Determinants of the result of economic activity of agricultural businesses of legal entities in the Czech Republic

Abstract

This article deals with the result of economic activity of agricultural businesses of legal entities in the Czech Republic within the period of the years 2004–2010. First, the main factors that affect the result of economic activity are identified, and subsequently their effect is quantified. The analysis is based on sectional data from the databases of the Creditinfo company monitor and HBI Czech Republic; on average, 2314 businesses were examined within each year. The analysis showed a significant effect of only some factors, which were indicated as the main determinants of the result of economic activity. In the long-term, the decisive factors affecting the result of economic activity of agricultural businesses of legal entities in the Czech Republic can be considered to be primarily the level to which the business is equipped with assets and capital, and the capital intensity in general.

Keywords

• result of economic activity
• agricultural business
• legal entity
• assets
• capital