The Impact of the Covid-19 Pandemic on the Financial Performance of Public Companies in Poland
Purpose: This paper sets out to analyze the impact of the pandemic on selected sectors of the economy and specific companies within the industries most affected by the pandemic-related crisis. Approach/Methodology/Design: The study covers selected parameters of financial performance (operating revenues, operating profit/loss, gross profit, total cash flow, cash flow from operating activities, cash flow from investing activities, net cash flow ) on a sample of 115 companies listed on the Warsaw Stock Exchange (WSE) for the period of the first half of 2019 and the first half of 2020. Findings: The results confirm that the exogenous demand and supply side shock has had a varied impact on sectors of the economy and different companies within the same industries. Large enterprises cope better with the effects of the pandemic. Practical Implications: This research and its results may be helpful for managers in crisis management in enterprises and for the government in adjusting the scope and forms of support for enterprises affected by the pandemic. Originality/Value: This study fills a gap in the literature by analyzing the impact of the economic crisis on the financial results of individual industries and enterprises in Poland. The research pointed out that the impact of the pandemic on the financial situation of enterprises within one industry isn't uniform and one-way (some companies improve their financial performance and others post a significant deterioration in their financial standing) and the large enterprises cope better with the effects of the demand and supply side shock.