The direct and indirect impacts of legal intervention on the buyer-seller relationships

There is a long time discussion among Czech defenders of gradualism and the shock therapy about the causes and consequences of prolonging and breaching of the buyer-seller contracts. The objective of the paper is to examine the impact of the institutional change induced by applying the Act no. 395/2009 Coll. on the operational activity of the company. In the paper, the indicator of cash conversion cycle was applied. The expected findings shall confirm the thesis of shortened credit period of the retail- and wholesalers. Unintendedly, the legal intervention could lead to different financial management of the buyers, the additional costs for the sellers and to the overall inefficiency of the act itself. (C) 2014 Elsevier B.V.