<abstract xmlns="http://www.w3.org/1999/xhtml">

<sec><h3>Research background</h3>
<p>The business environment is an integral part of all business activity. Every business operates in a certain atmosphere that is dynamic and has a constant impact on the business. Therefore, it is important to analyse and predict the development of the business environment.</p>
</sec>
<sec><h3>Purpose</h3>
<p>The aim of this paper is to specify the financial health of a group of companies determined by selected indicators with the business environment of the V4 countries, to interpret the obtained results and, based on them, to propose a complex of systemic measures for business practice.</p>
</sec>
<sec><h3>Research methodology</h3>
<p>The business environment is evaluated within two decision-making processes, in which the optimal environment is selected based on selected criteria (e.g., GDP, unemployment, inflation). To solve decision-making processes, two methods are used – the Saaty’s matrix method and the TOPSIS method. The business environment is also evaluated based on the ratio indicators of the financial analysis of companies in the V4 group.</p>
</sec>
<sec><h3>Results</h3>
<p>Applying the TOPSIS method, it was found that Hungary’s business environment is considered the most suitable for entrepreneurs. From the point of view of financial analysis indicators, it was found that companies in Poland were ranked best. Second place was occupied by Czech companies, followed by Hungarian companies. Companies in the Slovak Republic were ranked worst.</p>
</sec>
<sec><h3>Novelty</h3>
<p>The subjectivity of choosing the criterion weights and the lack of data might both be seen as research limitations. The difficulty lies in conducting a more in-depth study that may also be applied to a wider region. The added value of the work can be considered a mutual comparison of the decision-making processes within the V4 group and a kind of advice for entrepreneurs, where one can do business with the best prospects for the future.</p>
</sec>
</abstract>

Research background
The business environment is an integral part of all business activity. Every business operates in a certain atmosphere that is dynamic and has a constant impact on the business. Therefore, it is important to analyse and predict the development of the business environment.

Purpose
The aim of this paper is to specify the financial health of a group of companies determined by selected indicators with the business environment of the V4 countries, to interpret the obtained results and, based on them, to propose a complex of systemic measures for business practice.

Research methodology
The business environment is evaluated within two decision-making processes, in which the optimal environment is selected based on selected criteria (e.g., GDP, unemployment, inflation). To solve decision-making processes, two methods are used – the Saaty’s matrix method and the TOPSIS method. The business environment is also evaluated based on the ratio indicators of the financial analysis of companies in the V4 group.

Results
Applying the TOPSIS method, it was found that Hungary’s business environment is considered the most suitable for entrepreneurs. From the point of view of financial analysis indicators, it was found that companies in Poland were ranked best. Second place was occupied by Czech companies, followed by Hungarian companies. Companies in the Slovak Republic were ranked worst.

Novelty
The subjectivity of choosing the criterion weights and the lack of data might both be seen as research limitations. The difficulty lies in conducting a more in-depth study that may also be applied to a wider region. The added value of the work can be considered a mutual comparison of the decision-making processes within the V4 group and a kind of advice for entrepreneurs, where one can do business with the best prospects for the future.

An Analysis of the Financial Health of Companies Concerning the Business Environment of the V4 Countries

Folia Oeconomica Stetinensia

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Research background
The business environment is an integral part of all business activity. Every business operates in a certain atmosphere that is dynamic and...

An Analysis of the Financial Health of Companies Concerning the Business Environment of the V4 Countries

Published Online: Jun 09, 2023

Page range: 170 - 193

Received: Nov 25, 2022

Accepted: Mar 04, 2023

DOI: https://doi.org/10.2478/foli-2023-0009

Keywords
financial analysis, financial health, business environment, Visegrád Four, Saaty’s matrix, TOPSIS

© 2023 Marek Nagy et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

An Analysis of the Financial Health of Companies Concerning the Business Environment of the V4 Countries

Published Online: Jun 09, 2023

Page range: 170 - 193

Received: Nov 25, 2022

Accepted: Mar 04, 2023

DOI: https://doi.org/10.2478/foli-2023-0009

Keywordsfinancial analysis, financial health, business environment, Visegrád Four, Saaty’s matrix, TOPSIS

© 2023 Marek Nagy et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-ShareAlike 4.0 International License.

Keywords
financial analysis, financial health, business environment, Visegrád Four, Saaty’s matrix, TOPSIS