Impact of Capital Structure on the Company’s Financial Situation during the Pandemic – Analysis Based on Examples of Listed Companies
Under the conditions of increased uncertainty making right financial decisions can determine success or failure of every company. Maintaining financial liquidity is especially important during impactful economic fluctuations when the risk of bankruptcy rises significantly. The purpose of the arti...
| Main Authors: | , |
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| Format: | Article |
| Language: | deu |
| Published: |
Lodz University Press
2023-09-01
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| Series: | Finanse i Prawo Finansowe |
| Subjects: | |
| Online Access: | https://czasopisma.uni.lodz.pl/fipf/article/view/19497 |
| _version_ | 1797665031969570816 |
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| author | Magdalena Jasiniak Mateusz Rudzki |
| author_facet | Magdalena Jasiniak Mateusz Rudzki |
| author_sort | Magdalena Jasiniak |
| collection | DOAJ |
| description | Under the conditions of increased uncertainty making right financial decisions can determine success or failure of every company. Maintaining financial liquidity is especially important during impactful economic fluctuations when the risk of bankruptcy rises significantly.
The purpose of the article is to evaluate the impact of financing strategies on economic situation of companies during the pandemic as well as to verify whether safe strategy can be a reliable measure of protection from the danger of bankruptcy.
Methodology. Empirical research has been based on the analysis of 30 commercial sector companies’ financial statements from 2018 to 2020. The research has been completed with discriminant analysis models, and in order to receive clear interpretation of results a new indicator has been created. The indicator shows effectiveness of financing strategies as protection from negative results of the pandemic.
Results of the research prove that under the conditions of strong and rapid economic changes a conservative strategy is a relatively safer strategy than moderate and aggressive ones, yet, it does not guarantee full protection from bankruptcy. Additionally, moderately higher risk of financing allows to increase liquidity and profitability even during the pandemic which was also indicated in the research. |
| first_indexed | 2024-03-11T19:39:01Z |
| format | Article |
| id | doaj.art-dc8fca4919c34818a93214d85eac3fd7 |
| institution | Directory Open Access Journal |
| issn | 2391-6478 2353-5601 |
| language | deu |
| last_indexed | 2024-03-11T19:39:01Z |
| publishDate | 2023-09-01 |
| publisher | Lodz University Press |
| record_format | Article |
| series | Finanse i Prawo Finansowe |
| spelling | doaj.art-dc8fca4919c34818a93214d85eac3fd72023-10-06T13:06:20ZdeuLodz University PressFinanse i Prawo Finansowe2391-64782353-56012023-09-01339152910.18778/2391-6478.3.39.0219357Impact of Capital Structure on the Company’s Financial Situation during the Pandemic – Analysis Based on Examples of Listed CompaniesMagdalena Jasiniak0https://orcid.org/0000-0002-1658-320XMateusz Rudzki1Faculty of Economics and Sociology, University of LodzFaculty of Economics and Sociology, University of LodzUnder the conditions of increased uncertainty making right financial decisions can determine success or failure of every company. Maintaining financial liquidity is especially important during impactful economic fluctuations when the risk of bankruptcy rises significantly. The purpose of the article is to evaluate the impact of financing strategies on economic situation of companies during the pandemic as well as to verify whether safe strategy can be a reliable measure of protection from the danger of bankruptcy. Methodology. Empirical research has been based on the analysis of 30 commercial sector companies’ financial statements from 2018 to 2020. The research has been completed with discriminant analysis models, and in order to receive clear interpretation of results a new indicator has been created. The indicator shows effectiveness of financing strategies as protection from negative results of the pandemic. Results of the research prove that under the conditions of strong and rapid economic changes a conservative strategy is a relatively safer strategy than moderate and aggressive ones, yet, it does not guarantee full protection from bankruptcy. Additionally, moderately higher risk of financing allows to increase liquidity and profitability even during the pandemic which was also indicated in the research.https://czasopisma.uni.lodz.pl/fipf/article/view/19497financing strategiescapital structurefinancial analysisdiscriminant modelscovid-19 pandemicliquidityprofitability |
| spellingShingle | Magdalena Jasiniak Mateusz Rudzki Impact of Capital Structure on the Company’s Financial Situation during the Pandemic – Analysis Based on Examples of Listed Companies Finanse i Prawo Finansowe financing strategies capital structure financial analysis discriminant models covid-19 pandemic liquidity profitability |
| title | Impact of Capital Structure on the Company’s Financial Situation during the Pandemic – Analysis Based on Examples of Listed Companies |
| title_full | Impact of Capital Structure on the Company’s Financial Situation during the Pandemic – Analysis Based on Examples of Listed Companies |
| title_fullStr | Impact of Capital Structure on the Company’s Financial Situation during the Pandemic – Analysis Based on Examples of Listed Companies |
| title_full_unstemmed | Impact of Capital Structure on the Company’s Financial Situation during the Pandemic – Analysis Based on Examples of Listed Companies |
| title_short | Impact of Capital Structure on the Company’s Financial Situation during the Pandemic – Analysis Based on Examples of Listed Companies |
| title_sort | impact of capital structure on the company s financial situation during the pandemic analysis based on examples of listed companies |
| topic | financing strategies capital structure financial analysis discriminant models covid-19 pandemic liquidity profitability |
| url | https://czasopisma.uni.lodz.pl/fipf/article/view/19497 |
| work_keys_str_mv | AT magdalenajasiniak impactofcapitalstructureonthecompanysfinancialsituationduringthepandemicanalysisbasedonexamplesoflistedcompanies AT mateuszrudzki impactofcapitalstructureonthecompanysfinancialsituationduringthepandemicanalysisbasedonexamplesoflistedcompanies |