Operating risk and firm’s profitability: evidence from non-listed manufacturing firms from V4 countries

• Authors: Łukasz Sroka , Monika Wieczorek-Kosmala

Title variants

PL

Ryzyko operacyjne a rentowność działalności: analiza nie notowanych firm sektora produkcyjnego krajów Grupy Wyszehradzkiej

Abstracts

PL

Cel. Artykuł stanowi wkład w toczącą się debatę na temat determinantów strategii odporności firm w obliczu kryzysu, odnosząc się do ryzyka operacyjnego. Celem naszej pracy jest zbadanie wpływu ryzyka operacyjnego na rentowność firm nienotowanych na giełdzie, działających w sektorze produkcyjnym. Badania nasze wypełniają lukę badawczą w tym temacie, w zakresie badań na poziomie konkretnego sektora i w grupie mniejszych firm. Metoda. Nasze badanie opiera się na danych księgowych dużej próby firm nienotowanych na giełdzie, dla czterech krajów (Polska, Czechy, Słowacja i Węgry). Zastosowana została regresja ważona (WLS - Weighted Last Squared) do testowania dwóch modeli wpływu ryzyka operacyjnego na rentowność firmy. Wyniki. Badania wskazują, że firmy narażone na wyższe ryzyko operacyjne są mniej rentowne. Biorąc pod uwagę krzyżowy wpływ ryzyka operacyjnego i finansowego, potwierdziliśmy na poziomie istotnym statystycznie, że wzajemne oddziaływanie ryzyka operacyjnego i finansowego ma negatywny wpływ na rentowność firmy. Wyniki naszych badań mają ważne implikacje praktyczne. Wskazują, że w okresie kryzysu mniejsze firmy potrzebują finansowania własnego, dla wsparcia odporności na skutki kryzysu dla sytuacji finansowej firmy.

EN

Purpose. This study contributes to the ongoing debate on determinants of firms’ resilience strategies while facing a crisis, by referring to the operating risk. The purpose of our work is to examine the effects of operating risk on profitability of non-listed firms in manufacturing sector. Therefore, our study responds to the literature gap within investigating this problem at sector level, and among smaller firms. Methodology. Our evidence is based on accounting-based data, covering four countries (Poland, Czechia, Slovakia and Hungary) and large number of non-listed firms. We apply WLS (Weighted Last Squared) regression to test two models of the impacts of operating risk on firm’s profitability. Findings. Our results indicate that firms exposed to higher operating risk, tend to be less profitable. While considering cross-effects of operating and financial risk in our model, we found strong and sound evidence that the interplay between operating and financial risk exposure exerts a negative impact on firm’s profitability. These results have important implications, by demonstrating that during the period of crisis firms need equity financing to sustain resilience.

Keywords

PL

ryzyko operacyjne; ryzyko finansowe; działalność firmy

EN

operating risk; financial risk; firm performance; profitability

• Publisher: Uniwersytet Gdański. Wydział Ekonomiczny
• Journal: Współczesna Gospodarka
• Year: 2024
• Volume: 18
• Issue: 1 (42)
• Pages: 1-14

Dates

published

2024

Contributors

author

Łukasz Sroka

• Uniwersytet Ekonomiczny w Katowicach

author

Monika Wieczorek-Kosmala

• Uniwersytet Ekonomiczny w Katowicach

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Identifiers

DOI

10.26881/wg.2024.1.01

Biblioteka Nauki

35115724