Production function in agriculture in the Czech Republic

Abstract

Correct setting of value drivers of agricultural companies plays an important role, as every company strives for maximizing its profit. The goal of the paper was to determine the dependence of profit on production factors and to identify important production factors. Variables verified as value drivers were land, material, personnel costs, and depreciation of fixed tangible and intangible assets. The selected method of data processing is multiple regression analysis. The data were represented using a normal probability plot of residuals and a distribution histogram. The results show that 51.44 % of significant variables are material, personnel costs and depreciation of fixed tangible and intangible assets. The findings also imply that multiple regression analysis is a suitable statistical method. In conclusion, it can be stated that material, personnel costs, and depreciation of fixed tangible and intangible assets are important value drivers.