Scholarly record
FINANCIAL MANAGEMENT OF ENTERPRISES IN THE CONTEXT OF LEGAL ENTITY INCOME TAX IN THE CZECH REPUBLIC
Abstract
A successful financial management is related to the optimum settings of the asset structure and in particular to the creation of an effective mix of resources for corporate asset financing. During the past years, many scientific theories have been postulated that addressed both the rules for determining the optimal structure of assets and capital resources. Also a number of factors have been analyzed that influence the process of determining the optimal structure of assets and liabilities. In the early days of research, this topic was discussed without considering the influence of taxes. Later, basic theses were revised and taxes (especially the income tax) were identified as one of the key factors affecting the successful financial management of enterprises. The Income Tax Act was introduced into the Czech tax system in 1993. Since then the act has been amended 150 times. The law provisions are rather complicated and unclear, which makes the decision-making processes of managers quite difficult. The paper researches into and discusses the questions of income tax impacts on asset and capital structure of enterprises as well as on their overall management. A description method is used to explore the development of this tax in the Czech Republic environment. A ratio analysis was applied to specify the economic effects and impacts of the legal entity income tax on decision-making by financial managers. Secondary data from the Ministry of Finance of the Czech Republic were used for relevant analyses.
Publication Impact Profile
- Captures
- Mendeley - Readers: 1
Publication details
ReferencesPending
Structured references will appear here after the reference import pass. The count is preserved now so the scholarly record is not incomplete.
View or Download full articleAccess options
SWS access login
Login as SWS Scientific CommitteeLogin as SWS Scientific PartnerLogin as SWS AuthorAuthors and approved SWS contributors will read and export their own linked papers after identity matching by SWS profile, email and SGEM GlobalID.
For librarian assistance: [email protected]
Purchase Instant Access
- Article can be downloaded after successful payment.
- Article may be used according to SWS library access terms.
- Article cannot be redistributed.
