Financial Situation Of Enterprises Research Articles

The impact mechanism and breakthrough path of COVID-19 on enterprise financial distress: Evidence from China

COVID-19 has seriously impacted China's real economy and directly threatened the survival and healthy development of enterprises. Based on the data of Chinese A-share listed enterprises in Shanghai and Shenzhen from 2017 to 2021, this paper empirically examines the impact and mechanism of COVID-19 on enterprises financial distress. The findings are as follows: (1) The impact of COVID-19 significantly increases the risk of enterprises financial distress. (2) There are differences in the effect of COVID-19 on the financial situation of enterprises with different characteristics, with significant negative impacts on enterprises in industries such as mining and manufacturing, as well as smaller enterprises and those located in the central and western regions. (3) Digital transformation and government subsidies can alleviate the negative effects of COVID-19 on enterprises financial distress. The paper provides a basis for enterprises to recover from financial difficulties as soon as possible, enhance competitiveness, and realize sustainable development.

Financial situation of enterprises in the TSL sector in Poland in the years 2018-2022

Financial situation of enterprises in the TSL sector in Poland in the years 2018-2022

The Effect of Interest Rate Adjustment on the Stock Price Index in China

The interest rate is one of the main tools used to control monetary policy in China. Changes in interest rates will affect the return on capital and the financial situation of enterprises, which will in turn have an impact on the stock market. What effect will interest rate adjustments have on the stock market? Are fluctuations in the interest rates and the stock market correlated? At present, there is no consensus on the answers to these questions. This paper studies these problems. In order to study the effect of the interest rate adjustment on the stock price index, this paper first conducts literature review and analysis, and then uses unit root test, Johansen integration test, Granger causality test and error correction model. The factors studied are the one-year deposit rate and the closing price of the Shanghai Composite Index from 1991 to 2015. It can be seen that the long-term relationship between the interest rate and stock prices is a reverse relation - when interest rates change, the stock price is adjusted in reverse. Specifically, (1) there is a long term reverse relationship between the interest rate and the stock price index, (2) interest rates are the Granger cause of the stock price index, and the stock price index is not the Granger cause of interest rates, (3) the stock price index cannot adjust to the interest rate in a short time.

Financial Risk Analysis of Listed Catering Companies—Taking Haidilao as an Example

Based on the Z-Score model, the modified Z-Score model and the F model, this paper adopts the financial data of Haidilao International Holding Ltd. from 2018 to 2021 to conduct a quantitative risk analysis on the company's scale, asset structure, production capacity and operating results, discusses the impact of the COVID-19 epidemic on the financial situation of enterprises, and puts forward the suggestions for the enterprises to prevent the risks.

Machine learning model of tax arrears prediction based on knowledge graph

<abstract> <p>Most of the existing research on enterprise tax arrears prediction is based on the financial situation of enterprises. The influence of various relationships among enterprises on tax arrears is not considered. This paper integrates multivariate data to construct an enterprise knowledge graph. Then, the correlations between different enterprises and risk events are selected as the prediction variables from the knowledge graph. Finally, a tax arrears prediction machine learning model is constructed and implemented with better prediction power than earlier studies. The results show that the correlations between enterprises and tax arrears events through the same telephone number, the same E-mail address and the same legal person commonly exist. Based on these correlations, potential tax arrears can be effectively predicted by the machine learning model. A new method of tax arrears prediction is established, which provides new ideas and analysis frameworks for tax management practice.</p> </abstract>

CREDIT POLICY OF A COMMERCIAL BANK IN CONDITIONS OF UNCERTAINTY OF THE ECONOMIC ENVIRONMENT

Abstract. The article examines the concept of «credit policy» through the prism of the functions outlined in the development strategy of the banking institution, which is primarily aimed at maximizing resources for rapid response to uncertainties of the external and internal environment. The complex of identified key characteristics allowed to form a holistic view of the nature and specific features of the commercial bank’s credit policy. The article underlines that in conditions of uncertainty, the bank should take into account external and internal environmental factors that have a direct impact on the dynamics of lending to individuals and businesses, and need to be considered at the stage of strategic financial planning, monitoring the implementation of set tasks and in order to timely adjust the policy according to the banking institution’s needs for financial and economic security. The systematised factors are interrelated and interdependent and can have a multifaceted impact on the current state of the credit services of banking institutions’ market and such market’s trends. The article establishes the role of analysis and monitoring of banking institutions’ credit operations in the context of ensuring the effective results of the commercial bank’s credit policy. It is identified that credit risk is now in the spotlight of banking institutions along with the risks of capital adequacy and legal risks, due to the general decline in economic activity of consumers of financial services as a result of the epidemiological crisis and the introduction of quarantine restrictions, which reduced household incomes and negatively affected the financial situation of enterprises. The dynamics of changes in the share of NPLs by groups of banks is analysed, revealing foreign banks’ active work with NPLs. The study pays attention to the use of analytical tools of the commercial bank’s credit policy as a means of managing its financial and economic security in conditions of uncertainty, which concerns constant monitoring of loan portfolio quality and timely detection of NPLs. It also suggests the sequence of lending steps specifying practical aspects of use of analytical tools of credit policy. Keywords: credit policy, commercial bank, management, uncertainty, economic environment, analytical tools, financial market. JEL Classification E51, G21 Formulas: 0; fig.: 7; tabl.: 0; bibl.: 14.

The Financial Situation of Enterprises in the Clothing and Footwear Sector in the Face of the COVID-19 Pandemic

Purpose: The purpose of this article is to try to assess the impact of COVID-19 on the financial situation of enterprises in the clothing and footwear sector. Companies listed on the Warsaw Stock Exchange were used as a case study. Design/Methodology/Approach: The study used a synthetic measure based on the zero unitarization method, which allowedfor the classification of the surveyed enterprises from the point of view of their financial condition. Findings: The methods used in the paper turned out to be a helpful tool in determining the financial condition of companies. They showed significant changes resulting from the spread of COVID-19. As the pandemic situation is still not stabilized, such analyses as in this article should be continued in the coming years. That will enable the observation of regularities or their absence, especially after the pandemic has ended. Practical Implications: The results of this kind of research can help managers, as well as current and potential shareholders, understand how the pandemic affects the company and its financial implications. Such information will help make decisions aboutfuture activities. Thus, the study fills the research gap in this area. Originality/Value: The article contributes to the current scientific discussion on the impact of the COVID-19 pandemic on the financial situation of companies in the world.

The Impact of the Covid-19 Pandemic on the Financial Performance of Public Companies in Poland

Purpose: This paper sets out to analyze the impact of the pandemic on selected sectors of the economy and specific companies within the industries most affected by the pandemic-related crisis. Approach/Methodology/Design: The study covers selected parameters of financial performance (operating revenues, operating profit/loss, gross profit, total cash flow, cash flow from operating activities, cash flow from investing activities, net cash flow ) on a sample of 115 companies listed on the Warsaw Stock Exchange (WSE) for the period of the first half of 2019 and the first half of 2020. Findings: The results confirm that the exogenous demand and supply side shock has had a varied impact on sectors of the economy and different companies within the same industries. Large enterprises cope better with the effects of the pandemic. Practical Implications: This research and its results may be helpful for managers in crisis management in enterprises and for the government in adjusting the scope and forms of support for enterprises affected by the pandemic. Originality/Value: This study fills a gap in the literature by analyzing the impact of the economic crisis on the financial results of individual industries and enterprises in Poland. The research pointed out that the impact of the pandemic on the financial situation of enterprises within one industry isn't uniform and one-way (some companies improve their financial performance and others post a significant deterioration in their financial standing) and the large enterprises cope better with the effects of the demand and supply side shock.

Information and Communication Technologies in food and accommodation sector in EU countries: Sticker or challenge for tourism development?

The article discusses the use of Information and Communication Technologies (ICTs) in the food and accommodation sector in the context of tourism development in EU countries. The paper is of a review and research nature. The purpose is to define a measure of the level of ICTs use in food and accommodation enterprises in EU countries, to consider the relation between proposed measure and chosen macroeconomic indicators, and finally to identify the impact of ICTs use on the development of this sector.To attain the aim of this research, a critical analysis of literature as well as desktop research has been carried out, the latter drawing on the data of Eurostat referring to companies from accommodation and food service activities. For the analysis, data for 26 EU countries over two time periods 2012–2019 and 2012–2017 were used. To assess the diversification of the level of ICTs use in the analysed sector, Hellwig's linear ordering method was utilized. Then, a fixed effects panel data model was used in order to examine the impact of the level of ICTs use on sector development, where the financial situation of enterprises (gross operating surplus) was assumed as the measure of the sector's growth.The values of the constructed taxonomic measure of development indicate the different levels of ICTs use by food and accommodation enterprises between countries. The estimated two-way panel data model confirmed a significant positive impact of ICTs use on gross operating surplus with a time lag of two years.

Audit Risk Evaluation Model for Financial Statement Based on Artificial Intelligence

In recent years, the economy in China has been steadily improving. The financial situation of enterprises in mainstream industries has become the focus of public concern. However, financial statement frauds, which occur frequently, greatly disrupt the economic order in the country. Thus, it is of practical significance to accurately identify and evaluate the audit risks of financial statements. For this purpose, this paper proposes an audit risk evaluation model of financial statement based on artificial neural networks (ANN). Firstly, the authors designed the audit risk indices and quantified the fraud factors of financial statement. Next, an audit risk verification model was established for financial statement and used to verify the predictions on three aspects of financial statement, namely, audit violation penalty (AVP), audit violation announcement (AVA), and financial statement restatement (FSR). Finally, a feedforward neural network was constructed based on the homomorphic encryption algorithm, which was subsequently used to evaluate and predict the audit risks of financial statements. The effectiveness of our model was proved valid through experiments.

Financial Analysis of an Australian Department Company Based on 3 Financial Models

In the modern economic market, it is necessary for investors and decision makers to evaluate the financial situation of enterprises. For the managers, the analysis of financial statements can help to judge the development prospects of enterprises, so as to manage and make decisions on the future development direction. And investors can get the accurate business results of the enterprise this year, which has important reference significance for whether to invest in the enterprise. The purpose of this report is to analyze the Australian department store, Myer, its financial status and provide investment advice to potential investors and operating suggestions to its managers. Three financial models were used to analyze the value of Myer, which are comparable analysis (COMPS), dividend discount model (DDM) and discount cash flow (DCF) models respectively.

Resource saving - the basis of economic growth

In conditions of a high level of industrialization of the economy, the production process is accompanied by the consumption of a significant amount of resources. Due to the fact that material costs account for more than half of production costs, a decrease in the latter is the most important qualitative indicator of economic development. Saving raw materials, materials, fuel, energy helps to reduce the cost of production and the need for capital investments, the introduction of scientific and technological advances, the establishment of new balance relations and economic balance, an increase in production, and an improvement in the financial situation of enterprises.

Health promotion in medium-sized and large enterprises in Poland, in the context of population ageing. The specificity of workplaces with a different size of employment and financial situation

Demographic projections indicate an inevitable intensification of the population ageing process. This situation causes significant challenges for employers due to the shrinking and ageing of the workforce. Workplace health promotion, adjusted to the needs and expectations of employees in different age groups, is one of the tools of preventing and minimizing the consequences of this demographic process. In Poland there is a lack of research showing employers' attitudes towards the demographic crisis, health promotion as a way of coping with the implications of ageing or the implementation of health promotion tailored to the specificity of younger and older employees. In addition, there is hardly any information on whether these issues are differentiated by the size and financial situation of enterprises. Therefore, the paper is aimed at filling in these knowledge gaps. A national representative study of 1000 companies employing ≥50 people was conducted (October-November 2017), in a form of standardized computer-assisted personal interviews. There is a low awareness of the discussed demographic process (8% of the enterprises surveyed declare experiencing its consequences). Most organizations do not prepare themselves for facing the future challenges of ageing (only one-fifth discuss this topic during management meetings), nor do they respond to the first symptoms of this process (only one-fourth react to the observed consequences of demographic changes, and every second organization tends to finish its cooperation with employees once they attain the retirement age). Although half of the respondents believe in the effectiveness of health promotion in coping with the consequences of the ageing process, in reality the capability of these activities is not harnessed (few companies are interested in the diverse health needs and expectations of employees in different age groups, and in adjusting health promotion activities to these needs and expectations). The size and financial situation do not differentiate many issues analyzed in the study. It is necessary to make employers aware of the inevitability of population ageing and its implications for enterprises, shaping their skills in effective preventive/remedial actions (including health promotion) and supporting them in such implementations. Med Pr. 2020;71(1):17-31.

Analiza porównawcza sytuacji finansowej farm wiatrowych w wybranych krajach Unii Europejskiej w latach 2009-2017

Celem publikacji była jest analiza porównawcza wybranych wskaźników sytuacji finansowej przedsiębiorstw, których główną działalnością jest generowanie energii wiatrowej i jej sprzedaż do sieci energetycznej. W publikacji porównano wybrane średnie wartości wskaźników finansowych dla następujących krajów Unii Europejskiej: Austria, Belgia, Bułgaria, Chorwacja, Czechy, Dania, Estonia, Finlandia, Francja, Grecja, Hiszpania, Holandia, Irlandia, Litwa, Łotwa, Niemcy, Polska, Portugalia, Rumunia, Słowacja, Słowenia, Szwecja, Węgry, Wielka Brytania, Włochy. Wnioskiem z badań jest wysoka rentowność farm wiatrowych w Austrii, Belgii, Portugalii i Wielkiej Brytanii, co pokrywa się z wysokimi cenami energii elektrycznej w tych krajach. Kraje z niższymi cenami energii odnotowały zwykle gorsze wyniki finansowe farm wiatrowych. Są jednak od tej reguły wyjątki (farmy wiatrowe w Niemczech mimo wysokich cen energii elektrycznej nie uzyskiwały bardzo dobrych wyników finansowych).

Evaluation of investment environment security in Ukraine

World economic crises, internal economic and political instability have led to declining the level of investment attractiveness and investment security of Ukraine. The aim of the article is to propose an integral index in order to assess investment environment security and determine factors affecting the investment environment security of Ukraine. The suggested assessment is based on the data of World Bank’s indexes with the following blocks of factors: the availability of economic freedom, favorable organizational conditions for doing business, political and legal freedom, supply of resources and infrastructure development. The assessment of Ukrainian investment environment security and its Western neighbors – the European Union member states – has shown that it has lowest rank and highest volatility in Ukraine. The article identifies a direct statistical relation between the volume of foreign direct investment flows in Ukraine and the indicator of political stability and the absence of violence in the country. The main reasons of investment attractiveness reduction in Ukraine were as follows: conservative attitude of investors towards risks due to political instability, manifestations of violence and terrorism; deterioration of the overall financial situation of enterprises, which are the recipients of investments. The article substantiates that conditions for the investment attraction and secure environment in Ukraine have not been formed yet. The system of indicators and criteria for assessing the level of investment environment security should be expanded.

Analysis of the organizations accounts payable of the Kalmykia Republic

The article shows the organizationsaccounts payableof the Republic of Kalmykia as one of the most important elements of financial analysis as a separate organization, industry and the whole region. The dynamic changes in accounts payable on the basis of statistical datawere analyzed. It was revealed that the vast majority of overdue accounts payable was formed in housing and communal services. We carried outthe structural analysis of overdue debt composition and revealed the ways of its control. In order to identify the most "vulnerable" areas of economic activity from non-payment, the share of overdue debt to the total amount of debt by industry was considered. To assess the timeliness of payments of enterprises on obligations and the quality of accounts payable, we performed the analysis of the share of overdue accounts payable in its total volume. On thatbasiswe found out the approaches to optimizing the management of accounts payable, leading to the growth of financial results and further development of the economy of the Republic of Kalmykia. To analyze financial stability, it is important to consider not only the status of accounts payable, but also the ratio of accounts receivable to accounts payable. The analysis showed that the proportion is irrational; it is obvious that companies have attracted significant borrowed resources, but currently use of them in their current activitiesinefficient. The article concludes that the financial situation of enterprises and organizations of the region is extremely unstable when there is an annual growth of accounts payable and accounts receivable. In order to stabilize the financial condition of enterprises and organizations of the Republic of Kalmykia, improve their solvency and strengthen the settlement and payment discipline we explored the possibility of restructuring of accounts payable, which requires an analysis of each creditor separately, including all components of the debt-principal amount, interest and penalties.

The Use of the Altman Model in Evaluation of Economic Performance of a Corporation in the Crisis Period in the Building Sector in the Czech Republic

The article is focused on verification of the presumption of poor financial management in companies operating in the building sector. Many authors have written about a financial situation of enterprises in the building sector, especially after the economic crisis in the year 2008, when some of them claim and their results confirm that the main reason of bankruptcy of these companies was not the economic crisis but mainly poor financial management. Our results, which were obtained especially by the method of financial analysis and further by a mathematical and statistical method, support this statement. Within the mathematical and statistical methods, there was return on equity used as an explanatory variable, mainly because all variants of the Altman Z-Score are based on the calculation of ratio indicators, which do not include this type of return. Based on the conducted tests it is possible to state that it is highly desirable for the monitored enterprises in the building industry to reach positive values of return on equity.

Influence of group purchasing organizations on financial situation of Polish SMEs

Research background: SMEs often operate in markets where they compete with large companies. A fight for a customer, payment backlogs, problems with debt collection and new branches cause that managers are looking for solutions that will influence positively on the situation of financial companies. Maintaining liquidity and generating income are the primary steps to build a competitive position and a progressive development of enterprises. One of the most popular methods that allows companies to do profitable business and increase their chances for safety is operation within group purchasing organizations. Currently in the Polish market there are many different types of GPOs (Group Purchasing Organizations). The choice of the right one is a chance to improve their financial situation.
 Purpose of the article: The aim of the article is to present an impact of group purchasing organizations on the financial situation of enterprises. In the article the classification of groups is done and there are shown the benefits that commercial enterprises operating in them gain. The article presents some obstacles to join specific group purchasing organizations and difficulties faced by companies operating in them.
 Methods: The studies were carried out on the basis of 60 SMEs. These companies operated in five Polish GPOs. The groups were divided into branch and multi-branch ones. The study period covered the years 2013?2015. In order to analyze the impact of purchasing groups on the financial situation of enterprises, some selected groups of financial ratios were used. A preliminary analysis of financial balance sheets and profit and loss account was conducted.
 Findings & Value added: The analysis showed that the choice of an appropriate group purchasing organization had a large impact on financial situation of companies. Different opportunities can be offered by a branch purchasing group than by the multi-branch one. Research has shown that better results relate to dynamics of revenues, costs, liquidity and profitability that are effects of operation within the branch purchasing groups. The analysis conducted has also showed that functioning within purchasing groups allows to maintain safe financial liquidity, apart from obtaining a low price of purchased goods and materials, and has a positive impact on the effectiveness of managing receivables and short-term liabilities.

Ujemny kapitał własny w przedsiębiorstwie a kontynuacja działalności

The paper analyzes the financial situation of enterprises, which had negative equity in the period 2012–2015 in the context of their continued activity. Profitability and debt ratios and repayment periods indicated a very unfavorable financial situation. According to the legal provisions, these companies should be bankrupt (liquidated) but they still function, unfortunately, increasing the shortage of equity by systematic debt, which puts creditors in a very difficult situation.

Концептуальные подходы к формированию лесопромышленных кластеров в России

World experience shows the effectiveness of the creation of clusters in various industries. A lot of work and research domestic and foreign scholars and practitioners are dedicated to study and development of mechanisms of realization of industrial policy. The article analyzes the main indicators of the forest industry and forestry in Tomsk region in recent years, the basic provisions are revealed, Factors determining the development trends of the industry are analyzed. The authors identified the major systemic problems hindering the progressive development of forest sector in Tomsk region, including low level of development of periodic yield, the lack of transport and economically available forest resources, inadequate production structure and export of forest products, financial situation of enterprises of the sector, insufficient staffing, weak territorial cooperation of the enterprises and organizations. The article defines the objective conditions for creation of timber industry cluster in Tomsk region, goals, objectives and directions of sustainable development of the forest sector in Tomsk region on the basis of cluster approach are identified. Among the main areas that determine competitiveness of products and possibility of increasing the efficiency of forest management, the following issues are highlighted: development of deep processing of wood through the use of low-grade wood and wood waste, development of transport infrastructure in forests, improving human potential, expanding the range of manufactured timber enterprises in the cluster of products and implementation of joint projects. The conclusions can provide theoretical basis for further research in the field of economic security and development of timber processing complex and forestry. Obtained results can be used both by researchers in further research work to explore issues of cluster development of timber industry and regional authorities and business structures functioning in the sphere of forest industry.