THE RATIO ANALYSIS OF FINANCIAL BALANCE AND BANKRUPTCY RISK OF THE SILESIAN COMPANIES IN TIME OF THE GLOBAL FINANCIAL CRISIS

Joanna Blach and Monika Wieczorek-Kosmala ()
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Joanna Blach: University of Economics in Katowice, Poland
Monika Wieczorek-Kosmala: University of Economics in Katowice, Poland

Equilibrium. Quarterly Journal of Economics and Economic Policy, 2012, vol. 7, issue 3, 111-126

Abstract: The financial crisis undoubtedly exerted much pressure on the companies operating in Poland. Thus, it is important to undertake researches that reveal the paths and strength of financial crisis transmission with regard to the business enti-ties. This paper presents partial results of the research dedicated to the analysis of the impact of financial crisis on the financial situation of companies operating in the Silesian Voivodship. It analyzes and discusses the general changes of the two sets of financial ratios that inform about the general financial condition of the business: the financial balance and the level of bankruptcy risk. The paper aims at analyzing the changes of the financial situation and bankruptcy risk of a population of Silesian companies with regard to the improvement or deterioration. In particular, it aims at reflecting the differences visible with the application of aggregated data characterizing the population of Silesian companies as compared to the population of all companies operating in Poland. The study is based the application of a part of authors’ self-developed method – the CFS Watch, which consists of five analytical modules. In the study, two modules are applied: the GPA Module (General Performance Assessment) with regard to financial balance and the MDA Module (Multidiscriminant Analysis) with regard to the bankruptcy risk. Grounded on the theory of financial analysis and its application for corporate finance purposes, the modules are based on the selected financial ratios that are a subject for further comparison regarding their height and dynamics of changes. The analytical modules are applied for aggregated data provided by the Polish Central Statistical Office.

Keywords: financial analysis; financial balance; bankruptcy risk; multidiscriminant analysis; financial crisis (search for similar items in EconPapers)
JEL-codes: G32 G33 (search for similar items in EconPapers)
Date: 2012
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Persistent link: https://EconPapers.repec.org/RePEc:pes:ierequ:v:7:y:2012:i:3:p:111-126

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