Information Value of Individual and Consolidated Financial Statements for Indicative Liquidity Assessment of Polish Energy Groups in 2018–2021

Leszek Borowiec, Marzena Kacprzak () and Agnieszka Król
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Leszek Borowiec: Faculty of Management, University of Warsaw, Szturmowa Street 1/3, 02-678 Warszawa, Poland
Marzena Kacprzak: Institute of Economics and Finance, Warsaw University of Life Sciences, Nowoursynowska Street 166, 02-787 Warsaw, Poland
Agnieszka Król: Faculty of Management and Technical Sciences, Warsaw Management University, Kawęczyńska Street 36, 03-772 Warsaw, Poland

Energies, 2023, vol. 16, issue 9, 1-16

Abstract: Electricity is currently one of the most popular sources of energy. Considering such widespread use of electric energy, we may ask, what is the economic cost of producing and supplying it? The climate crisis and the social pressure associated with it have triggered the necessity to make further investments in renewable and low-emission energy sources, while the COVID-19 pandemic has abruptly limited electricity consumption in industry. All these factors can have an impact on disruptions or loss in the liquidity of companies responsible for supplying electricity to end users. Guaranteeing cash flow for energy sector entities is a prerequisite for energy supply continuity. In this context, the selection and application of reliable sources of information are vital for the management of the financial liquidity of energy sector entities. The aim of this article is to prove the value of the financial information of individual (IFR) and consolidated financial statements (CFR) essential for the indicative liquidity assessment of Polish energy groups in 2018–2021. The hypothesis of this study is that individual and consolidated statements do not offer coincident analytical data due to the diversified role of their parent undertakings. We have applied indicative liquidity assessment analysis from a static and dynamic perspective to 2018–2021, on the basis of individual and consolidated financial statements. The results clearly show high dysfunction in the application of indicative liquidity assessment in the case of the individual financial statement of the parent company. This is mainly due to the role parent companies play in Polish energy sector groups, as they are mainly responsible for support processes.

Keywords: consolidated financial statement of an energy group; managing financial liquidity; indicative analysis; financial information value; individual financial statement; managing financial information (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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