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Credit Absorption Capacity of Businesses in the Construction Sector of the Czech Republic—Analysis Based on the Difference in Values of EVA Entity and EVA Equity

School of Expertness and Valuation, Institute of Technology and Business in Ceske Budejovice, 37001 Ceske Budejovice, Czech Republic
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Sustainability 2020, 12(21), 9078; https://doi.org/10.3390/su12219078
Received: 8 September 2020 / Revised: 22 October 2020 / Accepted: 29 October 2020 / Published: 31 October 2020
(This article belongs to the Special Issue Company Assessment: Basis of Its Sustainable Development)
The contribution deals with the economic value added and its influence on credit absorption capacity. The aim was to determine the significance of the difference between the economic value added (EVA) entity and EVA equity indicators on credit absorption by the construction sector in the Czech Republic. The data came from the Albertina database of Bisnode Czech Republic for the period 2012–2018; small and medium-sized enterprises, in particular, were selected. The most important factor for calculating the amount of credit absorption depends on the EVA entity indicator and the weighted average cost of capital. The calculations produced negative values for credit absorption, which reflects an unattractive investment climate for business owners and their creditors. In other words, loans sought by enterprises in the Czech construction sector do not lead to a greater degree of realization of their goals, i.e., an increase in value for shareholders. View Full-Text
Keywords: credit absorption; economic value added; construction; EVA entity; EVA equity; capital costs credit absorption; economic value added; construction; EVA entity; EVA equity; capital costs
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MDPI and ACS Style

Horak, J.; Suler, P.; Kollmann, J.; Marecek, J. Credit Absorption Capacity of Businesses in the Construction Sector of the Czech Republic—Analysis Based on the Difference in Values of EVA Entity and EVA Equity. Sustainability 2020, 12, 9078. https://doi.org/10.3390/su12219078

AMA Style

Horak J, Suler P, Kollmann J, Marecek J. Credit Absorption Capacity of Businesses in the Construction Sector of the Czech Republic—Analysis Based on the Difference in Values of EVA Entity and EVA Equity. Sustainability. 2020; 12(21):9078. https://doi.org/10.3390/su12219078

Chicago/Turabian Style

Horak, Jakub, Petr Suler, Jaroslav Kollmann, and Jan Marecek. 2020. "Credit Absorption Capacity of Businesses in the Construction Sector of the Czech Republic—Analysis Based on the Difference in Values of EVA Entity and EVA Equity" Sustainability 12, no. 21: 9078. https://doi.org/10.3390/su12219078

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