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

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.

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The Corporate Social Responsibility of Polish Energy Companies

Energies ◽

10.3390/en14133815 ◽

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.

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Non-financial reporting of banks from a socially responsible perspective – examples from WIG-ESG

Zeszyty Teoretyczne Rachunkowości ◽

10.5604/01.3001.0014.3603 ◽

2020 ◽

Vol 108 (164) ◽

pp. 207-228

Author(s):

Magdalena Wójcik-Jurkiewicz

Keyword(s):

Social Responsibility ◽

Financial Reporting ◽

Stock Exchange ◽

Stock Index ◽

Socially Responsible ◽

Financial Reports ◽

Reporting Practices ◽

Anal Ysis ◽

Warsaw Stock Exchange ◽

State Of Affairs

The purpose of the article is to assess the non-financial reporting practices used by banks belonging to the new WIG-ESG stock index on the Warsaw Stock Exchange, indicating the scope, form, and mandatory standards. Until 2017, non-financial reporting in EU countries, including Poland, was established on a voluntary basis and was not regulated by law. Directive 2014/95/EU on the disclosure of non-financial and diversity information (effective from 1 January 2017) and its transposition into the Accounting Act are considered a turning point. The article follows previous research conducted by the author (nearly 100 reports of non-financial banks), which resulted in an attempt to assess the current state of affairs, starting with banks. The author decided to analyze eight reports of non-financial banks included in the WIG-ESG index for 2019, considering those banks to be "socially responsible", and treating this sample as representative. The research methods used include a literature review, content analysis, comparative anal-ysis, and the deduction method. The article is one of the first studies to assess banks' non-financial reports after January 1, 2017, and thus it fills the research gap in this area. The three parameters proposed by the author in the area of social responsibility were selected correctly and will constitute a significant contribu-tion to further, extended research in the field of non-financial reporting, adding further criteria for the as-sessment of companies in the area of social responsibility.

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Comparative analysis of economic efficiency of Polish and German listed companies

Oeconomia Copernicana ◽

10.12775/oec.2015.013 ◽

2015 ◽

Vol 6 (2) ◽

pp. 67 ◽

Cited By ~ 1

Author(s):

Artur Sajnóg

Keyword(s):

Comparative Analysis ◽

Empirical Research ◽

Economic Efficiency ◽

Stock Exchange ◽

Research Problem ◽

Point Of View ◽

Warsaw Stock Exchange ◽

Assessment Measures ◽

Profitability Ratios ◽

Research Period

The main subject of theoretical-empirical study presented in this paper is economic efficiency of companies listed on the Polish and German capital market. The discussed research problem was investigated in the form of a comparative analysis and realized in two parts. The discussion presented in the first part depicts mainly theoretical reflections on the essence and assessment measures of companies’ economic efficiency. The second part presents the results of a comparative empirical research on economic efficiency of the companies listed on the Warsaw Stock Exchange and included in the WIG30 index as well as the companies listed on the Frankfurt Stock Exchange, which belong to the DAX index. The research period comprises years between 2004-2013. A comparative analysis of economic efficiency of the companies was conducted using a traditional ratio analysis and the nonparametric DEA method. The results of the empirical research confirm that German companies achieved significantly higher values of basic economic categories in the analysed decade, financial results in particular; however, their generated profits did not reflect in higher values of profitability ratios. Polish companies performed much better as they also showed higher efficiency from the DEA’s point of view.

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Does Warsaw Stock Exchange value corporate social responsibility?

Social Responsibility Journal ◽

10.1108/srj-08-2014-0109 ◽

2016 ◽

Vol 12 (3) ◽

pp. 611-622 ◽

Cited By ~ 2

Author(s):

Jacek Lipiec

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Stock Exchange ◽

Abnormal Returns ◽

Future Research ◽

Public Companies ◽

Content Type ◽

Exchange Value ◽

Warsaw Stock Exchange ◽

Corporate Social

Purpose This paper aims to examine the performance of corporate social responsibility (CSR) portfolio at the Warsaw Stock Exchange. Design/methodology/approach This paper uses the CSR portfolio of public companies that was selected in a three-step procedure. In total, 23 companies were selected and formed a CSR portfolio that is traded on the Warsaw Stock Exchange under the Respect Index. The Capital Asset Pricing Model (CAPM) is used to compare returns of CSR companies with respect to the market. The performance of this portfolio is measured in the period from 2010 to 2012. Findings This paper finds that the CSR portfolio measured under the Respect Index outperformed market in all time periods from 2010 to 2012. In addition, in 2010, the CSR portfolio exceptionally outperformed the market by almost 80 per cent. In 2011, even though the market was down, the CSR portfolio reported lesser losses: −0.93 vs −1.73 per cent. In the following year, the market regained and the CSR portfolio again outperformed the market by 14 per cent. This paper also finds that the CSR portfolio is more sensitive to systematic risk than to specific risk. In addition, the CSR securities move according to the market trend. Research limitations/implications The limitation of this paper is attributed to a cause-and-effect relationship. In other words, it did not answer whether adopting CSR led to higher profitability or profitability reflected an awareness of market conditions that favored the adoption of CSR. The future research should focus on this issue and indicate whether investors prioritize CSR over profits or vice versa. Practical implications The results indicate that investments in CSR portfolio companies bring abnormal returns to investors. In addition, the CSR portfolio may resist market downturns and even bring exceptional profits to investors. Originality/value This study explains the CSR portfolio’s performance on the Warsaw Stock Exchange by using the CAPM.

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

Energies ◽

10.3390/en15010158 ◽

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.

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Sector Diversification of Statements of Comprehensive Income Illustrated with the Example of Entities Listed on the Warsaw Stock Exchange

Folia Oeconomica Stetinensia ◽

10.2478/foli-2019-0018 ◽

2019 ◽

Vol 19 (2) ◽

pp. 134-148

Author(s):

Piotr Prewysz-Kwinto

Keyword(s):

Stock Exchange ◽

Financial Statements ◽

Descriptive Statistics ◽

Accounting Standard ◽

Comprehensive Income ◽

Warsaw Stock Exchange ◽

Other Comprehensive Income ◽

High Level ◽

International Accounting Standard ◽

The Way

Abstract Research background: The rules of preparing the statement of comprehensive income are included in the International Accounting Standard 1 “Presentation of Financial Statements” which gives a lot of freedom in the way information is presented in these documents. So the following question was asked whether the way of presenting information regarding results between enterprises representing the same industries manifests similarities or differences? Purpose: The main aim of this paper is to verify whether despite the high level of flexibility given by IAS 1 in presenting information, the statements of comprehensive income prepared by entities belonging to the same sectors, manifest significant similarities. Research methodology: The research covered the financial statements prepared for the financial years 2015–2017 and by almost 200 entities listed on the Warsaw Stock Exchange and representing 14 different industries. The method of descriptive statistics was used in the quantitative analysis. Results: The results obtained allowed to show many similarities in statements drawn up by entities representing the same sectors concerning among others: the forms of drawing up this document, the variant of a statement, its internal construction and presentation of other comprehensive income. Novelty: Research on sector differentiation of information in the statement of comprehensive income on a group of entities listed on the Warsaw Stock Exchange has not been conducted yet.

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CORPORATE SOCIAL RESPONSIBILITY AND THE MANDATORY INDIAN LEGAL REGIME: UNDERSTANDING WILLINGNESS OF CORPORATIONS

EPRA International Journal of Economic and Business Review ◽

10.36713/epra3436 ◽

2020 ◽

pp. 17-23

Author(s):

Rajdip Bhadra Chaudhuri

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Stakeholder Theory ◽

Paradigm Shift ◽

Stock Exchange ◽

Theoretical Construct ◽

Legal Regime ◽

Socially Responsible ◽

Doing Business ◽

Corporate Social

The theoretical construct of Corporate Social Responsibility has been developed by authors in the 20th century whereas philanthropic activities have been associated with corporations since its birth. Archie B. Carroll developed 4 dimensions of corporate social responsibility: economic, legal, ethical and philanthropic. This has further garnered the scope of understanding CSR from different perspective. The study aims to harmonize the development of corporate social responsibility focusing on a model based approach depicting a paradigm shift from shareholder to stakeholder theory of doing business. The research also ferrets out the moral and legal dimensions of CSR in India. A study has been made to understand the CSR fund utilization by twenty companies from 2014 to 2018 listed in the Bombay Stock Exchange. This study helps in understanding the willingness of corporations to spend towards CSR activities and subsequently measures have also been suggested for better engagement of corporations to be more socially responsible. KEYWORDS: Corporate social responsibility, Fund, Listed companies, Stakeholder, Willingness

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APPLICATION OF SYNTHETIC TAXONOMIC MEASURE TMAI FOR THE ASSESSMENT OF INVESTMENT ATTRACTIVENESS OF THE SELECTED FOOD INDUSTRY COMPANIES LISTED ON THE WARSAW STOCK EXCHANGE IN THE YEARS 2013 – 2016

Proccedings of International Scientific Conference "RURAL DEVELOPMENT 2017" ◽

10.15544/rd.2017.161 ◽

2018 ◽

Author(s):

Monika ZIELIŃSKA-SITKIEWICZ ◽

Mariola CHRZANOWSKA

Keyword(s):

Food Industry ◽

Stock Exchange ◽

Point Of View ◽

Food Sector ◽

Financial Condition ◽

Beer Industry ◽

Warsaw Stock Exchange ◽

Polish Economy ◽

Profitability Ratios ◽

Agricultural Food

The food sector is one of the most important and fastest growing branches of the Polish economy. It employs almost 15% of all employees employed in the industry. Polish manufacturers are characterised by high competitiveness both in the EU and in the world. The macroeconomic environment in recent years has been relatively stable for the development of the food industry production in Poland, but the dynamics of agricultural-food products has experienced a slight slowdown. There were also fluctuations in profitability ratios in the sector, which may have been somewhat alarming for the investors. The article attempted to evaluate the investment attractiveness of 24 joint stock companies in the food sector, representing various industries, listed on the Warsaw Stock Exchange. The Taxonomic Measure of the Attractiveness of Investments (TMAI) and the company rankings were created for the years 2013 – 2016. The results showed that the Wawel and Astarta companies were at the top of the rankings in the studied years, representing the confectionery and the sugar sector, and the Żywiec company from the beer industry. The meat and fish processing companies were more or less centred on the scale. The companies KSG Argo, Milkiland, Wilbo, Pepees and Pamapol involved in the agricultural-food production and processing received the poorest evaluations of the investment attractiveness. The synthetic taxonomic TMAI measure makes it possible to build company rankings within the analyzed group, from the point of view of the assessment of the financial condition and investment attractiveness of the surveyed companies. It can provide additional help in assessing the company’s situation, e.g., for the investors.

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Cost of Equity Estimation in Fuel and Energy Sector Companies Based on CAPM

E3S Web of Conferences ◽

10.1051/e3sconf/20183501008 ◽

2018 ◽

Vol 35 ◽

pp. 01008 ◽

Cited By ~ 1

Author(s):

Diana Kozieł ◽

Stanisław Pawłowski ◽

Arkadiusz Kustra

Keyword(s):

Sensitivity Analysis ◽

Stock Exchange ◽

Energy Sector ◽

Capital Asset Pricing ◽

Cost Of Equity ◽

Financing Structure ◽

Warsaw Stock Exchange ◽

Energy Companies ◽

Exchange Data ◽

Fuel And Energy Sector

The article presents cost of equity estimation of capital groups from the fuel and energy sector, listed at the Warsaw Stock Exchange, based on the Capital Asset Pricing Model (CAPM). The objective of the article was to perform a valuation of equity with the application of CAPM, based on actual financial data and stock exchange data and to carry out a sensitivity analysis of such cost, depending on the financing structure of the entity. The objective of the article formulated in this manner has determined its’ structure. It focuses on presentation of substantive analyses related to the core of equity and methods of estimating its’ costs, with special attention given to the CAPM. In the practical section, estimation of cost was performed according to the CAPM methodology, based on the example of leading fuel and energy companies, such as Tauron GE and PGE. Simultaneously, sensitivity analysis of such cost was performed depending on the structure of financing the company’s operation.

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Pengaruh Capital Intensity, Karakteristik Perusahaan, Dan CSR Disclosure Terhadap Penghindaran Pajak Pada Perusahaan Manufaktur

Owner ◽

10.33395/owner.v6i1.637 ◽

2022 ◽

Vol 6 (1) ◽

pp. 677-689

Author(s):

Anita Ade Rahma ◽

Nila Pratiwi ◽

Hilda Mary ◽

Indriyenni Indriyenni

Keyword(s):

Corporate Social Responsibility ◽

Social Responsibility ◽

Stock Exchange ◽

Tax Avoidance ◽

Capital Intensity ◽

Manufacturing Companies ◽

Csr Disclosure ◽

Corporate Social ◽

Research Period ◽

Positive Effect

This study aims to determine the effect of capital intensity, company characteristics, and disclosure of corporate social responsibility on tax avoidance with leverage as a moderating variable in manufacturing companies listed on the Indonesia Stock Exchange in the period 2015-2017. The sample in this study was taken by purposive sampling method in manufacturing companies listed on the Indonesia Stock Exchange in the period 2015-2017. The number of samples used was 82 companies. The method of analysis of this study is multiple linear regression using eviews 9. The results showed that the intensity of capital had a positive and significant effect on tax avoidance, the company's characteristics had a negative and significant effect on tax avoidance, the disclosure of corporate social responsibility had a positive effect and not significant impact on tax avoidance. Leverage is able to moderate the influence of capital intensity on tax avoidance, leverage is able to moderate the effect of corporate characteristics on tax avoidance while leverage is not a variable that is able to moderate the disclosure effect of corporate social responsibility on tax avoidance. Finally, the authors suggest that tax avoidance considerations can be used other than those used by researchers. For the calculation of capital intensity, company characteristics, and disclosure of CSR can use other proxy proxies other than those used by researchers. And for the next researcher, it is expected to be able to add variables related to the variables affected, and extend the research period.

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