scholarly journals The Impact of Financial Leverage on A Company’s Market Valuation

2020 ◽  
Vol 4 (28) ◽  
pp. 185-190
Author(s):  
Artur Zimny
Keyword(s):  
Literature Review ◽  
Stock Exchange ◽  
Market Valuation ◽  
Debt Ratio ◽  
Low Level ◽  
Correlation And Regression Analysis ◽  
Warsaw Stock Exchange ◽  
High Level ◽  
Energy Companies ◽  
The Impact

The purpose of the article is to examine the impact of leverage on the market valuation of companies. The article verifies two hypotheses: 1. the degree of leverage is an important factor that impacts the market valuation of companies; 2. for companies with a high level of leverage, the impact of this leverage on their valuation is negative, and for companies with a low level of leverage, the impact is positive.The methodology of the study includes a critical literature review and empirical research based on correlation and regression analysis, including univariate and multivariate regression. The analysis covered quarterly data of ten energy companies listed on the Warsaw Stock Exchange. An important component of the research was classifying those companies into several groups, depending on their level of debt ratio in relation to the industry median debt ratio.The results of the research: The literature review did not provide an unequivocal conclusion to the problem. The empirical analysis did not give grounds to reject the first hypothesis; however, the second one was rejected. The research showed positive correlation and regression coefficients between the debt ratio and the price to book value ratio for highly leveraged companies and negative ones for companies with a low level of debt. The results are surprisingly contrary to the expectations based on theoretical premises.

scholarly journals The Impact of Financial Leverage on a Company’s Market Valuation

2021 ◽  
pp. 199-214
Author(s):  
Artur Zimny
Keyword(s):  
Literature Review ◽  
Stock Exchange ◽  
Market Valuation ◽  
Debt Ratio ◽  
Low Level ◽  
Correlation And Regression Analysis ◽  
Warsaw Stock Exchange ◽  
High Level ◽  
Energy Companies ◽  
The Impact

The purpose of the article is to examine the impact of leverage on the market valuation of companies. The article verifies two hypotheses: 1. the degree of leverage is an important factor that impacts the market valuation of companies; 2. for companies with a high level of leverage, the impact of this leverage on their valuation is negative, and for companies with a low level of leverage, the impact is positive. The methodology of the study includes a critical literature review and empirical research based on correlation and regression analysis, including univariate and multivariate regression. The analysis covered quarterly data of ten energy companies listed on the Warsaw Stock Exchange. An important component of the research was classifying those companies into several groups, depending on their level of debt ratio in relation to the industry median debt ratio. The results of the research: The literature review did not provide an unequivocal conclusion to the problem. The empirical analysis did not give grounds to reject the first hypothesis; however, the second one was rejected. The research showed positive correlation and regression coefficients between the debt ratio and the price to book value ratio for highly leveraged companies and negative ones for companies with a low level of debt. The results are surprisingly contrary to the expectations based on theoretical premises.

scholarly journals The Corporate Social Responsibility of Polish Energy Companies

Energies ◽  
2021 ◽  
Vol 14 (13) ◽  
pp. 3815
Author(s):  
Magdalena M. Stuss ◽  
Zbigniew J. Makieła ◽  
Agnieszka Herdan ◽  
Gabriela Kuźniarska
Keyword(s):  
Corporate Social Responsibility ◽  
Literature Review ◽  
Social Responsibility ◽  
Stock Exchange ◽  
Energy Sector ◽  
Study Approach ◽  
Csr Strategies ◽  
Warsaw Stock Exchange ◽  
Corporate Social ◽  
Energy Companies

If corporate social responsibility (CSR) is expected to work efficiently, there should be a standardised approach for implementation of the CSR concept for all businesses, including companies operating in the energy sector. Although many companies declare compliance with CSR standards, further investigation should be undertaken to evaluate if and how those standards have been applied in practice. The aim of this research is to examine the level of standardisation of the CSR activities within Polish energy companies and explore the good practices developed by those companies. The Polish energy companies have been selected for the investigation as the literature review we conducted demonstrates that there is limited research in this area and there is a knowledge gap regarding how Polish energy companies apply CSR regulation in practice. To accomplish the stated aims, the following research questions were developed: (1) What is the essence of applying the CSR concept in Polish energy companies, and at what level of development is the concept applied? (2) To what extent do Polish energy companies have a common approach to the CSR concept, and in what areas are there differences? (3) To what extent have Polish energy companies applied global CSR standards and solutions? (4) Is there a gap between the declared measures of CSR and their actual implementation in Polish energy companies? The research methodology of this study is based on a systematic literature review of the sources acquired from databases such as ProQuest, Emerald, SCOPUS and the Jagiellonian University Library. The multiple case study approach was identified as the most suitable research tool. Companies for the study were selected according to their affiliation to the energy sector and listing on the main market of the Warsaw Stock Exchange. These two assumptions allowed us to base this study on the largest Polish energy companies that have international status. Six areas of CSR annual report disclosures have been identified and used for the investigation and analysis. This research looks at similarities and difference between these six aspects of CSRs disclosed by Polish energy companies. The investigation allows us to conclude that the top three energy companies use similar tools to build their CSR strategies: formalised CSR concept, published CSR reports, disclosure of CSR information on the company website, CSR related activities offered to stakeholders, obtained CSR certificates, and CSR awards. This indicates the existence of a standardised approach to CSR across Polish energy companies.

scholarly journals The Economic Effect of the Pandemic in the Energy Sector on the Example of Listed Energy Companies

Energies ◽  
2021 ◽  
Vol 15 (1) ◽  
pp. 158
Author(s):  
Edyta Rutkowska-Tomaszewska ◽  
Aleksandra Łakomiak ◽  
Marta Stanisławska
Keyword(s):  
Power Plants ◽  
Stock Exchange ◽  
Research Question ◽  
Economic Effect ◽  
Financial Statements ◽  
Energy Sector ◽  
Electricity Production ◽  
Warsaw Stock Exchange ◽  
Energy Companies ◽  
The Impact

The study posed a research question: did the situation caused by COVID-19 affect the economic position of energy companies? The aim of the study is to investigate the impact of the situation of the epidemic state introduced in 2020 on the activities of the efficiency of energy sector companies. The subject of the research will be the ten largest Polish power plants in terms of electricity production, including four capital groups to which they belong. Financial data from 2014 to 2020 will be used for the research. To test the effectiveness, the tools of the ratio analysis will be used. The analysis of the financial statements in terms of investments in manufacturing activities confirms the hypothesis that companies investing in new solutions and technologies will be best prepared for an exceptional situation. The results of the research show that those capital groups which in the period preceding the outbreak of the epidemic made the largest investment outlays and at the same time their financial ratios and market valuation on the Warsaw Stock Exchange were the highest, they also achieved the highest financial results during the pandemic—they had the most favorable economic situation.

scholarly journals The impact of IFRS 16 on the financial position of selected companies from the WIG30 index

2018 ◽  
Vol 2018 (97 (153)) ◽  
pp. 57-76
Author(s):  
Mateusz Krawczak ◽  
Renata Dyląg
Keyword(s):  
Stock Exchange ◽  
Balance Sheet ◽  
Debt Ratio ◽  
Financial Situation ◽  
International Reporting ◽  
Financial Position ◽  
Actual Risk ◽  
Warsaw Stock Exchange ◽  
The Subject ◽  
The Impact

The main purpose of this article is to analyze the impact of changes in accounting for leases, defined in IFRS 16, on the financial situation of selected Polish entities listed on the Warsaw Stock Exchange. The following qualitative research methods were used to accomplish the goal: analysis of the literature of the subject and analysis of international reporting standards regarding accounting for leases. In the empirical part of the article, a simulation was carried out. It analyzed the impact of capitalization of operating lease on the selected parts of the balance sheet and changes in profitability of four entities listed on the Warsaw Stock Exchange. The results of empirical research indicate an increase in the value of assets and liabili- ties, a decline in the financial results, and an increase in profitability and debt ratios. The largest changes pertained to the equity and asset debt ratio, which confirms that the application of IFRS 16 will show corporate indebtedness, thus increasing investors' knowledge of the actual risk with which the company is burdened. The main value of this article is the originality of the pilot study carried out. To the best of the authors’ knowledge, these are the first practical measurements of the impact of capitalization of operating lease on the changes in profitability and indebtedness of the reporting entities.

scholarly journals Towards 2014/95/EU directive compliance: the case of Poland

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Łukasz Matuszak ◽  
Ewa Różańska
Keyword(s):  
Financial Reporting ◽  
Stock Exchange ◽  
Content Type ◽  
Reporting Practices ◽  
Eu Directive ◽  
Comprehensive Information ◽  
Warsaw Stock Exchange ◽  
One Year ◽  
High Level ◽  
The Impact

Purpose This study aims to investigate the differences in the extent of non-financial disclosure (NFD) across companies listed on the Warsaw Stock Exchange over the period surrounding the implementation of the Directive 2014/95/EU. Design/methodology/approach The sample comprising 134 selected companies. Content analysis and a disclosure index were used to measure the level of NFD. Non-financial reporting practices in the two years before (2015) and one year after (2017) the implementation of the Directive were compared. Findings The results highlight that there is already a high level of compliance with the European Union’s regulation. The extent of the NFD across different thematic aspects in reporting media increased significantly between 2015 and 2017 in particular in human rights and anti-corruption. The Directive had the largest impact on those firms with previously low levels of NFD and led to more homogeneity of NFD across different industries. Originality/value The study contributes to the understanding of the impact of the Directive on the NFD practices by European Union companies. The research has important implications for policymakers because it revealed that mandatory regulations form a crucial instrument in improving the harmonization of NFD. The research suggests that, due to the Directive, stakeholders should be provided with more comprehensive information that they need in their decision-making process.

scholarly journals Does CSR Affect the Profitability and Valuation of Energy Companies? An Example from Poland

Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3668
Author(s):  
Mariusz Zieliński ◽  
Izabela Jonek-Kowalska
Keyword(s):  
Social Responsibility ◽  
Stock Exchange ◽  
Descriptive Statistics ◽  
Specific Situation ◽  
Socially Responsible ◽  
Warsaw Stock Exchange ◽  
Energy Companies ◽  
Profitability Ratios ◽  
Research Period ◽  
Financial Profitability

The article refers to the issues of financial profitability of undertaking CSR activities, which is widely reported in literature. The four largest electricity producing companies in Poland were selected for the analysis. The research period covers the years 2009–2019, when the index of socially responsible companies was operating on the Warsaw Stock Exchange. The main purpose of the article is to compare the profitability ratios and quotations of energy companies in Poland declaring themselves socially responsible with companies of the same sector that have not expressed such a declaration. The results obtained on the basis of descriptive statistics, concerning profitability ratios and stock market quotations, indicate no relationship between their level and stability and the companies’ declarations of compliance with social responsibility. Companies declaring themselves socially responsible were placed in the ranking between the results of companies that did not belong to the indicated index. This may be the result of the specific situation of energy companies in Poland.

scholarly journals A CloudSat–CALIPSO View of Cloud and Precipitation Properties across Cold Fronts over the Global Oceans

2015 ◽  
Vol 28 (17) ◽  
pp. 6743-6762 ◽  
Author(s):  
Catherine M. Naud ◽  
Derek J. Posselt ◽  
Susan C. van den Heever
Keyword(s):  
Large Scale ◽  
Cold Front ◽  
Conveyor Belt ◽  
Low Level ◽  
Scale Parameters ◽  
Convective Clouds ◽  
Cold Fronts ◽  
Surface Front ◽  
High Level ◽  
The Impact

Abstract The distribution of cloud and precipitation properties across oceanic extratropical cyclone cold fronts is examined using four years of combined CloudSat radar and CALIPSO lidar retrievals. The global annual mean cloud and precipitation distributions show that low-level clouds are ubiquitous in the postfrontal zone while higher-level cloud frequency and precipitation peak in the warm sector along the surface front. Increases in temperature and moisture within the cold front region are associated with larger high-level but lower mid-/low-level cloud frequencies and precipitation decreases in the cold sector. This behavior seems to be related to a shift from stratiform to convective clouds and precipitation. Stronger ascent in the warm conveyor belt tends to enhance cloudiness and precipitation across the cold front. A strong temperature contrast between the warm and cold sectors also encourages greater post-cold-frontal cloud occurrence. While the seasonal contrasts in environmental temperature, moisture, and ascent strength are enough to explain most of the variations in cloud and precipitation across cold fronts in both hemispheres, they do not fully explain the differences between Northern and Southern Hemisphere cold fronts. These differences are better explained when the impact of the contrast in temperature across the cold front is also considered. In addition, these large-scale parameters do not explain the relatively large frequency in springtime postfrontal precipitation.

scholarly journals A Two-Level Sound Classification Platform for Environmental Monitoring

2018 ◽  
Vol 2018 ◽  
pp. 1-13 ◽  
Author(s):  
Stelios A. Mitilineos ◽  
Stelios M. Potirakis ◽  
Nicolas-Alexander Tatlas ◽  
Maria Rangoussi
Keyword(s):  
Cultural Heritage ◽  
Organizational Innovation ◽  
Gaussian Mixture ◽  
Low Level ◽  
Heritage Sites ◽  
Acoustic Sensor Networks ◽  
Preventive Actions ◽  
Integrated Platform ◽  
High Level ◽  
The Impact

STORM is an ongoing European research project that aims at developing an integrated platform for monitoring, protecting, and managing cultural heritage sites through technical and organizational innovation. Part of the scheduled preventive actions for the protection of cultural heritage is the development of wireless acoustic sensor networks (WASNs) that will be used for assessing the impact of human-generated activities as well as for monitoring potentially hazardous environmental phenomena. Collected sound samples will be forwarded to a central server where they will be automatically classified in a hierarchical manner; anthropogenic and environmental activity will be monitored, and stakeholders will be alarmed in the case of potential malevolent behavior or natural phenomena like excess rainfall, fire, gale, high tides, and waves. Herein, we present an integrated platform that includes sound sample denoising using wavelets, feature extraction from sound samples, Gaussian mixture modeling of these features, and a powerful two-layer neural network for automatic classification. We contribute to previous work by extending the proposed classification platform to perform low-level classification too, i.e., classify sounds to further subclasses that include airplane, car, and pistol sounds for the anthropogenic sound class; bird, dog, and snake sounds for the biophysical sound class; and fire, waterfall, and gale for the geophysical sound class. Classification results exhibit outstanding classification accuracy in both high-level and low-level classification thus demonstrating the feasibility of the proposed approach.

scholarly journals The Impact of CEOs' Compensations on Cost Stickiness in Industrial Companies Listed on the Amman Stock Exchange

2021 ◽  
Vol 15 (1) ◽  
pp. 152
Author(s):  
Lina Fuad Hussien
Keyword(s):  
Stock Exchange ◽  
Industrial Companies ◽  
Level Of Activity ◽  
Cost Behavior ◽  
Study Population ◽  
The Difference ◽  
High Level ◽  
The Cost ◽  
The Impact ◽  
Cost Stickiness

The purpose of this study is to analyze the asymmetry in cost behavior (cost stickiness) and to identify the impact of CEOs' compensation on the degree of cost stickiness behavior. The study population consists of the public shareholding companies listed on the ASE, which number (56) industrial company. Data were collected from (35) industrial companies for the period (2009 - 2019). To measure the degree of costs stickiness, The Model of Weiss (2010) was used. The Model of Weiss (2010) takes into account the costs and changes in the level of activity (sales) for the last four quarters of the company, Weiss (2010) model constructs the difference in logarithmic ratios of changes in cost. The study found that the CEO's compensation in Jordanian industrial companies consists of two forms. The companies pay fixed salaries or performance-related bonuses. The study found that the form of compensation that is paid to the CEO affects the behavior of managers. The results indicated that the performance-related rewards are accompanied by a decrease in the level of cost stickiness, and the compensation paid in the form of fixed salaries are accompanied by a high level of cost stickiness. The study recommends that companies should understand the role of the compensation form in administrative decisions, especially with regard to resource modifications, as management motives in relation to resource modifications must be taken into account because of their clear and direct impact on the cost structure of companies.

scholarly journals The effects of grouping types on promoting critical thinking in EFL collaborative writing

2020 ◽  
Vol 9 (2) ◽  
pp. 108-120
Author(s):  
Nguyen Thi Minh Tram ◽  
Bui Thi Thuc Quyen
Keyword(s):  
Critical Thinking ◽  
Collaborative Learning ◽  
Tertiary Education ◽  
Collaborative Writing ◽  
Homogeneous Groups ◽  
Learning And Teaching ◽  
Low Level ◽  
Heterogeneous Groups ◽  
High Level ◽  
The Impact

Nurturing critical thinking (CT) has been acknowledged as a core objective of tertiary education, and drawn attention from academia of teaching English as a Foreign Language (EFL), particularly in EFL argumentative writing. It has been claimed that collaborative learning which stimulates the active exchange of ideas within small groups not only increases interest among the participants but also promotes critical thinking. One of the important aspects of learning and teaching through collaboration is the group composition or grouping “who with whom”. The present study was an attempt to investigate the impact of homogeneous and heterogeneous groupings on critical thinking in collaborative writing. Having been required to write an argumentative essay as a pre-test, 75 participants, who were categorized by their prior critical thinking levels, were assigned into three group types: heterogeneous, homogeneous high and homogeneous low groups. As a consequence, four types of students were considered their improvement before and after the experiment: high-level students in heterogeneous groups, lowlevel students in heterogeneous groups, high-level students in homogeneous groups, low-level students in homogeneous groups. The results demonstrated that learners improved their critical thinking level through collaborative writing, whether working with stronger or weaker peers. However, heterogeneous grouping showed superiority over homogeneous grouping at the low level. The results revealed that cooperative learning could be especially beneficial for low students. It is hoped that the findings of the present study will give teachers deep insights into group compositions in collaborative learning courses, and will help them make better group experiences for students.

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