Publication detail

The Effect of Selected Macroeconomic Factors on the Sustainability and the Market Value of Czech Joint-Stock Companies

KOCMANOVÁ, A. PAVLÁKOVÁ DOČEKALOVÁ, M. ŠIMBEROVÁ, I.

Original Title

The Effect of Selected Macroeconomic Factors on the Sustainability and the Market Value of Czech Joint-Stock Companies

Type

conference paper

Language

English

Original Abstract

The paper analyzes relations between macroeconomic indicators and the Firm Market Value as related to corporate sustainability. Empirical research was verified in 128 unlisted manufacturing companies in the Czech Republic with more than 250 staff according to the EU criteria. The data were obtained by empirical research in the Czech Republic in 2014-2018. The aim of the paper is to propose a suitable sustainability model for unlisted Czech joint-stock companies in the Czech Republic and to investigate the macroeconomic impacts on the Firm Market Value and sustainability. The research methodology is based on multidimensional statistical methods EFA and CFA, and on structural equation modelling of mutual relationships. Empirical research has shown that factors such as inflation, unemployment and government debt do not directly affect corporate sustainability determined by ESG factors, nor do they positively affect the growth of the Firm Market Value. The only research hypothesis confirmed was the hypothesis that if government debt increases, inflation and unemployment will negatively affect the firm risk of a company. Although the research failed to reveal any interrelationships, investors are recommended to monitor these fundamental factors, especially their rapid or long-term fairly rapid growth, as this would lead to a decline in the Firm Market Value.

Keywords

Macroeconomic Factors, Sustainability model, Firm Market Value, Firm Risk, Confirmative Factor Analysis, Structural Equations Modeling.

Authors

KOCMANOVÁ, A.; PAVLÁKOVÁ DOČEKALOVÁ, M.; ŠIMBEROVÁ, I.

Released

13. 3. 2020

Publisher

International Institute of Informatics and Systemics, IIIS

Location

Orlando, Florida

ISBN

978-1-950492-26-8

Book

Proceedings of the 11th International Multi-Conferences on Complexity, Informatics and Cybernetics: IMCIC 2020

Edition

IMCIC 2020201

Edition number

Volume II

Pages from

99

Pages to

104

Pages count

6

BibTex

@inproceedings{BUT164103,
  author="Alena {Kocmanová} and Marie {Pavláková Dočekalová} and Iveta {Šimberová}",
  title="The Effect of Selected Macroeconomic Factors on the Sustainability and the Market Value of Czech Joint-Stock Companies",
  booktitle="Proceedings of the 11th International Multi-Conferences on
Complexity, Informatics and Cybernetics: IMCIC 2020

",
  year="2020",
  series="IMCIC 2020201",
  number="Volume II",
  pages="99--104",
  publisher="International Institute of Informatics and Systemics, IIIS",
  address="Orlando, Florida",
  isbn="978-1-950492-26-8"
}