Anonymous Companies and Public Procurement: Evidence from the Czech Republic
|Author:||Mgr. Miroslav Jakab|
|Year:||2020 - summer|
|Leaders:|| PhDr. Miroslav Palanský M.A., Ph.D.
|Work type:|| Finance, Financial Markets and Banking
|Awards and prizes:|
|Abstract:||Anonymous Companies and Public Procurement: Evidence from the Czech Republic Abstract This thesis follows up on previous research concerning inefficiencies linked to tenders awarded to anonymous companies. After anonymous shares were abolished in 2014, the question is whether similar inefficiencies can be detected in the case of companies that ceased to be anonymous. A balanced sample of formerly anonymous companies and their comparable peers was constructed via a matching algorithm. A Welch unequal variance t-test was then used to check whether a disproportionate drop in selected performance indicators and in the share of formerly anonymous companies on total volume of public procurement can be detected. A linear regression model was further applied to inquire about the effect of anonymity and former anonymity on tender-specific savings. The results show that anonymity significantly contributes to lower tender savings, but no similar negative effect can be found in case of formerly anonymous companies. Profitability of the formerly anonymous companies also decreased, but no long- term drop in tender volume was found, indicating that a large portion of the inefficiencies can be traced back to well-established businesses rather than special purpose shells. This thesis thus extends the present research in the area of procurement efficiency and indicates that an increase in bidder ownership transparency can enhance procurement efficiency.|