Dagmar Čámská


The aim of this paper is to show if the Czech institutions that distribute European money support healthy businesses. The Czech Republic has € 26.7 billion available for the program period of 2007-2013 from the European funds. There are more than twenty financial support programs. Beneficiaries of different support programs are thoroughly chosen according to criteria. Among the criteria, financial health is also monitored. Predicting corporate financial distress or bankruptcy has been a highly discussed topic in the research as well as business circles since 1960’s. Bankruptcy models provide a quick answer about the company’s financial conditions. They are helpful for business partners, banks as well as for governmental institutions. Cooperation with the ailing partner can be devastating. For the purpose of this paper, Operational Program Environment has been chosen as one of the biggest programs. The Altman formula is selected as a bankruptcy model which should help to fulfil the main aim, because of its worldwide use. The analysis will be done with the use of a database of beneficiaries and the corporate database Albertina, which provides financial data.