Financial performance of Czech subsidiaries of the EU-listed companies

The paper examines the development of financial performance of Czech subsidiaries under the control of EU-listed companies during the period 2009-2014. Summary statistics of individual corporate data indicate that both the domicile of the parent and the industry affiliation of the subsidiary have an impact on the subsidiary’s performance measured either by return on assets (ROA) or by return on equity (ROE). The association of parents' domiciles and subsidiaries’ industries with performance is also confirmed by the analysis of variance (factorial ANOVA). ROE is significantly higher than ROA; the variability in ROE is, although, double compared to the variability in ROA. Finally, the differential between ROA and ROE is not constant over the sample companies.