Corporate Sector in the Czech Republic: What is the Role of Ownership in the Dissolution of Company?

Empiric analysis of the sector of non-financial corporations in the Czech Republic shows history of their terminations during the period 1995-2011. The purpose was to observe, what differences in the evolution of terminations (bankruptcies) of companies are connected with the predominant form of their ownership (only legal persons were analysed). Therefore, selected methods of the companies ' terminations were monitored according to a group of legal persons with prevailing domestic private capital and also group with predominance of the public capital. Also, the firms under foreign control were analysed. The companies with prevailing private domestic capital have dominated due to their largest number. However, the foreign-controlled companies have showed faster pace of the terminations during the analysed period and also their greater sensitivity to the economic cycle has been demonstrated. Liquidation was the most common method of the companies 'termination (roughly two-thirds of the total number of terminations in 2011). Dissolution without liquidation with successors represented one tenth of the terminations in the segment with predominance of private national capital and 15% in the segment of foreign-controlled companies.