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Research background: The corporate debt situation can be considered a crucial factor influencing the future development of the financial performance of the firm. It is essential for every business entity to know its financial health, its strengths and weaknesses, and how its business has been affected by the COVID-19 pandemic and all the changes it has brought. Purpose of the article: The main aim of this paper is to explain and quantify the consequences of the COVID-19 pandemic, analyze changes in the growth of crucial determinants, and identify new trends in Slovak enterprises throughout the monitored period of 2018-2021. Methods: Hence, a statistically significant difference between the individual indicators due to the period in which the firms achieved these values was determined using the Friedman test. It determined whether the average values of the financial indicators remained constant over the period under review (the years 2018 and 2019 are considered pre-COVID-19 years, while 2020 and 2021 are years when the globe was already being impacted by the outbreak of the COVID-19 pandemic) or whether the individual values of the indicators differed significantly. Findings & value added: Considering that there are statistically significant differences in the indicators of self-financing ratio, current indebtedness ratio, and equity leverage ratio in all monitored periods except for the years 2020 and 2021, where the average values of these debt indicators are the same, the results indicate that the COVID-19 pandemic also negatively impacted the indebtedness of Slovak enterprises. Although this research paper, focusing on the financial performance of the firms in the post-pandemic period, is pioneering in Slovakia, the biggest contribution of the study is the application of the latest information, which could help in more precise monitoring of corporate financial stability and debt policy during the current challenging period. The obtained results provide important universal guidelines for building financial strategies improving long-term financial resilience of enterprises. [ABSTRACT FROM AUTHOR]

The paper analyses the economic situation of the districts located along the Southern border of Slovakia, which have sizeable Hungarian-speaking populations. Unemployment ratios, industrial pay levels and corporate profitability figures make up the backbone of the analysis. Our research reveals that, as a whole, the Southern districts fall short of the national average in terms of all economic and demographic indicators. In our research focusing on Slovakia, we have demonstrated the disadvantaged economic situation of the Southern part of the country, where its Hungarian population is concentrated, noting that this may further weaken its ability to retain their population. We used the same methodology for our analysis of the Northern Hungarian counties bordering on Slovakia. In both countries, there are discrepancies between Western and Eastern regions. [ABSTRACT FROM AUTHOR]

The traditional methods used in the past to assess the benefits of foreign direct investments (FDI) are no longer applicable. The presented study deals with the issue of increasing the potential of the renewable natural resources mining industries and increasing its efficiency and competitiveness through the specific methodology of industries performance measurement and diagnostic of the effects of FDI. The objective of the research was to analyse FDI in Slovakia and other countries of the Visegrad Four, identify significant measurable effects of the FDI impact on the development of the wood, paper and furniture sector in Slovakia as well as quantify the economic performance of given industries based on the EVA model. Appropriate mathematical and statistical methods were used in the research of interdependencies between quantitative variables. In two-dimensional inductive statistics, we applied correlation and linear regression analysis and analysis of variance (ANOVA). The results of the research should support investment decision-making in business and industry investment strategy to aim for the economic development of the renewable natural resources mining industries. Simultaneously, we offer a new methodology for evaluating the potential and economic performance of other Slovak mining industries, other post-communist European countries, and potential investors worldwide. [ABSTRACT FROM AUTHOR]

The business environment is an integral part of all business activity. Every business operates in a certain atmosphere that is dynamic and has a constant impact on the business. Therefore, it is important to analyse and predict the development of the business environment. The aim of this paper is to specify the financial health of a group of companies determined by selected indicators with the business environment of the V4 countries, to interpret the obtained results and, based on them, to propose a complex of systemic measures for business practice. The business environment is evaluated within two decision-making processes, in which the optimal environment is selected based on selected criteria (e.g., GDP, unemployment, inflation). To solve decision-making processes, two methods are used – the Saaty's matrix method and the TOPSIS method. The business environment is also evaluated based on the ratio indicators of the financial analysis of companies in the V4 group. Applying the TOPSIS method, it was found that Hungary's business environment is considered the most suitable for entrepreneurs. From the point of view of financial analysis indicators, it was found that companies in Poland were ranked best. Second place was occupied by Czech companies, followed by Hungarian companies. Companies in the Slovak Republic were ranked worst. The subjectivity of choosing the criterion weights and the lack of data might both be seen as research limitations. The difficulty lies in conducting a more in-depth study that may also be applied to a wider region. The added value of the work can be considered a mutual comparison of the decision-making processes within the V4 group and a kind of advice for entrepreneurs, where one can do business with the best prospects for the future. [ABSTRACT FROM AUTHOR]

Capital structure plays an important role in corporate finance, especially in the period of restrictive monetary policy in many developed countries. This paper aims to estimate the debt ratio based on five selected financial indicators: tangibility, return on assets, size of total assets, current ratio, and size of total sales using multiple linear regression for four countries, such as the Czech Republic, Hungary, Poland, and Slovakia, as well as the V4 region. The total sample consists of 3828 small- and medium-sized enterprises from the transport sector in the Central European area. These data are drawn from Amadeus by Bureau van Dijk from 2019. The results show that three of the five variables are statistically significant in all models. These findings indicate that transport companies prefer the pecking order theory. We find that the increase in tangibility, return on assets, as well as current ratio, reduce the debt ratio. The outputs provide new theoretical and empirical knowledge regarding transport companies in V4. [ABSTRACT FROM AUTHOR]

The corona crisis has affected not only the economic sphere, but also the sphere of health, health care, employment, safety, and health protection in the workplace, shopping habits, and future expectations, to which people adapt their decisions in various areas of daily life. The COVID-19 pandemic, called a global health crisis, was an unpredictable risk of global proportions that paralyzed the entire world. The main aim of this paper is to quantify the impacts of the COVID-19 pandemic on the construction sector, which is considered a crucial sector of the Slovak economy, to evaluate changes in the development of key indicators using adequate quantitative methods. First, a sample of 2000 businesses were analyzed using the 12 financial indicators that were chosen. Second, using the non-parametric Friedman test, a more thorough study was carried out with a focus on analyzing the existence of statistically significant variations in the values of computed indicators as a result of changes in the development of key financial ratios. The Bonferroni adjustments were employed to pinpoint the areas of stochastic dominance at the conclusion of the study. A detailed analysis of the calculated financial indicators showed that the arrival of the pandemic had a negative impact on many aspects of business in the construction sector and affected the financial and economic situation of companies in the construction sector of the Slovak Republic. However, due to the fact that this sector is characterized by slower reactions to changes in the economy, the most significant impacts will be even more noticeable in the future. [ABSTRACT FROM AUTHOR]

Effects of membership in cooperative organizations was investigated in many studies, and their results were sometimes controversial. Presented paper contributes to discussion related to cooperative membership by comparing members and non-members, with elimination of self-selection bias, to identify motivation to become member and main effects coming from membership in producer organization. Panel data used in the presented analysis are from Ministry of Agriculture of Slovak Republic at farm level for period of years 2009-2016, which was the most recent available data. Propensity score matching approach was applied to eliminate self-selection bias and to create sample of members and corresponding non-member farms in each year. Difference between these two groups were evaluated by methods of statistical inference. In general, it can be concluded, that in presented period were members of producer organizations more profitable than non-members. Also difference in total revenue was significant in period of year 2010-2013, which means probably successful using of advantage from better bargaining position of producer organization, compared to non-members. Significant difference in profit disappeared in last three years 2014-2016, this could suggest, that membership in producer organization was less attractive to many farms which led to decrease in number of members. Membership in producer organization probably improved economic performance of farms in Slovakia in period 2009-2013, but this advantage disappeared in last years. This could be probably linked to support for producer organizations from European Union in period 2007-2013. [ABSTRACT FROM AUTHOR]

The study deals with the impact of the coronavirus in 16 districts of southern Slovakia. The first part of the paper outlines the impact of the pandemic on the Slovak economy. In the beginning, attempts were made to slow the spread of the epidemic by limiting contacts between people. This had a significant negative impact on supply chains and affected all countries in the developed world. The measures have had the most negative impact on services. Economic performance declined, unemployment and later inflation increased. This was also felt in southern Slovakia. The area is an integral part of the country, with many of the largest companies located in the region analysed. Despite this, the 16 districts of southern Slovakia are collectively lagging behind the national average. It is true that there are significant regional disparities, but the development gap between West and East is significant. Taking unemployment, industry salaries and business productivity into account, it can be said that southern Slovakia is still one of the most backward regions in Slovakia. In view of the lower level of development, it is difficult to determine to what extent this is due to the economic crisis caused by the coronavirus, but it can be stated that the current situation makes it difficult for southern Slovakia to catch up. [ABSTRACT FROM AUTHOR]

Although companies in Slovakia achieve value in the use of design at the level of the European Union average, the lack of knowledge and information about the possibilities and potential benefits of design hinders the effective use of design as a key factor in successful innovation. Good design does not just happen by chance. It is usually the result of a well-managed process. Design management is becoming necessary because it allows the company to reflect the market's needs better and adapt to customers. When design management is part of a company's management processes, the design would significantly impact the company's economic performance and help ensure a competitive advantage in the market. Lack of design management skills is a major obstacle to the wider deployment and integration of design into companies. The paper aims to verify the impact of the achieved level of design management skills on the use of design in product innovation. Through a survey of Slovak companies in selected industries, the authors identified the attitude of companies to the use of design in product innovation. The authors used statistical methods to analyse the level of skills achieved in individual areas of design management. They identified the impact of the level of skills on the design use rate in innovation. This study includes factor and regression analysis methods. The design management skills assessment survey confirms the relationship and correlation between the level of design management skills and the intensity of the use of design in product innovation. The ability to engage others has emerged as the weakest in the design management skills assessment survey. Involving customers and suppliers and creating interdisciplinary teams could bring the company effective use of design in product innovation and thus achieve a significant and sustainable competitive advantage. According to the confirmed results, companies' training to gain the necessary skills in individual areas of design management should increase the level of mastery of these skills and consequently support the use of design in product innovations. [ABSTRACT FROM AUTHOR]

The main objective of the paper was to investigate a possible link between the urban structure and regional economic performance in Slovakia, at district level (LAU1). Based on the selected urban indicators, we identified distinct patterns in terms of urban structure and economic performance in Slovakia through the Agglomerative Hierarchical Clustering (AHC) method. The "inner" urban pattern includes districts located predominantly in the central part of the country with some extension to the west and east. Common characteristics of this pattern are higher centrality, clustering, and monocentric urban cores. The "outer" urban pattern includes districts located predominantly at the periphery, along the borders. The common characteristics of this pattern are the dispersed urban patterns and polycentric settlement structures. The underlying urban structure was matched with the economic conditions prevailing in each district for evaluating the degree of concordance. The kappa coefficient of concordance has shown a scant relation between the urban structure and economic performance of regions at the district level (LAU1). According to the main findings, underlying urban pattern (clustered or dispersed one) in any particular district does not preclude economic success or failure of its regional economy. [ABSTRACT FROM AUTHOR]

As was first stressed by the classical economists Adam Smith and David Ricardo, international trade plays a crucial role in the growth process. The paper aims to analyze the influence of foreign trade on economic performance in the wood processing industry (WPI) of Czechia and Slovakia. The multivariate regression method (MLR), assumption tests for MLR models, and Granger causality test were applied to identify association between foreign trade economic performance, and indicators were formed to measure the effects of foreign trade at the industry level. The Granger test revealed the unidirectional causality in the Slovak WPI and bidirectional causality in the Czech WPI. The results revealed that the net export growth has a positive effect on the economic performance of the industry, but only if the growth in imports is lower than in exports. The balanced trade balance indicated no influence of foreign trade on economic performance. The paper contributes to existing knowledge with indicators for evaluation of foreign trade effects on the performance of the industry. The paper also brings new empirical knowledge in trade balance effects on the economic performance of industries. [ABSTRACT FROM AUTHOR]

The aim of the paper is to identify statistically significant differences that arise during the transition of the reporting method. in accounting of assets and liabilities and selected financial indicators in Slovakia and the Czech Republic. We choose Slovak and Czech companies that changed their accounting system in the period under review. We analysed the obtained data using JASP statistical software. Based on several statistical tests, we present in the results the statistical significance of differences between accounting systems - national accounting systems in both countries and IAS/IFRS. We also visualize the percentage change in differences using a box plot. Among the relevant outputs that we found based on research are the results of the test of the statistical significance of percentage changes in accounting items and financial indicators, which have typified in the existing percentage statistical differences. There are also logical relationships between the arranged pairs, which result from the construction of financial indicators. Information from the contribution could serve as evaluation of the financial performance of the various types of companies, regarding IFRS, as well as for providing of financial securities of the companies, contributing to the quality of the company’s management. The limitation of the research is difficulty to obtain data, there is only small amount of historical data to evaluate the situation. [ABSTRACT FROM AUTHOR]

The change in the value of financial indicators can be triggered by several factors. A result of a change in the accounting system shows that the company's achieved financial indicators may change. The reason for the differences is a different way of reporting and recalculation of items in the financial statements, where some items are recognized and classified in a different group of assets than under the accounting regulations in the Slovak Republic. The Balance Analysis of Rudolf Douch (1996), Taffler's model (1984) and Králiček's Quick Test (1993) were used to point out the differences in evaluation based on financial indicators in selected prediction models. The aim of the paper is to analyze the changes that result in the change of the accounting system from national accounting legislation to the accounting system according to IAS/IFRS. We assume that individual items of assets and liabilities or costs and revenues that enter into the calculation of individual prediction models achieved different values due to changes in the method of reporting in the financial statements of the analyzed company for the same accounting period in two accounting systems. [ABSTRACT FROM AUTHOR]

This study explores the geographical analysis of the financial performance of accommodation facilities in Slovakia, focusing on regional differences and stability indicators. The increasing interest in understanding how geographical factors and location affect the financial stability and performance of these facilities provides the backdrop for this research. The aim is to analyze and identify key financial indicators that contribute to the stability of accommodation facilities in various regions of Slovakia and to determine how these indicators differ regionally. To achieve this, the study employs a combination of descriptive statistics, analysis of variance (ANOVA), and clustering methods (k-means). Financial data from 405 accommodation facilities were analyzed, focusing on indicators such as assets, equity, profit, revenue, return on equity (ROE), and EBITDA. The ANOVA method was used to test the statistical significance of regional differences in these financial metrics, while k-means clustering helped group firms based on their financial stability. The results reveal significant regional disparities in financial performance. Regions like Bratislava and Žilina host larger, more profitable companies, whereas regions such as Prešov and Košice exhibit higher financial risks and negative equity. The study identifies the debt -toequity ratio and EBITDA as crucial indicators of financial stability, highlighting their variability across regions. These findings offer valuable insights for investors and managers in the hospitality industry, aiding in strategic decision -making regarding the placement and management of accommodation facilities. [ABSTRACT FROM AUTHOR]

This paper focuses on the financial health prediction of businesses. The issue of predicting the financial health of companies is very important in terms of their sustainability. The aim of this paper is to determine the financial health of the analyzed sample of companies and to distinguish financially healthy companies from companies which are not financially healthy. The analyzed sample, in the field of heat supply in Slovakia, consisted of 444 companies. To fulfil the aim, appropriate financial indicators were used. These indicators were selected using related empirical studies, a univariate logit model and a correlation matrix. In the paper, two main models were applied—multivariate discriminant analysis (MDA) and feed-forward neural network (NN). The classification accuracy of the constructed models was compared using the confusion matrix, error type 1 and error type 2. The performance of the models was compared applying Brier score and Somers' D. The main conclusion of the paper is that the NN is a suitable alternative in assessing financial health. We confirmed that high indebtedness is a predictor of financial distress. The benefit and originality of the paper is the construction of an early warning model for the Slovak heating industry. From our point of view, the heating industry works in the similar way in other countries, especially in transition economies; therefore, the model is applicable in these countries as well. [ABSTRACT FROM AUTHOR]

The article deals with the modern financial performance indicator EVA of the three leading companies in the automotive industry in Slovakia: Volkswagen Slovakia, Kia Motors Slovakia, PCA Slovakia. Based on the previous studies conducted by various authors, no company in Slovakia paid sufficient attention to the modern EVA indicator. Therefore, the paper aims to calculate the Economic Value Added as a tool to increase the effectiveness of financial performance management in selected companies for 2019. Following this study, it can be said that although the calculation of the modern EVA indicator is more complex, companies should pay sufficient attention to it, as it is a management tool used to value the company and also takes into account value creation for owners. Based on the calculation, we found that all of the three main companies achieved positive values of this modern indicator. Based on this, we conclude that the companies produce value from the funds invested in them. It is important to note that these companies are foreign companies that have decided to invest in the automotive industry in Slovakia. [ABSTRACT FROM AUTHOR]

Due to the present worldwide economic development, there is an increasing need to follow the financial health of companies in individual sectors to avoid possible decline and bankruptcy. The goal of this contribution is to find out the influence of the pandemic on the economic situation in the mining industry as the primary sector, in connection with the construction industry as the secondary sector. The research is carried out through economic and financial indicators, which mostly influence the potential crisis of companies. The results show that the mining industry and construction sectors managed to avoid the heavy decline and bankruptcy of certain organizations in the industries. Such results can be used for forecasting and modeling the socio-economic development of regions and countries. The growth of the analyzed industries could contribute to the sustainable development in the country. [ABSTRACT FROM AUTHOR]

In some studies, only financial aspects are emphasized, but we also see cases of assessing the financial health of municipalities through socio-economic indicators. Public organizations worldwide have had to increase their financial performance by adopting management practices. Nonetheless, financial performance might be mostly predicted by contingencies that are not within direct managerial control. The purpose of this paper is to identify clusters of municipalities on the basis of agglomerate cluster analysis, the results of which will point to the financial situation of the municipalities in the selected region. The main aim of this contribution is to identify the location of the municipalities of the chosen self-governing region of Slovakia using the clustering method by selected financial indicators. Individual clusters have similar properties and they differ from the characteristics of businesses in other clusters. The results show that organizational and environmental contingencies affect financial performance, but a significant amount of variation in financial performance is unexplained—indicating that management creates better financial health in the municipality and creates a clearer budget for the management, employees, and residents of the municipality. [ABSTRACT FROM AUTHOR]

The subject of this article's analysis is the position of the Slovak food industry on the domestic and foreign markets. The period under review was 2015-2019. The identification of the share of Slovak products in the retail network was carried out on the basis of two methodological approaches, which are based on statistically available data, one in financial and the other in kind terms. Research results show that the food industry in the Slovak Republic is thriving, with revenues exceeding costs in the long term. Labour productivity from added value, which is an important economic indicator of the industry's competitiveness, grows over time, which is caused by a decrease in the workforce. On the domestic market, it is a priority to resist the pressure of foreign imports and to increase the share of Slovak products in domestic retail network. The low competitiveness of Slovak food products is reflected in the massive import of substitutable food products that can be produced domestically. [ABSTRACT FROM AUTHOR]

Innovation is seen as a key capability for maintaining competitive advantage, creating value for customers, and capturing a larger share of the market. Yet, empirical evidence on the impact of innovation on firm performance is mixed. This research adds to the current debate on the relationship between innovation and the economic performance of firms. It brings new evidence from a small European economy (i.e., the Slovak Republic). We use a unique data set on 170 firms supported by the European Structural and Cohesion Funds (ESCF). Actual economic data reported in companies' annual accounts, rather than self-reported information, is used to follow firm performance over a longer term horizon. The most significant finding is that the company's innovation strategy was a key mediator of capability development and, ultimately, economic performance. The importance of specific innovation strategies varied over the innovation cycle. Simple process and organisational innovations were perceived to be important when assessing the immediate effects of European assistance. Investment in and cooperation on R&D&I became important when assessing firm performance over the longer term. The research expands the current body of literature on innovation capabilities and economic performance. It accentuates the need for a long-term perspective on innovation capabilities. To maintain a competitive advantage, a company's innovation capabilities must be constantly aligned with the changing environment. [ABSTRACT FROM AUTHOR]

The article deals with financial performance management in Slovakia's automotive industry. The aim of this article is to design models of financial performance in the automotive industry as a tool to increase the effectiveness of financial performance management with possible application in practice. The researched objects are companies operating in the automotive industry based in Slovakia. Mathematical, statistical, and econometric methods were used to fulfil the aim of the work. [ABSTRACT FROM AUTHOR]

The aim of the research is to determine the impact of the COVID-19 pandemic (and subsequent state aid) on selected financial indicators of tour operators operating on Slovakia's market. The article analyses the changes in the market between 2018 and 2020 (market concentration, insolvency insurance). For the purposes of describing the financial position of tour operators, the medians of selected financial indicators were processed. At the same time, a two-sample t-test was used to test the hypotheses of the medians of these indicators for tour operators with a valid insolvency protection contract and without such a contract. The Herfindahl–Hirschman index was used to quantify the impact of the pandemic on the tour operator market concentration ratio. The state aid provided prevented tour operators from going bankrupt. Based on the Herfindahl–Hirschman index, we can say that there was an increase in concentration in this market. At the same time, however, there was a decline in profitability and an increase in their Liabilities to Assets ratio. However, currently insured tour operators do not have higher values of these indicators. These data are important for the discussion on the legal regulation of the protection of tour operators against insolvency. [ABSTRACT FROM AUTHOR]

The level of development of railway transport is one of the indicators of the economic development of the state. If the state regularly invests in large volumes in railway infrastructure, it creates conditions for the operation of quality passenger and freight rail transport. Analytical comparison of railway infrastructures is key to understanding the increasingly abysmal differences between the quality of railway infrastructure in the two countries. The comparison will be made mainly from the Network Statement of both countries. [ABSTRACT FROM AUTHOR]

Achieving economic development of the enterprise is enabled by the efficient use of resources, efficient processes and, last but not least, a suitable corporate culture. Under the influence of a dynamically changing business environment, corporate culture is gaining in importance and justification. It needs to be monitored and evaluated together with "hard" business indicators. The research explores the key values that should be applied in corporate culture at the strategic level to support the economic development of small and medium-sized enterprises. The differences between small and medium-sized enterprises operating in the industrial sector in Slovakia are defined. As managers have a direct impact on the creation of corporate culture, their preferences regarding corporate culture are examined, using the methodology of Cameron and Quinn. The results of the research prove the preference for applying key values typical for a clan culture. Following the results, it is recommended managers to focus on supporting a clan culture that develops employees. It is the employees who create and build values, bring new, innovative ideas, and with their abilities and skills influence the performance, competitive advantage, economic development, and success of the entire enterprise as well as economic development of small and medium-sized enterprises. [ABSTRACT FROM AUTHOR]