Knowledge of financial management practices of listed SMEs

Abstract

RESEARCH OBJECTIVE: Small and medium businesses are constantly driving economic prosperity. The SME sector accounts for the overwhelming majority of enterprises, i.e. 99.8%, both in Poland and in the EU as a whole. Therefore, the aim of this article is to verify the research hypothesis assuming that Knowledge Management (KM) plays a key role in the financial management of small and medium-sized listed companies, especially in terms of investment decisions.
 THE RESEARCH PROBLEM AND METHODS: The research method used in this article will be the analysis of stock market data describing as a not very satisfied financial condition of small and medium listed companies in times of broad economic crises, which mainly include the pandemic time and the armed conflict in Ukraine. On the basis of selected financial data, estimate an econometric model was created to help explain the mechanism of changes occurring the financial condition of the listed business entities.
 THE PROCESS OF ARGUMENTATION: A literature review confirming the important role of knowledge management including the Balanced Scorecard (BSC) methodology in financial situation of the joint-stock companies. The current state of the global economy is leading to a dangerous situation in which it is becoming increasingly difficult to maintain a secure financial cushion.
 RESEARCH RESULTS: Estimation of an econometric model is expected to confirm the research hypothesis that KM plays a key role in the financial management of small and medium-sized listed companies, especially in terms of their investment decisions in range of using innovative method as BSC.
 CONCLUSIONS, INNOVATIONS, AND RECOMMENDATIONS: The article explains the key role of KM in the financial management of small and medium-sized listed companies during crises. The results of the estimated model can serve the more effective management of SMEs listed on NewConnect and other alternative trading floors around the world.