Is it Possible to Identify High-Risk Suppliers from Financial Statements?
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Research at SKODA AUTO University covering 2015 to 2017 was conducted to determine whether high-risk entities can be identified by analysing their closing financial statements. The aim was to identify business partners that could be risky because they do not publish closing financial statements on schedule. Businesses are obligated to publish closing financial statements based on European Union (EU) regulations (DIRECTIVE 2013/34/EU, https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013L0034&from=EN). These statements are published to protect third parties and business partners.
Supplier data were collected from the Czech Republic’s (CR) business register and from the Public Register and Collections of Documents, Ministry of Justice (https://or.justice.cz/ias/ui/rejstrik). Škoda Auto’s supplier list is not publicly available and was derived from internal sources. Both authors are affiliated with Škoda Auto University/Škoda Auto company and have access to the list.