Financial Sustainability and Value of Joint-Stock Companies from Food Industry in Central and Eastern Europe
The research presents the analysis of relations between financial sustainability and value of joint-stock companies from food industry in Central and Eastern Europe. Increase of volume of assets, shareholders’ equity and revenues demonstrated an improvement of financial sustainability and resulted i...
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| Format: | Article |
| Language: | English |
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Warsaw University of Life Sciences Press
2019-03-01
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| Series: | Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego |
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| Online Access: | https://prs.sggw.edu.pl/article/view/2674 |
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| _version_ | 1832540941767933952 |
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| author | Serhiy Zabolotnyy Natalia Wasilewska Mirosław Wasilewski |
| author_facet | Serhiy Zabolotnyy Natalia Wasilewska Mirosław Wasilewski |
| author_sort | Serhiy Zabolotnyy |
| collection | DOAJ |
| description | The research presents the analysis of relations between financial sustainability and value of joint-stock companies from food industry in Central and Eastern Europe. Increase of volume of assets, shareholders’ equity and revenues demonstrated an improvement of financial sustainability and resulted in growing valuations of companies in the study period. Sample business entities achieved relatively high liquidity and profitability that proved their financial sustainability in terms of risk and return. At the same time rising operating profit margins and liquidity ratios determined higher enterprise value of joint-stock companies. This emphasized a positive relation between enterprise value and financial sustainability. Joint-stock companies demonstrated a robust capital structure with a minor decrease of corporate debt in 2011-2015. However changes in sources of financing could provoke a trade-off between financial sustainability and enterprise value. According to a regression model factors positively influencing enterprise value included revenue, cash and cash equivalents, operating profit, current liabilities and shareholder’s equity. Stimulating revenue and increasing operating profit as well as maintaining higher cash balances improves financial sustainability while debt extension can significantly deteriorate continuity of business. |
| format | Article |
| id | doaj-art-1151e95f952b413c8d697113d933f97b |
| institution | Kabale University |
| issn | 2081-6960 2544-0659 |
| language | English |
| publishDate | 2019-03-01 |
| publisher | Warsaw University of Life Sciences Press |
| record_format | Article |
| series | Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego |
| spelling | doaj-art-1151e95f952b413c8d697113d933f97b2025-02-04T10:43:12ZengWarsaw University of Life Sciences PressZeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego2081-69602544-06592019-03-0119110.22630/PRS.2019.19.1.14Financial Sustainability and Value of Joint-Stock Companies from Food Industry in Central and Eastern EuropeSerhiy Zabolotnyy0Natalia Wasilewska1Mirosław Wasilewski2Warsaw University of Life Sciences – SGGWJan Kochanowski University in KielceWarsaw University of Life Sciences – SGGWThe research presents the analysis of relations between financial sustainability and value of joint-stock companies from food industry in Central and Eastern Europe. Increase of volume of assets, shareholders’ equity and revenues demonstrated an improvement of financial sustainability and resulted in growing valuations of companies in the study period. Sample business entities achieved relatively high liquidity and profitability that proved their financial sustainability in terms of risk and return. At the same time rising operating profit margins and liquidity ratios determined higher enterprise value of joint-stock companies. This emphasized a positive relation between enterprise value and financial sustainability. Joint-stock companies demonstrated a robust capital structure with a minor decrease of corporate debt in 2011-2015. However changes in sources of financing could provoke a trade-off between financial sustainability and enterprise value. According to a regression model factors positively influencing enterprise value included revenue, cash and cash equivalents, operating profit, current liabilities and shareholder’s equity. Stimulating revenue and increasing operating profit as well as maintaining higher cash balances improves financial sustainability while debt extension can significantly deteriorate continuity of business.https://prs.sggw.edu.pl/article/view/2674financial sustainabilityvaluefood industryCentral and Eastern Europe |
| spellingShingle | Serhiy Zabolotnyy Natalia Wasilewska Mirosław Wasilewski Financial Sustainability and Value of Joint-Stock Companies from Food Industry in Central and Eastern Europe Zeszyty Naukowe Szkoły Głównej Gospodarstwa Wiejskiego w Warszawie. Problemy Rolnictwa Światowego financial sustainability value food industry Central and Eastern Europe |
| title | Financial Sustainability and Value of Joint-Stock Companies from Food Industry in Central and Eastern Europe |
| title_full | Financial Sustainability and Value of Joint-Stock Companies from Food Industry in Central and Eastern Europe |
| title_fullStr | Financial Sustainability and Value of Joint-Stock Companies from Food Industry in Central and Eastern Europe |
| title_full_unstemmed | Financial Sustainability and Value of Joint-Stock Companies from Food Industry in Central and Eastern Europe |
| title_short | Financial Sustainability and Value of Joint-Stock Companies from Food Industry in Central and Eastern Europe |
| title_sort | financial sustainability and value of joint stock companies from food industry in central and eastern europe |
| topic | financial sustainability value food industry Central and Eastern Europe |
| url | https://prs.sggw.edu.pl/article/view/2674 |
| work_keys_str_mv | AT serhiyzabolotnyy financialsustainabilityandvalueofjointstockcompaniesfromfoodindustryincentralandeasterneurope AT nataliawasilewska financialsustainabilityandvalueofjointstockcompaniesfromfoodindustryincentralandeasterneurope AT mirosławwasilewski financialsustainabilityandvalueofjointstockcompaniesfromfoodindustryincentralandeasterneurope |