H40 - Publicly Provided Goods: GeneralReturn

The aim of this article is to examine whether there exists a relation between the participation in execution of public contracts and financial indicators of companies. The issue is analysed using data on companies involved in the construction sector of the Slovak Republic. Hypotheses that the participation of companies in public contracts positively affects their financial indicators are tested using a quantitative approach. The results of the regression analysis indicate that companies which contribute to realisation of public contracts achieve more favourable values of profitability ratios compared to companies without public contracts. Nevertheless, the higher profitability may stem from higher efficiency of those companies or from the presence of inefficiency in the procurement process. With respect to the main objective and the extent of the presented analysis, it is not possible to assess which option is more plausible.

This paper deals with the transformation of theatres - allowance organisations of the City of Prague. The whole issue is placed in a wider context of economic policy. The paper aims to evaluate the transformation using the example of selected theatres that have been transformed; the analysis also considers allowance organisations (The Municipal Theatres of Prague). The Grant System of the City of Prague was modified several times in the years 2007-2009; because of its importance for the functioning of (not only) the transformed organisations, the paper will shortly deal with its changes and successive forming too. The transformation was highly monitored by the mass media and the process was stopped after long disputes in September 2011. The goal of this paper is to summarise findings from the first (and currently last) phase of the transformation process, which could be used later in its potential completion. The "KAMF" model is used to analyse the financial situation of the theatres.