Download presentation
Presentation is loading. Please wait.
Published byDerek Fitzgerald Modified over 6 years ago
1
Life cycle of virtual organizations in the Czech Republic
TD020190 Life cycle of virtual organizations in the Czech Republic Luboš SMRČKA University of Economics in Prague, Faculty of Business Administration, Department of Strategy Dagmar Čámská Czech Technical University in Prague, MIAS School of Business & Interdisciplinary Studies WorldCIST’17 - 5th World Conference on Information Systems and Technologies April 11 – 13, Porto Santo Island
2
2751 cases = about 7% of all cases
According to Becht, Mayer and Wagner the address used by virtual enterprises is the address where more than 100 enterprises are seated for the purpose of state or regional business register. Becht, M., Mayer, C., Wagner. H.F.: Where do firms incorporate? Deregulation and the cost of entry. Journal of Corporate Finance, 14, (2008) The first file contains a list of enterprises registered at the virtual address extracted from business register. Insolvency register Reference period – from the 1th January 2008 to 30th June 2014 Type of the insolvency proceedings - the insolvency proceedings to entrepreneurs physical and legal entities initiated after the insolcency proposal and finalized by the approval of the final report. 2751 cases = about 7% of all cases As a result 125 enterprises have been detected in both samples.
3
Number of virtual enterprises in regions of the Czech Republic
Number of virtual enterprises in regions of the Czech Republic. Source: authors Region Number of enterprise Prague Region South Moravian Region Pilsen Region Moravian-Silesian Region Central Bohemia Region Hradec Králové Region Ústí Region Pardubice Region 49363 4436 2005 1535 515 193 148 131 Olomouc Region 109 In total enterprises with virtuál headquarters, 84% are in Prague
4
Number of cases with and without bankruptcy declaration
Number of cases with and without bankruptcy declaration. Source: authors Virtual enterprises Total sample Region Number of cases Relative frequency With declaration Without declaration 54 71 43% 57% 1536 1215 56% 44% Total 125 100% 2751
5
Reasons for not declaring bankruptcy. Source: authors
Number of cases Relative frequency Flaws in the proposal or unmet requirement of insolvency Lack of debtor's assets Unpaid deposit for costs of insolvency proceedings Proposal taken back Bankruptcy cancelled 35 14 9 12 1 49.3% 19.7% 12.7% 16.9% 1.4% Total 71 100%
6
State of insolvency proceeding (cases with bankruptcy declaration)
Source: authors Insolvency proceeding Number of cases Relative frequency Unfinished Finished 14 40 26% 74% Total 54 100%
7
Age of enterprises in insolvency proceeding Source: authors
Bankruptcy declaration + lack of assets (+14 cases) Time period Number of cases Bellow 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years 5 3 11 2 1 4 12 Above 5 years 33 41
8
Age of enterprises and length of finished insolvency proceeding Source: authors.
Age of enterprise Length of proceeding Time period Number of cases Bellow 1 year 1 – 2 years 2 – 3 years 3 – 4 years 4 – 5 years 4 2 9 1 6 13 8 Above 5 years 24 3
9
Conclusion The paper's aim was the analysis of the enterprises registered at the virtual address (also called virtual enterprises) in the Czech Republic. There are worries that this kind of enterprises is connected with lower transparency, higher risk of default and serious consequences for related partners. The research verified the assumption that the life cycle of the virtual enterprises is short and they finish their business activities very quickly in the insolvency proceeding. The sample contained 125 enterprises. The size is not representative and it can be taken as pilot. The results show that many enterprises have been set up already many years ago and therefore the virtual enterprises are not a case only of start-ups but they are used also in other stages of the corporate life cycle. Possible explanations are mentioned. On the other hand the length of these insolvency proceedings is shorter than average in the Czech Republic.
Similar presentations
© 2025 SlidePlayer.com. Inc.
All rights reserved.