Impact of Inflation, Markups and Wages on Changes in the Profitability of Enterprieses in Poland
The purpose of the study is to determine the impact of inflation, markups and wages on changes in the profitability of enterprises in Poland from 2008 to 2023, considering the effects in the short, medium and long term. Methodology refers to the impact of CPI, markups and wages on changes in gross...
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| Format: | Article |
| Language: | deu |
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Lodz University Press
2023-12-01
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| Series: | Finanse i Prawo Finansowe |
| Subjects: | |
| Online Access: | https://czasopisma.uni.lodz.pl/fipf/article/view/19472 |
| _version_ | 1827381406897012736 |
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| author | Aneta Kosztowniak |
| author_facet | Aneta Kosztowniak |
| author_sort | Aneta Kosztowniak |
| collection | DOAJ |
| description | The purpose of the study is to determine the impact of inflation, markups and wages on changes in the profitability of enterprises in Poland from 2008 to 2023, considering the effects in the short, medium and long term.
Methodology refers to the impact of CPI, markups and wages on changes in gross turnover profitability rates (GTPR) that were assessed using the VECM model, the impulse response function, and the variance decomposition.
Results of the research study show that the pillar of changes in the profitability of enterprises in Poland is its earlier changes with the increasing importance in the short term of markups, wages, and inflation (up to 10%) and gradually decreasing in the medium (up to 9%) and long term (7%). The importance of markups in the degree of explanation of changes in profitability is about 3–4 times stronger than that of wages. An increase in markups is an effective tool for stabilizing corporate profitability under inflation already in the short term, and can also be a tool to support an increase in such profitability in the medium and long term, if market conditions, including consumer demand, allow for it. The study fills a gap in the literature on the importance of markups and wages in shaping enterprises profitability in an inflationary condition, especially the use of markups as a tool that already produces expected effects in the short term. |
| first_indexed | 2024-03-08T13:55:46Z |
| format | Article |
| id | doaj.art-0705437fbf2c4ad7b63928989302874d |
| institution | Directory Open Access Journal |
| issn | 2391-6478 2353-5601 |
| language | deu |
| last_indexed | 2024-03-08T13:55:46Z |
| publishDate | 2023-12-01 |
| publisher | Lodz University Press |
| record_format | Article |
| series | Finanse i Prawo Finansowe |
| spelling | doaj.art-0705437fbf2c4ad7b63928989302874d2024-01-15T14:27:53ZdeuLodz University PressFinanse i Prawo Finansowe2391-64782353-56012023-12-0144020122410.18778/2391-6478.4.40.1019331Impact of Inflation, Markups and Wages on Changes in the Profitability of Enterprieses in PolandAneta Kosztowniak0https://orcid.org/0000-0001-6088-1899Collegium of Management and Finance, SGH Warsaw School of EconomicsThe purpose of the study is to determine the impact of inflation, markups and wages on changes in the profitability of enterprises in Poland from 2008 to 2023, considering the effects in the short, medium and long term. Methodology refers to the impact of CPI, markups and wages on changes in gross turnover profitability rates (GTPR) that were assessed using the VECM model, the impulse response function, and the variance decomposition. Results of the research study show that the pillar of changes in the profitability of enterprises in Poland is its earlier changes with the increasing importance in the short term of markups, wages, and inflation (up to 10%) and gradually decreasing in the medium (up to 9%) and long term (7%). The importance of markups in the degree of explanation of changes in profitability is about 3–4 times stronger than that of wages. An increase in markups is an effective tool for stabilizing corporate profitability under inflation already in the short term, and can also be a tool to support an increase in such profitability in the medium and long term, if market conditions, including consumer demand, allow for it. The study fills a gap in the literature on the importance of markups and wages in shaping enterprises profitability in an inflationary condition, especially the use of markups as a tool that already produces expected effects in the short term.https://czasopisma.uni.lodz.pl/fipf/article/view/19472profitabilitymarkupswagesinflationpolandvecm |
| spellingShingle | Aneta Kosztowniak Impact of Inflation, Markups and Wages on Changes in the Profitability of Enterprieses in Poland Finanse i Prawo Finansowe profitability markups wages inflation poland vecm |
| title | Impact of Inflation, Markups and Wages on Changes in the Profitability of Enterprieses in Poland |
| title_full | Impact of Inflation, Markups and Wages on Changes in the Profitability of Enterprieses in Poland |
| title_fullStr | Impact of Inflation, Markups and Wages on Changes in the Profitability of Enterprieses in Poland |
| title_full_unstemmed | Impact of Inflation, Markups and Wages on Changes in the Profitability of Enterprieses in Poland |
| title_short | Impact of Inflation, Markups and Wages on Changes in the Profitability of Enterprieses in Poland |
| title_sort | impact of inflation markups and wages on changes in the profitability of enterprieses in poland |
| topic | profitability markups wages inflation poland vecm |
| url | https://czasopisma.uni.lodz.pl/fipf/article/view/19472 |
| work_keys_str_mv | AT anetakosztowniak impactofinflationmarkupsandwagesonchangesintheprofitabilityofenterpriesesinpoland |