Public Procurement and its Impact on Financial Indicators of Companies in the Construction Sector in Slovakia

The aim of this article is to examine whether there exists a relation between the participation in execution of public contracts and fi nancial 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 fi nancial 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 profi tability ratios compared to companies without public contracts. Nevertheless, the higher profi tability may stem from higher effi ciency of those companies or from the presence of ineffi ciency 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.