.

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