Impact of Macroeconomic Shocks on Financial Performance and Risk Management: A Case Study of LPP SA During the COVID-19 Pandemic and the Ukraine War

Ewelina Sokołowska (), Mariusz Chmielewski and Anna Dziadkiewicz
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Ewelina Sokołowska: Department of Digital Economy and Finance, Faculty of Management and Economics, Gdańsk University of Technology, 80-233 Gdańsk, Poland
Mariusz Chmielewski: Department of Business Economics, Faculty of Management, University of Gdansk, 80-309 Gdańsk, Poland
Anna Dziadkiewicz: Department of Marketing, Faculty of Management, University of Gdansk, 80-309 Gdańsk, Poland

Risks, 2024, vol. 12, issue 12, 1-23

Abstract: This study analyses the impact of two major macroeconomic shocks—the COVID-19 pandemic and the Ukraine war—on the financial stability of LPP SA, a leading apparel company in Poland and Central and Eastern Europe. This research uses the coefficient of variation to assess changes in financial volatility and evaluates the effectiveness of LPP SA’s risk management strategies. The findings reveal that, while the COVID-19 pandemic had a more destabilising effect on the company’s performance, the Ukraine war’s impact was mitigated by strategic diversification and resource reallocation. The study’s implications are relevant for risk management practices in the apparel industry and other consumer-driven sectors.

Keywords: macroeconomic shocks; financial performance; risk management; COVID-19 pandemic; war in Ukraine; volatility analysis (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jrisks:v:12:y:2024:i:12:p:195-:d:1536064

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