The analysis of the bankruptcy of enterprises exemplified by the Visegrad Group
Abstract
The phenomenon of enterprises bankruptcy is an extremely complex process of economic, legal, social and even psychological nature. In the developed countries, the first studies on forecasting bankruptcy date to the early 20th century. In Central and Eastern Europe, due to, among other factors, the geopolitical situation and the introduced economic system, this issue became the subject of researchers’ interest only in the 1990s. The universality and complexity of the phenomenon incline the Authors to make an attempt to identify the scale of the bankruptcy processes in the states of the Visegrad Group (V4). The countries of V4 were selected because of their common history and similar economic development. The aim of this article is to analyze the dynamics of the phenomenon of bankruptcy of enterprises in the states of the V4 Group in the years 2005–2016 on the basis of the data taken from the Credit reform reports. The estimation of trend models in time series on the basis of the bankruptcy in the Visegrad Group countries in the years 2005–2016 was used in the article as the primary research method. The descriptive analysis was also applied in the article.
Keyword : bankruptcy, company insolvency, business failure, Visegrád Group, trend models, time series analysis, comparative analysis, bankruptcy of enterprises in V4 countries
How to Cite
Krajewski, J. ., Tokarski, A. ., & Tokarski, M. . (2020). The analysis of the bankruptcy of enterprises exemplified by the Visegrad Group. Journal of Business Economics and Management, 21(2), 593-609. https://doi.org/10.3846/jbem.2020.12232
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Durica, M., Valaskova, K., & Janoskova, K. (2019). Logit business failure prediction in V4 countries. Engineering Management in Production and Services, 11(4), 54–64. https://doi.org/10.2478/emj-2019-0033
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Maddala, G. S., & Lahiri, K. (2009). Introduction to econometrics. Wiley.
Matuszak, M., & Tokarski, A. (2016). The presentation of and reasons for the bankruptcy of enterprises in the Kuyavian-Pomeranian Voivodeship in the years 2008–2015. In S. Rudolf, The new institutional economics and management sciences (Vol. 48). Scientific Works of the School of Banking in Gdańsk.
Matuszak, M., & Tokarski, A. (2016a). Bankruptcy and its importance in a market economy – an institutional approach. In S. Rudolf, The new institutional economics and management sciences (Vol. 48). Scientific Works of the School of Banking in Gdańsk.
Mączyńska, E., & Morawska, S. (2015). The effectiveness of the bankruptcy proceedings. The bankruptcy of the enterprises. Catharsis and the new chance. SGH, Warsaw.
Mączyńska, E (Ed.). (2013). Bankruptcy and recovery processes in Poland in view of the European Union’s experiences. SGH, Warsaw.
Morawska, S. (2013). Businessman in the face of bankruptcy. SGH, Warsaw.
Piotrowicz, W. (2015) Information technology and systems in the Visegrád Group of countries (Czech Republic, Hungary, Poland, and Slovakia): A literature review. Journal of Global Information Technology Management, 18(2), 77–93. https://doi.org/10.1080/1097198X.2015.1052684
Prusak, B. (2018). Review of research into enterprise bankruptcy prediction in selected Central and Eastern European countries. International Journal of Financial Studies, 6(3), 60. https://doi.org/10.3390/ijfs6030060
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Szmal-Kaptur, J. (2016). Company bankruptcy in Poland and other European Union countries in the period 2005–2014. Cracow Review of Economics and Management, 2(950), 5–21. https://doi.org/10.15678/ZNUEK.2016.0950.0201
Tokarski, A., & Matuszak, M. (2016). Upadłość jako instytucja gospodarki rynkowej [Bankruptcy as an institution of the market economy]. Przedsiębiorczość − Edukacja [Entrepreneurship–Education], 12, 199–216. https://doi.org/10.24917/3149
Tokarski, A., & Tokarski, M. (2019). Przebieg procesu upadłościowego przedsiębiorstw polskich w XXI w. [The Course of the Bankruptcy Process of Polish Enterprises in the 21st Century]. Przedsiębiorczość–Edukacja [Entrepreneurship–Education], 15(2), 248–263. https://doi.org/10.24917/20833296.152.17
Tokarski, A., & Tokarski, M. (2018). The influence of the macroeconomic factors on the scale and dynamics of the bankruptcy of enterprises in the Polish economy in the years 2000–2015. Transformations in Business & Economics, 17(2A), 337–352.
Tokarski, A. (2018). The phenomenon of bankruptcy of enterprises in the Polish economy in the years 2008–2015. In E. Lotko, U. K. Zawadzka-Pąk, & M. Radvan (Eds.), Optimization of organization and legal solutions concerning public revenues and expenditures in public interest (pp. 403–420). Conference Proceedings. Białystok-Vilnius, Themis 2. https://doi.org/10.15290/oolscprepi.2018.30
Tomczak, S. (2018). Statistics on bankruptcy of companies in Poland. Managment Sciences, 23(3), 39– 50. https://doi.org/10.15611/ms.2018.3.05
Venyš, L. (1997). Bankruptcy in the Czech Republic. NATO democratic institutions fellowship programme 1995–1997. http://www.nato.int/acad/fellow/95-97/venys.pdf
Wang, C. (2006, July). Law and bankruptcy: An international comparison of liquidation and reorganization. Asian Financial Association/Financial Management Association. Annual Conference Proceedings. Auckland, New Zealand.
Aghion, P., Hart, O., & Moore, J. (1994). The economics of bankruptcy reforms. National Bureau of Economic Research – Transition in Eastern Europe, 2, 215–244. http://www.nber.org/chapters/c6727.pdf
Altman, E. I., & Hotchkiss, E. (2006). Corporate financial distress and bankruptcy – Predict and avoid bankruptcy, analyze and invest in distress debt (3th ed.). John Wiley & Sons. https://doi.org/10.1002/9781118267806
Baltagi, B. H. (2001). A companion to theoretical econometrics. Blackwel Publishers Ltd.
Baun, M. J., & Marek, D. (2010). Czech foreign policy and EU integration: European and Domestic sources. Perspectives on European Politics and Society, 11(1), 2–21. https://doi.org/10.1080/15705850903553513
Bobáková, V. (2016). Insolvency of enterprises. Enterprise and Finance, 2(13). http://pif.wsfiz.edu.pl/wp-content/uploads/2018/11/PiF_2016_213.pdf
Box, G. E. P., & Jenkins, G. M. (1983). Time series analysis. PWN.
Bukalska, P. (2003). A New Visegrad Group in New European Union – Possibilities and opportunities for development. Centre for Eastern Studies, Warsaw. https://www.files.ethz.ch/isn/90290/new_visegrad_group.pdf
European Commission. (2011, January). Business dynamics: Start-ups, business transfers and bankruptcy (Final Report). Bruxelles, 185–186.
Creditreform. (2018). Creditreform.de. Retrieved January 8, 2018 from https://www.creditreform.at/presse/insolvenzstatistik-europa.html
Crhova, Z., Fišerova, Z, & Pasekova, Z. (2016). Corporate insolvency proceedings: A case of Visegrad Four. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64(1), 235–243. https://doi.org/10.11118/actaun201664010235
Dangerfield, M. (2014). V4: A new brand for Europe? Ten years of post-accession regional cooperation in Central Europe. The Poznan University of Economics Review, 14(4), 71–90. https://www.ebr.edu.pl/pub/2014_4_71.pdf
Dangerfield, M. (2005). The Visegrad Group in the expanded European Union: From preaccession to postaccession cooperation. East European Politics and Societies, 22(3), 630–667. https://doi.org/10.1177/0888325408315840
Davidson, J. (2000). Econometric theory. Publishers Ltd. Oxford.
Durica, M., Frnda, J., & Svabova, L. (2019). Decision tree based model of business failure prediction for Polish companies. Oeconomia Copernicana, 10(3), 453–469. https://doi.org/10.24136/oc.2019.022
Durica, M., Valaskova, K., & Janoskova, K. (2019). Logit business failure prediction in V4 countries. Engineering Management in Production and Services, 11(4), 54–64. https://doi.org/10.2478/emj-2019-0033
Gerlach, H. (1998). Bankruptcy in the Czech Republic, Hungary, and Poland and Section 304 of the United States Bankruptcy Code. Proceedings Ancillary to Foreign Bankruptcy Proceedings. Maryland Journal of International Law, 22(1). http://digitalcommons.law.umaryland.edu/mjil/vol22/iss1/4
Greene, W. H. (2008). Econometric analysis. Pearson Education Inc.
Hart, O. (2000). Different approaches to bankruptcy (Harvard Institute of Economic Research Paper No. 1903). https://doi.org/10.2139/ssrn.241066
Jagodzinski, A. (Ed.). (2006). The Visegrad Group – A Central European Constellation. Publication on the Occasion of the 15th Anniversary of the Visegrad Group. International Visegrad Fund, Bratislava. http://www.visegradgroup.eu/the-visegrad-book/the-visegrad-group-110412
Janda, K., & Rakicova, A. (2014). Corporate bankruptcies in Czech Republic, Slovakia, Croatia and Serbia (MPRA Paper No. 54109). University of Economics, Prague. https://mpra.ub.uni-muenchen.de/54109/1/MPRA_paper_54109.pdf
Kliestik, T., Vrbka, J., & Rowland, Z. (2018). Bankruptcy prediction in Visegrad group countries using multiple discriminant analysis. Equilibrium. Quarterly Journal of Economics and Economic Policy, 13(3), 569–593 https://doi.org/10.24136/eq.2018.028
Kořan, M. (2012). The Visegrad group on the threshold of its third decade: A Central European Hub? In Z. Šabič & P. Drulák, (Eds.), Regional and international relations of Central Europe (pp. 201–218). Palgrave Macmillan. https://doi.org/10.1057/9781137283450_11
Kupis, P. (2017). Dysfunkcje postępowań upadłościowych – perspektywa wierzycieli. Biuletyn PTE, 2(77), s. 39. http://www.pte.pl/pliki/1/68/Biuletyn_2_2017.pdf
Mačerinskienė, I., & Mendelsonas, T. (2013). Macroeconomic determinants of corporate insolvency. KSI Transactions on Knowledge Society, 6(3), 35–40.
Maddala, G. S., & Lahiri, K. (2009). Introduction to econometrics. Wiley.
Matuszak, M., & Tokarski, A. (2016). The presentation of and reasons for the bankruptcy of enterprises in the Kuyavian-Pomeranian Voivodeship in the years 2008–2015. In S. Rudolf, The new institutional economics and management sciences (Vol. 48). Scientific Works of the School of Banking in Gdańsk.
Matuszak, M., & Tokarski, A. (2016a). Bankruptcy and its importance in a market economy – an institutional approach. In S. Rudolf, The new institutional economics and management sciences (Vol. 48). Scientific Works of the School of Banking in Gdańsk.
Mączyńska, E., & Morawska, S. (2015). The effectiveness of the bankruptcy proceedings. The bankruptcy of the enterprises. Catharsis and the new chance. SGH, Warsaw.
Mączyńska, E (Ed.). (2013). Bankruptcy and recovery processes in Poland in view of the European Union’s experiences. SGH, Warsaw.
Morawska, S. (2013). Businessman in the face of bankruptcy. SGH, Warsaw.
Piotrowicz, W. (2015) Information technology and systems in the Visegrád Group of countries (Czech Republic, Hungary, Poland, and Slovakia): A literature review. Journal of Global Information Technology Management, 18(2), 77–93. https://doi.org/10.1080/1097198X.2015.1052684
Prusak, B. (2018). Review of research into enterprise bankruptcy prediction in selected Central and Eastern European countries. International Journal of Financial Studies, 6(3), 60. https://doi.org/10.3390/ijfs6030060
Ručinská, S., & Fečko, M. (2016). The past and future of the European Union Internal Market – Visegrad Group Perspective. Central European Papers, 4(1), 82–94). https://doi.org/10.25142/cep.2016.007
Szmal-Kaptur, J. (2016). Company bankruptcy in Poland and other European Union countries in the period 2005–2014. Cracow Review of Economics and Management, 2(950), 5–21. https://doi.org/10.15678/ZNUEK.2016.0950.0201
Tokarski, A., & Matuszak, M. (2016). Upadłość jako instytucja gospodarki rynkowej [Bankruptcy as an institution of the market economy]. Przedsiębiorczość − Edukacja [Entrepreneurship–Education], 12, 199–216. https://doi.org/10.24917/3149
Tokarski, A., & Tokarski, M. (2019). Przebieg procesu upadłościowego przedsiębiorstw polskich w XXI w. [The Course of the Bankruptcy Process of Polish Enterprises in the 21st Century]. Przedsiębiorczość–Edukacja [Entrepreneurship–Education], 15(2), 248–263. https://doi.org/10.24917/20833296.152.17
Tokarski, A., & Tokarski, M. (2018). The influence of the macroeconomic factors on the scale and dynamics of the bankruptcy of enterprises in the Polish economy in the years 2000–2015. Transformations in Business & Economics, 17(2A), 337–352.
Tokarski, A. (2018). The phenomenon of bankruptcy of enterprises in the Polish economy in the years 2008–2015. In E. Lotko, U. K. Zawadzka-Pąk, & M. Radvan (Eds.), Optimization of organization and legal solutions concerning public revenues and expenditures in public interest (pp. 403–420). Conference Proceedings. Białystok-Vilnius, Themis 2. https://doi.org/10.15290/oolscprepi.2018.30
Tomczak, S. (2018). Statistics on bankruptcy of companies in Poland. Managment Sciences, 23(3), 39– 50. https://doi.org/10.15611/ms.2018.3.05
Venyš, L. (1997). Bankruptcy in the Czech Republic. NATO democratic institutions fellowship programme 1995–1997. http://www.nato.int/acad/fellow/95-97/venys.pdf
Wang, C. (2006, July). Law and bankruptcy: An international comparison of liquidation and reorganization. Asian Financial Association/Financial Management Association. Annual Conference Proceedings. Auckland, New Zealand.